As a challenger brand, Woof and Brew have identified gaps in the pet market, and with the launch of our product ranges we have created a new category - drinks for dogs.
The global market for mineral water and health drinks continues to grow, as we struggle to stay fit and manage our health….but what about the pets we all adore? For most, it’s the tap water we all avoid drinking…or muddy puddles.
That is all about to change as we found more and more owners demand the same healthy food and drink for their pets that they expect for themselves and are prepared to pay a premium for it. It was this insight that prompted us to launch Woof and Brew in 2013.
To our knowledge we are the first to create a range of healthy drinks for dogs, including a herbal tea range, a tonic range and a ready-to-drink infused water. We have also recently launched our dog beer ‘Bottom Sniffer’ which has captured the eyes of retailers and consumers instantly.
Since launch, sales have grown rapidly with high profit potential in a global pet care market worth $85bn.
With all food products, the keys to success are affordability, effectiveness and convenience whether satisfying hunger, providing refreshment or as an aid to well-being. Our pets suffer the same health issues as we humans, whether that be from the consequences of poor diet and exercise or from innate illnesses or allergies.
Woof and Brew has developed a range of healthy pet products using readily available herbs mixed in original formulas to deliver positive results for daily dog care - whether for increased energy, a healthy skin and coat, to calm anxiety, refresh bad breath or aid digestion.
Woof and Brew tea and tonics are available through national chains, independent retailers and online stores and come in convenient packs for daily use at home, when out and about or travelling. A ready-to-drink range will be launched later this year.
The products have been very well received in the UK and worldwide with national distribution secured in both of the UK's largest retail multiples Pets at Home and Pets Corner; plus in independent retailers across 13 countries.
Reception by the media has shown how compelling the idea is for the pet sector and owners alike with coverage in several national newspapers and international titles and radio stations. Please request a media pack if you wish to see samples of the global coverage.
Woof and Brew has strong evidence of customer satisfaction with an overall approval rating of 89%.
We believe pet owners appreciate the simplicity of a liquid when compared to tablets, injections and creams.Woof and Brew believe its products will quickly become routine, ensuring continued use and a high lifetime value for each customer.
Substantial accomplishments to date
Woof and Brew developed the tea, tonic and drink range together with Richard Allport (MRCVS) a leading expert in pet nutrition. Through direct approach to pet, general retail, leisure outlets and distributors, we have secured product listings with leading multiples and 350 independent pet stores. Media coverage and word of mouth has helped secure products listings in more that than 300 stores in 13 countries.
In our view Woof and Brew has a strong brand identity, with a proposition that is easily understood by consumers and clear presentation ensuring stand out on the shelf.
The ranges enjoy good support from the trade in a sector that is always looking for innovation.
Woof and Brew has secured £240k development capital and reached the tipping point where it is ready to scale quickly.
Around 21% households in Europe own a dog. There are 75m dogs in the EU all needing a daily drink. It is reasonable to predict that pet owners will recognise the benefit of a healthy drink for their dogs just as they do for themselves. However in our view Woof and Brew needs just a fraction of the market to build a substantial business.
Our target for the next three years assumes that 1% of 50m dog owning households purchase from our range 12 times year. Exponential growth can come when infrequent customers become regular users or we achieve sales greater than 1% of the EU market.
The business has recently won a major contract and we now aim to double the net margin through substantial savings in manufacturing and marketing costs.
Our go to market strategy is three fold - saturation of the leading specialist multiple retailers throughout the EU - critical mass in the largest independent pet retailers across the region - test marketing in lifestyle retail ie Starbucks, Whitbread, Eurotunnel where leisure purchase and impulse use could be very high.
Woof and Brew will not aggressively sell direct to customer but will accept incoming orders. This is to keep operating and marketing costs under control as we build volume.
Orders will also be accepted from other markets with a careful eye on growth potential especially in the US, Canada, Australia, Japan and China subject to local regulations.
Once the range, model and margin has been proven for dogs, Woof and Brew plans to launch into the cat sector where demand is expected to be equally high.
Investment will concentrate on new product launches, brand development and reducing our manufacturing costs.
Detailed forecasts are available on request.
Use of proceeds
Woof and Brew has completed initial development of the dog tea and tonic ranges and has supplied products to 300+ stores. The next task is achieve scale through increased supply to current partners, the addition of more multiple and independent partners across the region, plus marketing to encourage trial and frequent use among our early adopters. We will roll out the "Drinkies": our ready-to-drink brand, with high profile lifestyle promotion through social media, to generate customer demand and advocacy.
