Mars has agreed to buy Procter & Gamble‘s Iams, Eukanuba and Natura brands in major markets for $2.9 billion in cash, the companies announced in a joint press release.
From a press release posted on PetAge.com…
Mars has agreed to buy Procter & Gamble‘s Iams, Eukanuba and Natura brands in major markets for $2.9 billion in cash, the companies announced in a joint press release.
The strategic move for Mars Petcare will expand its already large portfolio of pet brands, and signals Proctor & Gamble’s move to reduce its pet segment.
“Exiting Pet Care is an important step in our strategy to focus P&G’s portfolio on the core businesses where we can create the most value for consumers and shareowners,” A.G. Lafley, P&G’s chairman, president and chief executive officer, said. “The transaction creates value for P&G shareowners, and we are confident that the business will thrive at Mars, a leading company in pet care.”
The geographic regions included in the acquisition, which account for approximately 80 percent of P&G Pet Care’s global sales, include North America, Latin America and other selected countries. The agreement includes an option for Mars to acquire the business in several additional countries. Markets not included in the transaction are primarily European Union countries.
P&G said it is developing alternate plans to sell its Pet Care business in these markets.
“This acquisition is a perfect fit with our Mars Petcare vision of making A Better World For Pets,” Todd Lachman, Mars Petcare global president, said. “The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world leading portfolio.”
The companies expect to complete the transaction in the second-half of 2014, subject to regulatory approvals.
MCLEAN, Va. & CINCINNATI–(BUSINESS WIRE)–MCLEAN, Va. & CINCINNATI–(BUSINESS WIRE)–Mars, Incorporated and The Procter & Gamble Company (NYSE:PG) today announce that Mars has agreed to buy the IAMS®, EUKANUBA®, and NATURA® brands in major markets for US$2.9 Billion in cash. This is a significant strategic move for Mars Petcare to complement its large and growing global Petcare business.
The companies expect to complete the transaction in the second-half of 2014, subject to regulatory approvals.
Mars Petcare is one of the world’s leading pet food and veterinary care providers and employs more than 35,000 Associates across 50 countries. Upon completion of the transaction, IAMS®, EUKANUBA®, and NATURA® brands will join Mars Petcare’s billion dollar stable mates PEDIGREE®, WHISKAS®, BANFIELD®, and ROYAL CANIN®.
Mars Petcare Global President, Todd Lachman, said: “We view the addition of the IAMS®, EUKANUBA®, and NATURA® brands as exceptionally strategic. This acquisition is a perfect fit with our Mars Petcare vision of making A BETTER WORLD FOR PETS™. The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world leading portfolio.
“Paul Iams, an animal nutritionist, founded the Iams Company in 1946. His philosophies created very strong foundations for these remarkable brands which will now complement our existing Mars Petcare portfolio.”
P&G’s Chairman, President and Chief Executive Officer, A.G. Lafley, said: “Exiting Pet Care is an important step in our strategy to focus P&G’s portfolio on the core businesses where we can create the most value for consumers and shareowners. The transaction creates value for P&G shareowners, and we are confident that the business will thrive at Mars, a leading company in pet care.”
The geographic regions included in the acquisition, which account for approximately 80% of P&G Pet Care’s global sales, include North America, Latin America and other selected countries. The agreement includes an option for Mars to acquire the business in several additional countries. Markets not included in the transaction are primarily European Union countries. P&G said it is developing alternate plans to sell its Pet Care business in these markets.
P&G Financial Impacts:
P&G said that it will begin reporting results of the global Pet Care business as discontinued operations as of the April-June 2014 quarter. As a result, P&G expects to restate earnings of approximately $0.03 and $0.04 per share from core earnings to discontinued operations for fiscal years 2013 and 2014, respectively, leaving its fiscal year 2014 core earnings per share growth rate guidance unchanged. The company added that the one-time earnings impact from the divestiture and ongoing earnings per share dilution are not expected to have a material impact on fiscal year 2015 results. P&G said that net cash proceeds from the transaction would be used for general corporate purposes.
About Mars, Incorporated
In 1911, Frank C. Mars made the first Mars candies in his Tacoma, Washington kitchen and established Mars’ first roots as a confectionery company. In the 1920s, Forrest E. Mars, Sr. joined his father in business and together they launched the MILKY WAY® bar. In 1932, Forrest, Sr. moved to the United Kingdom with a dream of building a business based on the objective of creating a “mutuality of benefits for all stakeholders” – this objective serves as the foundation of Mars, Incorporated today. Based in McLean, Virginia, Mars has net sales of more than $33 billion, six business segments including Petcare, Chocolate, Wrigley, Food, Drinks, Symbioscience, and more than 75,000 Associates worldwide that are putting its Principles into action to make a difference for people and the planet through its performance.
