Specialist
Former director at Partner in Pet Food Hungaria Kft
Agenda
- Pet care industry overview, highlighting TAM, pet population growth and lifetime value of a pet
- Partner in Pet Food’s top-line growth outlook and portfolio assessment, touching on pricing and volume dynamics across categories amid a potential economic downturn
- Channel dynamics and evolution, including ecommerce penetration and D2C outlook
- Supply and cost headwinds and subsequent margin implications, discussing pricing dynamics between manufacturers and retailers
- M&A outlook, highlighting opportunities for Partner in Pet Food
Questions
1.
Could you estimate the TAM for pet care in Europe and compare it to 2019, to understand its growth and evolution?
2.
What is your 2-4-year outlook for pet population growth, given you touched on an anomaly here during coronavirus? Are you expecting anything similar What’s a normalised population growth rate?
3.
What might your pet population growth outlook mean for pet ownership penetration rates? What part of the population will be a first-time pet owner vs might not become one?
4.
You said first-time pet owners might reconsider getting a pet because of the economics around it. What do you think this means for pet population penetration rates over the next 2-4 years as we potentially enter an economic downturn?
5.
You said food sales in the pet care market grew EUR 3bn during coronavirus. What is your 2-4-year growth outlook for YoY estimates? As you’ve mentioned, 10 years looks great, but maybe 2-4 is a more predictable number. Would you agree?
6.
To clarify, when you mentioned the food market is around EUR 20bn, would this include snacks and additional or are we just talking about food?
7.
You said the lifetime of a pet is 10 years on average. What might be the total lifetime value of a pet and what proportion of this value is spent on food vs accessories and services?
8.
Could you quantify the TAM for the dog and cat population in Europe, given it seems Partner in Pet Food is mainly targeting these two animals?
9.
What is your 2-4-year organic growth outlook for Partner in Pet Food, given you’ve outlined such a positive picture for the market?
10.
What would you say are the 2-3 key drivers of organic growth for Partner in Pet Food, aside from its private label exposure?
11.
Could you break down Partner in Pet Food’s portfolio? You mentioned the exposure to private label, so
could you estimate the sales mix between private label and branded products for the company?
12.
Branded products are obviously more margin-beneficial vs private label. Could you estimate the rough
average difference in these margins for Partner in Pet Food?
13.
Is any particular category between private label and branded more skewed towards dry or wet food for
Partner in Pet Food?
14.
What scope is there for premiumisation within Partner in Pet Food’s portfolio across branded and private label?
15.
How would you assess Partner in Pet Food’s ability to keep in touch with market trends and potentially be a frontrunner in innovation? Innovation seems to be a big part of premiumisation.
16.
How successful could Partner in Pet Food be in innovation? How does the company stand against large branded manufacturers?
17.
Are there any notable gaps or any dead weight within Partner in Pet Food’s portfolio that it should review?
18.
How easy or difficult would it be for Partner in Pet Food to grow a presence in the Netherlands, given it already has manufacturing capabilities there?
19.
How would you assess Partner in Pet Food’s portfolio vs other private label competitors and potentially other branded players in the market?
20.
You said you’ve started to see trends in consumers shifting into private label throughout an economic downturn. How might Partner in Pet Food be positioned to capture this consumer trend in the markets that the company is currently strong in?
21.
What is the risk of Partner in Pet Food consumers down-trading to other private label manufacturers? You touched on the dynamic that the company might lose in branded but gain on private label. Could you outline the consumer switching behaviour?
22.
You referenced the acquisitions Partner in Pet Food has made in recent years. How would you evaluate the company’s acquisition of Doggy, agreed in July 2020? What’s the growth opportunity and what are the key challenges?
23.
You touched on Partner in Pet Food’s January 2021 acquisition of Giuntini to help fill a gap in the company’s snacks portfolio. Could you discuss the potential rationale behind this acquisition, in addition to the strengths, opportunities and challenges?
24.
Would you expect Giuntini to operate relatively siloed from Partner in Pet Food, as Doggy might do, or is this more of an integration case?
25.
You highlighted Partner in Pet Food’s January 2022 acquisition of Mispol was to fill a production gap. How would you assess this acquisition and the key growth opportunities on the packaging side?
26.
You said online penetration has grown double digits. What might online penetration be in the pet care industry and what could this reach in the coming years?
27.
Could you outline the magnitude of inflationary pressures that Partner in Pet Food or other pet food manufacturers might be facing today across multiple P&L segments, including raw materials, packaging and logistics?
28.
What price increases do you think Partner in Pet Food or other manufacturers could pass onto retailers in the current climate where consumers are also a bit more price sensitive? You touched on manufacturers’ new approach in dealing with retailers.
29.
Partner in Pet Food has obviously been quite active with M&A in the pet care industry. What further consolidation do you expect to see over the next 2-4 years across manufacturers or the broader industry?
30.
Do you think that there is potential for Partner in Pet Food to be acquired?
31.
Is there anything that a potential new sponsor might want to bear in mind when looking at Partner in Pet Food as a business?
32.
Could you estimate the rough CAPEX requirements for factory refurbishment?
33.
Could you summarise your top three takeaways from today’s Forum Interview around Partner in Pet Food and the broader pet care industry?
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