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Shining a light on PE ownership.

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MA

Mars Petcare

food_consumer
PE-OWNED

Pet food manufacturer producing brands like Pedigree, Whiskas, and Royal Canin.

PE-OWNED

Acquired by KKR2007-10-01

View PE Firm Profile

What Made It Great

“

Leading global pet food manufacturer with premium and mass market brands

What PE Will Likely Do

Predictions

Cheaper ingredients used in Pedigree, Whiskas, and Royal Canin pet food products, resulting in lower nutritional value and potential health issues for pets

HIGH LIKELIHOODBased on: KKR's history of cost-cutting and profit-maximizing tactics in other consumer-facing industries

Shrinkflation across pet food packages, with reduced net weights while maintaining or increasing prices

HIGH LIKELIHOODBased on: The common PE playbook of ingredient downgrades, shrinkflation, supply chain changes, formula changes, and manufacturing consolidation in the food/consumer industry

Changes to pet food formulas, potentially removing key nutrients or using less expensive substitutes that compromise taste and quality

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR, indicating their strategies tend to be harmful to consumers

Consolidation of manufacturing facilities, leading to disruptions in supply and potential quality control issues

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR, indicating their strategies tend to be harmful to consumers

Increased use of private-label ingredients and less transparent supply chains, making it difficult for consumers to know the true source and quality of the pet food

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR, indicating their strategies tend to be harmful to consumers

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minimal visible changes as ownership transition occurs

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Behind-the-scenes changes to suppliers and formulas begin, not yet noticeable to consumers

12-18 months

“12 to 18 months months”

Consumers start noticing quality differences in their pets' favorite Pedigree, Whiskas, and Royal Canin products, with complaints about changes in taste, texture, and nutritional value

18-36 months

“18 to 36 months months”

Brand reputation of Pedigree, Whiskas, and Royal Canin begins to suffer, with increased consumer complaints and pet health issues potentially linked to formula changes

Similar Cases

Other companies that followed a similar path after PE acquisition

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Del Monte Foods

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Birds Eye

Permira·2009

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Kraft Heinz

3G Capital·2015

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Bumble Bee Foods

Lion Capital·2010

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Weight Watchers

Artal Group·1999

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What You Can Do

Take Action

Actions

  • Closely monitor any changes in the quality, ingredients, and performance of your pets' Pedigree, Whiskas, and Royal Canin pet food products

  • Consider switching to alternative pet food brands that prioritize quality and transparency, if you notice significant changes in your pets' favorite products

  • Advocate for increased transparency and quality standards in the pet food industry to protect your pets' health and wellbeing

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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"Mars Petcare is now PE-owned. Here's what that means for you."