Pedigree Wholesale this year celebrates its 40th anniversary. Steve Brown talks about its milestones, and says the company is firmly behind the independent retailer
Paper is dead. Well, at least within the Pedigree Wholesale warehouses, that is. The wholesaler has invested over half a million pounds in a voice management system, 
which was rolled out over five years across its five distribution centres, and which has allowed it to fundamentally change its practice and offer a much better service to its 2,000-plus customers.
Paper trails resulted in a 1% error rate, said Steve Brown, Pedigree Wholesale’s managing director. With this technology – which in short involves the use of a wearable computer with a headset and microphone so that warehouse operatives receive instructions by voice and verbally confirm their actions back to the system – errors are now down to an astonishing 0.1%! Based in Gamston, Nottingham, the family-run business is justly proud of this accomplishment, which has made life a lot easier as it carries an impressive 9,000 skus and a national network of five depots. “95% of all items on orders are picked first time, across all 9,000 skus,” said Steve. These are shipped out daily, using its own fleet of 30 Scania, DAF and Volvo trucks.
This year, Pedigree Wholesale, which has 160 staff, celebrates its 40th anniversary. Turnover in 2010 was £46 million, of which its own brands (Pet Products International, Animal Instincts and Walter Harrison’s) contribute a significant and growing part of the company’s business. Walter Harrison’s is the dominant force, with its wild bird food driving growth.
The own-brands are developed by an in-house design team while UK manufacturing goes on at Castle Park in Nottingham, and two people source and develop products full-time in China. “We
support the independent trade,” he said, “and can ensure those brands remain exclusive to the
independent pet trade. Our focus will continue to be supporting the specialist independent pet trade.”
Apart from these highly successful brands, Pedigree Wholesale also acts as exclusive distributor for a number of other brands – Hikari, Superfish, Prodibio, JW Pet, K9 Natural and Zealandia.
Continuous growth
Pedigree Wholesale was set up in 1972 by Steve’s father, Terry, and his partner, Derek Slater,
working from a modest 5,000 sq ft rented hangar at Nottingham’s Tollerton aerodrome – but it expanded quickly. Within four years, it opened a cash and carry wholesale operation at Batley in Leeds, and by 1981 moved into its own purpose-built warehouse building in Nottingham.
Walter Harrison’s was acquired in 1985, in Radcliffe on Trent, which became its manufacturing site for wild bird seed, caged bird and small animal food. Four years later came the acquisition of Clover Pet Foods, which became its East depot at Bury St Edmunds, and ten years later it also took on Three Shires Pet Supplies, a Bristol-based wholesaler of pet foods. Its South depot opened in 2002, giving Pedigree Wholesale the full coverage of the UK that it required. “The South depot completed our geography,” acknowledged Steve.
He joined the company two years before the Three Shires Pet Supplies acquisition, in 1997, after completing his Chartered Management accountancy training while working in London at Heinz and IBM. It had always been agreed that Steve would join the family business (from the age of 11 he’d spent his holidays acting as driver’s mate or working in the warehouse), but the call came somewhat earlier than expected. Derek had taken early retirement, so would Steve come on board now?
He recalls: “We had an understanding that I would give it a year, but after six months, I was entrenched in it. As father and son who had some real arguments at home, we never had an argument in the ten years of business together, from 1997 to 2007, when dad said that after 35 years, he wanted to retire.”
Having said that, although Terry is retired, 
he still keeps an eye on the business.
Today Pedigree Wholesale is a leading supplier to the pet and aquatics industry, but to stay on top, it has to constantly review its product range and assess its strategy. Hence the announcement last November that Pedigree Wholesale had sold its live fish and plants division to JMC Aquatics. “We are constantly assessing our business,” said Steve, “and we decided that livestock and plants were not a core side of the business and the transfer to JMC has worked very well.”
And for this year, as part of the 40th anniversary celebrations, it is planning a series of exclusive
promotions with suppliers and its own brands for customers. He said: “We know it’s going to be a tough year for retailers; it will be challenging ahead. We want to try and see what we can do to muster up some additional impetus for our customers.”
Specialist retailers have to find that point of difference, he said, they have to create a reason for customers to seek them out and come instore. There are a number of ways they can do this, including by offering a large and varied product range, but also niche products; demonstrating expertise knowledge; providing good customer service; improving their store presentation and environment; as well as looking to provide additional services such as instore nutrition clinics, or association with local grooming or veterinary practices . “It’s all about building relationships with your customer base, and giving them a reason to keep coming back.”
Yes, on-line competition is growing quickly, but this is from a small base, he suggests. “It’s the way the market is evolving. We have to understand this and work to minimise its effects in our business. Let’s face it, it’s not just our industry that is being affected; on-line sales are an even bigger challenge to music and DVD industries.
“And yes, there are a lot of players in other industries who are looking around and thinking that they need to diversify, and they look to pet. But rarely does this work unless they get the right people on board and understand the market dynamics.”
With the right products and services, the specialist independent retailer has definite growth potential. He added: “Part of our job is to support retailers and help them create this point of difference, to help them with range and point of sale. We want to help give them a unique proposition.”
What’s in a name?
Even today, some new customers at first think there must be some link between Pedigree Wholesale and Pedigree, the Mars Petcare UK food brand.
However, it was Steve’s grandfather Ken who registered a number of companies with the name Pedigree. Ken had been helping his father run boarding kennels at Gamston, but decided to also breed pedigree dogs. Ken also provided insurance to cover the puppies sold, and formed the Pedigree Livestock Insurance company in 1963. In fact, the forerunner to Pedigree Wholesale was the somewhat
verbose “Pedigree Livestock Food and Requisites (Wholesale) Ltd”.
Behind the scenes
What happens between the time you place an order and it arrives at your door?
The warehouses across the five Pedigree Wholesale depots all use voice management talking systems. “It’s like our guys are walking around with a PC attached to their belts,” explained Darren Willetts, group operations manager. Everything is automated, from identifying which products to select to fulfil customer orders to alerts that warehouse stock levels are low and need replenishing from overstock. “Not only that, but each picker has a voice template made from recording of their voice, and the computer recognises their voice,” he added.
The 87,000 sq ft Gamston site comprises two warehouses stocking over 9,000 products – 2,000 alone are kept in the bulk product warehouse, which holds bulky pet products like dry food. Picking here is done by forklift (there are 20 across all five sites), whereas in the neighbouring accessories warehouse, pickers rely on shopping trolleys.
When orders are processed, the voice management system directs warehouse staff to a product’s specific location. They then read back the last four digits of the barcode and the picker is told the quantity to load. Apart from counting the actual number of products, the entire process is automated. Once all stock is picked, labels are printed out including the picker’s name, driver and route number, and the customer’s identity is revealed for the first time.
An average 1,000 pallets are filled each week and with the recent introduction of new working practices, now includes a full Sunday operation. Darren explained that customers can now place orders following the busy weekend sales period and receive product back in their store on Monday morning.
He said: “In addition, we have extended our cut-off time for customer additions to 4pm for next-day delivery. This is another example of how Pedigree Wholesale continues to change its working methods to improve the service for the independent retailer.”
At Gamston, it is quite normal for staff to pick 16,000-20,000 items each day. Across the whole group, busy periods like the run-up to Christmas can see daily peaks of 37,000 items. Despite these large numbers, careful handling is a top priority. He explains: “We always say, look at it as if it was your purchase. Would you buy a product that had torn packaging? You wouldn’t. You’d select another.”
The company has also embarked on a vigorous recycling initiative and across the group recycles 110 tonnes of cardboard and plastic.
SQP Prescription Veterinary products are kept in a locked room, and all potential customers are checked to make sure they are properly registered with the VMD to sell them. These products are recorded according to batch number, so that if there is product recall, customers can be immediately identified.
