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THIS WEEK'S TOPICS:

• 🌎 Former jewelry designers launch stylish eco pet company

• 📈 Pet food costs up 11% from last year

• 🤤 59% of dogs in the US are too chonky

🌎 FORMER JEWELRY DESIGERS LAUNCH STYLISH ECO PET COMPANY

A lot of companies throw around the word "sustainability" or other similar terms.

But what does that really mean, and what goes into being a sustainable company?

Well let us tell you!

Because we sat down with Francine Evans and Mallory MacDonald from Awoo, a women-owned ethical pet essentials brand modernizing everyday accessories to better serve pets, their people and the planet. 

They gave us the scoop on what it takes to start and run a successful company, as well as what they do to try and lower their impact on the planet.

The Beginning

Awoo's story began in 2018 in lower Manhattan when Mallory and Francine worked at a private label jewelry company.

They bonded over their almost identical black rescue pups (though only in looks, as Beatrix is a food hound, and Bagera is basically a cat 🤣. (We'll explain later).

Another thing they had in common, was a shared frustration around a lack of dog products that were both eco-friendly and stylish.

And what would you know, working in design at a consumer goods company gave them a very relevant background in how to create and manufacture products.

We always feel like great entrepreneurial opportunities come when you solve your own problem, and have an overlap in the means to solve that problem.

Case in point with Awoo!

With a clear idea in mind, they started working on their business plan in their off-hours, along with initial product designs.

As they picked up steam, they decided on a launch date, set up photo shoots, ordered inventory, contacted influencers, and worked like crazy to bring everything together.

And as it happens to even the best laid plans, things didn't quite work as intended, because that launch date? March 2020 😳.

And as you might remember, the start of the pandemic.

They had to pull back on their launch plans and ended up doing a soft launch that June, mostly to friends and family.

The first 6 months were pretty quiet as the only marketing they really focused on was social media in CA and NY.

Growth and Future Plans

Awoo's initial strategy was direct to consumer, which is when you only sell through your channels like your website, and not through others, like big box stores (e.g. Allbirds shoes).

This worked well as they grew steadily. Another strategy that worked was introducing new product lines.

Initially they offered walk items (leashes, etc), but when they rolled out toys they boosted their return customer rate by 30%.

After a while they realized that to get to the next level, they needed to consider mass market retailers.

They dipped their toes into the larger retail market by posting on wholesale marketplaces like Faire, where they promptly got almost more volume than they could handle!

This experience led to a critical turning point for the business.

Now that they had warmed to the idea of larger retailers, when a friend sent them an application for Target's accelerator program, they decided to fill it out as "practice" for when they were really ready. Lo and behold, they got in!

That sounds cool, but we also didn't know what this accelerator entailed? 🤔 So we asked:

They completed the accelerator in June of 2022, and the program does not guarantee a business award at the end of the course, but it does guarantee the opportunity to pitch directly to the buying team.

So this means you gotta bring your A game. And as you might have guessed, Francine and Mallory did just that!

Fast forward to last month, Awoo officially launched in select Targets with 4 toys.

They knew that with larger retailers came tighter margins, but bigger volume.

They also had the advantage of working with big box stores in their previous roles, so they were aware of potential pitfalls. And while Target is a huge company, Awoo felt that they did a good job of working with their criteria and desires (such as the number of product and stores to start with).

Their plans for the next 3-5 years revolve around cementing their brand with a broader audience:

Challenges and Adjustments

Starting a company ain't easy, so challenges have come aplenty. It's often how you address challenges and what you learn that sets you apart, and Mallory and Francine have done just that.

Early on, one of the biggest challenges was that they knew the design and production side of creating a project, but not as much on the business side.

So as anyone would, they leaned on contractors and other 3rd parties with mixed results.

One example being an outsourced fulfillment center, that while convenient, led to higher costs and slower speed.

They also told us if they were to do it all again, they would be more discerning in which contractors they hired and how they spent their money.

Leaning in more on marketing and hiring in house vs. outsourcing.

Another huge challenge for any entrepreneur is life!

Mallory recently became a mother, and Francine moved from New York to the UK (Awoo is global!).

Additionally, their business doesn't adhere to a conventional 9-5 schedule.

They work as needed, whether it be weekends or holidays. They know this is temporary while they grow the business, and aim to have a better work / life balance as they bring on a larger team.

One way they combat these challenges is using technology.

Their tech "stack" is primarily Shopify for their store, Slack & Zoom for communication, as well as EDI and Unleashed WMS for order processing and inventory management.

A Day in the Life

So what does a work day look like at an up and coming pet brand?

