Freshpet, Inc. (‘Freshpet’) manufactures and markets natural fresh meals and treats for dogs and cats.
The company’s products are distributed throughout the United States, Canada, and other international markets, into major retail classes, including Grocery, Mass, International, Digital, Pet Specialty, and Club. The company has successfully expanded its network of Freshpet Fridges within blue-chip retail chains. As of December 31, 2024, the company’s household penetration within the United Stat...
Freshpet, Inc. (‘Freshpet’) manufactures and markets natural fresh meals and treats for dogs and cats.
The company’s products are distributed throughout the United States, Canada, and other international markets, into major retail classes, including Grocery, Mass, International, Digital, Pet Specialty, and Club. The company has successfully expanded its network of Freshpet Fridges within blue-chip retail chains. As of December 31, 2024, the company’s household penetration within the United States was approximately 13.5 million, with a target of 20 million households by 2027.
Products
Freshpet's business operates in a single segment: the manufacturing, marketing, and distribution of fresh dog food, cat food, and dog treats. All Freshpet products are made according to the company’s nutritional philosophy of fresh, nutritional ingredients and minimal processing. The company’s proprietary recipes include real, fresh meat and poultry products, and varying combinations of vitamin-rich vegetables, leafy greens, and antioxidant-rich fruits, without the use of preservatives or additives. The company’s unique product attributes appeal to diverse consumer needs across multiple classes of retail where Freshpet is sold. Consequently, the company’s brand resonates across a broad cross-section of pet parent demographics.
The company’s products are sold under the Freshpet brand name, with ingredients, packaging, and labeling customized by different classes of trade and are available in multiple forms.
The company also offers fresh treats across all classes of retail under the Dognation and Dog Joy labels.
Product Innovation
As the first manufacturer of fresh, refrigerated pet food distributed across North America, product innovation is core to the company’s strategy. The company takes a fresh approach to pet food and is not constrained by conventional pet food products, attributes, and production capabilities. It employs a tightly-knit, creative team of marketing and research and development professionals, and consults with outside experts through its Nutrition Council, which consists of PhDs in nutrition and veterinary nutritionists. The team often identifies pet parents’ needs by evaluating emerging demand trends in both pet food and human food.
The success of the company’s approach is evidenced by its broad product portfolio. Freshpet began by producing fresh, refrigerated slice-and-serve rolls, and over time has steadily expanded into successful new product forms, including bags and treats. The company also introduced new fresh recipes and ingredients, such as proteins and grain-free options never before seen in pet food, that cater to the specific dietary requirements of pets.
The company’s Innovation Center, which is part of its Freshpet Kitchens (collectively, the Freshpet Kitchens Bethlehem, Freshpet Kitchens South, and Freshpet Kitchens Ennis), helps ensure that the company remains capable of strong innovation, including creating new product platforms to expand the breadth of its fresh pet food offerings.
Customers and Distributors
The company sells its products throughout the United States, Canada, and Europe; and generates the vast majority of its sales in the United States. The strength of the company’s business model makes it an attractive partner for blue-chip retailers. The company’s Freshpet Fridge locations have been consistently increasing as it adds new retail accounts and stores in existing accounts. As of December 31, 2024, the company is in thousands of stores, with approximately 22% of stores having second and third Freshpet Fridge placements. The company sells its products through the following classes of retail: grocery, mass, international, digital, pet specialty, and club.
The company’s customers determine whether they wish to purchase its products directly from it or through a third-party distributor. In 2024, the company’s largest distributor by net sales, Animal Supply Co., accounted for 7.9% of its net sales, and its largest customer, Walmart, accounted for 24.5% of its net sales.
The Freshpet Fridge
The company sells its products through a growing network of company-owned branded refrigerators, the Freshpet Fridges. The Freshpet Fridges are typically four feet wide by seven feet high and replace standard shelving in the pet aisle or an end-cap of a retail store. The company’s Freshpet Fridge designs are constantly evolving, with all new models featuring prominent edge-lit LED headers, LED interior lighting, crisp black interiors, and frameless glass swing doors for aesthetics and easy access. The company uses refrigeration technology and environmentally friendly refrigerants to minimize energy consumption and environmental impact.
The company designs and produces the Freshpet Fridge through a combination of in-house resources and partners. It sources its Freshpet Fridges from commercial refrigerator manufacturers with whom it has a collaborative approach to refrigerator design and innovation. Once ordered by the company, Freshpet Fridges are shipped to distribution centers for delivery and installation in retail stores.
Installation into retail locations and ongoing maintenance of the Freshpet Fridge is coordinated by the company and executed through third-party service providers. All of the company’s Freshpet Fridges are protected by a manufacturer warranty of three years. The refrigerators are designed to be highly reliable, and at any given time, less than 0.5% of the network is out of service for maintenance. Moreover, to ensure quality, cleanliness, and appropriate in-stock levels, the company employs brokerage partners to conduct a physical audit of the Freshpet Fridge network on an ongoing basis, with photographic results of the Freshpet Fridges transmitted back to the company for review by members of its sales team.
The company estimates less than 12-month cash-on-cash payback for the average Freshpet Fridge installation, calculated by comparing its total current costs for a refrigerator (including installation) to its current margin on net revenues. The Freshpet Fridge provides a highly-visible merchandising platform, allowing the company to control how its brand is presented to consumers at point-of-sale and represents a significant point of differentiation from other pet food competitors. The total chiller fleet at retailers covers over 1.7 million cubic feet of space.
Marketing and Advertising
The company’s marketing strategy is designed to educate consumers about the benefits of fresh refrigerated pet food and build awareness of the Freshpet brand. It deploys a broad set of marketing tools across television, digital, and public relations to reach consumers through multiple touchpoints and increase product trials.
The company’s network of fridges at various retail locations within blue-chip retailers helps to introduce consumers to its brand and instantly distinguish Freshpet from traditionally merchandised pet food. It has effectively used national TV advertising to drive incremental consumers to try Freshpet products. The company expects to realize greater benefits from national TV advertising as it continues to grow the network of Freshpet store locations nationwide. It has also expanded its online presence to better target consumers seeking information on healthy pet food. The company reaches consumers across multiple digital and social media platforms, including websites, blogs, and online reviews, as well as with tailored messaging on popular digital hubs, including Instagram, Facebook, X, TikTok, and YouTube.
Competition
The company competes with some of the largest pet food manufacturers, such as Nestlé Purina Pet Care, the J.M. Smucker Company U.S. Retail Pet Foods, Colgate-Palmolive Pet Nutrition, Mars Petcare, General Mills North America Pet, and Post Consumer Brands.
Trademarks
The company owns a number of trademarks and service marks that have been registered, or for which applications are pending, with the United States Patent and Trademark Office, including among others, Freshpet, Vital, Nature’s Fresh, Roasted Meals, Fresh From The Kitchen, Freshpet Dog Joy, Dognation, Homestyle Creations, and Pets People Planet.
Government Regulation
Along with its brokers, distributors, and ingredients and packaging suppliers, the company is subject to extensive laws and regulations in the United States by federal, state, and local government authorities. In the United States, the federal agencies governing the manufacture, distribution, and advertising of its products include, among others, the Federal Trade Commission, the U.S. Food and Drug Administration (‘FDA’), the U.S. Department of Agriculture, the United States Environmental Protection Agency, and the Occupational Safety and Health Administration.
The company is also subject to the laws of Canada, including the Canadian Food Inspection Agency, and the United Kingdom, including the Food Standards Agency, as well as provincial and local regulations.
History
Freshpet, Inc. was incorporated in Delaware in 2004.