Overview of this issue

Nestlé Purina plans to invest US$200 million to expand the factory;

Pastor & Shuai Ke join forces! Promote the new development of pet industry;

DSM-Firmich will spin off the animal nutrition and health care business;

Hollyland enters the pet food track, and the design of cute pet cakes is cheating ;

Better Choice Company, the parent company of Halo Natural Halo, reached an acquisition agreement with Canada's Aimia Pet Health;

Announcement No. 756 of the Ministry of Agriculture and Rural Affairs: Approved 157 types of feed and feed products produced by 99 companies Feed additive products are registered or renewed in my country;

New products｜A Fei and Buddy cat strips are new.

Pet industry information (2024.2.3-2.23)

Industry Trends

1

Hot News

1.1 Nestlé Purina plans to invest US$200 million to expand its factory

According to The Messenger (The Messenger), the Ford Dodge City Council in Iowa, USA, promised on February 12 to provide Nestlé Purina Pet with The food company is investing $1.6 million in the expansion of its canned cat food production facility in the city. It is reported that Purina plans to invest $200 million in expansion of the cat food factory. The application plan was submitted to the Iowa Economic Development Authority on Friday.

Source: The Messenger

1.2 The chef & Shuai Ke join forces! Promote the new development of scientific breeding in the pet industry

Pai Chuan Shi and Shuike have joined forces to produce a series of energy dog ​​food to promote the new development of scientific breeding in the pet industry. Affected by the living environment, domestic pets generally lack space for free movement. However, the current mainstream tendency of pet owners to choose pet food is high protein and high nutrition. If pets consume too much energy but cannot consume it, they are prone to sub-health problems such as gastrointestinal fragility and obesity due to excess nutrition. As the "first domestic exercise-adaptive" dog food, the Paishanshi Energy Series pays more attention to the nutrient density that dogs should consume under different exercise habits, allowing pets to have a more scientific and healthy diet structure. Based on the new research and development ideas of Paishian, Shuike has worked closely with its team to fully cooperate with the research and development needs and production needs of energy series dog food, and communicate and discuss details such as production process and product functional experimental verification.

Source: Shuike Pet Shares

1.3 "Mitouke" and "Changsheng Breeders" signed a strategic cooperation agreement to join forces to create a first-class original pet brand in China

Recently, "Metouke" and "Changsheng Breeders" signed a strategic cooperation agreement. This cooperation will help provide more scientific and targeted pet health products and pet stem cell technology to Chinese pets and pet parents. Serve. Changsheng Breeders has also integrated pet food health and pet stem cell technology services into two core businesses, forming online and offline pet health care services with integrated resources for Chinese users. Midok Biomedical Co., Ltd. mainly develops animal mesenchymal stem cell drugs, medical technologies, and stem cell derivative products for the treatment of high-incidence and refractory diseases in pet dogs, cats and sports horses, and for the health care of middle-aged and elderly animals. and daily animal health care. "Changsheng Breeders" under Changsheng Group is committed to the concept of healthy and scientific pet feeding, constantly pursues supply chain transparency, and brings the concepts of "self-raising" and "self-harvesting" of high-quality raw materials into the core concept of the brand.

Source: Changsheng Breeders

1.4 Zoetis 2023 Financial Report: Revenue reached US$8.544 billion, and companion animal revenue increased by 7% throughout the year

Shuo Zoetis announced its 2023 financial report: In the fourth quarter of 2023, Zoetis achieved revenue of US$2.213 billion, revenue operations increased by 8%, and adjusted net profit operations increased by 6%. Full-year revenue for fiscal year 2023 will reach US$8.544 billion, a year-on-year increase of 5.74%. Among them, business income from companion animals was US$5.58 billion, accounting for 65.26%. In 2023, revenue from the US headquarters still accounts for half of the country, reaching US$4.56 billion. In terms of revenue from a single overseas country and region, Brazil will become Zoetis' largest overseas market in 2023, with revenue approaching US$400 million. Australia, China, the UK and Germany follow. The annual revenue is: US$322 million, US$320 million, US$280 million, and US$200 million. In the fourth quarter of 2023, revenue from China was US$64.7 million, a decrease of 29% from US$91.4 million in the same period of 2022. Total revenue from China for the full year of 2023 is US$320 million, a decrease of 18% from US$382 million in 2022.

