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Welcome to the Pulse Q3 2012 edition for Pet. We hope you find it useful.

Please do not hesitate to contact us if you have any questions or comments at EU.Marketing@SymphonyIRI.com

SymphonyIRI
Pet

Pulse

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Pet SymphonyIRI Pulse Q3 2012

About the Report


This Pet report is one of 10 super category reports designed to show highlevel comparison and analysis for retail markets across major countries in Europe. This report contains data gathered from around Europe. This market was split into the following categories: Dog Food, Cat Food, Other Pet Food and Pet Accessories. The report highlights key metrics such as total sales figures, market trends, category shares, winners and losers for Europe and for individual countries. The data has been sourced from SymphonyIRI Group retail databases and Eurostat the statistical branch of administration for the European Commission. The countries included in the report are: France, Germany, Italy, Netherlands, Spain and the UK. The market channels used for each country in this report are as follows:
Country UK ES DE NL IT FR Channels used Hypermarkets, Supermarkets, Drugstores and Impulse Outlets Hypermarkets, Supermarkets, Hard Discounters, Drugstores and includes the Canary Islands Hypermarkets, Supermarkets, Hard Discounters and Drugstores Hypermarkets, Supermarkets, Hard Discounters and Drugstores Hypermarkets, Supermarkets, Small Self Service, Hard Discounters and Drugstores Hypermarkets and Supermarkets

For analytical purposes the data sourced from available retail databases has been consolidated to provide consistent results. However, for some countries it has not been possible to source data pertaining to certain categories. When this has occurred it has been documented in the Notes section found at the end of the report.

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Pet SymphonyIRI Pulse Q3 2012

In the Radar

The Pet macro-category is not hit hard by the economic recession: value growth across Europe in Q3 2012 stays positive but is slowing down to 3.1%. This result is worse than the growth of Q2 2012 (+3.4%). The Pet macro-category does not grow like in the past, but once more its trend is better or at least in line with the trend of FMGC products. The value growth is driven by a an increase in prices more than by an increase in volumes. Price inflation and more premium sectors in small sizes matter in this value growth. Different tendencies coexist: smaller premium products grow together with convenience products by private labels.
The PET Community of Interest- Symphony IRI Group Contact: Paolo Garro Business Insights Director/ +39 02 52.579446 / mob: +39 335 12.80.902; paolo.garro@SymphonyIRI.com

Economic figures influencing consumer behavior


Average 12 Months Inflation Rate

Population in Millions

Unemployment (%)

GDP in Millions ()

January 2011 France Germany Italy Netherlands Spain United Kingdom 65.0 81.7 60.6 16.6 46.1 62.4

January 2012 65.3 81.8 60.8 16.7 46.1 62.9

Dec. 2011 9.7 5.9 8.4 4.4 21.6 8.4

Average 2012 10.3 5.5 10.7 5.3 25.1 7.9

Dec. 2011 +2.3 +2.5 +2.9 +2.5 +3.1 +4.4

Average 2012 +2.5 +2.4 +3.5 +2.8 +2.3 +3.7

2011 (Estimate) 1,987,699 2,567,000 1,586,209 607,435 1,074,940 1,747,315

2012 (Estimate) 2,033,702 2,645,862 1,565,770 609,133 1,050,211 1,913,070

Source Eurostats, October 2012

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Pet SymphonyIRI Pulse Q3 2012

Global Trends
Value sales and growth and decline in the last year
Value Sales in Millions ()

