The Power of Partnerships

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Issue #133

December 24th, 2024

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Quick Hits:

🚽 How Dogs behave when you use the bathroom

🧀 Cheese for dogs, yes or no?  

🔝Pet spending is way up

🇸🇬 The hottest trend in Singapore: pet sitting

🌭 Presented without context

 🎥 Watch the trailer for the PBS documentary “Dogs of Service,” coming March 2025.

Paw-erful Partnerships: Driving Growth and Innovation in the Pet Industry

“If you want to go fast, go alone. If you want to go far, go together.” - African Proverb

This mantra has never been truer than today in the Pet Industry. Today, the industry is experiencing a period of remarkable growth and transformation, fueled by the enduring love between humans and their animal companions. In 2023, the industry contributed a staggering $303 billion to the U.S. economy. This surge is driven by evolving consumer demands, advancements in veterinary care, and the rise of pet-centric lifestyles. 

Amid this dynamic landscape, strategic partnerships are emerging as a crucial catalyst for success, fostering innovation, expanding market reach, and strengthening brand visibility.

Startups and established companies alike are recognizing the immense value that collaborations bring. Partnerships enable businesses to leverage complementary strengths, share resources, and mitigate risks associated with scaling. By combining expertise and resources, companies can accelerate growth at rates unattainable through solo ventures. 

This collaborative approach fosters a faster time to market for innovative products and services, providing a competitive edge in a rapidly evolving industry.

Key Drivers of Pet Care Partnerships:

• Meeting the Needs of a Diverse Consumer Base: The modern pet parent is more discerning than ever before, demanding personalized products and services that cater to their pets' specific needs. Partnerships allow companies to tap into niche markets and expand their offerings, meeting the demands of a wider range of consumers.

• Navigating a Complex Regulatory Environment: The pet care industry is subject to a growing web of regulations, particularly in areas such as pet food labeling and veterinary telemedicine. Partnering with experts in regulatory compliance can help companies navigate these complexities and ensure adherence to evolving standards.

• Embracing Technological Advancements: From AI-powered diagnostics (see Sylvester.ai) to digital platforms that connect pet owners with service providers, technology is transforming the pet care landscape. Collaborations with technology companies enable traditional pet care businesses to integrate innovative solutions and enhance the customer experience.

• Addressing Financial Barriers to Care: Rising veterinary costs are a significant concern for many pet owners. Partnerships with financial institutions, insurance providers, and pet care financing companies are helping to make veterinary care more accessible and affordable. Pet Insurance in the US is a lowly 4%, compared to 25% in the UK (or 65%+ in Sweden; government mandated). Source: NAPHIA. 

• Marketing and Sales: Technology has lowered barriers to entry for startups, enabling innovation and faster growth. Yet, as startups scale, mature brands often take notice - and take action. They leverage their deep pockets to drive up customer acquisition costs (CAC), compete for the same influencers, and neutralize the competitive edge. Partnerships offer a more resilient strategy. They create a stronger moat, often rooted in a unique value proposition that can’t simply be “outspent” by competitors. In a landscape where innovation alone isn’t enough, collaboration becomes the key to sustainable growth.

Examples of Successful Pet Care Partnerships:

• Corporate and Accelerator Partnerships: Mature corporations increasingly collaborate with both endemic / non-endemic partners in the pet care industry, adopting strategies to learn, invest, partner, and acquire.

  The goal: drive innovation, and support promising startups by offering resources, mentorship, and market access. Recent examples include:

  • Mars Petcare launched Leap Venture Studios.

  • Zoetis launched the Veterinary Health Innovation Engine (vHive)

  • Nestlé Purina launched 9 Square Ventures.

  • General Mills launched Gold Medal Ventures; which includes 301 Inc (VC) & G-Works (Seed Capital).

  • Boehringer launched the Boehringer Ingelheim Venture Fund.

  • Plug and Play Tech Center launched an Animal Health cohort [I’m a Mentor].

• Veterinarian and Insurer Partnerships: Independence Pet Holdings (IPH), a major player in the pet insurance market, is collaborating with veterinary practices to streamline insurance reimbursements and improve access to care. These partnerships benefit both pet owners and veterinarians, creating a more seamless and affordable experience.

• Retail and Technology Partnerships: Pet retail giants like PetSmart and Petco are partnering with technology companies to enhance their online presence and offer innovative services such as telehealth and subscription-based pet care products.

The Future of Pet Care Partnerships:

As the pet care industry continues to evolve, strategic partnerships will become even more crucial for success. Collaborations that focus on sustainability, personalized care, and technology integration will be particularly valuable. 

Companies that embrace a collaborative mindset will be best positioned to thrive.

About the author:

Jeff Mard is a recognized expert in the pet industry, serving as an investor, advisor, and mentor to a variety of pet brands. A regular presence at major events like SuperZoo, Global Pet Expo, Pet Connect USA, and the North American Veterinary Conference (VMX), Jeff is deeply involved in venture capital (VC) and private equity (PE). He specializes in helping brands secure the relationships, talent, and funding needed for meaningful growth.

If you’d like to engage with him, you can find him on LinkedIn.

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