Central Garden & Pet Company (Central) is a market leader in the pet and garden industries in the United States.
Strategy
The company’s Central to Home strategy reinforces its unique purpose to nurture happy and healthy homes.
The company plans to execute on various key strategic pillars to drive long-term growth, such as consumer: build and grow brands that consumers love; customer: win with winning customers and channels; central: fortify the central portfolio; and culture: strengthen the c...
Central Garden & Pet Company (Central) is a market leader in the pet and garden industries in the United States.
Strategy
The company’s Central to Home strategy reinforces its unique purpose to nurture happy and healthy homes.
The company plans to execute on various key strategic pillars to drive long-term growth, such as consumer: build and grow brands that consumers love; customer: win with winning customers and channels; central: fortify the central portfolio; and culture: strengthen the company’s entrepreneurial business unit-led growth culture.
Segments
The company manages its operations through two reportable segments: Pet and Garden.
The company’s Pet segment includes dog and cat supplies such as treats and chews, toys, beds and containment, grooming products, waste management and training pads; supplies for aquatics, small animals, reptiles and pet birds including toys, enclosures and habitats, bedding, food and supplements; products for equine and livestock, animal and household health and insect control products; live fish and small animals as well as outdoor cushions. These products are sold under brands such as Aqueon, Cadet, C&S, Comfort Zone, Farnam, Four Paws, Kaytee, Nylabone and Zilla.
The company’s Garden segment includes lawn and garden consumables such as grass seed; vegetable, flower and herb packet seed; wild bird feed, bird houses and other birding accessories; weed, grass, and other herbicides, insecticide and pesticide products; fertilizers and live plants. These products are sold under brands such as Amdro, Ferry-Morse, Pennington and Sevin.
Pet Segment
Pet Overview
The company is one of the leading producers and marketers of branded pet supplies in the United States. The company also produces numerous private label brands. In addition, the company’s Pet segment operates one of the largest sales and distribution networks in the industry, strategically supporting the company’s brands.
Branded Pet Products
The company’s principal pet supplies categories are dog and cat supplies, treats and chews; aquatics and reptile supplies, small animal and pet bird supplies, animal health products as well as live fish and small animals. Among the company’s leading brands are: Nylabone in dog toys and treats, Kaytee in pet birds and small animal, Farnam in equine, C&S in suet, Aqueon in aquatics and Comfort Zone in cat calming. In addition, the company operates its Arden Companies outdoor cushion business in the Pet segment due to synergies in sourcing, manufacturing and innovation with the company’s pet bed business.
The company continuously seeks to introduce new products, both as complementary extensions of existing product lines and in new product categories. In the year ended September 28, 2024 (fiscal 2024), Nylabone extended its Gourmet Style line with new shapes and flavors. Cadet announced an all new line of rawhide alternatives and added new flavors to it premium treats. Paw Love debuted a new line of natural dog chews called Simply Smoked. In 2023, the company’s Nylabone brand launched a new collection of play toys for imaginative fun as well as four new product lines that include a variety of chew toys and chew treats. These releases feature chew toy shapes inspired by everyday objects with a fun twist; multi-flavored Basted Blast chew toys; the Sneaky Snacker chew & treat toy; and Healthy Edibles Meaty Center chew treats. And the company’s Cadet brand introduced a unique line of all-natural, highly palatable, and digestible long-lasting chews called Bully Hide.
Dog and Cat. The company is an industry leader in premium edible and non-edible chews, supplements, interactive toys, grooming supplies, beds and containment, training and waste management solutions featuring the brands Best Bully Sticks, Cadet, Four Paws, Healthy Edibles, K&H, Healthy Promise, Nylabone, Nubz, and Paw Love among others.
Small Animal and Bird Supplies. The company is a leading manufacturer of supplies and food for small animals, pet birds and wild birds. The company offers a full range of products including species specific diets, treats, habitats, bedding, hay and toys under the Kaytee brand. The company’s Kaytee small animal and pet bird food mixes are fortified with a proprietary blend of vitamins and minerals. The company also offers a complete portfolio of Kaytee wild bird food and C&S suet products for backyard birding. The company’s brands are some of the most widely recognized and trusted brands for birds and small animals.