Source: Financial Industry

1.5 Zhongchong Co., Ltd. won the title of Tax Contribution Enterprise in Laishan District in 2023

On February 20, the Laishan District Committee of Yantai City, The district government held a mobilization meeting for the district's "Quality Improvement Year" and solemnly commended outstanding enterprises in Laishan District in 2023. With the company's excellent comprehensive strength and outstanding contribution to the local economy, Zhongchong Co., Ltd. was awarded the honorary title of "Tax Contribution Enterprise" in Laishan District in 2023.

Source: China Pet Holdings

1.6 Yuanfei Pet won the Wenzhou Quality Management Innovation Award

Recently, the 2023 Wenzhou Mayor Quality Award, Wenzhou The list of winners of the Quality Management Innovation Award was officially announced. Among them, Wenzhou Yuanfei Pet Toy Products Co., Ltd. won the "2023 Wenzhou Quality Management Innovation Award". The Wenzhou Mayor's Quality Award was established in 2009. It is the highest quality award established by the Wenzhou Municipal People's Government. It is mainly awarded to Wenzhou City who have independent legal personality and implement a quality management model with excellent performance in industry (including agricultural product processing industry) and engineering construction. Enterprises or organizations that are in a leading position in the fields of business, services and other fields and have achieved significant social and economic benefits.

Source: Yuanfei Pet

2

Corporate News

2.1 DSM-Firmich will spin off animal nutrition and health care Business

On February 15, DSM-Firmenich announced the launch of a process to separate its Animal Nutrition and Healthcare (“ANH”) business from the group. The Company believes that the full potential of the ANH business will be best realized through a different ownership structure and will consider all potential separation options. The company expects to complete the separation of the business during 2025. The full potential of the animal nutrition and health business can be better unleashed through a change in ownership structure. The Animal Nutrition & Health business will further strengthen its position as a global leader with its unique and comprehensive portfolio of vitamins, premixes, functional solutions and smart precision services. It is reported that ANH achieved revenue of more than 3 billion euros last year and has approximately 6,000 employees.

Source: Frontier of Agriculture and Animal Husbandry

2.2 Holiland enters the pet food track, and the design of cute pet cakes is cheating

Co-branded fanatic Holiland recently announced the pet baking brand Holiland Pet went online and started selling pet cakes online. Before Holiland, brands such as OneSeventh, Charlie's, Pandora's, FanForPETS, and Snooker had entered the pet baking market. In addition to providing a variety of pet cakes, these brands also stock a wide range of fresh pet snacks, provide baking courses, and create pet paradises to provide more fun for families with cats and dogs.

Source: Meihua.com

2.3 Lilly’s revenue in the fourth quarter of 2023 will increase by 28%, and its full-year revenue in 2024 is expected to be US$40.4 billion to US$41.6 billion

Eli Lilly released its fourth quarter 2023 financial results on February 6. Revenue increased by 28% in the fourth quarter of 2023. Driven strongly by Mounjaro and Zepbound, new product (i) revenue increased by US$2.19 billion in the quarter to US$2.49 billion. At the same time, revenue from key growth products (ii) increased by 9% to US$5.27 billion, with Vicho® and Otangjing® leading the gains. In the fourth quarter of 2023, according to the financial report, core earnings per share (EPS) increased 13% to $2.42, and on a non-GAAP basis, EPS increased 19% to $2.49, both inclusive. Earnings per share loss was $0.62 due to acquisition IPR&D expenses. The company's 2024 performance guidance estimates that full-year revenue in 2024 will be US$40.4 billion to US$41.6 billion, with core earnings per share of US$11.80 to US$12.30; under non-GAAP, core earnings per share will be US$12.20 to US$12.70.