Darren started as a warehouse picker in 1999, and worked his way up to group operations manager. “This is a good company; it’s family run, and you can’t get
At a time when ‘restructure’ has become embroiled in negative connotations, Sandra Pearce meets Interpet’s Mark Hoskins and learns that the company is revelling in its restructure
This restructure and reorganisation has changed the business. It means we have the support of a giant behind us, and it means I can be commercially focused on concentrating on sales,” says Mark Hoskins, commercial director of Interpet. That sounds like a very good situation to be in.
I mention how the word “restructure” now unfairly brings with it negative connotations, possibly as a result of the current harsh economic landscape. It is especially unfortunate when you consider that restructuring is all about reorganising a company in order to attain greater efficiency. “It is unfortunate,” he concurs. But Interpet has a message to get out there – and it’s all good news.
To refresh the memories of our readers, Interpet (which next year celebrates its 60th anniversary) was bought by Central Garden and Pet in 2004. And giant it is – in its 2011 financial year, Central Garden and Pet reported net sales of $1.6 billion, an increase of 7% compared to $1.5 billion in the comparable 2010 period. The company is a leading innovator, marketer and producer of products for use in the lawn and garden and pet supplies markets. In the pet sector alone, some of its brands are Zodiac, biospot, PreStrike, Farnam, Blagdon, Kent Marine, Tropical Fish, Breeder’s Choice, TFH publications, Nylabone, Pet Select, Four Paws, Vitaflex, Equi Aid Products, Kaytee, SuperPet and Pennington Seed.
A direct result of the 2004 acquisition was that Interpet went from having 2,000 stock-keeping units (skus) to 14,000 as it gained exclusive distribution of American brands Nylabone, Super Pet, Kent Marine, TFH publishing and Four Paws products. Its sales team more than doubled from 10 to 26, and there was heavy investment in operating systems, a new warehouse and brand management team.
Then in 2011, the parent company committed to a broad set of initiatives to cut costs, improve margins and enable reinvestment to drive top-line growth. Which meant a total reorganisation to steamline operations, centralise and consolidate. For Interpet in the UK, it’s meant the company can concentrate on what it does best – manufacture and sell products, while Central Garden and Pet has taken back the operational side of the business and finances.
Mark said: “This restructuring has created the opportunity for us to get better. The business was not playing to its strengths, and this can hurt the business in the long term.” It’s not been without painful decisions. At its peak, Interpet had an unwieldy 14,000 lines. This was rationalised to a far more manageable 1,200 lines.
That took nerves of steel, so I am intrigued 
to learn that not too long ago, Mark was an Ironman. As in an Ironman Triathlete, for which he first swam 2.4 miles, biked 112 miles and then ran a full marathon, all in the space of about 15 hours! I’m exhausted just listening to this. But this just shows the kind of motivation that drives him – he is certainly not exaggerating when he says he relishes the new challenges and opportunities that have now opened to him.
With the restructure, he now reports to two people who in turn report to the CEO: “It’s very easy in corporate business to get caught in glue of management,” he says. The business is now agile and quick to react, and not bogged down in management quagmire. “This is about us being put back in front of key retailers. Our business strategy is about growth, and entering new markets,” he said.
Mark was 18 when he joined Interpet as a sales representative. “When I joined, I wanted the sales manager position in the first month... youthful arrogance,” he smiles. He left at about 20 and joined J&K Aquatics, and was later for a short time in agrochemicals. Then out of the blue Interpet got in touch and said the company had just acquired the Blagdon brand, and would he be interested? “I said I would, but I wanted to know if there was scope to grow within the organisation.”
Well, grow he did. Apart from inhouse training, he was also sponsored through an MBA and has now landed the top position. “I find it difficult to find another organisation with this same kind of attitude towards its staff.” Interpet is proud of its home-grown skills – “the company uses its people and pushes them up. It’s testament to how Interpet treats its people. I have been through the system.”
Forging new paths
Interpet manufactures all its chemicals and test kits for the aquatics market in the UK, along with wipes, shampoos and sprays in the Mikki range. Much manufacturing is also undertaken with partners in China, such as pond pumps in the Blagdon range. “Anybody can make a pump,” says Mark. “So about seven to eight years ago, we took our UK design and manufacturing skills and worked with a partner in China. It was effectively a combination of UK talent, but with the economies of scale with production in China.
The opening of China has had two consequences, he says. “The first is that we’ve exported our inflation for many years. The second is that it’s lowered the entry point barrier – anybody can be a manufacturer today.”
Even though China is not as cheap as it used to be, what with labour and commodity prices, “it is still viable”. He states that the biggest export challenge for any UK company is the exchange rate. “But in terms of pricing, there is nowhere in Europe that you could pull the manufacturing to at the same price and standard. And I do not see that changing for the foreseeable future.” Another challenge is getting stock out at the right time. “Many of our customers are watching their cash flow, so we need to get this just right.”
Interpet’s strength is clearly in innovation, such as reflected in the launch of the widely acclaimed Affinity ponds, developed in the UK, which was based on a simple one-sentence concept: “Buy it in the morning, build it in the afternoon, enjoy it in the evening.” The result – stylish raised living water feature pools.
Mark is really pleased with the Affinity, for not only is it selling well, uniting a community of people on Facebook and Twitter (harnessing social media is a must, he says), these raised ponds have struck a chord with female consumers, breaking the traditional male-dominated pond market. And it is now to be distributed in the US following a multi-million dollar contract.
Interpet puts huge investment into research and development, but true value, he says, arises from consumer satisfaction. As such, the next range of aquariums is already in development, and prototypes are greeted with much excitement.
With aquatics, the industry has changed and anything new has to bring key value and benefits to the fishkeeper. Affinity is a good example of this, he says, as it can be set up in less than a day. It is also important to ensure that the industry makes fishkeeping accessible to all, but more importantly, keeps them engaged. “The problem with our industry is that people bounce in and out all the time. Our job is to make sure they come in and have a great experience from the start. It is about bringing new people into the hobby and holding them.”
And you must never innovate for innovation’s sake. For instance, with Nylabone, it makes total sense to leave the manufacturing to the Americans as Nylabone has a huge manufacturing base in the US, so the UK side can simply pick and choose from a staggering range. “Both Nylabone and SuperPet are constantly bringing out new
products in the US that we can launch here, without any investment on our part.”
This does not mean that the Interpet team sits at the desk, waiting for the next big thing to land in the inbox. “Our marketing team gets involved from cradle to grave. They go out to stores, retail shows and shows such as Crufts, to see how we can make things better. They do not spend their time at desks or surfing the Net. You need to engage with the end consumer.”
Simple messages
It is this engagement with customers that really energises Mark. “It is all about getting messages to customers, making sure we are the preferred choice.”
Take Mikki, for example, which has a plethora of products for grooming, training and care and has been a consistent performer, showing sales and market growth. “We have started to engage with the consumer differently,” he says. It’s simple messages, such as “I won’t bite” or “I won’t pull” that are displayed on its training product packaging, saying in an instant what owners can expect. These are all reinforced with key messages, such as Behave Rite and Walk Rite, all backed up by the effective utilisation of social media.
About three years ago Mikki tied up with professional groomer Alison Rogers and later with pet behaviourist Claire Arrowsmith to engage with customers at shows. Which is all about adding value and demonstrating the products, which helps reinforce Interpet’s messages.
Interpet also has one of the largest sales teams in the country – 12 strong, they are on the road pretty much most of the year, talking to pet retailers up and down the country. “The independent is the lifeblood of the industry – they are the ones who get the livestock into the industry. We will do everything we can to protect our retailers,” affirms Mark. This support goes beyond getting new products into stores. For instance, if a product is not shifting, the sales rep will work with the retailer to find solutions to get it moving again. “They are a source of vast information,” he states.