+4.2%

Total EU DE

8,103 2,091 2,003* 1,992 1,197 528 293

+1.0%

+1.4%

UK FR IT ES NL

+3.5%

*based on an exchange rate of 1.150 to the pound

Positive Trend Static Trend

+7.1% +2.3%

Negative Trend

TOTAL EUROPE +3.1%

Value sales for the last six quarters


Millions 2,500

2,000 490 517 497 479 498

France
455

Germany
545 517

1,500 522 524 504

494 1,000 285 70 500 121 469 0


3-Jul-11

Italy Netherlands Spain UK

298 72 125 487

309 75 132

293 73 131 484

291 72 131

304 73 134 501

521

497

2-Oct-11

1-Jan-12

2-Apr-12

1-Jul-12

1-Oct-12

Period Ending

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

Europe

Category Value Sales and Share of Value in the Last Year


4,500 4,000

4,073

50.3% 36.9%
Millions Euros

3,500

2,990
3,000 2,500 2,000 1,500 1,000 500

760 279

3.4%

9.4%

Cat Food

Dog Food

Pet Accessories

Other Pet Food

Category Evolution
Value Sales () and % Change vs. Yr Ago 4.073
93

Key Trends
The value of the European market grew by 3.1% on average across the six countries during the year ending Q3 2012; this is slightly worse than the growth of Q2 2012 (3.4%) Spain, UK and France are confirmed as the top countries for growth in the year ending Q3 2012 . Cat food remains the core business and the trend setter of Pet Care, showing the fastest growth. Dog food is also growing but not at the same pace; the growth of Pet accessories is positive, whilst other Pet food is negative. The marketplace continues to become more competitive for branded products due to the increased promotional activity and the growth of Private Label. Pet Care is not as promotionally reliant as most major FMCG markets, but promotions are growing across most of the countries and pushing sales.

73

2.990 Millions
53

33

760
4,1 2,7 2,3

13

279
-5.3 -7 Other Pet Food

Cat Food

Dog Food

Pet Accessories

Total Sales

% vs. YA

Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

Europe

Top Winners: Value Sales chg vs. Yr Ago ()


Millions 0 50 100 150 200
-18

Top Losers: Value Sales chg vs. Yr Ago ()


Millions
-16 -14 -12 -10 -8 -6 -4 -2 0

Cat Food

161.3

Dog Food

77.7

Pet Accessories

17.2

-15.6

Other Pet Food

Category Key Findings The main contributor to the growth of Pet Care across Europe is Cat Food (+161 million ), whilst a smaller but relevant contribution comes from dog food (+77.7 million , where the driver is snacks and treats) and a limited contribution from Pet Accessories. Dog Snacks & Treats segment are becoming increasingly more important and significant due to its growth in Value and Volume in all European Countries Wet cat single serve is the driver for Cat food, where brands are investing most, and to a lesser extent dry cat food. The main focus of NPD by major brands is on new premium tastes in small sizes or on new user friendly packages; no real new concept innovations in the market unless we consider the growing importance of oral care concept in snacks and treats. Private Label is growing across most of the markets and represents a cheaper but acceptable alternative offer compared to major brands, in the tough economic climate were living. Pet Care appears to be an increasingly polarised category; economy products are growing (Private Label) as well as Premium products in small sizes. The shopper is not unique and the shopper of Dog food may behave very differently from the shopper of Cat food.

Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

France

Category Value Sales and Share of Value in the Last Year


1,000 900

918

31.1% 46.1%
Millions Euros

800 700 600 500 400 300 200

620

330

123

6.2%

16.6%

100 0

Cat Food

Dog Food

Pet Accessories
Key trends

Other Pet Food

Category Evolution
Value Sales () and % Change vs. Yr Ago 918

The market trend of Pet Food is similar to the FMCG trend (about +3%). Growth is still mainly driven by the Cat Food : Wet Cat growth is moderate (+3.5%) whereas Dry Cat continues to be very dynamic (+8%). Snack and Treats is the fastest growing category : Cat Snack & Treats(+21%) grow through assortment development (+28%) Dog Care & Treats (+12%) benefit from more NPD and more promotions.

Millions

620

330

5.5 1.3 Cat Food Dog Food

123
4.4 -2.8 Pet Accessories % vs. YA Other Pet Food

The growth of the cat population has a positive impact on Cat Food, Pet Accessories , and Cat Litter (7.5%). No change on other Pet Food. This decrease is due to all types of products. The Dog Food trend continues. Wet food is negative (-6%) with dry food positive (+4) thanks to Care and Treat, Main meal (+2%) has also made a contribution to growth.

Total Sales

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

France

Top Winners: Value Sales chg vs. Yr Ago ()


0 10 20 30 40 Millions 50 60
-4.0

Top Losers: Value Sales chg vs. Yr Ago ()


Millions
-3.5 -3.0 -2.5 -2.0 -1.5 -1.0 -0.5 0.0

Cat Food

48.2

Pet Accessories

14.0

Dog Food

7.9

-3.5

Other Pet Food

Category Key Findings


Cat food is the main contributor to the market value growth showing 48 million Euros of new sales. With the exception of multi-serve, all cats technologies are very positives : Dry Cat +8% Single Serve Wet Cat +7% Snacks Cat +21% Pet food volume sales are increasing, driven by promotional activity, this is key for manufacturers. The assortments in Pet Food tends to increase in each segment with the exception of Wet Dog. This proves how strategic this category continues to be for retailers, particularly with the development of the value offer.