Source: Lilly

2.4 Lilly sold its aquatic products business to Merck for 9.3 billion in cash

Lilly Animal Health announced on February 5, 2024 has signed a definitive agreement with Merck Animal Health to sell its aquatic business, which includes an innovative product portfolio of aquatic species drugs and vaccines, nutritional products and supplements, for US$1.3 billion (approximately RMB 9.3 billion) in cash, equivalent to Lilan The animal health and aquatic products business is approximately 7.4 times the expected revenue in 2023. The acquisition is expected to close in mid-2024, subject to regulatory approvals and other customary closing conditions. Lilan's aquatic business, which includes warm and cold water varieties, is expected to generate $175 million in revenue and approximately $92 million in adjusted EBITDA (excluding corporate cost allocations) based on preliminary 2023 results. The divestiture includes the transfer of currently sold brands, aquatic research and development programs, production sites in Prince Edward Island, Canada and Dong Nai, Vietnam, and approximately 280 commercial and manufacturing employees.

Source: The Transfer

2.5 Tianjin Chongjia Pet Hospital officially joined the Ruipai family

Recently, Ruipai Pet Information announced that Tianjin Chongjia Pet Hospital The hospital has officially joined Ruipai. After joining Ruipai, Ruipai will continue to empower in many aspects such as business policy, operation strategy, marketing, supply chain system, and discipline construction. The predecessor of Tianjin Chongjia Pet Hospital was founded in 1992 and re-registered in 2019. It is a comprehensive hospital integrating animal diagnosis and treatment, professional animal skin care and other professional services, providing pet medical treatment, pet grooming, pet foster care and pet care. Supplies Food Sales Services.

Source: Ruipai Pet Information

3

Capital News

3.1 Better Choice Company, the parent company of Halo Natural Aura, and Canada’s Aimia Pet Health reaches an acquisition agreement

Recently, Halo’s parent company, Better Choice Company, a company dedicated to pet health and wellness, announced that it has reached an acquisition agreement with Aimia Pet Health, a Canadian company focused on companion animal welfare. protocol. Previously, Better Choice decided to cooperate with Aimia Pet Health to explore and develop nutritional solutions. The two parties will develop a GLP-1 supplement for Better Choice's Halo brand. Includes pet treats and meal additives to combat obesity in dogs and cats. According to officials, the goal of current research and development efforts is to research and develop solutions that can "imitate mainstream brands" targeting the human obesity drug market, including drugs such as Slentrol, Wegovy, Ozempic and Monjaro. Simultaneous pet-specific solutions will provide additional protein and nutrients designed to promote overall health and weight loss in pets.

Source: Pet Industry Observation

3.2 Pet vaccine company “Aiyi Animal Pharmaceuticals” completed hundreds of millions of yuan in Series C financing

Suzhou Aiyi Animal Pharmaceuticals Co., Ltd. (Affection Animal Pharmaceuticals) successfully completed Series C financing worth hundreds of millions of yuan. This round of equity financing was jointly led by Yuanxi Haihe Fund and Songqing Shenhui Jiarui Fund, followed by Guohai Innovation Capital, Starry Sky Capital, Jinshajiang United Capital Runpu Fund, and Su Gaoxin Rongsheng continued to invest as an old shareholder. Aiyi Animal Pharmaceuticals is a leading pet vaccine company in China. It is committed to the research, development, registration and production of world-class pet vaccines, solving the long-standing problem of lack of varieties and bacterial strain matching in the domestic pet vaccine market. Its product pipeline covers all domestic pet vaccines. Important varieties of pet vaccines that are lacking, global innovative vaccines for the Chinese and international markets, and domestic replacement and upgrade products of existing imported pet vaccines.

Source: Investment Industry

3.3 Wanyao Qilong, the parent company of Asia Pet Exhibition, received investment from Advent Capital

The world’s largest and most experienced private equity investment fund One of them, Advent Capital, recently officially announced the completion of its investment in Wanyao Qilong, the parent company of Asia Pet Exhibition. Wanyao Qilong's most representative exhibition "Pet Fair Asia" (Pet Fair Asia) has become one of the most well-known pet products exhibitions in China since its launch in 1997, attracting more than 24,000 brands to participate in the exhibition in 2023 and more than 350,000 visitors. According to official information from Advent, in the future, Wanyao Qilong will change its English name to "Globus Events" to fully demonstrate the growth potential brought about by cooperation with Advent. The new name emphasizes the company's commitment as a platform that connects local and global businesses, and further highlights the corporate mission of "achieving business opportunities".