It is this one-to-one contact that Mark relishes, such that he still calls on local customers – many who have become his friends – whenever his hectic schedule allows. “Otherwise I would just be a manager who relies on what people are telling me.”
Just as the independent is the lifeblood of the business, you could say communication is the lifeblood of innovators and manufacturers. So it is no surprise to learn that Interpet values highly the feedback received from peer groups and Facebook, and is quite happy to take prototypes to Crufts to acquire opinions. Or they might run a short batch to see how something sells. For example, there might be a Nylabone puppy toy with an RRP of £12-14. “This is pushing it as we know the normal price threshold is £7.99,” explains Mark, “so we take it to Crufts and see the reaction. Do we get it right all the time? Absolutely not. But if we get something wrong, we move them out. We focus on what is delivering rather than what is not.”
So where will Interpet be in ten years’ time? He stops to think for a moment: “In terms of alignment with the US, we would be far more integrated, and with the volume it opens up to us we should realistically be three times the size we are now.”
And that sounds like an iron-clad statement of fact.
Above: Affinity ponds have gained a good following…
Top: “The independent is the lifeblood of the industry” – Mark Hoskins
Middle: Yes, that is Mark on the cycle stage of the triathlon
It’s been only seven years since Aqua Pacific was launched in the UK, but it has made an impact in more ways than one. We catch up with MD Mark Winter to learn more about the company and its brands, Aqua One, Pond One and Reptile One
You could say Aqua Pacific is on a high. At the recent 
Aqua 2011 trade show, in a closely fought contest, its AquaNano 40 Aquarium Set nabbed top title to be crowned best new aquaria product. The judges’ comment said it all: “The winning product offers the consumer a good introductory aquarium and is good value for money. It boasts a very clear and simple design and the rounded glass look is very appealing. We think the set will appeal to a wide consumer market as well as most retailers.”
Then there is the fact that sales for 2010 were the highest for a full year since the company was launched in the UK in 2004, and MD Mark Winter is confident that the figure will be easily surpassed this year. He told Aquatic Trader: “This is during what has been difficult times in the UK, and I don’t think too many suppliers in our trade would claim otherwise. It is very pleasing.”
Aqua Pacific UK is today known in the UK for its Aqua One, Pond One and Reptile One ranges, and is a division of the Australia-based Kong’s group of companies. Parent company Kong’s has a colourful history – it was set up in early 1980 in Hong Kong by two brothers, Davy and Raingo Kong, selling live fish in the Hong Kong market. Davy had his sights set on Australia and arrived in the country in 1990 with a container of products, and began by selling out of the back of his car to aquarium retailers around Sydney. Today, in a true rags-to-riches tale, Kong’s has also expanded into New Zealand and China, distributing products worldwide under the brand names of Aqua One, Reptile One, Pond One, Pet One and Avi One. Next year, Aqua Pacific UK will be at Interzoo to promote its brands to Europe and beyond.
Crucial to the group’s success is its new product development. Though R&D is mainly managed in Australia through its product management team, product development has global input, “especially when your product is lifestyle and furniture fashion based”, explains Mark. Manufacturing is largely confined to the Far East, though some lines are sourced from Europe.
He is justly proud that his UK team has always been heavily involved in developing new products – the UK team helped design many of the 260 new lines launched at Aqua 2011. Among them are the new Dyno Rock range for vivarium and terrarium landscaping and the RTT 1200, a flat-packed glass terrarium.
Keeping in tune with what customers want is crucial when it comes to new launches, and knowing which way the market is moving can sometimes require the combined efforts of mentalist Derren Brown and magician David Copperfield! The UK aquatics market, says Mark, has changed greatly over the last three years. “Entrants whose actual purpose for buying a fish tank to keep fish is, I believe, down. Many of the new entrants today are buying a lifestyle accessory.” Which has obviously impacted purchase patterns of type and size of aquariums, and larger aquariums are understandably still slower movers than three years ago.
He adds: “I feel consumers are still looking for hobbies like fishkeeping, but perhaps are looking for something different yet at the same time aesthetically stylish to fit in with their lifestyle and decor. Hence planted aquariums and inverts in nano tanks are very popular. Shrimps are a current big trend in Asia, so maybe this could be an area of growth in the UK?
“In my opinion, for the foreseeable future until the economy is in a 
much healthier state, stylish small, medium aquariums and new exciting innovations for the serious enthusiast are the areas we will continue to develop.”
Reptile One burst on to the UK scene in October 2009, also available through Monkfield Nutrition and Zoo Logic, and has done very well, says Mark. Tens of thousands of tubes and lamps have been sold, and the range of Turtle Pro tanks has also been “a real winner”. These, he explains, were the first purpose-designed turtle kits available.
Pond One was launched two years earlier in 2007, and has managed to hold its own in a market that is generally declining. “I would have to say it’s not a major part of our global business,” he says, adding: “We also have our bird and pet ranges, Pet One and Avi One. Of the five pet and garden sectors we operate in, pond is probably the one that is suffering the most at the moment, hence development budgets will go elsewhere.”
So could we see Pet One and Avi One launch sometime soon into the UK? Not yet, he replies. “At the moment our warehouse is fairly much on capacity come the peak season, which we are now in. We would need to move to cope with these ranges, but we have only been here three years, and I still have the odd box behind my desk that I haven’t unpacked – I would prefer not to move just yet!”
“Here” is of course 61,000 sq ft of warehouse space in Southampton, the lease of which expires in January 2013. “Expansion or making do will depend on many factors like Pet One, Avi One, sales in general, the breakdown of size of aquariums that are selling best, all will play a major factor in the final decision. We will have to make that decision around April 2012 if we decide to extend our current lease.”
This pressure on space is exacerbated with retailers putting the emphasis on ‘just in time’ rather than holding stock. “The forecasting headache this provides is a constant challenge, and one that many of our fellow suppliers have the same experience of.”
You’d think with operations on this scale, there’d be an army of staff. But Aqua Pacific UK has a grand total of 24 staff, including three area sales managers and a national sales manager. No wonder that Mark sings the praises of his staff: “We have a great warehouse team who work very hard and unload a few hundred containers each year, and generally dispatch all orders within a couple of days. We also have a transport solutions provider that does very well out of us!”
So what does Mark think of the future of the trade? He speaks candidly when he says: “I believe our industry has been slow to evolve to modern retail standards and consumer expectations. The same cannot be said of all retailers, but we really need to look at the larger retail groups and try to learn from them. The success of a product or a store is not just in the product/price offers it has, but so much more on the presentation and promotion.
“All retailer channels are having to work a lot harder to get their share of the consumer pound; why is the aquatic trade any different? Inspiring the consumer to spend their money through clever marketing, promotions and inspirational displays has to be the way forward.”
He refers to the huge effort his team put into its Aqua 2011 stand, the objective of which was to inspire the trade to inspire the consumers.
“As I’ve mentioned,” he says, “the vast majority of consumers are buying a lifestyle accessory, which has the added lifestyle benefit of beautiful fish and the concept of ‘bringing the ocean indoors’. We must sell it to them as that in a setting which makes the aquarium desirable. Retailers and suppliers who make that little bit more effort are those that will be successful, in my opinion.”
IMPACT OF THE AQUA TRADE SHOW
Mark Winter was one of the driving forces of the Aqua trade show. He says: “Aqua 2010 came about because a large number of exhibitors felt the same way as myself. We knew we needed to have a show that made our customers feel special, and that they got great value (not for their money, it shouldn’t cost them) but for the time given up to attend. And let’s be honest, every supplier also wanted a cost-effective show.