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

Germany

Category Value Sales and Share of Value in the Last Year


1.400

56,7%

1.200 1.000

1.186

Millions Euros

800 600 400 200 0

683

32,7%

146

76

3,6%

7,0%

Cat Food

Dog Food

Pet Accessories

Other Pet Food

Category Evolution
Value Sales () and % Change vs. Yr Ago

Key Trends The Pet Food category in Germany is growing at a steady pace in value (+1.9%) which can be attributed to increase in average prices by 2.1% while volume sales show a slight decline (-0.2%)

1.185,87

Millions

683,49

Cat food maintains its position of the leading category within pet food and is the only category with rising volume sales despite the rise in average prices
145,90 75,55
-11,5 Other Pet Food

3,5

0.7 Dog Food

-3.6 Pet Accessories % vs. YA

Cat Food

Decline of Other Pet Food and Pet Accessories is mainly driven by birds and rodents, fish food is growing in volume however declining in value sales Private Labels Pet Food grows due to increase in average price while volume declines for all the categories except for the cat food

vs. YA

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

Germany

Top Winners: Value Sales chg vs. Yr Ago ()


0 10 20 30 40

Millions 50

Top Losers: Value Sales chg vs. Yr Ago ()


Millions
-12,0 -10,0 -8,0 -6,0 -4,0 -2,0 0,0

Cat Food

39,6

Dog Food

4,9
-5,5

Pet Accessories

-9,8

Other Pet Food

Category Key Findings Cat Food & Dog Food are the only drivers of the growth in the Pet Market and all other pet food and accessories are declining in sales Hypermarkets & Hard discounters are the most important sales channel for Pet Food private label products are driving the growth of Hard discounters Cat Food which holds more than half of the sales share of the Pet Market is mainly driven by wet food which grows by 4.1% in value sales and 3,3% in volume sales; however declining in dry food by -4.1% in value sales and -8.6% in volume sales. Single packs are compensating the loss done by multipacks, indicating the that consumers prefer convenience Dog Food which holds around one-third the sales of the Pet market is mainly driven by the growth in the Dog Snacks in value sales(3.5%),however is declining in volume sales(-1.0%);Chews is the main segment of Dog Snacks Dog wet food declines by -1.8% in value sales and -3.7% in volume sales and Dog Dry Food grows by 1.2% in value sales, primarily based on the core size class of 2.5 4.9kg(3.6% growth in value sales). The trend is contrary to the Cat Food where wet food grows and dry food declines The subcategories of Bird Care, Small Animal Care and category Cat Litter (-3.5%) are the strongest drivers of the negative trend for the Pet market.

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

Italy

Category Value Sales and Share of Value in the Last Year


700 600 500

636

53,2%
Millions Euros

403
400 300 200 100

33,7%

137 21

1,8%

11,4%

Cat Food

Dog Food

Pet Accessories
Key Trends

Other Pet Food

Category Evolution
Value Sales () and % Change vs. Yr Ago

636,31

Total Cat and Dog Food continues to increase in value sales and in the year ending Q3 2012 (2.7% for Cat and 3.0% for Dog); but volume sales do not keep up (so: less kilograms sold but more value sales for Cat Food and Dog Food ). Cat Food remains the core business of the category, accounting for 53,2% of the total value sales, and shows an increase of 2.7%. Dog Food performes slightly better (+3.0%) while both Pet accessories and Other Pet Food are losing value sales.

Millions

402,81

136,65
2.7 Cat Food 3 Dog Food

-0.9 Pet Accessories % vs. YA

21,16

-1.5

Other Pet Food

As a general comment, Dry Petfood is performing better than Wet Petfood but inside Wet Petfood two trends -which relate to premium products- are remarkable : Wet Single Serve drives the performance of Cat Food with a growth of 4.6% in value sales, whilst Dog Food is still driven by wet small and medium package products (+1.1%). Snacks &Treats remains the fastest growing segment of the category for both Cat (+51.8%) and Dog Food (+10.3%).

Total Sales

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

Italy

Top Winners: Value Sales chg vs. Yr Ago ()


0 5 10 15 Millions 20
-1,4 -1,2

Top Losers: Value Sales chg vs. Yr Ago ()