To fund market development we must first reduce manufacturing cost by investing in volume. Purchasing packaging in bulk in advance should significantly reduce cost and increase margin.
We believe we have an early mover advantage and must consolidate our IP and brand value quickly with further investment in design.
The global pet care market had total revenues of $84.6 bn in 2012, representing a compound annual growth rate of 4% between 2008 and 2012. The industry has been forecast to reach a value of $97 billion by 2014. With domestic pets increasingly becoming members of the family, pet owners are spending more and more on pet care.
North America and the European Union are the leaders in the global pet care industry. The Southeast Asian pet care market is seeing the fastest growth of any market segments and is expected to surpass $1 billion by 2016.
The most lucrative segments of the pet care industry are the pet health care and pet food markets. The pet food market alone is expected to reach a market size worth US$88.9 billion by 2016. The pet food market segment is mainly dominated by dog and cat food products, accounting for 90% of the market.
The growth trend shows no signs of stopping, even during worldwide economic uncertainty. The global pet food market is currently forecast to reach US$95.7 billion in 2017.
Global pet food manufacturers are responding to consumer demand for better quality and healthier products as pet owners in a growing number of markets now believe that the food they give their pets should be as good as they themselves consume.
In turn, health and wellness solutions are gaining pace across the industry, with significant opportunities for manufacturers with the research and development budget, product innovation and marketing savvy to exploit them. Tightening regulations globally for human food and beverages may also impact health and wellness pet food, further highlighting the importance of food safety for both humans and animals alike.
In our view Woof and Brew products can be distributed globally with only minor changes to packaging and labeling to meet local regulations.
picture courtesy of The Daily Mail.
Characteristics of target market
An aging population and declining birth rates have led to a different cultural attitude toward pets, which are increasingly regarded as family members. Moving forward, market trends in the sector will reflect those in other sectors, with green products and health products witnessing growth. Product innovation in the pet care market will continue to reflect the changing place of animals in the home. Despite growing concern in all markets for pet well-being there remains a stubborn reluctance among those who are simply not interested in changing their lifestyle - for themselves or their pets. We estimate 50% of pet owners willing to try new ideas to keep their pets well or to help them get fit and well again.
Woof and Brew will target the second 50% with effective and affordable products designed to deliver clear benefits. Early adopters will be encouraged to interact with the brand to build advocacy and recommendation for those less willing to change.
Woof and Brew plans to develop a number of routes to market, namely:
◆ specialist pet retail multiples such as Pets at Home and similarly powerful brands in all key territories
◆ pet store independents who continue to have a strong influence on pet owners looking for a personal service
◆ supermarkets with their increasing presence in petcare
◆ garden centres cashing in on demand for convenient bulk purchase and leisure retailing
◆ online retailers such as the Fetch pet offer from Ocado and Waitrose Pet
◆ direct sales where economically viable
◆ leisure retail such as coffee chains, pubs and restaurants catering for owners and their pets in dog friendly environments.
We will continue to target stocking of a combination of tea and ready-to-drink for impulse and bulk buy and tonics for home use. We found the pet trade look to the UK for innovation and this heritage will be exploited with emphasis on Woof an Brew's UK branding.
Most pet owners rely on others for recommendation and endorsement. Woof and Brew aims to ensure constant feedback through social media, customer panels, forums and online surveys and will freely publish the results online and directly on packaging and product.
While pet owners can be cynical about PR coverage we believe they do respond to trends. Woof and Brew will continue to build media profile in all key markets and to use data capture to build a direct market over time.
It is a fair question why to date there are no other pet drink brands like ours.
We believe this is due to three reasons:
1. The pet food industry has enough on its plate trying to improve food quality ahead of the inevitable consumer backlash against unfit products.
2. The supplements market has remained niche and has not attracted big investment hence a reluctance to innovate.
3. The petcare industry is looking to a new entrant to make and prove the market before getting involved.
Woof and Brew has n early mover advantage but must move quickly to protect it's position by scaling to meet the needs of the mass market in core EU territories - UK, France, Germany, Poland, Italy and Spain.
We believe competition will come first from the leading petfood brands who are most likely to acquire for quick entry ...... giving Woof and Brew an opportunity for exit within three years or to secure new funding in a growing market.
picture courtesy of The Daily Mail.