Will Petco’s Subscription Plan Change How Puppy Parents Feed Their Pooches?

Petco Health and Wellness Company is teaming up with Freshpet to create a customized subscription meal plan for dogs, delivering food straight to the doors of puppy parents.

The program is kicking off with deliveries in 15 states with a national rollout through petco.com planned for later this year.

To get started, pet parents will complete a questionnaire about their dogs, including any food sensitivities and health goals, and receive a personalized meal plan with feeding guidelines based on the pet’s breed, age, activity level, and body type. Subscription meal plans start at just $3 per day.

The custom meal ingredients include natural chicken, beef, salmon or eggs, real fruits and vegetables. No powdered meat meals or preservatives are used in the recipes. Freshpet steam-cooks the food to retain nutrients and refrigerates it until it is delivered to customers’ homes.

Amy College, Petco’s chief merchandising officer, called the program with Freshpet “a breakthrough in the way pet parents can provide their pets with the very best nutrition.”

Petco is looking to cash in on the growing popularity of fresh and frozen pet foods. The category is expected to grow up to four times its current size in four years, based on Nielsen IQ, Packaged Facts and Earnest credit card data.

CEO Ron Coughlin, speaking yesterday on his company’s fourth-quarter earnings call, said the deal with Freshpet validated Petco’s approach to the category and its operational advantages.

“The fact that the leader in fresh frozen chose to exclusively partner with Petco is a validation of the power and advantages of our unique omnichannel and micro-distribution center capabilities,” he said. “We’re delighted to be bringing this industry-first offering to market. But it’s not just our merchandise [that] differentiates us, it’s also our omnichannel delivery capabilities.”
Mr. Coughlin said Petco’s store network provides a structural advantage over online-only retailers and consumer-direct brands. He said that over 90 percent of customers shopping online choose same-day delivery or buy online, pickup in-store when it is available.

“We’re able to leverage our pet care centers as micro-distribution centers, getting product to customers faster and in many instances with lower fulfillment costs,” he said.

Petco reported a 4.5 percent increase in same-store sales during 2022, a 23.5 percent jump over two years. The retailer has rung up 17 consecutive quarterly gains.

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