Show O VIEW OF PAMPERED PAMPER D PETS When considering growth industries industries in In- most investors turn to computers oceanography electronics pollution control hospital supplies etc However there are other less less' glamorous ous areas where past performance perform perform- ance and future potential compare compare com com- pare favorably with some of the called so-called hot industries One is the pet business which has a strong growth rate and shows no sign of dwindling Doggie Dinners Dinners' All An segments of the business the the sale of pets medicinal aids garments accessories and toys toy toy are are are doing very well One of of the largest and fast fast- growing est is pet foods which account for 40 to 45 per cent of oft total industry sales This year sales are likely to reach 1 l billion dog and cat food sales alone have increased 48 per cent since 1965 Because of the rapid rise in demand for pet foods many nationally known food companies have been attracted to the business Among them are General F Foods National Biscuit Quaker er Purina Armour Armour Armour Arm Arm- our Borden Carnation and John Morrell We are currently current current- ly b rec recommending purchase of National Biscuit and Borden Multiplying Markets Th The market for dog and c cat t food is exp expanding at least twice as fast as that for the average grocery store product Volume has been growing like wildfire at a compound annual rate of 14 per cent since 1965 Most p pet t foods are are sold in supermarkets where the competition competition com com- petition for shelf sheU space is very severe severe Furthermore extensive ex ex- extensive advertising must be maintained if If U a particular brand is to remain in consumer consume e er favor Lorillard and Liggett Liggett gett do Myers both entered this field not o ool l because of the benefits derived from diversification diversification diversi diversi- but also b because cl use the same advertising media for both cigarettes and pet foods can c can n be used to reach the same broad spectrum of customers Th The growing fastest-growing segment of the pet food business I is gourmet gourmet gourmet gour gour- met specialties Although it is still small small relative to the entire entire en en- tire pet food market the results results re reo suIts so far tar have been very impressive Apparently when it comes to feeding ones one's pet th the affluent consumer is not balking at the high prices of such gourmet pet food items as lives liver pate or beef In hi burgundy Owners are tending to treat their canine and feline friends as humans This aspect could explain why pets are bedecked in such sartorIal sartorial sartorial sartor sartor- ial splendor as I expensive poodle c coats ts and studded gen collars In fact there are even specialty shops which carry carry arry complete animal wardrobes All ll this growth has interested interest interest- ed many minded acquisition-minded companies particularly companies particularly the dog food business which comprises comprises comprises com com- the lions lion's share of the industry The companies which appear attractive are promoting in a regional area commanding a large share shire of the market through a favorable favorable favorable favor favor- able price or a local flavor It is no surprise at all that m meny ny large corporations are moving aggressively into this rapidly growing business Although Although Al Al- though many national food and tob tobacco eco firms have hav gone Into pet pot foods foods- th the market also supports nearly 2000 companies compan compan- ies many of which are tempt tempt- I ing g to the be e corporate Investor K K 9 9 H Care Car Car Any pet owner owner who has bas had bad tJ take his pet to a veterinarian veterinarian veterinarian arian for one thing or another knows that It can be a very expensive proposition Shots and medicines medicines' of ol various kinds are are all included in the broadening broadening broad broad- ening business of pets This means a great deal of added business to the many drug firms that are firmly entrenched entrench entrench- ed in animal health care It has become a big and fast- fast growing area area are Just about anyone who Iso is anyone anyone o in inthe the drug industry tr has Interests in the business it of animal health For the most part of of course course veterinary Items are re 61 only 1 a small but promising portion of the overall overall over over- all business of veterinary product product product pro pro- duct sales but Merck AmerIcan American American Amer Amer- ican Cyanamid Pfizer and Norwich are generally recognized recognized as leaders Other firms are expanding rapidly however however however how how- ever Currently we ate are recommending recommending recommending mending retention of all of the drug companies mentioned as as being involved in animal health For purchase we favor Merck and G. G D. D Searle |