Growth in Premium Pet Food Market

Provimi Pet Food, which supplies private label products to Europe's largest supermarkets, enjoyed strong sales growth in the first half of 2010 on the back of strong demand for premium quality products, it announced today.

The multinational recorded EUR115m of sales from January to June – a six per cent increase on the first half of 2009 – as it capitalised on its position as preferred supplier to large retail chains and won several large retail supplier contracts across Europe.

Provimi Pet Food (PPF), which operates in 28 European markets, enjoyed double-digit growth in several countries including 190% in Russia, 26% in Poland and 20% in Romania.

Strong trading has continued across Provimi's core markets of the Netherlands, France, Hungary, the Czech Republic and Slovakia, while a recent contract win in Germany will help it maintain the double-digit growth it has enjoyed in the country since 2008.

The pet food market in Europe, excluding the UK and southern countries, is worth EUR9bn per year[1].

Provimi's strong performance figures have been helped by diversification into higher quality product segments including premium and super premium pet foods, supported by investment in more R&D and quality control resources. Sales of premium pet food in Europe are now growing at six per cent year-on-year.

PPF, which has nine factories across Europe, has also developed its offering in higher value added ranges including convenience, vitamin / mineral fortified, lifestyle (active / fit) products.

The firm streamlined its operation and introduced new management since its acquisition by private equity firm Permira in 2006.

Looking forward, the pet food sector is forecast to expand across European markets thanks to a variety of factors. Pet numbers are rising at a higher rate than ever driven by Europe's ageing population and increasing number of single person households.

Owners are also spending more on snacks, treats and accessories for their pets and are also buying better quality foodstuffs to meet higher food standards. These trends have opened up opportunities for the wider establishment of a premium pet food offer, which Provimi is well placed to lead.

Looking ahead to 2011 Provimi Pet Foods is predicting strong growth, spearheaded by investment in more emerging sectors, with a focus on increasing production capacity for dry products and snacks.

Attila Balogh, CEO of Provimi Pet Food, said: "Following a successful 2009, the business has continued to perform well in the first half of the year, experiencing very strong performance.

"This growth is expected to accelerate over the coming months. This leaves us well positioned to capitalise on positive market trends and become the leading private label pet food company in Europe as we continue to invest to better serve our customers."

[1] This includes Germany, the Netherlands, France, Turkey, Slovakia, Russia, Romania, Poland and the Czech Republic.

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