Beach Point Capital Management had already bought a minority shareholding in the company in December 2019 and this added investment will allow Wet Noses’ to expand its manufacturing capacity amid a “growing demand” for its organic pet food and treats.
This expansion is vital for Wet Noses as the 1998-founded Seattle-based company makes branded and private-label pet food for itself and also for other brands.
The deal includes provisions for founder Jasmine Galligan, who was the CEO until 2020, to return to Wet Noses in that same capacity. Additionally, the former COO Jeff Quinn will also rejoin the business.
“We are excited to have Jasmine and Jeff rejoin the company and lead Wet Noses during its next phase of growth,” Evan Klebe, managing director at Beach Point, said.
AlphaPet acquires wet pet food brand
Meanwhile, AlphaPet, a German platform that owns pet-food brands including Wolfblut and Müller’s Naturhof, acquired Herrmann’s Manufaktur and describes it as a “market-leading brand in organic wet pet food”.
AlphaPet sells its products online and also acts as an e-commerce seller for third-party pet-food brands, and Herrmann’s Manufaktur brand will be an addition to the platform.
Additionally, AlphaPet’s subsidiary Premium Pet Products GmbH will take over Herrmann’s Manufaktur distribution to B2B partners.
“With the acquisition of the brand, AlphaPet strengthens its position as the leading, premium, digital, pet-food platform in Europe and continues its growth path with a projected turnover of around EUR200m (US$213.2m) in 2023”, said AlphaPet’s managing director, Marco Hierling.
“The first step will be to strengthen further the brand in the markets where it already shows good traction,” AlphaPet provided.
Statistics show that the pet industry has been blooming and expanding in markets all over the world, and more companies are investing in this industry.
According to IMARC, the value of the pet food industry was US$112.87 Billion in 2021, and the market is likely to reach US$154.04 Billion by 2027.
As the industry expands, concerns about the sustainability of production become vital as stakeholders realize the environmental toll of production activities in the industry.
According to the United Nations, livestock is responsible for roughly 14.5% of global greenhouse gas emissions, and as much as a lot is for human food, pet food claims a considerable share.
Interestingly, a 2017 study found that in the USA (the world’s largest population of pet owners), the nation’s 163 million pet dogs and cats would rank fifth in meat consumption in the world if they formed their own country.
Therefore, there is a push for the utilization of plant-based ingredients in the production of pet food, as well as the use of sustainable packaging materials, to reduce the environmental toll of pet food production.