He’s Making Pet Food the Natural Way

0



3 – Dogswell LLC

Los Angeles

Founded: 2004 – Growth Rate: 435%

2007 Revenue: $10.2 million


When Marco Giannini founded pet food maker Dogswell LLC four years ago, he had an idea: sell the most natural food possible at a profitable price that pet owners could afford.

So he scraped together $30,000 and started selling his cage-free chicken jerky in 5 ounce portions for $8.99 in small plastic bags that local retailers could hang from hooks.

“The treat was very cost effective,” Giannini said. “And it was easier to get shelf space for a bag that is small and has good margins for the retailer.”

These days, Giannini has no trouble getting shelf space for his healthful pet food line, which has grown to include dry and canned dog food, in addition to cat treats. The company’s products are sold in 7,000 pet and natural food stores nationwide.

That success has fueled tremendous growth for the Los Angeles company, which hit $10.2 million in revenue last year. That amounts to a 435 percent growth rate over three years and good enough for No. 3 on the Business Journal’s list of fastest growing companies.

Dogswell’s success coincides with the growth of the pet food industry nationwide. The American Pet Products Association has estimated that sales will grow 4 percent this year to $16.9 billion.

The company is benefitting in particular from increased demand for alternatives to mass-produced pet food, especially after melamine-tainted protein imported from China and mixed into pet food sickened and killed cats and dogs last year.

Judy Robertson, owner of Westwood pet store Judy’s Pet Depot, said Dogswell products have become increasingly popular with her customers she reorders some on a weekly basis because they don’t contain hormones, fillers or artificial colors and flavors.

“Just by reading the package, you can see that it is a product with premium ingredients,” Robertson said.

After starting Dogswell with the chicken-breast jerky dog treat, Giannini began making dry and canned dog food and treats. Among the ingredients are meat, apples, bananas and sweet potatoes, as well as vitamins and other supplements such as glucosamine and flaxseed oil. The products are designed to maintain dogs’ joints and keep their hearts healthy, breath fresh and coats shiny.

“Much like Cliff Bar or Vitamin Water for the human industry, Dogswell is a functional food company for the pet industry,” Giannini said.

The 33-year-old entrepreneur knew he wanted to work with animals as a child growing up with a white shepherd named Emily. A San Francisco native, Giannini acquired his business acumen from his grandfather, who owned grocery stores in the 1920s, while his doctor father fostered his interest in wellness.

Giannini launched the health pet food manufacturer after graduating from USC’s Marshall School of Business’ entrepreneurial program. But as Dogswell started gaining a following among pet owners, Giannini found it difficult to manage the growth.

“We didn’t bring on human capital fast enough,” he said. “But we are doing a much better job of that. We have a head of human resources, and it is important for us to continue on that page, and not forget about it.”

Next year, the company plans new lines of dry and canned cat food, in addition to a line that is designed to control weight in dogs. Giannini estimates revenue will hit $19 million in 2008.

No posts to display