Pet Farm Family - Premium organic pet food with representation on five markets

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One of the key players in the field of premium food for dogs and cats offers high-quality and nutritionally balanced products without preservatives, flavourings or artificial additives. Over the course of seven years, this Czech family-owned company has expanded to five European markets and, in the period between 2017-2019, recorded an 86% revenue growth (CAGR). With future investments, the company plans to expand its product portfolio, scale up production and build brand awareness on European markets. 

  • High-quality pet food made with local ingredients - the only organic and MSC-certified pet food producer in the Czech Republic and Slovakia
  • B2B and B2C segments - the company has its own e-shop and brick-and-mortar store in Prague and Budapest
  • The company's products are sold at Pet Center, Alza, Mall.cz, Rohlík, Sklizeno and Yeme
  • Production of 35 tonnes of pet food in 2019; average order value: CZK 1,120 (Czech Republic), EUR 64 (Slovakia)
  • International reach - Czech Republic, Slovakia, Hungary, Poland, Denmark
  • Strong market potential - market worth EUR 21 billion in Europe with 2.5% annual growth 


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About investment opportunity

Investment objectives

  • Expansion of the brand's international activity, particularly in Hungary, Poland and Denmark with emphasis on the online and B2B channels
  • Strengthening of the brand in the Czech Republic and Slovakia, particularly in the B2C segment
  • Increase of production through the introduction of additional shifts and additional production machines
  • Improvement of the packing process
  • Expansion of the product portfolio and strengthening of the cat segment

 

Czech family-owned firm since 2012 

The Czech family-owned company Pet Farm Family was established in 2012 under the original name Sušienkovo. The impetus for establishing the company was the desire to give household pets high-quality food made with ingredients of clear origin and the absence of similar pet foods on the market. Over the course of eight years, founders Alie Lengyelová and Matej Toman progressed from baking homemade treats for their own pets to a company producing premium organic and MSC-certified dog and cat food that is currently operating on five EU markets with potential for further growth. Expansion efforts are led by Matej who has gained marketing experience from his work with leading agencies such as Wiktor Leo Burnett and ZARAGUZA. Pet Farm Family's factory in Prague became the only organic and MSC-certified producer of dog and cat food in the Czech Republic and Slovakia. In 2020, the company plans to open new brick-and-mortar stores in Budapest and in Vnitroblock in Prague (which will be the second Prague location). 

 

"Bullshit free" - local, high-quality, natural nourishment

Pet Farm Family's competitive advantage lies in the origin and quality of its ingredients, which are sourced from local Czech and Slovak suppliers (this is the same high-quality meat that you'll find in renowned Prague eateries and Michelin restaurants). The company cooperates with local farmers and a sustainable fishery with MSC certification. There are no unhealthy or unnecessary additives or preservatives in Pet Farm Family products. Thanks to its nutritionally developed recipes and use of high-quality ingredients, the Pet Farm Family pet foods formulation is balanced and, compared to run-of-the-mill pet foods, can be given in  smaller amounts, and still deliver the recommended daily dose of nutrients, which can lead to lasting health benefits for household pets. 

 

Transparent production

Pet Farm Family takes pride in its transparency. Customers can see with their own eyes how production is carried out at the Prague factory and the kinds of ingredients that are used. From the shop, it's possible to see directly into the production facility, which the company also makes visible to nearly 30,000 followers across its social media channels

Emphasis on sustainability and care for the environment permeates the entire process as well as the company's facilities. The Prague factory, the company's offices and its other outlets use 100% green energy, while recycling and elimination of single-use plastics are par for the course. The company utilizes local resources in production and supports organic farmers and producers of ecological materials. 

 

From B2C to B2B - from Alza to Pet Center

Pet Farm Family's clients are part of both the B2C and B2B segments. End-customers are served via the company's e-shop and brick-and-mortar store in Prague, as well as through cooperation with leading internet shops such as Alza, Mall.cz and Rohlík. In Slovakia, customers can buy the company's products in the DM drugstore chain, Yeme premium grocery stores and at selected pet shops. The Pet Center chain is the most important partner in the B2B segment. 

In the B2C segment, the conversion rate for new customer acquisition is rising, with an average of 18.8% on all markets and strong growth especially on the Slovak market, where it is approximately 35.95%. Historical revenue growth for the years 2017-2019 has reached approximately 86% (CAGR).

 

Growing market of household pets

The Prague factory currently produces approximately 35 tonnes of finished product per year. Total production capacity could reach the maximum amount of 188 tonnes per year given the company's ability to store a sufficient amount of raw materials, the introduction of a second shift and the fulfillment of a planned acquisition of processing and filling equipment that would significantly automate production. Should these conditions be met, Pet Farm Family will likely be able to capture a larger share of the European market, which has a very strong potential. 

More than 80 million households in the EU have at least one pet; in total, there are approximately 85 million dogs and 104 million cats. The value of the European market is estimated at EUR 21 billion annually with 2.5% growth. In the Czech Republic and Slovakia alone, there are nearly three million dogs and the Czech-Slovak market is growing by approximately 6% per year. The increasing interest of consumers (pet owners) in the area of health and organic production and the growth of the luxury segment also have a positive impact. 

In addition to delicious, healthy, ecological and sustainably produced food and treats for dogs and cats, Pet Farm Family offers a complementary selection of other brands that share the company's passion for ecology and high quality. The company also sells pet toys, leashes, beds and other accessories on all of its markets. 

 

Investment for further expansion

The company wants to use the investment to increase production - it plans to increase annual production from the current approximately 35 tonnes of finished products to 188 tonnes. Another goal is to strengthen the cat segment and expand the product portfolio; for example, the company is currently developing and expanding the Lékárnička line in cooperation with veterinarians. It is also focusing on reinforcing its position on the current markets, improving the packing process and building brand awareness.

In the media

Pet Farm Family priviedol k biznisu vlastný pes. Krmivo dnes vyrábajú z ozajstného mäsa

Z vaření pro psa se stal rodinný byznys. Pet Farm Family v Česku i ve světě boduje s přírodními krmivy pro psy a kočky

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