SAN DIEGO, March 1, 2022 /PRNewswire/ -- Petco Health
and Wellness Company, Inc. (Nasdaq: WOOF) today announced a
dramatic expansion of its partnership with JustFoodForDogs to
extend its leadership position in the fast-growing fresh and frozen
premium food category, and to better meet rising demand from pet
parents.
As part of the expansion, Petco and JustFoodForDogs will
co-develop a new human-grade fresh and frozen owned brand pet food
for Petco's WholeHearted line, as well as pilot a custom food
program at Petco's pet care centers. Currently available in
approximately 700 Petco locations nationwide, the JustFoodForDogs
offering is planned to expand to more than 1,000 Petco pet care
centers by the end of 2022, further solidifying Petco's commitment
to providing premium fresh and frozen food options to pets and
increasing the availability of JustFoodForDogs nutrition
nationwide. With the expanded partnership and exclusivity
arrangement, Petco will continue to be the only national brick and
mortar retailer to offer JustFoodForDogs products in retail stores
and online through same-day delivery, buy online, pick up in
store (BOPUS), and other online fulfillment options. The companies
will also jointly invest in new marketing programs and the expanded
pet care center presence to support the deepening relationship and
fast-growing category.
Additionally, Petco will receive a warrant for JustFoodForDogs
equity tied to the successful execution of the parties' 2022 plan,
and will have the opportunity to acquire additional equity over
time. Both companies have agreed on mutually beneficial structures
should either Petco desire to add certain new fresh frozen brands
to its assortment or JustFoodForDogs desire to add additional
online distribution to its omnichannel offering.
"Pet parents are rapidly shifting feeding to the fresh frozen
category, which is predicted to grow from $1
billion to approximately $4
billion by 2025, and 92% of it is selling through physical
retail today," said Ron Coughlin,
CEO of Petco. "Expanding our relationship with JustFoodForDogs
ensures Petco's continued leadership in the category and reinforces
our unmatched commitment to pet health and wellness. Broadly, we
offer pet parents the fastest and most convenient access to fresh,
human-grade food in the industry, whether purchased on petco.com
and delivered same-day to their doorstep or picked up at a Petco
pet care center. We look forward to further innovating with the
JustFoodForDogs team to deliver new and exclusive options to our
customers as we grow this long-term, mutually beneficial
partnership, and are excited to become equity holders."
"Petco's commitment to health and wellness, as well as setting a
higher standard for pet nutrition, are in perfect alignment with
JustFoodForDogs' values and mission," said Julian Mack, CEO of JustFoodForDogs. "We want
every dog to live its longest and best life possible through the
transformational power of fresh food, backed by science. Pet
parents value both the expert nutritional counsel they receive in
store at Petco as well as the convenience of Petco's store
locations and delivery options. Our partnership with Petco has been
a fantastic collaboration to date, and we now look forward to
deepening this partnership further to help even more dogs thrive
from the health benefits of fresh food."
Petco's relationship with JustFoodForDogs began in 2018 and has
contributed to Petco's leadership in the fresh and frozen pet food
category. In 2018, Petco became the first – and remains – the only
national retailer to remove pet food and treats with artificial
ingredients from its offering, with nutrition standards that live
up to its health and wellness focus. In 2019, Petco and
JustFoodForDogs launched an iconic, state-of-the-art pet food
kitchen in Petco's Union Square store, which marked the beginning
of a national expansion program in Petco pet care centers and at
petco.com. Additional in-store kitchens are planned to open in pet
care centers this year, including one at Petco's Sports Arena
location in San Diego. Petco's
national footprint of strategically located JustFoodForDogs
pantries has been honed in recent years to create an optimized
infrastructure for fresh and frozen offerings that can't be
replicated by online- or brick and mortar-only competitors.
A pre-recorded video presentation discussing the transaction and
Petco's positioning in the premium fresh frozen category is
available here. For additional information about the companies,
visit petco.com and JustFoodForDogs.com.
About Petco, The Health + Wellness Co.
Petco is a
category-defining health and wellness company focused on improving
the lives of pets, pet parents and our own Petco partners. Since
our founding in 1965, we've been striving to set new standards in
pet care, delivering comprehensive wellness solutions through our
products and services, and creating communities that deepen the
pet-pet parent bond. We operate more than 1,500 Petco locations
across the U.S., Mexico and Puerto Rico, including a
growing network of more than 150 in-store veterinary hospitals, and
offer a complete online resource for pet health and wellness
at petco.com and on the Petco app. In tandem
with Petco Love (formerly the Petco Foundation), an
independent nonprofit organization, we work with and support
thousands of local animal welfare groups across the country and,
through in-store adoption events, we've helped find homes for more
than 6.5 million animals.
About JustFoodForDogs
JustFoodForDogs is a pioneer in
the fresh/frozen food category founded in 2010.
JustFoodForDogs' diets are made from the highest quality human
grade ingredients, cooked lightly to preserve nutrients and
balanced for long term feeding. Since the Company's founding,
JustFoodForDogs has optimized the health impact of its recipes and
proven its efficacy through nine years of independent,
peer-reviewed research. JustFoodForDogs sells fresh/frozen and
shelf stable fresh daily diets for dogs and cats as well as
veterinary therapeutic diets to support some of the most common
health conditions. With a large full-time veterinary team and
hundreds of nutrition consultants, the Company is available to help
pet parents find the best food for their dog or cat, whether it's
in a Petco store, a veterinary partner clinic or a JustFoodForDogs
flagship kitchen. JustFoodForDogs, like Petco, takes real action to
advocate for pet health and higher industry standards. The Company
is proud to have pioneered the first ethical feeding trials for
dogs as well as for its' leadership role in making the world's best
fresh food more affordable for pet parents
everywhere.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, concerning expectations, beliefs, plans,
objectives, goals, strategies, future events or performance and
underlying assumptions and other statements that are other than
statements of historical fact. Although Petco believes that the
expectations and assumptions reflected in these statements are
reasonable, there can be no assurance that these expectations will
prove to be correct. Forward-looking statements are subject to many
risks and uncertainties, including the risk factors that Petco
identifies in its Securities and Exchange
Commission filings, and actual results may differ materially
from the results discussed in such forward-looking statements.
Petco undertakes no duty to update publicly any forward-looking
statement that it may make, whether as a result of new information,
future events or otherwise, except as may be required by applicable
law, regulation or other competent legal authority.
Investor Contact:
Kristy
Moser
Kristine.moser@petco.com
Media Contact:
Ventura
Olvera
ventura.olvera@petco.com
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SOURCE Petco Health and Wellness Company, Inc.