Fresh, Frozen, Refrigerated: Views on the Newest Craze in Pet Food

In the latest episode of Petworking, we had the pleasure of hosting Matthew Sherman, SVP of Marketing at PetPlate, for a deep dive into the rapidly growing fresh/frozen refrigerated pet food market. In a market that has been long been dominated by Freshpet in the grocery space, and DTC players such as The Farmer's Dog, Nom Nom, JustFoodForDogs, and Ollie , an increasing number of traditional manufacturers are moving into the fresh refrigerated space, and giving pet parents the option of buying fresh refrigerated foods at their local pet food store. PetPlate exhibited at Global Pet Expo for the first time this March, and announced that it was expanding its distribution from DTC to retail. Tune into the episode to hear Matt and I discuss channel strategies for fresh/frozen refrigerated, including why DTC fresh-refrigerated players are considering moving into retail, as well as the numerous strategic challenges that manufacturers have to navigate in this market (e.g., cold-chain distribution, getting into the business of owning/leasing/acquiring space in retailers' refrigerators/freezers). Matt also discusses his extensive prior marketing experience at leading CPG companies such as The Coca-Cola Company, L'Oréal, and Chobani, and offers his opinion of how marketing in the pet food space differs from his previous experience. Some of the key topics we dive into include: Omni-channel Shopping: The trend of omni-channel or multi-channel shopping is becoming the natural order of things. Consumers are switching channels a lot, and D2C (Direct-to-Consumer) is a new and very convenient channel. However, reaching more customers, more needs states, and more occasions is crucial. This is where retail comes into play. The fresh/frozen pet food industry is seeing a progression where brands are selling in multiple channels, including retail. Trial and Entry Barriers: It's hard to sample and get people into the fresh/frozen pet food category if they're not familiar with it. Shipping frozen products is expensive, making trial difficult. This is one of the reasons why the focus is on independent pet stores where more knowledgeable shoppers and associates can help overcome this barrier. Lowering the cost of entry is also important. For example, PetPlate offers an 8-ounce cup for $8 in independent retail stores, which is less expensive than ordering a subscription or trying raw or freeze-dried premium categories. Growth and Expansion: The installed base of freezers is beginning to expand, and the logistics of this new food form is beginning to reach scale. Matt predicts that there will be somewhere between three and five brands that end up being winners in the fresh/frozen pet food category. The differentiation will come down to the feeding experience. For example, PetPlate offers a fully curbside recyclable cup that is designed for multiple uses, similar to a 16-ounce container of yogurt or cottage cheese. We also talk about new and differentiated offerings that have recently appeared in the space, such as Spot Farm's Full Moon Freshly Crafted, which has individually frozen pieces of meat, and Portland Pet Company's all-natural shelf-stable fresh offering.