“Aqua, thanks to the excellent organisation of OATA Impact, has delivered on all fronts. This has given the trade an event to look forward to again. I sincerely hope that the majority of retailers will have come away from Aqua 2011 enthusiastic and thinking positive. Surely that can only be good for the trade.”
ABOVE: Mark Winter receiving the award for best new product ‘Aquaria’ at Aqua 2011 from Dr Dave Pool from OATA
TOP: Award-winning AquaNano 40 tropical Nano aquarium on high gloss box stand, combined instore price of £159.99
TOP LEFT: Aqua One Eurostyle 100 aquarium at Aqua 2011
RIGHT: The best-selling AquaReef Aquarium, an all-in-one marine system
BOTTOM LEFT: Warehouse facility in Southampton
Sometimes numbers can be so large, they don’t register. If you were told that Yorkshire-based Cranswick Pet Products supplied in excess of 2,400 tonnes of wild bird food in one week this January, your eyes would probably glaze over, you’d say, yup, that’s a lot – and then think about dinner instead. But if you were told 2,400 tonnes is approximately the weight of 300 adult African bush elephants, you might give a low whistle as the image of tiny bird seed piled against 300 elephants started to form. And when you’re told Cranswick Pet Products (CPP) can produce 130,000 tonnes of wild bird food each year, well, that’s more than the total number of African bush elephants left in the wild today.
Cranswick can produce 130,000 tonnes of wild bird food each year
Let me throw another figure at you: £300 million is the estimated value of the wild bird market, split in an approximate 80:20 ratio of food versus accessories, according to CPP figures. Put into context, CPP places the value of small animal food at circa £120 million, indoor bird at £51 million, aquatics at £500 million; and cat and dog in the region of £1.6 billion each. So how did wild bird food become so popular in such a comparatively short period of time? After all, when CPP chief executive Derek Black became involved in the formation of the pet business at Cranswick plc in 1993, the racing pigeon market at Cranswick reigned supreme with over 80 per cent of the business; wild bird was at about five per cent. Today, roles are reversed and wild bird dominates at 82 per cent.
“We are certainly driving the wild bird market in the UK,” said Derek, “and where we lead, others follow.” CPP, home to the Nature’s Feast, Bucktons and Cheeky Boy brands, is today the UK’s largest manufacturer of bird foods; turnover for the financial year to March 2011 was £42 million, with projections of £50 million by the end of this financial year. Growth is currently at ten per cent a year.
There are a number of factors aiding growth in wild bird, not least the levelling off in numbers of dogs and cats being kept as pets. “There are now more people who want to have pet ownership, but at an arm’s length, and feeding wild birds also adds colour and interest to the garden. People can go away on holiday and not have to worry about kennel or cattery costs; all they have to do is simply fill feeders up, then re-fill when they return. There is also the feeling that they are doing their part for conservation, and this is an important point,” he said. Many mid-to-elderly people also find companionship in feeding wild birds, and he has noticed how many adopt a sense of ownership over these wild birds. “I just took a call from a family friend who was thrilled that a woodpecker from three doors down was now coming to him.”
CPP has a simple aim – to be a one-stop shop for everyone, so supplies everything from budget ranges to super premium to the original independent retailer; wholesalers; larger multiples; the grocery chains and garden centres not to forget the growing own-label market. Apart from wild bird food, peanuts and accessories, product ranges include racing pigeon mixes; cage and aviary seed mixtures and small animal food for rabbits, guinea pigs and hamsters. Most products are available in bulk bags of 12.5kg to 25kg, and in pre-pack sizes. At its Driffield manufacturing facility, four loading areas can accommodate anything from articulated lorries with 26 pallets to the individual who might only want a minimum order of a pallet. Explained Derek: “Our range of offering is along the lines of ‘Good, Better, Best’, so at a pound store, we will tailor-fit a recipe that will fit that pound spend which does not have a lot of expensive ingredients, so is mostly cereal based. If someone wants to feed a bird, then we will help them do exactly this.”
Scaling new heights
Being on such a scale, it is no surprise to learn that the company is the UK’s largest importer of mealworms from China, and Europe’s largest importer of millet and peanuts. “We are said to be larger than KP (home to KP peanuts). It’s an interesting dynamic when you think of all those peanuts sold behind counters and bars, that we sell more for birds,” said Derek.
The real strength of CPP is therefore in its global sourcing – it sources 150 different raw materials from 50 countries, and takes delivery of over 2,000 containers each year, all backed up by substantial physical and financial stock-holding capacity. Quality controls are enforced stringently, and the purchasing department makes regular visits to suppliers.
In 2005, a milestone was reached when the company moved into
its purpose-built 70,000 sq ft office and warehouse complex at Driffield, said to be Europe’s most advanced bird food manufacturing facility. The six-acre site was purchased eight years ago, but only four acres have been utilised, leaving the company in an enviable position of having ample room for growth. Another milestone was achieved in 2009 with its widely-publicised management buy-out along with sister company Tropical Marine Centre for £17 million from Cranswick plc. The management team was backed by Lloyds TSB Development Capital (LDC), the private equity arm of Lloyds Banking Group.
More recently, the company received its BRC rating, making it the first and only wild bird food manufacturer to do so, strengthening its supply and distribution possibilities. The British Retail Consortium is the lead trade association that represents and maintains standards across a wide range of retail sectors. Its BRC Standard accreditation is recognised by the human food and pet food manufacturing industries in both Europe and the UK, and is designed to provide certification for manufacturers who implement good manufacturing practices and have the supporting quality. At its very first inspection, CPP was awarded an A grade, the highest grade possible.
Factory manager James Farnsworth was tasked with helping CPP achieve this rating. A number of systems had to be introduced for the BRC audit, said James, from simple things like wearing hair nets and laundering jackets to strict and complex criteria including a HACCP policy (Hazard Analysis and Critical Control Point), which is an internationally recognised system of food safety management. “We believe we have a world-class HACCP policy, and certainly the best in Europe,” he said.
James, who has an extensive background in the human food industry, said: “What we have here at Driffield is one of the cleanest facilities I have ever seen, and I’m not just saying this because I work here.”
Stringent quality controls at this human-grade facility is in evidence at every stage. At its onsite laboratory, a sample is taken of each raw material consignment, weighed, checked for moisture levels and that all specs are within limits. A visual inspection is also made for insects. Any signs of life and even if the material has passed all other checks, the load is immediately rejected.
Massive quantities can be stored in 39 storage bins, each holding 35 tonnes, each exclusive to a specific raw material so there is no cross-contamination. A chemical clean and direct approval from Derek is required if a different raw material is to be housed in one of these vast bins – as far as James is aware, this has never happened. Monthly pest controls are supported by quarterly biological audits for any trace of rodents.
All raw material is mixed, cleaned, sieved, dust extracted and checked to ensure consistency of finished product. “Ours is a very exact recipe; you can expect the same consistency each time, and no foreign particles,” he added.
Technology and innovation
Many items of machinery at the £8,000,000 facility are bespoke, employing ground-breaking technology, and are patent-protected. Engineers carry out daily checks and maintenance, such that CPP has had less than one per cent downtime due to equipment failure.
Six magnets at various points of the production line and a metal detector at the end stage ensure no metal compound makes its way into the product. Every half hour, a bag is removed from production and a ferrous compound ‘planted’. The bag is then sent past the metal detector again. If the detector does not react, that past half-hour’s products are put into quarantine and re-scanned while the detector is assessed. Each pack is also weighed to check weight falls into specified parameters. Too light or too heavy, and it is bumped off the production line.
Samples are kept of every batch with complete traceability for the shelf-life of product batch numbers. Needless to say, computerisation and automation is a given. In the warehouse, pickers work with handheld scanners for immediate stock information – and with up to 4,000 pallets stocked six high, this ability to track products and have up-to-date stock control is vital for efficient distribution.
