Purrfect! Pet food leaps on posh pouches

Who’s a good boy, then? The petcare category is defying the downturn and deflation in grocery with value growth driven chiefly by the development of posher and pricier products in convenient pouches.

Market leader Felix has been best in show, with value growth of 7.6% - or £17.7m -accompanied by more modest volume growth. The success is primarily the result of strong sales of the premium As Good As It Gets range in single-serve formats, and snacks such as Felix Twists, which have racked up £1m since launch in the summer.

Felix’s gain has been Whiskas’ loss: sales have crashed almost £30m, prompting Mars Petcare to reformulate the recipes in June and fork out £10m on an ad push to breathe life back into the brand.

With Felix selling at a higher price, on average, than Whiskas, this has contributed to sector price rises. As has the continued growth of high-end indulgent ranges Gourmet and Sheba, which have turned in combined growth of more than £20m in the past year. These brands’ pouched offerings sell for more than double the market average, although it’s worth noting their prices have fallen considerably in the past year as competition has increased.

Another source of value gain is the continued growth of pet treats.

“Treats offer shoppers an additional food product to the core meal and therefore many are bought on impulse,” says Purina market development director Liz Wood. “To maximise sales, retailers are increasingly merchandising treats in a prominent and eyecatching location.”

Functionality is of growing importance in treats. Dreamies Anti Hairballs have helped drive some of the brand’s £1.2m growth. Meanwhile, Pedigree DentaStix has held on to the top spot in treats, with value up 3.1% on volumes up 3.3%, a performance buoyed partly by Dentaflex, which is designed for keeping dogs’ teeth plaque and tartar-free, and was named Top Launch in The Grocer’s 2014 Top Products Survey.

Dogfood’s top dog, meanwhile, has its tail between its legs, with sales of Bakers Complete down £14m year on year as a result of the decline in dry dogfood.

“The performance of dry has largely been impacted by the change in dog ownership,” says Tom Page, managing director of Wagg Foods, which has seen a slight dip in sales of its Wagg Complete brand but more than £5m growth in Harringtons Complete.

“There are fewer dogs to feed and dogs are increasingly smaller in size so don’t require as much food,” added Page.

All this suggests that volume growth will be a challenge going forward, so adding value will be the name of the game in 2016.