Here's how the $30 billion pet food market is innovating

in the thirty billion dollar pet food market and Frank Holland joins us with this with a story of going fresh for your pet some of this stuff kind of looks like you could eat it Frank I'm not sure though but it looks great for dogs hey good morning Jay you know fresh pet food is one of the fastest-growing segments in the pet care industry and it's become the standard to have it with human great ingredients that means you at home you could actually eat that that's the translation I'm just gonna do it just get out the way perfectly safe film take a look this kitchen inside of a Petco store this is part of a partnership with just food for dogs Petco the second largest pet care chain in the country stop selling food with artificial ingredients last month as the decision the company said will reduce annual revenues by 100 million dollars every year however it's part of an overall strategy to attract more health-conscious pet parents and this is both going to increase customer traffic and the average purchase by customer by mid-single digits Petco also aiming to become the leader in the fresh pet food segment we're gonna drive share growth and that space me we're gonna outpace the market so you're talking well above you're talking twenty thirty forty percent growth so fresh pet is the only publicly traded company in this fresh segment it reported twenty eight percent revenue growth last quarter its food comes in well just about 538 per pound there's also other competitors like grocery pup their foods almost eight dollars a pound there's also pet played Petco also offering this offering here with just food for dogs overall the average price for for dry pet food kibble as it's also known that's about two dollars and nineteen cents per pound so there you go what unique and different is that some of the guys that do online they make their food in a big kitchen that you're not allowed to visit you know you can't see the food etc we're about transparency and right now fresh pet food that's about 2% of that overall 30 billion dollar u.s. market however according to Nielsen estimates the segment has grown 70% since 2015 that is expected to slow down a bit still Oppenheimer estimates it's going to grow into a billion dollar business over the next few years Frank which one of those did you eat because we've got a bunch of them here on set and I just read the one it I mean it looks like real food but it does have turkey liver in it yeah it is real food I mean that's the whole idea it's human great ingredients I don't know what this is actually called but this one has some Turkey it has some macaroni in it also some cranberry same one he doesn't try the same one no we've got the same one that was it uh you know what dogs seem to love it I don't think it's really seasoned and flavor for people but it is edible you know you saw me eat it it's not gonna hurt you that's the whole idea is that a lot of people they see their pet is a family member they want their petty just as well you're gonna eat the same thing as your dog Frankie you give your dog what you eat you don't eat what your dog eats I mean I my dogs eat all kinds of you know that we get that they get that you know what they shouldn't people say yeah so maybe this makes sense but I still don't think we need to eat this Frank you know this is typical though I mean I hear dogs getting Prozac and you know laying down on a couch and barking to their therapist I mean people go crazy for their pets but including you including me but but I went to $2 Kimmel but you dollar own Joe tonight I said 91% of Americans see their pet as a member of the family so you're not alone oh yeah three of them and but $2 kibble with two German Shepherds is like spent it's still unbelievable when I go in a vegan dog what is vegan dog or that exactly means this company have any people give CVD to dogs and and I mean it's crazy yeah people do all kinds of things you know UBS did a study last year they said 25 percent of Americans they say that the nutrition of the dog food of the pet food overall is your number-one concern not price and not some other factor so people really care about their dogs this is healthier do what I eat wild caught Pacific cod sweet potatoes russet potatoes green beans broccoli grain fries a lot of veggies here if you look over here there's there's Brussels sprouts there's all kinds of things you

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