CPP is constantly investing in its business – over a two-year period, from 2010 to 2012, it will inject a further one million pounds to improve production through robotics and automation. Staff training and input is also highly valued, and with a total of 130 staff, regular departmental meetings are held, looking at all aspects of the business. Staff are encouraged to put forward suggestions and ideas, and any that are adopted are publicised. Friendly competition is encouraged among production staff, who can also take advantage of NVQ training. “By this you break down barriers, people know it’s a joint exercise to make the business successful,” explained Derek.
He says the company’s success is also down to its continuing to improve and invest in additional efficiencies, so it can be at the forefront of any additional packaging technologies that come along. Among these efficiencies are free-standing bags and packaging with self-adhesive labels to enable the easy re-sealing of bags.
Innovation is a driving force. For instance, at PATS 2011, its Nature's Feast Twist Feeder nabbed The Retailers Choice Award. Unlike conventional bird feeders, the 40cm Twist Feeder consists of three intertwined compartments, able to accommodate three different mixes at any one time to cater to a variety of wild birds. Even the budget range includes unique features such as fold-down perches for easy storage and display or a detachable handle to make it easier to hang on branches.
This emphasis on making things easy for the customer is paramount, so ranges are colour coded between accessories and feed, such that for instance peanuts and peanut feeders are indicated by red.
All accessories are currently manufactured in India, with intellectual property rights in place. There are strict ethical considerations in place, and the India manufacturing sites are visited regularly to ensure total compliance and that all workers receive a fair deal.
CPP has been awarded Investors in People, and won Management Team of the Year 2011 for Private Equity Backed investment in the Midlands. It has also received a British Business Awards for Training Excellence. Yet despite these accolades, CPP is not one for sitting on its laurels, and is constantly analysing the market and looking for new trends, as well as working actively to grow the market. “We do a lot of work with children in schools,” reveals Derek, which is a way of harnessing the next generation of bird hobbyists.
So what does the future hold for wild bird? “There is a definite trend towards super premium wild bird food,” he says, “and this will continue to develop. We are also seeing exciting possibilities with No Gro seed.” Needless to say, there are a number of products and new lines being worked on at the moment, with regular new launches on the calendar. The sky is certainly the limit.
Derek Black (above), Cranswick Pet Products chief executive
“What I want to do is take on China,” says
Armitage Pet Care CEO Paul Bousfield. With that, I know this is going to be an interview like no other and that Paul has something up his sleeve. I’m intrigued. He reads my expression and replies: “I know, it’s a thought that is alien to the UK.”Armitage has a long history – foundations were laid down in 1775, although it wasn’t really until the ’60s that its wholesale pet operation took off. Paul is brutally frank when he admits the company had fallen into a rut of sorts: “We were following the traditional way of doing things without questioning them.” But it’s all change now, and there’s a veritable buzz and energy in the air.
“We have brought innovation and manufacturing back to the UK,” he says proudly. At a time when China and India rule supreme for cheap products, Paul has decided to take the bull by the horn and give it a good shake.
“China is not the cheap place it used to be. Think about it: freight is going through the roof, there’s the dollar volatility, once we consider all this, if you buy from China, you are tying up your cash for long periods. And businesses are failing at the moment because they do not have cash. People are filling containers for £20,000 when you can buy in smaller quantities from us. Not to mention how a shipment from China can take many weeks to arrive in the UK. So not only can we help improve working capital but we reduce your carbon footprint.”
Armitage is not the new kid on the manufacturing block. For years it has made at its factory in the village of Pinxton, Nottinghamshire, widgets for its aquatics range, under gravel filters, bird feeders (“It’s us or China at the moment,” says Paul), sand sheets, and its core Rotastak hamster cages. Not to forget cat litter trays (half a million a year), feeding bowls (a million) and its environmentally friendly Dog Loo. “And we manufacture and pack Christmas,” adds Paul, almost as an afterthought. Innovation is a driving force now, and the company is looking to manufacture new products including a ball thrower.
Molds come in varying shapes and sizes – and weights! Many require a crane to hoist into position
The 18 machines on-site, costing anywhere from £250,000 to the million-pound mother of all machines, the Negri Bossi, can churn out anything plastic from the size of a paper clip right up to wheelie bin size. The process is injection moulding, which at its most basic is like playing with play dough. Seriously. You take a base polymer, add a colour, heat, mix, push through a mould and out pops the finished product. Different items obviously require different moulds – the bird feeder for instance uses five moulds. The Rotastak kit, depending on model, requires anything from 30 to 90 components, and you start to get the picture. Paul says: “The skill is the speed.” A good time is 20 seconds per item. Yet despite this ability, Armitage will not sub-contract and move away from its base of pet and aquatic: “We do not want to go away from our roots. It’s dead easy to fill a factory with the wrong products – we are pet and aquatic, and we will stick with what we know.”
Feeding bowls hot off the production line
Armitage is now, he adds, at a high degree of sophistication; its key usp is that it makes its own products – the Pinxton site has just benefited from an investment of a quarter of a million pounds in tooling alone. Its plan is to build brands and a sustainable long-term manufacturing business. Innovation and investment go hand-in-hand, such that the company has just invested heavily in its choc plant so it can add flavours such as vanilla to its dog-safe Good Boy Choc Drops. That investment has paid off as it’s landed a contract to supply the chocolates to China, and is in negotiations with Europe on several contracts.
Being capital intensive rather than labour intensive gives it the fighting edge against China – it employs a total of 150 staff across its three Nottinghamshire sites. And that’s everything, from engineering positions to production operators to administrative staff, marketing and sales, packers and drivers. Its production staff are currently employed on three shifts over four days, which gives ample headroom for expansion with three potential further shifts over three days.
All the while there is a concerted effort to source as much raw material from the UK.
Louise Rix with the prototype of Armitages’ new hamster cage
Making the wheel better
With a new business plan and platform to work from, Paul reveals the ace up his sleeve. “Rotastak is a brand leader, it’s top end, but it’s niche,” he says. “Yet a big part of the housing market is wire cages, which in the main come from China or Italy. The whole modular wire cage concept is the way for us to go, but with innovation and added value.”
So what Armitage will unveil this month are the Genus and Natro hamster cages – but its key usp is they come flat packed as the top part of the cage folds flat. “We are the first to take the air out of transporting hamster cages,” said Paul.
While Armitage will be making the plastic base and all accessories, the wire element is brought in from China, as it was not able to find a suitable UK supplier, although its search is still on.
Louise Rix is brand manager at Armitage Pet Care, and takes up the story: “With Rotastak, I have a very young target market. Every few years, I have a whole new group of kids come through who want a hamster and who need to be introduced to Rotastak. Over the years we introduced themes in addition to Original, which worked brilliantly such as Jungle and Pirate. Pink Palace, Space Command and Creepy Castle continue to be very popular today.
“But this project is going to put us in front of the market, which is where we want to be. Our traditional Rotastak products will still be heavily supported, but now I will have a new brother next to it.”
A new brother which is more generalist and which can appeal to older kids and adults.
To get the project off the ground, Armitage roped in the expertise of 3di product designers and plastic injection mould manufacturer Fentons Precision Engineering, both based in Northamptonshire. 2D and 3D cad designs were created, and life-size models of the plastic base and accessories were produced. Just the conceptual design saw a bill of £20,000. “That’s before we even started to think about manufacturing. That was literally the plans and design, where we had a fancy drawing and could ask, will this work?” said Paul. The total project, he reveals, without including anyone’s time, cost a staggering £250,000.
