SUPERZOO, the most attended premier North American pet retail event organized by the World Pet Association (WPA), is just around the corner. For founders of pet brands, it’s a golden opportunity to connect, learn, and grow.
Today, we share insights from our recent interview with Kate Wallman, Managing Director of Encore Consumer Capital. Kate is a seasoned investor with a wealth of experience in the pet sector. In this insightful Q&A session, Kate delves into the dynamic trends shaping the pet industry, outlines what investors are keen on, and shares her focus points while attending the SUPERZOO event.
Enthusiasm for the Thriving Pet Sector
ForceBrands: Why is the pet industry an investment focus for Encore Consumer Capital? And how does a show like SUPERZOO factor into your information-gathering?
Kate Wallman: Historically, we’ve had great success investing in the pet sector. It’s an area where we believe we have core expertise in understanding how to help brands grow through various channel distribution strategies, including traditional brick-and-mortar as well as Amazon, direct-to-consumer (DTC), and in particular subscription models.
For us, SUPERZOO is an exciting opportunity to meet new brands, reconnect with founders, and understand the latest industry trends. The pet industry is driven by millennials and Gen Z, who see their pets as family members, having grown up during the rise of pet humanization. This shift is evident in the vast array of products designed to cater to pets as cherished companions. Particularly noteworthy is the trend among these generations to delay starting families, instead pouring their parental affection into their pets.
The decline in barriers to entry, facilitated by social media and the availability of co-packing services, has sparked a proliferation of brands eager to tap into this consumer base. This has led to an emphasis on not just high-quality pet food, treats, and supplements but also on expanding into areas like pet skin care.
Trendspotting Beyond Pets As People
Force: Besides the pets-as-people trend, is there anything else that’s trending and has caught your attention?
Kate Wallman: One interesting trend is the growth in private-label pet products, which have historically lagged other food categories but are now outpacing branded growth. In the past eighteen months, it’s taken off as an opportunity. At SUPERZOO, we’re interested in discovering potential co-packers for both treat and kibble production. We believe this is an exciting and growing area, especially with numerous new brands entering the market. These brands need to partner with asset-heavy companies that can assist them in successfully launching their products. We’re also keen on alternative food formats like freeze-dried, air-dried, and fresh options, which have been gaining traction. We believe there’s a lot of growth potential outside of the traditional extruded kibble.
Leadership and Talent in Pet Brands
Force: When you look at brands that need help, what are you looking for in terms of their leadership teams and talent?
Kate Wallman: Founder authenticity is crucial for us. We look for founders who started their company to solve a specific problem. We also assist in building out their teams. Sometimes, we back founders that are excited to run the business going forward but sometimes they want to focus solely on product development or sales relationships for example, or they may be ready to bring in a true CEO. However, if they want to remain as the CEO, building out the sales function is crucial. In the Pet industry, we increasingly see the need to strengthen the sales side to drive growth across brick-and-mortar channels. Therefore, we have implemented this strategy across a number of different investments.
Strategic Hires for Growth
Force: What functional areas should founders focus on if they were to make a strategic hire this year to set themselves up for growth in the next three years?
Kate Wallman: It depends on your channel strategy. If you’re focused on building out the independent channel, a key sales hire with strong relationships in that channel is crucial. On the other hand, if you aim to primarily operate a DTC business, having a rockstar head of e-commerce is essential. The pet industry is more competitive than ever. It’s much easier to start a brand today because of all the resources that are out there to help you launch.
Bringing in talent to capture consumers and drive brand awareness is a vital core competency of an early-stage branded pet company.
Conclusion
Like Kate, we are looking forward to attending SUPERZOO! We are embracing the chance to experience new ideas, learn about innovations, and identify the talent needed for pet brands to realize their growth plans.
If you’re a pet brand founder ready to expand your talent bench, reach out to one of our pet brand experts today.