Millions
-1,0 -0,8 -0,6 -0,4 -0,2 0,0

Cat Food

17,0 11,7

Dog Food

Italy
-0,3 -1,3
Other Pet Food Pet Accessories

Category Key Findings The main contribution to the growth of Pet Care category comes from Cat Food, with a 17.0 million increase in sales; the growth of Dog Food is smaller, but anyway relevant (11.7 million ). Products in small packages are still driving the positive performance of the market both in Cat and in Dog Food, confirming that there is a cluster of shoppers who keep on buying premium products -with user friendly packages and special tastes- regardless of the difficult economic situation. The increasing attention of the shoppers to pets health is reflected in the considerable growth of Dog Functional Snack & Treats segment. Cat Snack & Treats still is a niche market, as if it shows highly positive trends. Pet Accessories and Other Petfood are losing value and volume sales, thus confirming their marginal weight in comparison to Cat and Dog food. The growth of promotional activities and the increasing importance of DOBs in most of the segments make this market a highly competitive one (the % of promoted volumes in Pet food gets up to 25.0 with +0.5 points vs last year. Private Label reaches a 41.8% volume market share, with +1.2 points vs last year in Hyper+Super+Small Self Service). So Petcare is not a category that is highly impacted by the recession, as it is growing above the average of FMCG products (food and non food; +1.1% year ending Oct 2012); however,the growth in value goes with a decline in volumes.
Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

Netherlands

Category Value Sales and Share of Value in the Last Year


160 140

148

50.7%

Millions Euros

29.2%

120 100 80 60 40 20 0

85

48

3.9%

16.3%

11

Cat Food

Dog Food

Pet Accessories

Other Pet Food

Category Evolution
Value Sales () and % Change vs. Yr Ago

Key Trends Cat Food is still the most important category within Pet Food. This year this category increased by 2.2% to a total of more than 148 million euro. The increase is caused by the increase of Dry Cat Food. The second largest category, Dog Food, is decreasing for a couple of periods now and decreased by more than 1%. The segment Pet Accessoires is growing for a long time now. The total turnover is now more than 47 million euro; an increase of 5.5%

148,19

85 75 65 55

Millions

85,32

45 35

47,60
2.2 5,5 -1.2

25 15 5

11,42
-14,0
Pet Other Pet Food Accessories

-5 -15

Cat Food

Dog Food

Total Sales

% vs. YA

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

Netherlands

Top Winners: Value Sales chg vs. Yr Ago ()


0 1 2 3

Millions 4

Top Losers: Value Sales chg vs. Yr Ago ()


Millions
-2.0 -1.5 -1.0 -0.5 0.0

Cat Food

3.2 2.5

Pet Accessories

-1.0
-1.9

Dog Food

Other Pet Food

Category Key Findings The total sales of Pet Food in the Netherlands is growing very little. The total sales of supermarkets is growing faster in total than in Pet Food. The volume of Pet Food in the Netherlands is decreasing; so the increase of the sales is mainly caused by higher prices combined with higher sales in the mix of Pet Food Both Cat and Dog Food volumes are decreasing; it is striking that both Cat and Dog Food sold from the freezers are increasing in volume. This may be caused by the crisis; shoppers are buying cheaper food for their pets and food which can be stored easily. Also a much higher promotion share of freezing pet food has caused this. Promotions in total Pet Food have increased as well. In the third quarter of 2012 the promo share is higher than in the same quarter in 2011: from 30% to 31%.

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

Spain
Category Value Sales and Share of Value in the Last Year

59.8%

350 300 250

316

Millions Euros

200 150 100 50 0

185

35.0%

5.1%

27

Dog Food

Cat Food

Other Pet Food

Category Evolution
Value Sales () and % Change vs. Yr Ago

Key Trends
The Pet Food market shows a good behavior due to the growth of its three segments: dog food (+7.5%), cat food (+7.4%) and other pet food (+1.1%). Private label has reached a 48.3% market share and it is higher in the dog food segment (54,8%). Dry dog food experienced major growth (+8,2%) wet dog food increased by only a +5.1% in value since this segment has a higher level of private label presence (+76.8%). Wet food is a more expensive product but the private label is focused on formats with major volume, whereas the manufacturers are focused on the single serve products with a higher value but less weight. Cat food experienced a growth of 8.1 % in value. This behavior in value is due to the success of the single serve products.
1.1

315.67

Millions

184.84

7.5 Dog Food Cat Food Total Sales

7.4

27.12

Other Pet Food

The snacks and prizes segment is growing significantly (+10.2 % for dogs and +29.5% for cats) due to new launches in the market. Other Animals has increased mainly due to Birds (+4.1%) and Rodents (+6,5%).