Innovation is the driving force
The decision to use a UK tooling manufacturer rather than shoot off to China to get the tools made was more than justified as a number of tweaks were made to the initial prototype. With 18 years’ experience at Armitage, Mel Owen is head guru of tooling operations. “Using local companies meant we were able to be more hands-on. We were able to make changes more easily, and simply being able to sit around a table and discuss progress was such a benefit. Chinese companies will not question if they can make something cheaper or simpler. They work to spec and will do exactly what you specify. They could not have done this with all the changes we specified. Costs were therefore not massively different, especially when you consider we did not have to keep flying out to China, so there were no hidden costs.”
Among the changes made were ridges to help the wire cage sit snug into the plastic tray; rounded corners; imprinted feet to reduce the risk of slippage; contours to the shelf for gradients and holes included for the food bowl and tubes. “Every aspect has been analysed and dissected,” said Louise.
Such modifications meant a better product and also a simpler production method, which also meant that there was no risk of commissioning a tool worth thousands of pounds, and then having to make alterations. As it is, these cages comprise 14 components, which all have to click and fit together perfectly.
To be unveiled later this month, the Genus 100 cage is without tubes, the Genus 200 comes with tubes, and the Natro 200 has a natural look. Importantly, the cages have been built with the forethought for expansion sideways, upwards and downwards, with ideas for different accessories to be introduced at later dates. Yet staying true to the Armitage values, accessories from Rotastak Original can also be used.
“Although the accessories are interchangeable,” said Louise, “this is something new, something fresh, and expands the market.”
The initial soft launch this month is a strategic move to grow sales in a controlled manner. Next year, however, the team is planning to take the Genus and Natro to Germany’s Interzoo. “There is no reason why we cannot tackle Europe from a manufacturing point of view. But everything has to be one step at a time with our focus on our UK customers first,” said Paul.
Finished components for products such as the Rotastak are assembled into kit form
Paul may be gearing up for the challenge of his life in taking on China, but says the success of this project is down to all the staff at Armitage. “The ideas were there; it was just finding them,” he said. Working on this project has brought the whole company together, re-invigorating staff. Ideas and suggestions were sought from all divisions, from those who buy boxes and packaging material to marketing people, to those who design and package products to sales reps. “It has not been me; everybody in the business has come up with the ideas in working groups.”
This is not just about taking on China, it’s about bringing manufacturing back to the UK, it’s about being able to say with pride, Made in Britain.
Simon’s Rodents is located in a lovely part of rural Cambridgeshire. Yet an application to install a sign on the road outside was rejected by the local authority on the grounds that the business is not, well, a point of interest, never mind the fact that 18-year-old Simon’s Rodents is a successful small animal breeder, delivering out 10,000 to 12,000 animals every week direct to pet shops and wholesalers. Not to mention birds, approximately 10 tonnes of frozen food each month and live food such as crickets and mealworms packed fresh every day.
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As a youngster, Simon had a keen interest in animals and was breeding all manner of small furries from the age of six. By the time he’d left school at 16, he knew exactly what he wanted to do – breed and sell small animals.Simon’s Rodents was born.
“It was his baby,” said his wife Julie, who also works in the family-run business in Abbotsley. Their two children, aged nine and 12, spend most of their school holidays on the farm owned by Simon’s parents, following in the footsteps of their dad.
“I enjoyed what I was doing,” said Simon. “I started off with mice, and developed an interest in new colour mutations, and it all evolved from there.”
And evolve it has, into a huge business, with 18,000 breeding and stock-holding cages spread across 14 breeding rooms for rabbits, guinea pigs, rats, mice, hamsters and gerbils. Last year, the business turned over £2.2 million.
Syrian hamsters are traditional big sellers, and guinea pigs are still riding on the G-Force popularity wave. Although Simon suspects a number of hobbyist guinea pig breeders have scaled back their breeding or stopped completely, which might indicate the continued rising demand from stores. “Some weeks we do not have enough stock of guinea pigs, which is our biggest worry.” After all, customers who can’t get stock from you might go elsewhere.
Simon also reveals he has seen a sharp increase in demand for cage and aviary birds, and new orders come in every week, including retailers who have not stocked aviary or hand-reared birds before. These birds are sourced from outside breeders in the UK where possible, and although the hand-reared birds are all UK bred, he finds it very difficult to obtain the quantity and quality of cage birds required on a weekly basis. “For instance, some weeks I might need 500 baby budgies, 200 cockatiels, 300 zebra finches and 200 canaries – you just can’t get that amount here.” All European breeders are vet checked and all appropriate DEFRA import papers are completed so all birds are fully traceable. After collection, the birds are kept for at least five days before being sold on to ensure they are settled.
Smooth running operation
In the breeding units, every aspect is monitored and structured. For instance, each row of cages contain animals all of the same age. Cages are cleaned weekly, and an automatic water delivery system has been installed to cut down the vast man hours of filling up of individual water bottles – Simon’s Rodents employs 16 animal carers, including part-timers, alongside eight delivery drivers and admin staff, whom he praises for their dedication to their job: “They are part of the key to a successful business. They all have the animals welfare as a primary concern, and it shows in the breeding records.”
Simon has also had to resort to more than a pinch of ingenuity when it came to cage design for animals like rats and degus. For the rats, he could not find cages of adequate height, so designed them himself and had them purpose built – using a cat litter tray sourced in Europe with a custom-designed top. As for degus, because these creatures are constantly on the go, he put in hoppers and blocks so they always have something to chew and play with.
Temperature is strictly monitored, and underfloor heating from a straw burner keeps the rooms at an ambient temperature throughout the colder months. For food, Simon has had a special rodent pellet made up which is supplemented by fresh vegetables.
Depending on species, animals may be weaned at four to five weeks, though rabbits go at eight weeks. “With animals such as mice, we have to sell them before they are mature. But we ensure every animal is growing well before we send them out,” he said.
Each animal is sexed before leaving the premises, making it easier for retailers, and giving them the choice of gender, and in the packing room, males are housed on one side, and females on the other. All pets are delivered by company vans and packed with sufficient food and water for the journey, with all animals being boxed the evening before delivery, keeping the time spent in transport boxes to a minimum. Rabbits are delivered with a week’s supply of the food they are reared on at Simon’s Rodents. “This helps with their digestion,” said Simon, “and helps retailers gradually change their diet over to a food of the their preference.” His rabbits are also fed barley straw alongside hay, as he says this is a better source of fibre and aids the digestion process.
Frozen food is also an established part of the business, part of which is imported from the Czech Republic, and has grown to a 10-tonne volume each month. The latest line is a range of frozen fish food, sold in blister pack form.
With customers literally all across the UK, from the Outer Hebrides down to Cornwall, as well as a delivery run to Northern and Southern Ireland and mainland Europe alternate weeks, they deliver to around 200 shops each week. Simon is especially pleased with his delivery network – they now have two long-wheelbase Mercedes and a long-wheelbase Vito custom-modified with freezer and aircon units alongside a full ventilation system running off an auxiliary battery ensuring all animals and frozen food travel well, together with a 4x4 for extreme weather in harder-to-reach areas. “This became a must for us with new Animal Welfare in Transit regulations coming into force, now delivering in inner cities with heavy traffic in the heat of summer, all our animals arrive cool, calm and happy.”
Creating this network of viable deliveries and making best use of the delivery network has been a challenge he is glad to have conquered.
“But the best part of the job for me has to be sending out orders to satisfied customers, and knowing shops are going to be happy. Retailers are always happy when they get a good selection of colours.”
He is content to stick with breeding the major small animal species – he can always source the more unusual species to satisfy demand. He also keeps an eye on what is popular and being discussed on the website forums, as that usually indicates what will be in demand six months later.