Mars brands include: Petcare – PEDIGREE®, ROYAL CANIN®, WHISKAS®, BANFIELD® Pet Hospital, NUTRO®, SHEBA®, DREAMIES® and CESAR®; Chocolate – M&M’S®, SNICKERS®, DOVE®, GALAXY®, MARS®, MILKY WAY® and TWIX®; Wrigley – DOUBLEMINT®, EXTRA®, ORBIT® and 5™ chewing gums, SKITTLES® and STARBURST® candies, and ALTOIDS® AND LIFESAVERS® mints. Food –UNCLE BEN’S®, DOLMIO®, EBLY®, MASTERFOODS®, SEEDS OF CHANGE® and ROYCO®; Drinks – ALTERRA ® Coffee Roasterscoffee, THE BRIGHT TEA CO.® tea,DOVE®/GALAXY® Hot Chocolate, and FLAVIA® brewer; Symbioscience – COCOAVIA® and WISDOM PANEL®.
CatRescuer
April 9, 2014 at 11:17 am
What pet foods does Mars currently make?
Susan Thixton
April 9, 2014 at 11:25 am
Royal Canin, Pedigree, Nutro are the bigger brands.
Jan
April 10, 2014 at 11:15 am
Also Whiskas, Cesar, Temptations & Greenies
Iva Kimmelman
April 9, 2014 at 1:23 pm
Big surprise!
All about money, greed and making rich people richer!
Stop the world,I want off!
Regina
April 9, 2014 at 1:38 pm
Well, I guess when the Natura brands (Evo, Innova, etc.) sold out to P&G a couple of years ago, they were probably not told they were just pawns in the big chessboard of global conglomerization. . . . Oh, well, they must have already had their heart broken by all of the recalls that happened to their food once P&G took over. . . . I am amazaed that there are people out there who still want to buy the brands formerly owned by Natura. I was surprised when I saw the California Naturals brand back in the local boutique. I would think all of the former Natura brands would have lost their appeal to the more discriminating crowd.
Maddison
April 9, 2014 at 1:54 pm
There were concerns reported for Natura brands prior to the time they were sold to P&G.
Peg
April 9, 2014 at 2:50 pm
Oh good grief
GAK!
JosiesMom
April 9, 2014 at 3:48 pm
I am surprised that people continue to patronize these processed pet food companies. My pets enjoy raw meaty bones and whole prey and have never been healthier! Feed your carnivores like carnivores, not herbivores! Give them proper meat on the bone, skin and all. No Stinky coats, no bad breath, great muscle tone, no food allergies, easy to feed.
Joseph
August 10, 2014 at 11:28 pm
Your comment would have sense, except dogs are not carnivores.
That’s a myth to think they are “wolves”.
Dogs have been modified by us for thousands of years. I’m not defending companies, but neither I defend the false idea they have to be fed as wolves.
Thomas N Reedy
August 11, 2014 at 10:57 am
Hello Joseph, I enjoyed your comment about dogs are not wolves–this is historically correct, yet there are legitimate claims for feeding our domestic dogs (‘domestic’ in this instance is not inclusive to all dogs) a less-processed meat protein (wait for it…’wolf-like’) diet. Your evolutionary-based argument could have included a similar diet shift that occurred, by necessity, for our early ancestors–homo sapiens–who eventually learned the rudimentary skills of modern farming to fill the gaps in available fresh meat food sources with sustainable grains and edible fruit.Though I’m tempted, I shant make my response a treatise on the evolution of eating in dogs and humans; suffice it to say that all dogs and all humans are not carnivores, and that all dogs and all humans are not meant to be herbivores (or vegans). The evolutionary reality for canine-animals and human-animals is that both–through long-term nutritional and biological changes–have become omnivores. NOTE: my response is in no way an endorsement of any commercially-prepared dog food (correction ‘dog feed’).
Susan
April 9, 2014 at 3:51 pm
How many more dogs have to die by shoddy manufacturing. This is heartbreaking. I lost my beloved dog to the kidney failure debacle because they add fillers and ppoison to their cheap food. The only winner here is the big companies that buy the little ones and then cheapen the formula which winds up killing our pets! So sad.
