To protect the pet store, no names or locations will be provided.
Small independent pet food stores purchase the products they sell from distributors. Pet food distributors are typically big operations, having sole distribution rights in many parts of the US. Pet food stores across the US often only have one option (one distributor) of who they can purchase pet foods/treats from for their store.
In other words, pet food distributors can yield a lot of control…should they choose to.
It appears that at least one pet food distributor IS choosing to control the prices of pet food in their distribution area.
Recently, a pet food store was visited by a representative from their distributor. The distributor representative was gruff with the pet food store – bullying type behavior. The distributor representative questioned the current pricing of pet foods in this store and INSISTED that this store raise their prices immediately. The pet food distributor INSISTED that this pet food store mark-up all products 40%.
The distributor directly told the pet food store if they did not comply with the 40% markup they would “rescind their account” (stop selling the pet food store products, putting them out of business).
Price Fixing.
The Federal Trade Commission defines price fixing as: “Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels. Generally, the antitrust laws require that each company establish prices and other competitive terms on its own, without agreeing with a competitor.”
And this is a serious offense. “Price fixing is a major concern of government antitrust enforcement. Individuals and companies that knowingly enter price-fixing agreements are routinely investigated by the FBI and other federal law enforcement agencies and can be criminally prosecuted. Potential penalties include lengthy terms of imprisonment (up to ten years) and large fines (up to $1 million for individuals, $100 million for companies, or twice the gain or loss from the offense).”
This particular pet food distributor is bullying small stores, controlling the price of pet foods. When small businesses try to help pet owners and lower prices – the distributor is stopping them – threatening their livelihood if they don’t comply with the demanded price hike.
So, when you walk into your local pet food store, and you see the prices of your favorite pet foods keep growing higher and higher…it might be a less than ethical pet food distributor forcing the price hikes. It might be a less than ethical pet food distributor forcing price fixing.
And this pet food store…when they complained about the forced price hikes, the distributor cancelled their account. We (truthaboutpetfood.com) reported this pet food distributor to the Antitrust Division of the Justice Department. Here’s hoping the guilty parties are properly investigated and held accountable for their price fixing actions.
Wishing you and your pet(s) the best,
Susan Thixton
Pet Food Safety Advocate
Author Buyer Beware, Co-Author Dinner PAWsible
TruthaboutPetFood.com
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Amy
July 13, 2023 at 9:58 am
And if you won’t comply with their prices, they will take away your account. Because they can.
Jan
July 13, 2023 at 11:25 am
The corruption is so deep it staggers the mind. This is so evil. Thank you for reporting this and shining the light on this wickedness. Darkness hates light. God bless you, Susan. Grateful for all you do.
J White
July 13, 2023 at 11:51 am
The FDA and FTC are all of the same flavor…..government organizations that are corrupt to the core. These days, anyone that trusts any of them for the “truth” or “justice” is just whistling Dixie as they walk past the graveyard.
The only way that the distributors as a whole will pay attention is if enough consumers stop consuming…..make your own pet food and treats and perhaps just like Bud Light, the suits at the corporations will take notice.
As for the price fixing, the retailer in question needs to come forward and be named, otherwise this is just more noise. There could be other reasons for this difficulty as anyone who’s been in the pet food business could relate to.
Susan Thixton
July 13, 2023 at 11:55 am
It was my decision to not name the store and the distributor. Don’t accuse the store of ‘other reasons’ for something that I made the decision on.
Arielle Smith
July 13, 2023 at 12:05 pm
I’ve felt this for a long time – fav cat food went from $10 to $27. How is that justified? A good many pet owners are senior citizens who can not afford $50 and up for a bag of cat food. I see there is a class action suit against IAMS and Royal Canon for pricing of prescription foods. Maybe there needs to be another class action suit.
Lindsey
July 13, 2023 at 12:20 pm
Susan, is this price fixing, or are they in violation of MAP Pricing (minimum allowable price) as dictated by the manufacturer?
Many brands dictate the pricing and require vendors to sign a MAP agreement so that they don’t undercut other retailers. It’s a very common practice in the industry.
Just curious.
Susan Thixton
July 13, 2023 at 12:59 pm
No – no violation with manufacturer minimum pricing. This was a distributor insisting on raising the industry standard markup.
Gdoggie Stone
July 13, 2023 at 2:19 pm
I’ve been using Acana 25lb freshwater fish dog food for years for my pets. I’ve seen the prices go from$70 to $80 currently. I try to purchase at the smaller independent stores and in a lot of cases they don’t have it and/or the independent stores are given SMALLER quantities. The Big boys and everyone knows who they are control the market. P.S. I supplement my guys’ food with many fresh items to control their weight and make it healthier from them. They love raw broccoli, carrots, apples, etc. They’re my babies.
Martin
July 13, 2023 at 2:44 pm
This is an odd story. Most reputable, national distributors wouldn’t do something like this. They had no direct interest in what retail prices since it doesn’t affect them. There is no “industry standard markup” – retailers are free to sell products at whatever price they want so long as it’s not in violation of a manufacturer’s established MAP.
With no specifics presented, we can only guess what’s going on here. The only scenario I can figure out is that this distributor is a smaller, regional outfit that ALSO has retail locations and they’re trying to control their competition.
We have a few of those out here, but I simply chose to not do business with them because I don’t want to fund my competor.
T Allen
July 13, 2023 at 3:40 pm
When it’s cheaper to feed real human food people will start to do it and prices will come come. It’s working as the Concern trolls are getting the word out. People who own small dogs and cats especially should look into how to make their pets from their own table scraps, sale products and a few supplements.It’s how dogs survived for thousands of years before kibble, and how they can live well again.
Gdoggie Stone
July 13, 2023 at 6:32 pm
My very 1st dog was always fed canned Horse Meat. Never had health issues. The only problem was fleas which I’d pick off of her and squish them to death. She sleep with me in my bed, fleas and all. 70 years later, she was the love of my life.
J.S.
July 13, 2023 at 6:39 pm
I agree with Martin. I’m a distributor employee and I don’t quite follow some of this. It could also be that it is a distributor that also owns a food brand. However, the article did mention all foods at the retailer. In our market there are at least 5 distributors, and vast majority of brands we work with have at least duel distribution. The rationale being that it protects supply to the consumer. I’m curious to know more about this situation, but as it stands it seems more like an exception to the norm than the other way around.
Sabra Taylor
July 14, 2023 at 4:11 am
I agree. Definitely need more information please
SR
July 14, 2023 at 7:33 am
Pet food prices are a huge reason why more people are surrendering and abandoning pets at the highest rate ever. I personally pay over $400 a month to feed 3 cats. It’s ridiculous! The mark up isn’t justified. I don’t know how they get away with it.