Date: January 26-27, 2012
Location: The Hotel Concorde, Berlin, Germany
Event Description: Changing consumer behaviour, focused on authenticity instead of brands, and the changing playing field of the international pet industry due to the M&A trend, has dramatically changed the landscape of the pet industry. The Global Pets Forum will address this changed landscape and answer questions like:

• How will this affect the future and the smaller players in our industry, from manufacturers to retailers?
• Will it have an impact on the current profit or margin levels? If yes, which players in the industry will be affected?
• Where do opportunities lie for long-term profit?
• In short, what are the long-term profitable business models which can anticipate above-mentioned trends?

Speaker: Lee Linthicum, Head of Food Research, will be presenting on how mergers and acquisitions have impacted the global pet care industry over the last decade. Thanks to sustained M&A activity, global pet care has become increasingly consolidated among 5 key players: Mars, Nestlé, Colgate-Palmolive, Procter & Gamble and Del Monte.

The global pet care industry is especially attractive for potential corporate buyers – be they manufacturers or private equity firms – thanks to its general resilience during periods of economic uncertainty and its relatively high margins. Strong retail performance and prospects in emerging markets – most notably Latin America and Eastern Europe – further add to its allure.

However, M&A cannot be seen as a magic bullet for companies looking to expand in global pet care, not least because of the considerable risk of consumer backlash if a large multinational corporation picks up a smaller player. Procter & Gamble and Mars have both suffered the wrath of pet parents with their acquisitions of Iams and Nutro, respectively.

Nevertheless, strong retail prospects and healthy forecasted growth in emerging markets mean that further M&A can be expected for global pet care. Potential rewards stand to be significant for those acquirers able to strike a right and proper balance between the needs of their shareholders and their increasingly sophisticated consumer base.

For more information, please click here.