Source: Pet Venture Capital

3.4 Pet consumer product platform TPC acquires pet snack company Pet Brands

Pet consumer product platform Targeted PetCare (TPC) acquired high-growth The acquisition of Pet Brands, a pet treat business, significantly expands TPC’s pet treat portfolio and adds complementary sourcing, design and packaging capabilities. Pet Brands is a company that offers private label and branded dog and cat treats across a variety of natural categories, including jerky, soft chews, dental chews, purees and premium bones. Since its founding in 2004, PetBrands has become a trusted channel partner for grocery, mass and e-commerce retailers. Antares Capital and Maranon Capital led the debt financing of the transaction. Kirkland & Ellis LLP is serving as TPC’s legal counsel.

Source: Pet Industry Home

3.5 Capital giant L Catterton invested US$40 million in the US pet hospital chain

L Catterton announced its investment in the US pet clinic chain Sploot Veterinary Care strategic investment of US$40 million. This investment is another investment in its rich pet business layout, and it is also its recent continued bet in the pet diagnosis and treatment industry. In September 2023, L Catterton completed a strategic investment in Withmal, a Japanese pet hospital chain. Sploot aims to provide pet owners with convenient pet medical services, ranging from routine checkups to dental treatments and surgeries to urgent care and emergencies, providing a personalized and stress-free experience for each pet and their parents. It currently operates seven hospitals in Denver and one hospital in Chicago, with two more hospitals about to open. After receiving a $40 million investment from L Catterton, Sploot will further expand its hospital network.

Source: Pet Notes Pet Business Research

4

Safety and Compliance

4.1 Announcement No. 756 of the Ministry of Agriculture and Rural Affairs: Approval 99 157 kinds of feed and feed additive products produced by 157 companies have been registered or renewed in my country

Announcement No. 756 of the Ministry of Agriculture and Rural Affairs: In accordance with the relevant provisions of the "Registration and Management Measures for Imported Feed and Feed Additives", U.S. Jinbao was approved 157 types of feed and feed additive products produced by 99 companies including Animal Nutrition (International) Co., Ltd. have been registered or renewed in my country, and import registration certificates have been issued. Approved "Rovisol® A 1000" produced by Switzerland's DSM Nutritional Products Co., Ltd., "Nuco" produced by Italy's Pusol Company, and "Osankang C+ Concentrate" produced by Inienio (Czech) Co., Ltd. Product quality standards are changed, and the import registration certificate is reissued. The original registration certificates "(2022) Waizhi Zhunzi No. 809", "(2023) Waizhi Zhunzi No. 174", and "(2020) Waizhi Zhunzi No. 535" are invalid. . Approved changes to Chinese product names, English product names, applying company names and manufacturer names for 33 products. Supervision and inspection of registered products shall be carried out in accordance with the national standards of the People's Republic of China and the quality standards issued by the Ministry of Agriculture and Rural Affairs.

Source: Ministry of Agriculture and Rural Affairs

4.2 Announcement No. 758 of the Ministry of Agriculture and Rural Affairs: Approval of 3 veterinary drug products applied by 14 units as new veterinary drugs and 1 veterinary drug product change registration

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Announcement No. 758 of the Ministry of Agriculture and Rural Affairs: In accordance with the provisions of the "Veterinary Drug Administration Regulations" and the "Veterinary Drug Registration Measures", after review, the compound mican nitrate applied by 14 units including Foshan Nanhai Dongfang Aolong Pharmaceutical Co., Ltd. was approved Three kinds of veterinary drug products, including azole lotion, are new veterinary drugs. A "New Veterinary Drug Registration Certificate" will be issued, and the product process procedures, quality standards, instructions and labels will be issued, which will be implemented from the date of issuance. Approved the registration change of the itraconazole oral solution veterinary product applied by Shanghai Hanwei Biomedical Technology Co., Ltd., and released the revised process procedures, quality standards, instructions and labels, which will be implemented from the date of release. The previously released process procedures for this product , quality standards, instructions and labels are abolished at the same time.

