Bearing to enter pet-food market in the new year
Bearing Petcare (Thailand) plans an aggressive extension of its products next year, including into pet foods, to cash in on the strong rebound in demand after the floods.
"We will next year also penetrate the growing channel of pet clinics and hospitals with the launch of herb- and medicine-based pet-care products under the Bearing brand," product manager Chompunut Phokot said yesterday.
"Our aim is for Bearing to have the same portfolio as our closest competitor but with higher technology," she said.
The company has opened a line at its major factory in Bang Phli to produce food for both cats and dogs. Pet food packaged in pouches is set for launching by the second quarter of next year.
The pet-care market is projected to increase 10 per cent to about Bt10.5 billion this year. Pet foods represent about 47 per cent of the market, followed by services such as grooming, with 14 per cent, pet hospitals with 29 per cent, and pharmaceutical and cosmetics products with 10 per cent.
"The floods caused some slowdown in the pet-care market from growth of 13-15 per cent projected earlier this year to about 10 per cent actual growth. The impact will continue at a certain level into the first quarter of next year. We also expect the pet-care market to grow by 10 per cent next year," Chompunut said.
Bearing was fortunate to receive peak orders from retailers this quarter.
"Unlike other key players, our Bang Phli plant has not been hit at all by the floods. They have, however, affected some of our suppliers. The factory needs to source raw materials from other suppliers that have not been hit by the floods," she said.
Bearing expects the pet-care market to recover fully by the second quarter as flood victims will spend their money on priority projects first, such as rehabilitating their homes, and later on their pets.
"We expect our sales to reach Bt160 million to Bt170 million this year, up from Bt150 million last year. We also expect our sales to increase to about Bt200 million next year, driven by the new product line-up," Chompunut said.
Bearing this year beat Shell-Guard to become the runner-up in the pet-care market to Sleeky thanks to its success with Chic & Charm products targeting the premium segment.
Bearing Petcare (Thailand) was set up in 1973 as an independent affiliate of Siampoolsup Inter-Chemical, a local manufacturer of air fresheners and a wide variety of cleaning products under the King's Stella and Wax One brands.