General Mills and Nestlé outline plans to drive pet food momentum

Pet food remains a growth engine in the consumer staples sector, but capacity constraints, inflation and shifting consumer habits are forcing the industry’s largest players to adjust their course.

Speaking at the Barclays Global Consumer Staples Conference (2-3 September), General Mills and Nestlé detailed how they plan to sustain momentum in an increasingly complex global market.

General Mills’ strategic move

General Mills is launching Blue Buffalo’s fresh pet food line across the United States later this year, leveraging existing expertise and partnerships.

According to the company, the launch reflects its commitment to meeting the evolving expectations of pet parents and unlocking growth in the dynamic $3 billion (€2.6B) fresh pet food subcategory. The national rollout of Blue Buffalo’s fresh line will include distribution in 5,000 coolers by the end of Q2.

In July, General Mills also launched the European pet food brand Edgard & Cooper in the US through an exclusive retail partnership with PetSmart, an omnichannel pet retailer. The company is further investing in digital capabilities, with e-commerce now accounting for 18% of its North American retail business.

Outlook

General Mills projects significant growth in the fresh pet food segment as it targets a return to mid-single-digit gains in its pet business.

“Looking ahead, our team remains focused on executing on our 3 priorities for fiscal 2026: returning North America Retail to volume growth, accelerating momentum in North America Pet and driving efficiencies to reinvest behind growth,” says General Mills’ Chairman and CEO Jeff Harmening. 

The company also reaffirms its FY2026 outlook and its aim of $100 million (€85.6M) in cost savings through transformation initiatives and productivity improvements. It also remains open to M&A opportunities, particularly in high-growth areas such as pet food.

Nestlé’s struggles with capacity

According to Anna Manz, Nestlé’s Executive Vice President, CFO and Member of the Executive Board, the company doesn’t have enough capacity to meet the demand for wet cat food. 

“The growth in the category, the acceleration we are seeing is in cats, which is wonderful because cats are wonderfully picky eaters. But we do not have the capacity we need to meet it in the US at the moment, and that is holding us back,” Manz says. 

The dog segment, on the other hand, is “flattish.” “But actually, underneath that, families with multiple dogs are not replacing a third or a fourth dog when they pass away. But more families are coming into dog ownership, which, from a category fundamental standpoint, is a good thing,” she adds.

Premiumization 

According to Manz, the rising adoption of pets and growing humanization are driving premiumization in pet food. Another factor is increasing calorific coverage, meaning more dogs and cats are eating processed food rather than leftovers from the family table.

“The US is at 90%, but Mexico is at 60%, India is at 20%, Eastern Europe is at 70% or so. So that is the opportunity. Now in the US, there are also great fundamentals in that we are seeing growth in pets. Actually, we see really good growth in cats,” she says.

Manz also notes that the shortfall in pet food capacity is linked to several factors, including limited innovation during the COVID-19 pandemic and price inflation peaks since 2022. 

Therapeutics and fresh pet food

While the pet food segment is experiencing shortfalls, Nestlé is shifting its focus toward faster-growing areas, such as pet therapeutics and fresh pet food.

“The one that we are really focused on growing is therapeutics. What is therapeutics? It is specialty diets, often prescribed by a vet to help with pet nutrition and health. And you can do a lot with pet health with the appropriate diet,” Manz says.

In terms of research and development (R&D), Nestlé is investing in partnerships with veterinarians and veterinary schools, focusing on nutrition, and educating them on the company’s products and how they address health problems.

“And it is an area where our share is 10% of the sector, which is significantly lower than it should be given our share elsewhere and our capabilities,” she says. “The reason we are very focused here is it is a high-margin, fast-growing area, and we have the R&D capability. So what do we need to do? It is the investment in the footfall to get to those vets.”

According to the CFO, Nestlé is also experiencing growth in fresh pet food. However, she cautions that the segment is a “harder place to sustainably win profitably,” so the company is being mindful of its investments.

“What you see us doing there is making some smaller-scale investments. So we have had a stake in Just Food for Dogs for a couple of years now to really explore the space. We also have a number of innovations in this space that we are learning from. But we want to be really clear how that investment will scale before we put significant funds behind it,” she notes.