Source: Ministry of Agriculture and Rural Affairs

4.3 Announcement No. 759 of the Ministry of Agriculture and Rural Affairs: Approving the registration, re-registration and change of registration of 11 types of veterinary drugs produced by 10 companies in my country

Announcement No. 759 of the Ministry of Agriculture and Rural Affairs: According to the "Veterinary Drug Administration Regulations" and the "Veterinary Drug Registration Measures", after review, the carprofen injection (for dogs) produced by Zoetis's Girona production plant in Spain was approved to be used in my country registers, issues an "Imported Veterinary Drug Registration Certificate", and publishes the veterinary drug quality standards, process procedures, instructions and labels, which will be implemented from the date of issuance. Approved the re-registration of 8 types of veterinary drug products including lasalocide sodium produced by 7 companies including Zoetis' Willow Island production plant in the United States, issued an "Imported Veterinary Drug Registration Certificate", and issued process regulations and revised The quality standards, instructions and labels shall be implemented from the date of release. The quality standards, instructions and labels of the above eight types of veterinary drugs previously released will be abolished at the same time. The registration change of Carprofen Chewable Tablets (for dogs) produced by Zoetis Company in Lincoln, USA is approved in my country. The quality standards, instructions and labels shall be based on the Ministry of Agriculture and Rural Affairs Announcement No. 252 for the same product. It is approved that the non-predronil spray produced by Boehringer Ingelheim Animal Health Co., Ltd.'s production plant in Toulouse, France, be registered in my country. The quality standards, instructions and other labeling contents shall be in accordance with the Ministry of Agriculture and Rural Affairs Announcement No. 666 for the same variety.

Source: Ministry of Agriculture and Rural Affairs

Pet Industry Information (2024.2.3-2.23)

Product Innovation

1

New Product Appreciation

1.1 New Products｜A Fei and Buddy cat strips are new!

A Fei and Buddy’s new cat strips are available! 14 kinds of natural raw materials create 4 flavors, without artificial additives. Free your cat from the hard work of hunting and let your cat unleash its hunting instincts like their ancestors for the first time in 100 years. It complies with the standard of full-price staple food, meets the nutritional needs of cats at staple food level, and makes eating staple food a fun snack. 0 glue, 0 lake, and 0 lure is the most basic concept of an excellent cat strip. All the nutrients cats need come from the ingredients themselves, with the golden ratio of meat, fruits, and vegetables.

Source: A Fei and Buddy

1.2 Golden Protein P40, two new flavors available at once!

Honest Bite Gold Protein P40 Series Cat Food Milky Suckling Pigeon X Vitality Goose new flavors are online! Rich freeze-dried deliciousness, 7% freeze-dried raw meat, 3% freeze-dried shredded chicken; fresh meat is added to the grain to lock in nutrients, such as goose, chicken, pigeon, and fish. Pigeon meat taste: 4-week-old white-feathered squab, high-quality protein containing a variety of amino acids that cats cannot synthesize themselves; 24-hour colostrum, golden milk from cows within 24 hours of giving birth, rich in highly active immune ingredients to help cats build immunity Line of defense. Goose taste: Nutritious and delicious ginseng in the meat. The linolenic acid content of goose is about 3 times that of chicken. It improves the comprehensive body function of cats and gives them excellent resistance. Grass-fed goose contains a variety of unsaturated fatty acids and helps cats grow longer. Meat does not gain fat.