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Darlyn
April 9, 2014 at 6:54 pm
Ugh, yet another instance of seeing those who do right by the consumer only to be later enticed by a fiscal offer that’s “too good to pass up.” A few weeks ago, I learned that Zuke’s (doggy treats) had been sold to Nestle Purina in January 2014 and even though there’s been no recall, I am no longer inclined to buy….not because of the product, but as is based on the principle of needing to oppose this corporate predation. Year by year, we are losing our best choices to these predatory practices and when it’s all said and done, we will likely have a mere few corporations who will, for reasons of the bottom line, ‘alter the formulas any ole way they want to’ no matter how they tout otherwise about “Making a better world for pets.” So far, I am not aware of any corporate operation that always (faithfully) puts the health and safety of the consumer, be they pet or human, FIRST.
Mimi
April 9, 2014 at 8:11 pm
From bad to worse! 🙁
Tom Reedy
April 11, 2014 at 6:13 pm
Years ago when Nutro was a scrappy, pet-friendly independent pet food company, I felt pretty confident with purchasing my cats’ and dogs’ food from this company. Later, after Mars swooped down and gobbled them into their expanding pet food portfolio, I began to notice two things: the customer-friendly service that I greatly appreciated diminished and I began noticing something had changed in their food formulas (my cats & dogs were not so eager to start nor finish their meals). The phone reps that stayed on after the Mars acquisition acknowledged that there was greater pressure in building new sales & reducing aspects of their customer support; however, no one ‘felt comfortable’ verifying any formula changes…neither confirmed nor denied. Some time during the unthinkable 2008 pet food contamination/recalls, I’d had enough with big corporate pet foods and dropped my loyal longstanding relationship with the Mars-owned Nutro Pet Foods. For awhile afterwards, I tried making my own pet food from scratch but at the time it was too time-intensive to continue on a daily basis…so after researching the fewer grain-free choices available at my local pet food store, I selected Wellness and have stayed with them ever since (at long as they don’t ‘cave in’ to high power acquisition offers). All of my animal companions are healthy, happy critters: two 11-year old orange DSH feline ‘twin’ sisters, two black DSH feline males (9 & 6), one bluegray DSH feline male (4), and one Cavalier/PhalenePapillon-mix tricolor canine female.
Regina
April 14, 2014 at 12:05 am
Google who makes “Wellness pet food” — There has been some “buying out” there also, along with the Old Mother Hubbard treats.
Tom Reedy
April 16, 2014 at 1:35 am
Thanks, Regina. This tired 70-year-old animal lover/rescuer thought that he was doing the right thing and, given my local pet food options, Wellness grain-free products for my cats and dogs remains the best ‘lesser of evils’ in a world of marketing evildoers.
Regina
April 16, 2014 at 10:28 am
It’s sad that one has to choose the “lesser of evils” in feeding our babies, isn’t it . . . sigh. It seems that most choices today are just finding the “least worst” option, which is getting harder to do in this world of marketing evildoers.
Tom Reedy
April 16, 2014 at 12:46 pm
The more that I think about this discussion, I’m quite tempted to try (again) making my own freshly prepared food for my canine and feline companions. Can you or someone else (perhaps my friend Susan) can direct me to the appropriate information for home pet food preparation. Many thanks to all.
dave
April 28, 2014 at 7:27 pm
Wellness i s another Garbage food. within two weeks of feeding my cats they started shedding constantly, i mean you pet them once and you have a handful of fur shedding. Also they started looking starved. Put them back on Acana with a 4-Health canned mix and they were back to great looking cats and almost no shedding.
Lisa
August 30, 2015 at 9:13 am
We fed our dog Eukabania small bites for the last four years and she loved it. The last time i went to get it, they said the company was repackaging . Ever since I bought it in the new packaging my dog wont eat it. We even tried putting some of her treats mixed into it and she ate part of it then threw-up. Has anyone else had this same problem?
Susan
November 17, 2015 at 8:20 pm
My 2 yr old GSP had been eating Eukanuba Lrg Breed for well over year. Once Eukanuba repackaged the product, my GSP refuses to eat it. Initially thought the dog was sick but then tried Science Diet and he once again very well. My GSP has a sensitive stomach but is not a picky eater. Really concerns and question what the formula change consists of — what ingredients are being put into the brand that dogs are refusing to touch it.
Regina
November 19, 2015 at 9:33 pm
switching from eukanuba to science diet is kinda a lateral move, not an improvement, especially for a sensitive dog!!!
most of science diet is grain-based, with very little actual meat.
most folks who follow this site try to avoid stuff like corn, wheat, soy, by-products.
you mention concerns and question the formula change, read the ingredient labels on pet foods. compare what is in eukanuba to what is in science diet. just please read the ingredients, and switch to something meat-based!