% vs. YA

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

Spain

Top Winners: Value Sales chg vs. Yr Ago ()


0 5 10 15

Millions 20 25

Top Losers: Value Sales chg vs. Yr Ago ()


Millions
0.0 0.0 0.0 0.0 0.0 0.0 0.0

Dog Food

22.0 12.7 0.3

Cat Food

Other Pet Food

Category Key Findings Notwithstanding four years of economic crisis, the pet food market continues to demonstrate good health, it is experiencing growth over the FMCG market (+2.2 %). There are several factors that have a direct influence in the mentioned growth; for example the continuous innovation of companies that offer products with more added value. This added value 48.3% market share that the private label has is leading to lower pricing. The decrease in prices is also influenced by the dry food for dogs since it is the lowest priced product in the market, it experienced a growth of +8.2%. Meanwhile, cat food experienced a growth of 8.1 % in value due to the wet single serve success stimulated by the latest launches. But, it seems that the manufacturers are concentrating their efforts in innovating the snacks and prizes segment, which has had an increase of +10.2% for dogs and +29,5% for cats.

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

United Kingdom

Category Value Sales and Share of Value in the Last Year


1200 1000

1,000 883

Millions Euros

49.9%

800 600 400 200

44.1%

1.0% 5.0%
0

100

21

Cat Food

Dog Food

Pet Accessories
Key Trends

Other Pet Food

Category Evolution
Value Sales () and % Change vs. Yr Ago

1,000 883

The Uk has been experiencing an extremely wet summer , with localised flooding. These poor conditions are helping to keep volumes in Pet Food buoyant, with Pets staying in the home more we have seen volumes for Dry Food, Care and Treats along with Litter all do well this year. Price inflation is also a large factor driving value growth. Cat Treats continues to grow well with Nestle now launching into this growth market.

Millions

100
4.2 Cat Food 3.8 Dog Food

8.1

21
-1.8

Pet Accessories % vs. YA

Other Pet Food

Total Sales

Data for the United Kingdom does not include Northern Ireland Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Pet SymphonyIRI Pulse Q3 2012

United Kingdom

Top Winners: Value Sales chg vs. Yr Ago ()


0 10 20 30

Millions 40 50

Top Losers: Value Sales chg vs. Yr Ago ()


Millions
-0.5 -0.4 -0.4 -0.3 -0.3 -0.2 -0.2 -0.1 -0.1 0.0

Cat Food

40.5 32.3 7.5

Dog Food

Pet Accessories

-0.4

Other Pet Food

Category Key Findings Own Brand ranges continue to develop, with Waitrose launching their own label offer in the UK with a two tier price strategy for Own Label. We continue to see trading up into premium cat food sectors encouraged by significant promotion.

Data for the United Kingdom does not include Northern Ireland Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Final Notes
Notes on Category Definitions for Countries Due to the diverse products found in individual countries across this market it was necessary to consolidate the available data into the categories in this report. In some cases it wasnt always possible to align products across all 6 countries hence the need to highlight any anomalies in the report. Those exceptions are listed below: Other Pet Food The UK data in this report only includes bird food where the other countries include fish food and rodent food Pet Accessories The UK data in this report only includes cat litter and does not include pet hygiene products, aquarium accessories or pet toys The Spain data in this report does not include this category The Germany data in this report does not include pet toys

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Resources
To gain insight into opportunities across specific categories, segments, channels or retailers, contact your SymphonyIRI client service representative regarding custom analyses leveraging the following resources: InfoScan Census is a syndicated retail tracking service that enables manufacturers and retailers to acquire industry insights used to make better business decisions. InfoScan Census utilizes the data that SymphonyIRI Group collects from grocery, drug, and mass merchandise retailers to provide the most comprehensive and accurate syndicated data offering in the Fast Moving Consumer Goods (FMCG) sector. With access to accurate, granular detail by category, geography, measure, and time period, clients have the tools needed to develop marketing and sales strategies based on product performance, distribution, and promotion responsiveness. All data about pet comes from InfoScan Census. SymphonyIRI Consulting provides strategic insights and advice leveraging a variety of data sources, predictive analytics, enabling technologies, and business analyses to help FMCG manufacturers and retailers address significant sales and marketing issues effectively

About SymphonyIRI Group SymphonyIRI group, formerly named Information Resources, Inc. (IRI), is the global leader in innovative solutions and services for driving revenue and profit growth in CPG, retail and healthcare companies. SymphonyIRI offers two families of solutions: core IRI solutions for market measurement and symphony advantage solutions for enabling new growth opportunities in marketing, sales, shopper marketing and category management. SymphonyIRI solutions uniquely combine content, analytics and technology to deliver maximum impact. SymphonyIRI helps companies create, plan and execute forward-looking, shopper-centric strategies across every level of the organisation. For more information, visit www.SymphonyIRI.eu

Contact: SymphonyIRI Group, EU.Marketing@SymphonyIRI.com, Tel: +33 1 30 26 23 62

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