Source: An honest bite

1.3 Runampeng, the country’s first new veterinary drug for pet ophthalmology is launched!

The first boric acid eye drops product - Runampeng is officially launched! It is suitable for basic treatment and care of common eye diseases in dogs and cats, and will provide pet doctors with more compliant drug options. Effective against common fungi and bacteria: In vitro tests show that boric acid and boron-containing compounds can inhibit Candida, ringworm, Gram-positive bacteria, and Gram-negative bacteria. Boric acid at a concentration of 10 to 20 mg/ml can inhibit almost all common bacteria or fungi. The boric acid concentration of Runampen is 20mg/ml. Dual antibacterial raw materials and auxiliary materials: In addition to boric acid, Runampen also adds an important auxiliary material - chlorhexidine gluconate (CHG), which is a biguanide chlorobenzene with a very strong broad-spectrum antibacterial and bactericidal effect on Effective against both Gram-positive and Gram-negative bacteria. The treatment effectiveness is as high as 98.33%: Clinical trials have shown that the effectiveness of Runampen in treating common conjunctivitis is as high as 98.33%. Runampen is added with two moisturizing ingredients, sodium hyaluronate and hypromellose, which can play a dual role in moisturizing and relieving dry eyes; at the same time, it adjusts the viscosity of the eye drops, prolongs the residence time of the drug in the eyes, and increases Bioavailability of drugs while reducing irritation.

Source: Golden Shield Pet Drugs

2

Innovation Trends

2.1 Qierzhi Rx Digital Drive Research Institute releases the "2023 2023 Qierzhi Pet Industry Report"

Qierzhi Rx Digital Drive Research Institute has released the "2023 Qierzhi Pet Industry Report", hoping to provide certain information for pet enterprise decision-making and future development in 2024. Data reference. From the perspective of Rx organization-driven analysis, the current domestic pet raising population is dominated by young people born in the 1990s, accounting for 56.5%. In addition, married families without children accounted for 48.6%. Dogs and cats remain the most popular pet breeds among pet owners, with exotic birds the least popular among all types. More than 50% of pet owners live in China's first-tier cities. Jiangsu Province has become one of the provinces with a large number of pet owners in the country. Residents of Sichuan, Beijing and Guangdong also show a strong interest in pets, and the number of pet owners is positively correlated with urban economic development. Top consumers in 2023 include staple foods, retail, and diagnosis and treatment. In addition to offline experience services, online channel consumption preferences account for 83.5%. The number of newly registered stores in 2023 will increase by 44.7%, an explosive growth, and the industry development trend is good. The service cycle of retail stores lasts a long time. The average life span of cats is 12-16 years, and the average life span of dogs is 10-13 years. Overall, the pet industry is transforming towards digitalization: pet technology, pet health, pet medical care, pet life, global operations, brand incubation, and flexible supply chain; and improving the "eight chains": technology chain, innovation chain, industry chain, standard chain, The service chain, talent chain, capital chain, and data chain are integrated and developed; building "five new": high-tech, new products, new services, new business formats, and new business models.

Source: Qierzhi International

2.2 TMIC joins hands with Kaijie and Duozhun to jointly release the "2023 Furry Baby Special Report: Maternal, Infant & Pet Trend Report"

< p>TMIC joins hands with Kaijie and Duozhun to jointly release the "2023 Furry Baby Special Report: Maternal, Infant & Pet Trend Report". In 2023, both the maternal, infant and pet industries will focus on the field of nutrition, focusing on functionality, and developing in the direction of refinement, specialization and diversification. In 2023, the pet track is stable and improving compared to last year, with overall retail sales increasing by 0.2%, reaching 25.14 billion yuan; the cat food and cat and dog health segment performed the best. Cat food market: The overall scale exceeds 12.3 billion yuan, an increase of 7% from 2022; the performance of major sales is outstanding, showing that consumers are willing to stock up on food; the Top 4 brands have all achieved double-digit growth. Dog food market: The overall scale is 5.5 billion yuan, down 4.1% from 2022; monthly retail sales have little fluctuation, stable at around 500 million yuan; Royal and Bernardine have achieved positive growth. Cat and dog products market: The overall scale is 9 billion yuan, down 6.5% from 2022; monthly retail sales do not fluctuate much, around 800 million yuan; the share of leading brands is low, and the growth rate fluctuates. Cat and dog health market: The overall scale is 3.6 billion yuan, a slight increase from 2022; monthly retail sales are stable at around 300 million yuan; the Top 3 brands have declined to varying degrees, and the gap with other brands has narrowed.