General Mills Acquires Pet Supplement Brand Fera
General Mills has acquired Fera Pets, a pet supplement brand founded by veterinarians. This addition will be the first supplement product in General Mills' pet portfolio, serving as the first acquisition by its newly launched growth equity fund.
Founded by veterinarian Dr. Michelle Dulake and a childhood friend in 2017, Fera combines Eastern and Western medicine to provide science-backed pet supplements to help with skin and coat, gut, hip, and joint health. Financial terms of the purchase were not disclosed.
General Mills, the No. 32 publicly-owned consumer goods company, has been building out its pet food division since 2018 when it purchased Blue Buffalo Pet Products. In 2021, the company also purchased Tyson Foods’ pet treats business in a $1.2 billion cash deal. The sale included the Nudges, True Chew, and Top Chews brands, and a production facility in Independence, IA.
Premiumization Trends Drive Growth in Pet Product Sales
Studies show that consumers increasingly view their pets as part of the family, and with that comes a desire to feed and care for them as they would other humans.
This 'humanization' shift has led to a significant uptick in premiumization within the industry: Consumers spent 10.8% more on pet products in 2022 versus the year prior, contributing to $136.8 billion in sales. Of that, $58.1 billion was spent on pet foods and treats, jumping 16.2% from 2021, according to American Pet Products Association data.
In a recent earnings call, Petco’s CEO Ron Coughlin called humanization “a powerful consumer insight and powerful segmentation” that the industry was witnessing across all segments, but particularly among younger demographics. “And as Gen Zers and Millennials become a greater proportion of the pet parents, that creates upward pressure on premiumization or upward trend on premiumization,” Coughlin said.
Commenting on the General Mills’ acquisition, John Parrish, vice president, disruptive growth, General Mills, said “The pet wellbeing category is on the rise, as more families look to take care of their pets the same way they take care of their own health. We're excited to welcome Fera Pets, Inc. to its new home and look forward to partnering to scale the brand and bring more high-quality pet supplement products to more pets."