Ann
March 21, 2016 at 11:16 am
Susan, Science Diet is one of the worst foods available. SD sales reps visit students in vet schools to give presentations and inform them of the profits that can be made by stocking their food in their vet offices. That is how it begins. Vets know about animal medicine but not so much about good pet food ingredients.
Kelley
April 13, 2014 at 7:44 am
SO DOES THIS MEAN THEY WILL STOP TESTING ON ANIMALS?
TESTING ON THEM AND PUTTING THEM IN THEIR PET FOD! iAMS AND EUKENUBA IS A HORRIFIC DISGUSTING COMPANY.
dave
April 28, 2014 at 7:17 pm
i put Iams on the bottom of a long list i would feed my animals only if i was forced by circumstances when P&G bought them out. Now they are not even in the mix any more, Iams, Mars you can all go to hell, you are not killing any of my animals due to your greed!
Ritchie Vee
June 9, 2015 at 2:31 am
Orijen, has my bowl. My service animal tbrives, on this company’a product and you are what you eat. If I had the email address to this thread. I would, send you my letter, written to my constituents after reading the blog, sent me, on this matter. I have a saved copy and for anyone “Orijen” included, who may wish to read or use, as a testament, are more than, welcome.
Mila
July 22, 2015 at 7:13 am
We fed our former German Shepherd Dog Innova food from 2007 until 2009. He developed an autoimmune disease in his intestines and we had to go through years of expensive and harmful treatment which ultimately led to his demise earlier this year. We got a German shepherd puppy in the beginning of June 2015. I want to home cook for him. I consulted with 2 veterinary dietitians and they both said not until he is one year old. One recommended Innova large breed puppy and the other one approved the choice. I was shocked to find out the pet stores had discontinued the food and I had to get it online. So I called Nayira Pet in mid June. I told them we wanted to put the puppy on their food but I was concerned about the feedback from the stores. I asked Natura if there was something going on with their food. The woman on the phone acted like I was stupid and asked me where I lived. She said it had to be the area as to why the food was not popular and the stores did not want to carry it. So I trusted her and started him on it. A month later they discontinue without a warning or consideration for the animals on it. Don’t you think she should have told me the truth in June so that I looked for different food then? Moreover, the dog was not doing well on the food – loose stools and diarrhea all the time. I thought he was sick. So we switched to Orijen large breed puppy over the weekend (did not even do it gradually) – stools are normal in all aspects. I am so disgusted with the pet food industry – a cheap money making machine with no accountability ( big deal if a few thousand pets died – reference 2007). So I will feed Orijen since it is made by a private company without outsourcing or big corporation involvement. However I have to check the website regularly because small companies get bought by bigger ones all the time. I am so disgusted with Natura and the owner, the well known Mars and most of the food industry. I will feed home made once the dogis one year old. Please protect your pets and do your research. Your pets do not have a voice of their own – you are it!!!!
KevinA
September 21, 2015 at 8:39 pm
http://www.wherearethepetfoodchampions.com/web/Orijen_Recall.html
Kevin A
September 21, 2015 at 8:40 pm
http://www.wherearethepetfoodchampions.com/web/Orijen_Recall.html
ANON
February 25, 2016 at 8:18 am
I JUST WISH THAT SOMEONE FROM MARS HEAD OFFICE, WOULD VISIT THERE ROYAL CANIN BRANCH IN JOHANNESBURG SOUTH AFRICA, TO SORT OUT THE MESS THAT IS GOING ON HERE!!!!
i.e. FOR EVER OUT OF STOCK ON PRODUCTS, SOMETIMES PRODUCTS ARE OUT OF STOCK FOR 3 MONTHS!!
BAG DAMAGES,
10 OUT OF 10 FOR CUBE ROUTE & HILL’S AS THEY GET IT RIGHT ALL THE TIME
I CANT SEE WHY ROYAL CANIN MESS UP ALL THE TIME!!!!
Ann
January 1, 2018 at 5:00 pm
Our dog is very allergic to foods and was doing well on California Natural until recently when all his allergic symptoms came back with a vengeance…. scratching and scooting almost constantly etc. It appears to be since this company bought them out and I’ve read many other reviews with similar problems in their pets. We have to now find a new dog food to replace California Natural… not an easy chore. Why don’t these companies leave well enough alone.