Animal Health (Health & Wellness, Equine and Professional). The company supplies calming products under the Comfort Zone brand, and flea and tick controls under the Adams brand. The company also offers products for horses in the fly control, supplements, grooming, deworming, wound care, leather care and rodenticides categories. The company’s portfolio of brands for equine includes Farnam, Horse Health Products, Vita Flex, Just One Bite and Rodentex. These brands, along with sub-brands including Bronco, Endure, IverCare, Horseshoer’s Secret, Red Cell, Sand Clear, Super Mask II and Vetrolin position the company as a leader in these categories. Moreover, the company is a leading supplier of insect control products sold into various markets. The company is the only domestic provider of (S)-Methoprene, which is an active ingredient used to control mosquitoes, flies, fleas, beetles and ants in many professional and consumer insect control applications. The company’s products are sold primarily under the Starbar and Zoëcon family of brands, as well as standalone brands, such as Altosid, Centynal, ClariFlyIGR, Diacon, Essentria and Extinguish. The company also sells (S)-Methoprene to manufacturers of other insect control products, including Frontline Plus.
Aquatics and Reptile Supplies. The company is a leading manufacturer of aquariums and terrariums, as well as related fixtures and stands, water conditioners and supplements, water pumps and filters, sophisticated lighting systems and accessories under the brands Aqueon, Blagdon, Coralife, Interpet and Zilla.
Live Fish and Small Animals. Segrest and SunPet are leading wholesalers of aquarium fish and plants, reptiles and small animals to pet specialty and mass merchandiser stores as well as public aquariums and research institutions.
Outdoor Cushions. The company sells Arden-branded outdoor cushions through major retailers, both in-store and online, and private label outdoor cushions through the largest big box stores in North America, all leveraging Arden's EverTru-branded outdoor fabric. The company’s OceanTex fabrics, developed by EverTru, are responsibly made and composed of up to 100% recycled materials, including reclaimed ocean plastic and fishing nets.
Pet Sales and Distribution Network
The company’s domestic sales and distribution network promotes both its proprietary brands and third-party brands. It provides value-added service to over 10,000 retailers, many of which are independent specialty stores with fewer than 10 locations, and over 6,000 veterinary offices. This includes acquisition and maintenance of premium shelf placement, prompt product replenishment, customization of retailer programs, quick response to changing customer and retailer preferences, rapid deployment and feedback for new products and immediate exposure for acquired brands. The combination of brands in the network that are supplied in single shipments enables the company’s independent customers to collaborate with the company on a cost-effective basis to meet their pet supplies requirements. The company also operates a sales and logistics facility in the United Kingdom.
Pet Sales and Marketing
The company’s sales strategy is multi-tiered and designed to maximize market share with retailers. The company’s customers include retailers, such as club, regional and national specialty pet stores, independent pet retailers, food, drug and mass stores, as well as the eCommerce channel. The company also serves the professional market with insect control and health and wellness products for use by veterinarians, municipalities, farmers and equine product suppliers. Costco accounted for approximately 14% of the company’s Pet segment's net sales in fiscal 2024. Amazon, Walmart, Petco and Kroger are also significant customers.
To optimize the company’s product placement and visibility in retail stores, the company’s focused sales resources are segmented as follows: a sales organization operating by category and channel; dedicated account teams servicing the company’s largest customers; a group of account managers focused on regional chains; a geographic based group of territory managers dedicated to the independent retailer; and a specialized group of account managers dedicated to the professional and equine markets.
These sales teams deliver the company’s marketing strategy that is consumer, brand and channel driven. The company provides value creation with a focus on innovation, product quality and performance, premium packaging, product positioning and consumer value. The company collaborates with its customers to identify their needs, jointly develop strategies to meet those needs and deliver programs that include digital execution, print, broadcast and direct mail. The company continues to invest in talent, innovation, brand building, digital capabilities and eCommerce as these play a critical role in the company’s ambition to lead in the pet segment.
In fiscal 2024, Farnam partnered with country music trio The Castellows to debut the brands' new logo to be used across all point of sale and marketing, including a new Amazon storefront.
Pet Competition
The company’s largest competitors in the product categories in which the company participates are Mars, Inc., Spectrum Brands and the J.M. Smucker Co.
The company’s Pet segment’s sales and distribution network competes with Animal Supply Co. and Phillips Pet Food & Supplies.
Garden Segment
Garden Overview
The company is a leader in the consumer lawn and garden consumables market in the United States and offers both premium and value-oriented branded products. The company also produces numerous private label products for key customers. In addition, the company’s Garden segment operates a sales and distribution network that strategically supports the company’s brands.
Branded Lawn and Garden Products
The company’s principal lawn and garden consumables product lines are grass seed, wild bird products, lawn and garden care products including fertilizers, insect control products, live plants and packet seed to help consumers grow their lawns greener and gardens bloom bigger. The company’s Pennington brand is one of the largest in grass seed, wild bird feed and birding accessories. Ferry-Morse is a leader in vegetable, herb and flower packet seed, and the company’s Amdro brand is a leading portfolio of control products.
