i-Tail acquires US pet treat manufacturer Phelps Pet Products

Thai pet food manufacturer i-Tail Corporation has acquired Phelps Pet Products, an Illinois-based contract manufacturer of pet treats, for an enterprise value of $160 million (€139M).

According to the company, the deal expands its presence in treats and specialty pet nutrition, combining Phelps’ expertise in dog nutrition, air-dried foods and jerky-style treats with i-Tail’s strength in premium wet cat food.

“This acquisition marks an important milestone in our growth journey, supporting our aspirational target of reaching up to $1.5 billion (€1.31B) in annual revenue by 2030 while creating long-term value for our customers, pet parents, and shareholders,” says Roy Chan, Chief Executive Officer (CEO) of i-Tail.

Manufacturing base

The acquisition also establishes a manufacturing presence in i-Tail’s largest market, strengthens its supply network and expands its customer base across retail and distribution channels.

“Combining our experience in the North American market with i-Tail’s global reach and expertise in pet nutrition, we can broaden our collective product offerings through cross-selling and exploring opportunities in new categories, which will enable our respective customers to innovate and grow market share,” says Rick Ruffolo, CEO and President of Phelps Pet Products.

Pet treat portfolio

In the first half (H1) of fiscal year (FY) 2026, pet treats accounted for 20% of i-Tail’s total pet food sales, supported by pet owners’ desire to strengthen bonds with their animals and a growing interest in treats with functional benefits.

In response to this growing demand, the company launched more than 400 new products between January and June 2026.

In the second quarter (Q2) of FY2026, pet treats was i-Tail’s fastest-growing segment, with revenue surging 62.3% year over year (YoY) to ฿925 million ($29M/€26M).

Between 2023 and 2025, pet treats accounted for 10-21% of i-Tail’s total pet food sales. The company expects the segment to grow further, supported by sustained consumer demand and evolving trends.

US performance

In H1, i-Tail’s US sales increased 17.9% YoY, supported by sustained demand and new product launches.

The company also secured six new customers during the period, benefiting from demand from key customers and global pet food companies, as well as a shift toward higher-value products such as lickable treats and home-cooked meals.

In Q2, sales in the Americas rose 14% YoY, driven by continued demand for treats from global pet food businesses and strong growth in private label products.

Company background

Founded in 1966, Phelps makes clean-label, protein-first pet treats and specialty pet nutrition products for retailers and pet food brands in the US, Canada and other markets. It operates manufacturing facilities in Illinois and Wisconsin.

In 2025, the company generated $70.3 million (€61M) in net sales, achieving a compound annual growth rate (CAGR) of 25.6% between 2023 and 2025.

i-Tail is a subsidiary of global seafood giant Thai Union Group. Headquartered in Bangkok, the company was founded in 1981 as Songkla Canning and changed its name to i-Tail Corporation in September 2021.