Wednesday, 21 November 2018

The pet treat company you may never have known was based in Fort Collins is expanding

A local pet treat manufacturer is expanding its footprint in Fort Collins with a new $2 million building. 

The company, which also owns The Dog Pawlour, a dog spa and day care, keeps a low profile in Fort Collins but produces more than 500 million treats per month¬†for private labels including Costco’s Kirkland brand and other big-box stores. It ships about 25 pallets of products a week to Amazon sellers, said Preston Munsch, who runs PetDine’s daily operations.¬†

PetDine purchased a 10,000-square-foot building at 4700 Innovation Drive, Building B, for $1.8 million. The company plans to move Dog Pawlour and PetDine’s headquarters there as well as a new acquisition it expects to complete by the end of the year. It also plans to establish a research and development space in the building.

Family owned and operated, PetDine is run by¬†Munsch; his father and founder¬†Ken Munsch;¬†and Kurt Stricker, who also owns Pedigree Ovens, a private label company producing gourmet pet treats.¬†Pedigree Ovens manufactures all PetDine’s products in its 210,000-square-foot facility in Harvard, Illinois.¬†

Ken Munsch purchased PetDine, a small Fort Collins pet treat manufacturer doing about $600,000 in sales, three years ago. Today, company sales total about $1.8 million a month, Preston Munsch said. 

By the end of next year, Munsch anticipates sales between $35 million and $40 million with a rapid growth trajectory as people spend more on their pets every year. 

As pets more frequently are being viewed as family members, owners are spending more on food and treats made with healthy ingredients. The change is reflected in the cost of ingredients, such as free-range chicken or turkey rather than corn, Munsch said. And that jacks up the price to manufacture the product and the price in the store.

“People want high-quality ingredients and they’re willing to pay for it,” he said.¬†

Munsch claims PetDine is the country’s largest producer of CBD oil and hemp animal products through a Denver company, Therabis. “It’s a booming market,” he said.¬†

Cannabinoid products, commonly found marketed as CBD oil, have a low enough THC level that they’re not regulated like marijuana. Many pet owners use CBD oil to help reduce anxiety and seizures in their animals¬†and ease joint and muscle pain. Colorado State University is currently studying the affects of CBD oil in animals.

Early results have been promising. Veterinarian Dr. Stephanie McGrath found that 89 percent of dogs who received CBD had a reduction in seizures. The trial treated 16 dogs, and nine were treated with CBD. 

Once CSU released preliminary results of its study, PetDine saw an uptick in requests for products, Munsch said. 

Currently, 98 percent of PetDine’s products are geared toward canines, “but that will change,” he said. “As more cat owners get into CBD oil and hemp, you will start seeing more on the market.”¬†

The Dog Pawlour is on its own expansion path, with a new store in Greeley and more on the way, said Munsch, whose wife, Brittany Munsch, runs the dog spa and day care. It employs 24 workers between the Greeley and Fort Collins stores, with more stores on the way.

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Source: https://www.coloradoan.com/story/money/2018/11/07/pet-treat-manufacturer-petdine-expands-fort-collins-operations/1890558002/

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