The Pet Food manufacturer “Blue Buffalo” to be bought by General Mills for around USD 8 million.
“An American multinational manufacturer and marketer of branded consumer foods “General Mills” is likely to buy the American pet food company ‘Blue Buffalo” for an amount of $8 million. In the past few years, General Mills has experienced weak profits because of lackluster cereal and Yoplait yogurt sales which are turning their focus towards pet food.”
According to the published report “Global Pet Care Market Outlook, 2023” by Bonafide Research, the overall global pet care market is expected to grow with a CAGR of more than 2% over the forecast period of 2018-2023. The growing number of pet adoption, increasing demand for pet care products, increasing health awareness, rising trend of customized pet food, pet humanization, etc are some of the factors which are predicted to drive the market in the upcoming years.
Blue Buffalo is one of the major pet food company based in the United States, America. The company manufactures all types of cat and dog food in the country. General Mills Inc., weighed down by stagnant sales of cereal and yogurt, is paying around $8 billion for a pet-food business to help it generate revenue growth in the U.S. The Minneapolis-based food conglomerate, which hasn’t sold pet food since the 1960s is planning to buy Blue Buffalo Pet Products Inc. as it looks for a piece of the rapidly expanding natural pet-food market. Moreover, the company is expecting to close the deal by the end of this year. This would be the company’s first investment in the pet care segment. The deal is expected to be neutral to the company’s cash earnings per share in the fiscal year 2019 and will add to earnings in the fiscal year 2020.
The Petcare segment, especially pet food is one of the fastest-growing segments globally. Consumers’ engagements with the pets are giving a lot of opportunities for the companies to make profits. The booming business of pet care has attracted investment from traditional consumer companies, including those that want to fortify their pet business and those like General Mills that want to jump into it fresh. General Mill’s plans to acquire Blue Buffalo come as all traditional food companies are on alert about a prowling 3G Capital, the backer of Kraft-Heinz, known for its ferocious appetite to acquire food companies and its ruthless cost-cutting approach once it owns them. The ketchup giant recently suggested it may be ready for its next acquisition, and General Mills has been identified as a logical target.
Major Companies operating in the market of Global Pet Care Market Outlook, 2023 are Nestle SA, Mars Incorporated, Colgate-Palmolive, J M Smucker, Blue-Buffalo, United Pet Group Inc., Champion Pet Foods, PLB International, Scott Pet, Inc., Unicharm Corporation, Laroy Group, Deuerer GmbH, Hristo AG, Well Pet, Proveedora La Perla S.A. de C.V., Nicoluzzi Races, Raw Gold, Promeal Ltd., Heritage Foods Kenya Ltd., Lider Pet Food and De Haan Pet Food.