He now supplies poultry to garden centres and more exotic animals to colleges running animal care courses, as well as wildlife parks and RSPCA wildlife hospitals. Recently, he’s supplied alpacas to a wildlife park, peacocks and cranes. He has also developed a bit of a sideline supplying animals for film and TV use – his animals have appeared on Coronation Street and Eastenders, as well as the Beatrix Potter film Miss Potter.
There is a strong open door policy at Simon’s Rodents. Julie has hosted WI visits, saying: “We are regulated by so many agencies – Defra, our local council, Trading Standards… and they will all drop in. We also encourage all our customers to pop in and see how we do things here.” She says she would like to get a zoo licence and hold a couple of open days every year. “I would love that; it would only be an extension of what we already do.”
And when that day comes, there is no way the local authorities can say Simon’s Rodents is not a point of interest – meaning they will finally get their road sign!
When Unilever unleashed Peperami Animal on to an unsuspecting market, who would have guessed the spicy sausage snack with mega attitude and tagline “A bit of an animal” would attract such a following? It was not long before Rosewood Pet Products saw an opportunity and launched a range of licensed Peperami pet toys. “It’s been an incredible success,” said Beverley Panter, Rosewood’s marketing director. Designed and packaged by Rupert’s Pet Shop, the range includes eight larger-than-life characters in ‘Bite Me’, ‘Chew Me’, ‘Chuck Me’ and ‘Squeeze Me’ categories. Chances are with Unilever’s planned £5 million advertising campaign for 2011, this is one toy that will continue to fly off the shelves.
“It’s the first time that Rosewood has done something like this, at least since I’ve been here, which is about ten years, and it’s opened the doors for us to look at other licensing opportunities,” she added.
It must be very difficult to constantly come up with new ideas, especially in a hotly contested market as toys. But it’s all about creating that buzz and being flexible, says Bev. “We are always looking for something that is a bit different; identifying a gap in the market. We have regular marketing and sales team meetings where we discuss customer feedback and retail and lifestyle trends, helping us to identify new projects. Sometimes we involve a creative company such as Rupert’s Pet Products, but most of time we handle the entire process ourselves.”
From initial brainstorming to bringing a product to market takes the team on average nine months. Good ideas are always going to be mimicked, so it’s no surprise to see products similar to Rosewood’s introductions enter the market some months later. Bev and her team have a philosophical view, saying that it’s a compliment if other companies follow. They remain focussed on the positive and work towards new launches – that keeps the company on top of its game. “We’re always thinking what can we do this year that is a bit different, and we always try to react to lifestyle trends in faster-moving markets such as fashion and home furnishings.”
Innovation and new products are the lifeblood of any company, and although Rosewood used to have two launches every year and a Christmas launch, in response to customer feedback this has been scaled back to one launch and Christmas.
Not bad for a company that started out with collars and leads in 1960, founded by Eric and Rose Woods and Harry Irving. Its four directors acquired the company following a management buy-out in 2007 but still retain the family-run ethos – Bev joined the company in 2000 while her husband Neil joined in 1995 as MD. The other directors are sales director Neil Cruickshank and finance director Mark Bollands.
Today its core ranges are pet toys, pet bedding and the wildly successful small animal and caged bird treats range, Naturals, which was first introduced in 2006.
This is not a company fearful of entering new waters, as evidenced by its recent launch into the wild bird sector with its Feeding Time range of nut, seed and fat ball feeders. “To be honest, we were a bit unsure about this; there are so many players in the wild bird market. It’s gone very well.”
Rosewood used to manufacture on site but now sources worldwide with nearly 90 per cent of their products made in China. So, when the team comes up with an idea, a product brief is issued to China and samples are sent back for testing and discussion in their head office in the tiny town of Broseley, Shropshire. Each factory has its own Quality Control audits, and Bev and her team make regular visits to suppliers.
It’s a family atmosphere at Rosewood – in more ways than one!
It’s all about people
It is very obvious that loyalty is a core attribute highly valued at Rosewood. She explains: “The suppliers we work with are people we have built up relationships with over the years and they share our aspirations and philosophy. You need that loyalty in business.”
This loyalty is highly evident among Rosewood’s 60 or so staff; Bev has lost track of the number of gold watches handed out for long service. It is not far off to describe Broseley as a village disguised as a town – everybody, it appears, is related in some way to everyone else. (The 2001 census recorded a population of just under 5,000.) In the warehouse at the moment are seven members of the same family. There is a standing joke that Rosewood employs Broseley’s women, and engineering firm Sankey employs the men.
“We are an exciting company to work for, and there is a lovely atmosphere here. But we do all work very, very hard and are never complacent.”
Guess who? The business cards each features the individual’s pet…
With over 1,000 Rosewood products in the bag, plus distributing a handful of other brands for other companies, including flexi and the Company of Animals, what can we expect from Rosewood? As Bev admits, their portfolio is now very nearly full.
“We believe we have a strong, core range of brands and products that we can add to,” she says, “our focus will be extensions which focus on delivering innovation, improved retail margins and end-customer value; maybe more licensing and reacting to lifestyle changes.”
One thing’s for sure, this is a company that is not about to take a step back and pat itself on its back. It’s in final stages for a June product launch, and are already looking about for the next big thing for next year.
Although Rosewood used to attend Glee Petindex, it has not done so for two years and has no plans to exhibit at any of the existing trade shows, choosing to rely on its team of eight sales reps and its links with wholesaler Vital Pet Products.
She has noticed that in the main, products for cats and small animals seem to be more robust than for dogs, echoing a view that the dog population has perhaps declined a bit. Yet growth at Rosewood, which also distributes a number of ranges exclusively in the UK such as Pet Gear ramps, Petstages toys and Sydeco and Blue Ribbon aquarium plants and ornaments, is still in the double digits. Exports to over 30 countries will account for over 12 per cent turnover in this financial year, with Australia being the biggest market at the moment, having goods shipped direct from China.
The Twister toys are all about fun
With so many products, is there one that has special meaning for her? “Oh yes, Mister Twister,” she says, with a smile breaking out. “It was one of the first products I brought out in 2001, and was so exciting and so different from anything on the market then, I knew it would do well. Though there are now all new products in the Mister Twister range, they still stand out in terms of character innovation and detailing, and are so unique.”
And that’s what Rosewood is about – finding that unique product and filling a gap in the market, and always believing that the best is yet to come.
At some point, we will all experience that ‘Eureka’ moment; the sheer elation and excitement of a new discovery. At Lintbells, virtually every product comes with its own “Eureka” moment.
The Lintbells’ stand at PATS
When you consider that Lintbells was formed in 2006 and three short years later, over 50 per cent of top dogs at Crufts were using its supplement Yumega, you know the company is going places. And this is only the beginning as co-founders John Howie and John Davies state simply that their aim is for Lintbells to grow at 60-70 per cent per year for the next three to four years. As it stands, turnover grew by over 65 per cent in 2010 and exports represent 15 per cent of turnover. Fastest growing market is Greece – thanks to a good distributor, says John H, with products also making their way to Asia (Hong Kong, Japan, Malaysia and Thailand), France, Germany, Spain, Portugal, Benelux and the Nordics.
The two Johns come with impressive credentials. John H has a PhD in biological sciences, while John D is a MBA qualified animal nutritionist. Both worked internationally with blue chip companies for a number of years, and met when working for a global agricultural business. John H subsequently went on to work as an advisor for the marketing teams at several leading international food and pet food companies. “It was a marketing role with a strong, scientific background. I basically had to take the science and make it so that people could understand.”
Although the two went their separate ways, they kept in touch and one day, a contact called John H with news of a new Omega 3 product involving flax oil. “I had a look at it and thought it could be quite good for dogs, and called John saying I think we might be onto something,” said John H.
