Beyond Taste

When it comes to functional treats—those providing benefits along with taste—pets have it all over people. Consider: It's well-documented that although people would like to eat healthier, their desire to do so is often at odds with their behavior. When we know a treat is good for us, it often makes it seem somehow less snackier and indulgent, resulting in a reach for that 'forbidden' sweet instead.

But dogs and cats experience no such conflict. All they care about is eating something tasty, even if at the same time it promotes heart or joint health or cleans their teeth. Consequently, if people fall short of their own dietary goals, they can at least easily give their pets something healthier, bringing no small measure of satisfaction.

Functional treats fit into people's desires to support pet wellness, a reflection of the humanization going on in the industry, says Sam Chen, sales director for pet treat manufacturer NPIC.

'This is why pet owners are paying more attention to the ingredients, nutrition and functional benefits of the treats fed to their pets,' he says. 'They want the treats to be beneficial, instead of just empty calories.'  These treats are also a reflective of the holistic approach some folks are taking towards their diets, says Ann Hudson, vice president of marketing for Whitebridge Pet Brands, LLC, makers of a range of minimally processed and natural dog and cat foods and treats., as well as supplements and science-based OTC solutions.

Of course, many pet owners are attracted to these items because of their formulations, which help them address specific health concerns while at the same time 'pampering' their furry buddies with a treat, Hudson explains. 'Another practical benefit is that functional treats' palatability allows owners to administer health solutions while avoiding the struggle of getting their pet to consumer a pill or tablet,' she adds. 

Along with delivering desirable benefits, functional treats are a good way to inject a dose of fun into the pets' daily routine, says Eric Abbey, president and founder of Loving Pets, which offers all-natural dog and cat treats along with feeding bowls and other related accessories. Among the products they offer are the Toothsticks Daily Dental Dog Treats, the Ora-Bone USA Dental Chew and ActivPetz. This latter treat contains 'significant levels' of vet-recommended supplements as well as real meat and fish. 

Intentional & Purposeful

In addition to functionality, pet owners are placing importance on ingredient quality and quantity, according to Basel 'Vasili' Nassar, founder of Boss Nation Brands, Inc., a company that provides functional treats, supplements and complete meal systems available under the Boss Dog and Boss Cat brands. They're also increasingly focused on product/ingredient origin, the ethical treatment of animals (for example, pasture-raised or free-range, grass-fed, etc.) and are avoidant of GMOs and 'added-statements,' he says. 

Safety, meaning proper processing and testing of products before releasing them onto the market, are also big issues, Nassar adds. Chen is noticing the same. 'We've seen pet owners become more intentional and purposeful when it comes to their decision-making,' he says. 'They're now spending more time reading, not just the brand on the front of the bag but also the ingredients and the nutritional information on the back.'

Safety and quality are huge with pet owners, Hudson confirms.  '[These concerns] are driving a demand for functional treats made in the U.S. and those with natural ingredients,' she explains. 'These characteristics are extra-important to the pet owners who buy functional treats because they have such a strong health focus to begin with.'

The three biggest problems pet owners are hoping functional treats will help address are hip and joint, skin and coat, and digestive health, Hudson says. In response, Whitebridge offers Dogswell Jerky Treats, functional chews formulated to provide solutions for these and other issues. Included in the jerky range are the Dogswell Hip & Joint Jerky (beef, chicken breast and duck recipes, contains 2000 mg./kg. of glucosamine); and the Dogswell Gut Health Jerky (lamb with live probiotics like Bacillus and Lactobacillus). All the treats are made in the U.S. and contain real meat as the No. 1 ingredient.

According to Chen, the functional treats category is innovative and competitive, with many entries in the soft-treat format. This has inspired them to develop various shapes through extrusion and injection, such as the Get Naked Functional Dental Sticks. Chen sees demand as just starting to bloom.

'I don't think as an industry we are quite there yet because the consumer trend—pet humanization—didn't really take off until about six months into the pandemic, after we got to spend more time than ever with our pets,' he explains. 'The emotional attachment we built over that period then became the driving force behind the change in perspective and behavior, which led to a strong focus on pets' health and wellness.'

Hudson agrees there's room for more innovation, and 'tremendous opportunities' for growth, citing research showing functional treats currently comprise just a 17 percent share of the overall treat market. 

'[But] additionally, the 2021 Packaged Facts Pet Treats and Chews in the US report reveals that a convincing majority (70%) of pet owners prefer to buy treats that address health concerns or provide extra nutrition and almost as many (67%) agree that functional treats play an important role in their pets' health care.'

Engagement is Key

In order to begin closing this gap between perception about the value of functional treats and their actual market share, consumer education is a must. This is where pet specialty retailers should take the lead. 

'When it comes to marketing and education, our focus isn't only on the end consumer but also on our retail partners,' says Chen. 'It's even more important to a certain degree because we're counting on them to be our advocates in front of the customer. That's why we are heavily invested in trade communications and sales programs. We hope that through communication via multiple touchpoints we can drive the messages home.' 

NPIC isn't the only pet product company making a concerted effort to support pet specialty retailers in the education and sales efforts. For example, Boss Nation has an 'at your service' team to assist retailers with POS materials, signage and couponing, among other support tactics. In addition to retailer education, Loving Pets also strives to build awareness through a variety of selling tools, such as special displays, clip-strips, floor displays and sampling programs. 

Engaging with customers is also essential for positioning the store and its staff as a go-to resource for pet health, ensuring customer loyalty. Along with asking about the pet's age, breed, activity level and overall health, get specific. Does the pet have bad breath? Does the skin seem irritated, with the coat dull, dry and flaky? Is joint pain present? Is the pet under medical care and if so for what issue(s)? What kind of food is the owner feeding and why? Are there foods/proteins the pet seems sensitive to? Also inquire about the pet's weight, especially important in these COVID-19 times.

'Over the past year there's been a dramatic rise in overweight pets, which many experts attribute to increased treating by owners staying at home during the pandemic,' says Hudson. 'Functional treats allow owners to give treats that serve a purpose and can help cut down on empty calories.'

In fact, Abbey says that one of the most common mistakes that pet owners make is over-treating their animals, or giving them calorie-laden treats, cautioning that retailers should be aware of this issue and take pains to inform their customers on how to promote health from the inside out.

Store staff should also pay attention to what products pet owners are buying, since functional treats are a nice 'tie-in' with many of them, says Hudson. For example, if someone is purchasing a supplement for joint pain, suggesting a functional treat formulated to support joint health would be appropriate. As such, cross-merchandising options are abundant, like placing treats for gut health with foods supporting the same. 

Retailers can also group products designed to promote healthy, shiny coats—shampoos, conditioners, supplements, functional treats, etc.—in one special display, suggests Hudson.

'Because they hold such a huge potential as add-ons to customers seeking health solutions, functional treats can create larger shopping carts,' she says. 'Not only are pet owners interested in functional treats, they're also willing to spend more on them. So functional treats can also boost retail bottom lines through higher-ticket sales.'  PB

By Pamela Mills-Senn  - Pet Business