J. M. Smucker aims to further their position in the pet treat category by expanding their range of Milk-Bone dog chews, while adding premium Nature’s Menu treats and Rachael Ray Nutrish dental chews, said Dave Lemmon, Smucker’s president of pet food and pet snacks, during the company’s investors’ day presentation.
“We are the market leader in pet snacks with our iconic Milk-Bone brand,” he said.
Pet snacks now make up 26 percent of expected fiscal year 2019 net sales in the pet category for Smucker. Smucker analysts expect pet food and treat sales to grow by 34 percent year over year in net sales.
“Pet is the largest and fastest growing categories in which we participate,” said Lemmon.
Dog and cat treats make up a disproportionate amount of the profitability of the pet segment, he said, although dog food makes up the largest portion of net sales at 47 percent, followed by cat food at 27 percent.
New pet treats from J.M. Smucker in 2019
Smucker plans to capitalize on that profitability by introducing several new dog treats in January 2019. The company expects an incremental increase of US$100 million in net sales from those new introductions and other new pet products.
Milk-Bone currently enjoys 60 percent market share in dog biscuits, said Lemmon. Smucker hopes to press that lead by leveraging the pet parenting and humanization trends.
Pet owners, especially those who consider themselves pet parents, feel guilty about leaving pets at home for extended periods or having limited time to engage with their pets, he said. So, Smuckers new treats will take longer for a dog to devour, thus extending the amount of time the pet is kept entertained and that owners interact with the dogs.
One new dog chew, Milk-Bone Gnaw will take dogs 15 to 20 minutes to work their way through. Smucker will market these treats as rawhide alternatives, made from chicken.
Another new pet product, Milk-Bones Wonder Bones, will have a curved shape meant to provide enrichment as it wobbles. Dogs will need from four to six minutes to eat these chews.
Smucker will introduce Nature’s Recipe True Treats as an entry into the limited-ingredient pet treat segment, which is growing at seven percent annually, Lemmon said. Smucker will market these treats as containing chicken or turkey as the first ingredient. The treats will also be grain free, with no artificial flavors, colors or preservatives.
In the dental dog treat arena, Smucker will introduce Rachael Ray Nutrish Smoochies. The dental treats will feature recipes inspired by celebrity chef Rachel Ray and come in either biscuit or brush form.