Hot off the production line!
With his scientific background, he began researching the product’s properties, and found a research paper in Texas that looked at the effect of flax oil on a dog’s coat. The Johns came up with a new formulation, and trialled the product on their own and friends’ dogs. “Only when we were confident of the science did we launch a consumer test in 2006, conducted over six weeks with 50 to 60 owners,” he said. The results were overwhelmingly positive, and many wanted to buy the product. Yumega was born.
By early 2007, Yumega was in Vital Pet Products and Pedigree Wholesale, backed up with advertisements in trade and consumer press. But dog owners were not biting. Said John H: “I remember going for a meeting with the bank manager, and he said, ‘Well chaps, things are not going to plan, are they?’.”
Sitting round a table, the partners realised that they had to market directly to dog owners, and there and then booked a stand at the 2007 CLA Game Fair show. Which was cancelled a week before opening due to torrential rain.
It was make or break time. “I remember thinking, should we just throw in the towel and cut our losses?” he said. They then spotted a Crufts qualifier scheduled for the East of England showground, and managed to secure one of the last pitches. And spent the four days of the show talking themselves hoarse as they explained Yumega to dog breeders and owners.
Visiting shows is now a matter of course, and Team Lintbells attends over 50 consumer shows each year, excluding trade events. The two Johns attend as many as possible, and there is a dedicated two-woman team for championship shows. The company has also just appointed its first sales rep, for the south of the country.
“We could not do this without the support of our families,” says John H, who has two children aged 21 months and 3½ years. “I make it a point to get home for most bath times.”
Customers know best
When I met John H, he had just completed a back-to-back marathon of a four-day BSAVA Congress and the two-day PATS Harrogate. But shows are the life source of a rapidly growing company. He said: “If you do not talk to people, you don’t pick up on nuances. There is nothing like firsthand experience. Besides, their feedback steers one in the direction of new products.”
By their second Crufts, regulars were asking if they had anything for itchy dogs. That led to the birth of Yumega Plus, which saw phenomenal growth – within six to seven months, it was already selling 60-70 per cent of Yumega’s sales.
It was also show visitors who kept asking for Yumega for pups. Spotting an opportunity, John H once again hit the research trail, investigating all health issues facing pups. A crucial point, he says, is Omega 3 DHA, which is essential for brain and vision development. Drawing on experience gained working in the food industry, he also researched the benefits of oligosaccharides on the digestive system. He also draws on the expertise of his brother James, a vet with particular interest in nutrition.
“YUM Puppy is exciting,” John H said. “There is nothing like this on the market. Breeders are coming back with encouraging stories.”
Another of the company’s popular products is Yumove, a triple action joint support supplement for dogs. Soon, dog owners were asking if they could take this product themselves, which led to the recent launch of human joint supplement iMove.
Lintbells has also a strong range of skin care and dental products, developed by vets in Germany. These harness the power of antibacterial colloidal silver to provide natural ways of destroying bacteria and certain fungi. The range now includes a skin cream and balm, ear and eye cleaning drops, and tooth polish.
Attention to detail
There is no point in formulating a top-quality product, then not backing it up with the best of raw materials. He said: “We will not go for anything that is a little bit cheaper. Anything cheaper will not have the efficacy. If you use a cheap raw material, you start off bad. If you produce it badly, you make it worse. If you then package it badly, you make it even worse.”
It’s harvest time! Farm has its own railway as the owner is a rail enthusiast
Lintbells’ Omega 3 and 6 is sourced from flax and borage, grown on a 1,000-acre farm in the Midlands. The contract manufacturer is an oil specialist, producing and importing 250 oils from around the world. When its managing director Henry Noon first met the two partners, his immediate thought was that his oils were too high quality for a pet supplement. He said: “But John said he wanted a premium product, not the cheap stuff; he wanted an oil that is good enough for humans.”
They came to the right place. What Lintbells has sourced is a high-end oil, unadulterated and cold pressed, unlike many other oils such as sunflower – as sold in supermarkets – which are heavily refined and manufactured. “Nothing is added,” explained Henry. “Cold pressing is a very slow process, which makes it more expensive, with light and temperature closely monitored.”
Flax especially is a very delicate oil, making it more crucial that it is stored and packaged correctly. Walking around the factory, I am shown the cold pressing operation, how the oil is filtered to remove microscopic particles which then gives the oil its fresh, vibrant colour, and finally, how it is stored in a specially adapted warehouse so all UV rays are blocked out, and kept at a year-round temperature of 16 deg C.
The strictest quality controls are in place with complete traceability, and every batch is numbered so can be tracked back to source. Each batch is taste tested and checked for colour and texture, and samples are kept for six years.
The science bit
All this attention to detail and demand for a superior product – both in its raw material form and production process – are crucial to support the science. Team Lintbells had researched extensively the benefits of Omega 3 and 6 oils on the health of pets, but they were also aware of the dangers of oxidation of oils.
In a nutshell, oxidation is when a substance undergoes a chemical reaction as a result of exposure to oxygen or free radicals. With oils, oxidation can also occur when exposed to heat or light, and result in rancidity. Essential fatty acids can be destroyed, and fat-soluble vitamins disappear. In short, not good. How can one tell if oil has undergone oxidation? By measuring peroxides, the primary products of oxidation.
There is no way to eliminate oxidation, but you can certainly minimise it, and in tests, Lintbells’ products showed the lowest levels of peroxides from a range of test subjects. Said John H: “With oxidation, the first concern is the quality of the raw material and how the oil been processed. Our salmon oil is produced within one hour of the fish being caught. Our seed oils are processed on the same farm they are grown on. The fact is, with our oils, I can walk into the field and see where it is growing. I can fly up to the fjord in Norway and see the fish farm, so I can be completely confident of quality.”
Oxygen can also exist in the headspace of a container. So all containers at the contract manufacturer are capped with nitrogen. Lintbells also adds more-than-required levels of the antioxidant vitamin E, which not only mops up free radicals thereby protecting the Omega 3s, but also supports the skin’s natural defences.
Up until recently, all Lintbells’ oils were packaged in dark glass bottles, again to prevent oxidation. Technology has since caught up and there is now a plastic that acts as a barrier to oxygen. “Yes, all this does increase the cost, but we have to do it right.”
Yet it is not just about doing things right; it is about finding that point of differentiation, that element of “uniqueness”. Yes, that “Eureka!” moment. Take the aforementioned Yumove. The two Johns were aware of the need for a joint supplement, but were determined to find a unique property as a selling point. Which they did, on two counts.
The farm has 15 bee hives as borage requires bees for pollination
First was the use of Green lipped mussel as a rich source of chondroitin and omega 3, which plays an important role in reducing stiffness in the joints. But whereas Green lipped mussel is normally freeze-dried, Lintbells goes the cold-pressed route to boost its efficacy by three times. Second was the ingenious use Hyaluronic acid, which is a major component of synovial fluid and helps lubricate and cushion the joint during movement. Conventional applications of the acid is via injection straight into the joint at a vet’s. But they found ground-breaking research that explained how tweaking a particular chain length could get the acid to the joints within two hours of consumption. Yumove, marketed as a triple action joint support with high levels of Glucosamine, is now seeing rapid sales growth as more and more dog owners witness remarkable improvements in their pets’ mobility.
“The most rewarding experience for us is when an owner calls up to say, ‘We can see the difference in my dog’. Every day we receive calls and emails like this, and that makes everything we do worthwhile,” he added.
Greek mathematician Archimedes was said to have jumped from his bath and run naked through the streets shouting “Eureka” after he discovered a method for determining the purity of gold. Although Lintbells is only five years old, with the ideas and prototypes currently being researched and tested, there will definitely be quite a few more “Eureka” moments before it turns 10.
