Weekly companion animal news for December 16: DNA tests, antibiotics, new markets
55% of clients visit independent practices, pet marketers should focus more on baby boomers, reports show
Fifty-five percent of dog or cat owners who sought veterinary care within the past year went to local, independent clinics, although these clinics are increasingly facing competition, according to market research firm Packaged Facts. Three-fourths of baby boomers (ages 55 to 74) favored traditional practices, compared with about 4 in 10 millennials or members of Generation Z (ages 18 to 39). Independent practices are competing with “alternative veterinary care formats,” according to the report, featured in an article by Today’s Veterinary Business (also published by NAVC). These alternative care formats include specialty and emergency clinics, large networks such as Banfield and VCA, smaller in-store chains like Thrive and PetIQ, and telemedicine providers. And in other marketing news: Millennials are a popular target for marketing, but pet retailers should focus on baby boomers too. “Over the past decade, the 55- to 74-year-old age group (baby boomers) is the only segment to have experienced an increase in the pet ownership rate,” according to another new report from Packaged Facts, highlighted by Pet Product News. “Between 2008 and 2018 the percent of boomers owning a pet grew from 50% to 54%. At the same time, the pet ownership rate among 18- to 39-year-olds declined from 63% to 61%, and the percent of 40- to 54-year-olds owning pets remained the same (64% versus 64%).”
5 factors affecting the pet industry today and what’s to come
The U.S. pet industry saw sales of $90.1 billion in 2018 and is projected to grow 4.3% in 2019, to about $94 billion, David Lummis, lead pet market analyst at Packaged Facts, writes in Pet Product News. But that growth rate is lower than previous years, and higher than what’s predicted for the coming years. Lummis describes several key trends affecting the pet industry: 1) E-commerce is reshaping the industry. 2) Pet food sales are moderating because of challenges like e-commerce and health concerns over grain-free dog food. 3) Nonfood pet product sales are growing, thanks to e-commerce and new technology. 4) Veterinary services are in relatively high demand and are expected to continue growing as vets and clients are increasingly connected. 5) Demand for nonmedical pet care services, like boarding, grooming and pet insurance, is also growing. Overall, sales in the pet industry are expected to reach $110 billion in 2023, Lummis writes.
J.M. Smucker recalls cat food over unspecified ingredient
The J.M. Smucker Company voluntarily recalled specific lots of one wet, canned cat food due to health concerns potentially associated with unspecified ingredients believed to not meet the company’s quality and safety standards. The product is Special Kitty Mixed Grill Dinner Pate, which is sold individually as well as part of variety packs. Ingesting the affected product may cause nausea with excessive salivation, diarrhea or vomiting, and more severe symptoms like difficulty walking, seizures and, in extreme situations, death. Pet owners are encouraged to contact their veterinarian immediately if their cat displays any of these symptoms. Aside from this product, no Special Kitty products are affected. The investigation so far indicates that the affected product appears to have been manufactured in a single day. The recall is being conducted in cooperation with the U.S. Food and Drug Administration, Petfood Industry reports.
KindredBio and Butterfly Network partner to distribute handheld ultrasound tool
Biopharmaceutical company Kindred Biosciences and Butterfly Network announced an affiliate relationship to make Butterfly’s ultrasound tool, the iQ Vet, available to veterinarians in the United States. Under the agreement, doctors will be able to purchase Butterfly iQ—a handheld, veterinary ultrasound device—by working with their KindredBio representative. Butterfly last month announced the availability of the iQ Vet, a handheld ultrasound tool that connects to smartphones and can be used to scan small and large animals. It costs about $2,000 plus subscription.
AAVMC, MSD Animal Health announce antimicrobial resistance grant project
The Association of American Veterinary Medical Colleges and MSD Animal Health (Merck) are partnering on an international grant program to help mitigate global antimicrobial resistance, according to the AAVMC. Administered through the AAVMC’s Council on International Veterinary Medical Education, the MSD Animal Health CIVME Antimicrobial Stewardship Grant program seeks to improve instruction related to antimicrobial resistance in educational institutions around the world. The program will focus on antibiotic stewardship and emphasize disease prevention through improved vaccination protocols. Administrators hope to encourage multi-university collaboration, according to the announcement. Total project budgets shouldn’t exceed $10,000 and will be awarded for a maximum period of 24 months. The deadline for grant submission is January 30, 2020.
Pet Supplies Plus plans expansion after surpassing $1B sales mark
Pet Supplies Plus expects to surpass $1 billion in sales this year and is now launching ambitious expansion plans, Crain’s reports. The retailer, which has nearly 500 stores, plans to open 50 to 70 more stores a year for the next several years, with 150 currently planned. Right now, 55% of the chain’s stores are franchised, but CEO Chris Rowland anticipates 90% of the new locations will be franchised. Part of the expansion strategy involves converting small businesses into franchisees. One Pennsylvania store reportedly saw a 25% sales increase after becoming a franchisee, while another agreement, currently in process, could bring a six-store upstate New York chain into the company’s fold. “If we can help a local independent that’s been in the local market in 10-20 years but is struggling because of e-commerce and a more competitive market, can’t keep up with tech…it became almost a no-brainer for us,” Rowland said.
VCA launches online portal for clients
VCA Animal Hospitals, a network of more than 900 veterinary hospitals in the United States and Canada, announced the launch of the myVCA patient portal and online store, an “integrated digital pet health experience for VCA clients,” according to the announcement. The patient portal allows clients access to online appointment bookings, prescription refills, automatic reminders, and educational articles relevant to their pet’s specific health needs. From the store, clients can subscribe to prescription refills and other pet health-related items recommended by their veterinarians.
DNA tests for pets take off, ahead of the science
Pet owners are increasingly buying DNA testing kits to figure out their dog’s ancestry, but experts are warning the kits may not be fully backed up by science, NPR reports. “It’s hard to know how accurate they are,” said Lisa Moses, a veterinarian and researcher at the Harvard Medical School Center for Bioethics. “Different test companies use different methodologies as far as we know.” Without peer-reviewed publications describing methods and assessing their accuracy, it’s basically a “black box/trust-what-the-company says situation,” said Elinor K. Karlsson, a University of Massachusetts genetics researcher. Moses worries that an inaccurate test result could cause trouble for pet owners—for example, if the test says they have a potentially problematic breed like a pit bull. “Once you have given away your dog’s DNA and some company has the results, you may not have control over what happens to that information,” she said, adding that this could affect people’s ability to get housing and insurance. Moses also worries these tests could lead people to make medical decisions for their pets based on wrong information.
9 domestic violence shelters receive grants to provide pet care
Bayer recently donated $90,000 to nine domestic violence shelters through its Grants Fur Families program. Now in its second year, the program is meant to help domestic violence shelters offer on-site pet care. Offering these services helps eliminate the choice people who experience abuse often have to make between staying in a dangerous situation and leaving their pet behind, according to company officials. “Nearly half of abused women stay in an abusive relationship out of concern for the welfare of their beloved pet,” officials said in the announcement, featured in Pet Product News. Each grant recipient will receive $10,000 from Bayer “to create, maintain and enhance safe places.”