The company continuously introduces new products, both as complementary extensions of existing product lines and in new product categories. In fiscal 2024, Ferry-Morse introduced its Colossal Seed collection that will grow vegetables at least double the average size and expanded the line of organic seeds, which now features more than 100 organic vegetables, fruit and herb see varieties. In fiscal 2023, Ferry-Morse introduced more than 40 different Plantlings Garden Starter Kits, curated bundles of Plantlings that complement each other and take the guesswork out of planning and buying.
Grass Seed. The company is a leading manufacturer of numerous varieties and mixtures of cool and warm season grass seed for both the residential and professional markets, as well as forage and wildlife seed mixtures. The company sells these products under the Pennington brand along with several sub-brands including Lawn Booster, One Step Complete, Rackmaster, Slopemaster, Smart Seed, Smart Patch, The Rebels and other brand names. The company also produces numerous private label brands of grass seed. The Pennington grass seed manufacturing facilities are some of the largest and most modern seed coating and conditioning facilities in the industry.
Wild Bird. The company is the leading producer of wild bird feed. These products are sold under the Pennington, 3-D Pet Products and Wild Delight brands. Many of the company’s branded wild bird feed mixes are treated with a proprietary blend of vitamins and minerals. For example, the company’s Pennington brand feed mixes are enriched with Bird-Kote, the company’s exclusive process which literally seals each seed with a nutritious coating containing vitamins and minerals that are beneficial to the health of wild birds. The company also manufactures bird feeders, bird houses and other birding accessories.
Fertilizer and Controls. The company is a leading manufacturer of soil supplements and stimulants. The company produces several lines of lawn and garden fertilizers and soil supplements in granular and liquid form under the Alaska Fish Fertilizer, Ironite, Pennington, Pro Care and Superthrive brand names and other private and controlled labels. The company also manufactures lawn and garden weed, moss, insect and pest control products. The company sells these products under brands such as Amdro, Corry’s, Daconil, IMAGE, Knockout, Lilly Miller, Moss Out, Over-N-Out, Rootboost and Sevin, as well as other private and controlled labels.
Live Plants. With Bell Nursery, the company is the primary supplier of superior quality flowers, trees, shrubs and other plants to Home Depot in the Northeast and mid-Atlantic regions, producing and shipping tens of millions of annuals, perennials and indoor plants each year, also offering items the company does not grow, such as orchids.
Packet Seed. The company is a leading provider of vegetable, herb and flower packet seeds and seed starters. The company sells these products under the American Seed, Ferry-Morse, Jiffy, Livingston, McKenzie Seed and other brand names.
Garden Sales and Distribution Network
The company’s sales and distribution network promotes its proprietary brands and provides the company with key access to select national retail chains for the company’s branded products, acquisition and maintenance of premium shelf placement, prompt product replenishment, customization of retailer programs, quick responses to changing customer and retailer preferences, rapid deployment and feedback for new products, market intelligence and potential acquisition targets. The network also sells other manufacturers’ brands of lawn and garden supplies and combines these products with the company’s branded products into single shipments enabling select national retail chains to deal with the company on a cost-effective basis to meet their lawn and garden supplies requirements.
Garden Sales and Marketing
In 2024, the company refreshed the company’s Amdro brand with new eye-catching packaging graphics and optimized product claims that are simple and relevant to consumers.
The company’s customers include retailers, such as home improvement centers, food, drug and mass merchants, and professional end users. Sales to Home Depot represented approximately 38%, sales to Walmart represented approximately 27%, and sales to Lowe’s represented approximately 15% of the company’s Garden segment’s net sales in fiscal 2024.
To maximize the company’s product placement and visibility in retail stores, the company markets its products through dedicated sales forces representing the company’s combined brand groups; a retail sales and logistics network, which provides in-store training and merchandising for the company’s customers, especially during the prime spring and summer seasons; dedicated account-managers and sales teams located near several of the company’s largest customers; and selected independent distributors who sell the company’s brands.
Seasonality
While demand for the company’s pet supplies products, except for pest controls, is generally balanced over the year, the company’s lawn and garden consumables business is highly seasonal with approximately two-thirds of net sales occurring in the company’s second and third fiscal quarters (year ended September 2024) combined. The company builds inventory based on expected demand and typically fill customer orders within a few days of receipt, so the backlog of unfilled orders is not material. Funding for working capital items, including inventory and receivables, is normally sourced from operating cash flows and short-term borrowings under the company’s revolving credit facility.
Patents, Trademarks and Other Proprietary Rights
The company holds numerous patents in the United States and in other countries and has several patent applications pending. Many of the company’s trademarks are registered.
Regulatory Considerations
Any pesticides in the company’s products that are approved to be used on foods are evaluated by the United States Environmental Protection Agency as part of this non-dietary exposure risk assessment.
History
Central Garden & Pet Company was founded in 1955. The company was incorporated in Delaware in 1992.
