After introducing pet treats to stores about four months ago, Babir Sultan, president and CEO of convenience-store Fav Trip says it’s something all retailers should consider. “We knew there were parks near us, but [the pet category] was something we didn’t pay attention to,” he says. “We should cater to those customers and their four-legged friends.”
Treat Planet, a pet treat company based in Earth City, Missouri, entered the c-store industry seven years ago and found a new market within it. While there’s 8,000 independent pet specialty stores, there are 150,000 c-stores, says Christina Wilson, vice president of business development at Treat Planet LLC, which made the company “very interested in the market.”
“We took our top sellers from pet specialty, and we marketed them for convenience,” Wilson says.
When it first entered the channel, stores didn’t give Treat Planet inline space because the category was new and hard to prove, says Doug Martin, president of Treat Planet, but display merchandising has proved to be turnkey, he says.
Customers aren’t replacing anything else that they’re buying with the dog treat, they’re adding it on top, he says.
“It's an incremental sale,” says Wilson. “I think that's really why retailers like it.”
Fav Trip offers grab-and-go treats at the counter and is starting to designate shelf space to them.
“I think it’s an overlooked category for sure,” Sultan says. “We noticed some of our competitors were carrying some of the products, and it’s something new for us.”
Treat Planet bones are 1-ounce and come in two flavors. They retail for a $1.19.
“Our price points are meant to be like candy bar price points, grab-and-go type price sites versus buying a big bag,” says Martin. “People are looking for that in-and-out, quick-grab convenience. That's why they're going into a convenience store. We looked at the dog treat category in that lens. We developed all of our products to meet that driver, which is why we are so differentiated from our competitors is because we came into it with a grab-and-go mindset to meet that impulse buyer in a store who knows that, as soon as they get home for work and they're stopping on their way home, the dogs is the first thing that greets them, and they'd love to give that dog a treat for being there.”
Fav Trip offers both grab-and-go and conventional take-home treats. The Kansas City-based convenience-store of three locations plans to increase its offerings in the category, especially after learning more about it at the 2023 NACS Show in Atlanta.
Pets are a part of the family, and this the “humanization of pets” trend is propelling the category forward, says Wilson. Pet owners want to treat their pets well.
“People love their dogs,” she says. “A lot of people like their dogs more than their family members. Their dog sleeps with them instead of being outside like it was 40 years ago. So human grade treats is a huge category within pet. And again, it's because of our experience in pet specialty that we're able to offer and bring that into the convenience market.”
Martin adds, “They're having birthday parties. They're going to work with you. They're the first thing you see when you get home. The humanization of pets trends just drives the entire pet category.”
When saving money, Martin says that people cut down on their own treats before they cut back on their dog.
Treat Planet’s specialty products are handmade and have no additives. They are soft and human grade, made up of greater than 95% meat. Products such as beef sticks and rabbit sticks are great for teeth and gums. The company also makes single-ingredient pig ears and rib bones.
“We always say that these sell well in a convenience store for the same reason why a banana sells well,” says Wilson. “People like a banana because it's a banana. They know exactly what it is. There are no additives. It's very fresh.”
Top Products
More than 60% of truck drivers travel with their dogs, says Martin. It provides companionship, safety and security with drivers. It also helps drivers get exercise, especially attractive in a profession that requires sitting in the same spot all the time. Truckers with dogs have to walk them, and that promotes a healthy lifestyle, he says.
Pet treats grew 2.6% in c-store unit sales for the 52 weeks ending Sept. 10, according to Circana, a Chicago-based research firm. The category has increased 20.4% in dollar sales.
Of the top-selling 15 pet items in c-stores, Treat Planet makes 10. A lot of retailers feel that’s a lot of product, Wilson says. Even when they like the merchandising, retailers question if they need that much variety.
“We're trying to educate retailers on you want to have a very diverse product sets,” Martin says. “No matter what the economy has, you have something they're willing to buy and will continue to make your basket bigger. And the Treat Planet provides the dog treats that'll help you do that because it's pretty recession resistant.”
Milk Bone, a J.M. Smucker-owned company, raked in the most dollar sales in the convenience channel, $1.9 million, with its Regular Dog Snack Box.
Mars is another notable player in the pet space, showcasing products at the NACS Show and the Sweets & Snacks Show this year. Two of its brands, Temptations and Purina, are in the top 15. The company also owns Iams, Cesar, Pedigree and Sheba brands.
“The humanization of pets trends just drives the entire pet category.”
Room for Growth
As far as pet food, it usually declines, says Wilson. “Last year, there was a pretty notable shortage. There still is, of dog food, because of supply chain. Treat Planet plays in this pet treats and the pet supplies category.”
Pet food decreased 11.1% in c-store unit sales for the 52 weeks ending Sept. 10. The price per unit increased 14.2%, leading dollar sales to increase 1.6%.
Treat Planet has 45% of the treats and supplies sold within convenience market, according to Circana data.
“Our highest ACV [All Commodities Volume, the total sales of all products in a given store relative to the total sales of all products in competitive stores in a specified region or territory] right now is 14%. The other really exciting thing about this category is that [we] still have a ton of runway and a ton of opportunity to further grow this category. And it's because our highest ACV right now is at 14. That increases a lot every year.”
Top 10 Pet and Treat Supply Products
Treat Planet items dominated the top 10 list of pet treats and supplies in c-stores, but Milkbone’s Regular Dog Snack Box topped the list.
- Milkbone Regular Dog Snack Box (24-ounce)
- The Bone Company Peanut Butter Dog Biscuit Cardboard Sleeve (1.3-ounce)
- Treat Planet’s Cosmos Snack Shack Peanut Butter Bakery Bones
- Treat Planet’s Cosmos Snack Shack Rabbit Chew
- Temptations Chicken Soft and Crunchy Cat Treat Resealable Pegged Bag (3-ounce)
- Treat Planet’s Cosmos Snack Shack Pig Ear
- Treat Planet’s Cosmos Snack Shack Original Snack Sticks
- Treat Planet’s Cosmos Snack Shack Cheese and Bacon Bakery Bones
- Purina Beggin Strips Bacon Dog Snack Resealable Pegged Bag (6-ounce)
- Treat Planet’s Cosmos Snack Shack Rib Bone
Source: C-store dollar sales for the 52 weeks ending Sept. 10, according to Circana.