During the first three months of 2024, Purina PetCare stood out for driving Nestlé’s overall growth, Mark Schneider, chief executive officer of Nestlé, said during an earnings call on April 24. Purina PetCare was the largest contributor to organic growth, fueled by continued momentum for science-based premium brands, Purina ONE, Fancy Feast and Friskies, according to a company press release.
“Group-wide, the key drivers of growth included PetCare and confectionery,” he said. “As expected, PetCare growth moderated to mid-single-digits, following four consecutive years of double-digit growth. This deceleration is largely a factor of slowing pricing, with category fundamentals continuing to remain healthy and the latest Nielsen research showing an increase of nearly 2% in U.S. pet population.”
“In Purina Petcare, in the U.S. alone, we plan to launch over 100 new products across the year as we take advantage of our new capacity,” Anna Manz, chief financial officer for Nestlé, said during the call. “Across 2024 and 2025, we will re-enter segments we had opted out of when supply was constrained. We will feed new products into our brand growth engines, significantly expanding the microbiome-focused line-up for our Purina ONE True Instinct dog food. These products apply some of the best of our scientific and nutritional expertise.”
Regional growth for Purina
Pet food was among Nestlé’s strongest segments for sales growth worldwide. However, some differences existed among regions.
Asia, Oceania and Africa
Nestlé’s Asia, Oceania and Africa zone saw market share gains in pet food.
China
Sales for Purina PetCare grew at a double-digit rate in China, based on new product launches and strong e-commerce momentum, particularly for Pro Plan and Fancy Feast.
“Greater China delivered robust organic growth, including positive RIG, despite the economic slowdown,” Manz said.
Purina PetCare was an important contributor to growth, led by new product launches and helped by growth in e-commerce, she said.
Europe
Purina PetCare, driven by premium brands Purina One, Felix and Gourmet, was a key contributor to NestléNestléNestlé’s overall growth in Europe.
“In Zone Europe, the key takeaway is the breadth of the growth…” Manz said. “The largest contributions to growth came from the solid performance in two of Nestlé’s growth engines. PetCare delivered mid single-digit growth - particularly with premium Billionaire brands Felix, Gourmet and One.”
Latin America
Nestlé's pet foods had market share gains in Latin America’s pet food segment during the first three months of 2024. Purina PetCare saw low single-digit growth, supported by Alpo and Felix.
North America
By product category, Purina PetCare was the largest growth contributor for Nestlé in North America, with broad-based demand, particularly in e-commerce. Fancy Feast, Friskies and Purina One all delivered strong growth.
“Importantly, the Zone delivered resilient growth and market share gains in billionaire brands including PetCare and Coffee,” Manz said.