"Our workdays are pretty diverse, and no two are the same! With the founders spread across 2 continents, we're able to cover a wide range of working hours.

Francine, our night owl in the UK, complements Mallory, who's an early bird in New Jersey. This allows us to be accessible around the clock.

Plus, Mallory recently became a mother, and her little one often joins our virtual meetings, adding an adorable (and often distracting) element to our discussions.

Some days, you'll find us in the office or warehouse, restocking or helping with order fulfillment.

Others we are solely focused on logistics and upcoming opportunities. We are a small team so it is all hands on deck at all times.

We rely heavily on apps and software to communicate and manage each team members daily workload."

Sustainability

Now the big stuff, the core of the brand and company values.

What we really loved in talking with Francine and Mallory is how they were realistic about balancing sustainability and running a business.

They point out that it's impossible not to have an impact on the earth when you are producing products.

You need to use resources, transport goods, etc. However, it's the choices you make in doing so that has an impact.

What materials you use, which manufacturers you use, what programs you offer to recycle or reuse products, and more.

These are all things you can make choices on, but making the better choice takes time. And that's what we felt it boiled down to.

Mallory and Francine take time to understand all the options and choose the ones that are more sustainable.

Or in their own words:

Some specific examples they walked us through:

• Silicone instead of plastic as it's BPA free, doesn't shed micro plastics, and is considered low waste production.

• FURever, a program in which they sell refurbished or less than perfect items that would normally get thrown away. (We ❤️ this!)

• Incentivizing customers with a $5 credit for sending in any items they would normally throw away, so they can recycle through 3rd party recycling partners.

• Working with Greenspark to offset their carbon emissions by planting trees.

Parting Thoughts

Before we let Francine and Mallory run off, we knew we had to ask them some hard hitting questions: Tell us about your dogs, and tell us which products everyone likes the best!

Mallory has a black rescue named Beatrix.

Beatrix LIVES for food, and will literally lick the ground that food has been on to get the tiniest taste.

Francine also has a black rescue name Bagera.

Bagera is the opposite of Beatrix, and could care less about those treats you are offering him. He is basically a cat, and will only bestow his affection once you have earned it.

And for the fan favorite products, they pointed to the Infinity Leash:

As well as their Natural toy line, which is organic and completely plastic free.

Made from organic cotton, jute, and coconut fiber as well as wool felt:

ALSO, their newly launched Meadow Mat has been rigorously tested and approved by one of the official Dogonomist Dogs, Mapo!

📈 PET FOOD COSTS UP 11% FROM LAST YEAR

If / when you need to cut back on pet spending, where do you typically do it?

According to the Wall Street Journal (paywall), food is typically one of the last places (understandably), with the first areas usually being toys or other less important items.

However, inflation has caused owners to cut deeper.

Pet food is up nearly 11% from a year ago, according to the consumer price index (a government measurement around average costs of common goods and services).

This has mostly affected the premium food categories, as owners have shifted to less expensive brands.

One example is premium dry dog food, which saw purchases drop by 3% across all income levels (typically a sign that all owners are looking for savings).

Now the industry is still growing, it's just that inflation has slowed that growth in certain areas.

Another interesting shift has been more owners going from wet food to dry food to try and get more savings.

But most analysts and companies agree, this is a short term affect as they expect that overall, owners will continue to move toward more premium and high quality options.

And like we've talked about before, this is driven by the changing attitude around pets being family instead of just an animal.

🤤 59% OF DOGS IN THE US ARE TOO CHONKY

A new survey has been published by Purina Pro Plan Veterinary Diets in honor of National Pet Obesity Awareness Day.

The premise of the survey was to get a better understanding of dog owner’s perception of their dog’s weight and how their emotions play into their actions.

Key Findings

1. 🧐 Perception of weight

Many dog owners view their dogs as thinner than they actually are.

While approximately 1 in 5 dog-owning households consider one or more of their dogs to be overweight, the Association for Pet Obesity Prevention (APOP) states that 59% of evaluated dogs in the U.S. are either overweight (37%) or have obesity (22%).

2. 🥺 Emotional impact on owners

Excess weight gain in dogs is related to the emotions owners feel around feeding and treating their pets:

• 75% of surveyed owners feel guilty when their dogs appear hungry.

• 67% believe food is a primary source of their dog's happiness.

• 67% bond with their dog by feeding them treats and fear losing that bond.

• 54% feed their dog more food, table scraps, or treats when their pet begs for them.

3. 🙁 Concerns about dog’s weight

Despite fears about losing the bond with their dogs:

• 88% of surveyed owners whose dogs are overweight are concerned about their pets' body condition.

• 92% agree that weight loss would be beneficial.

• 92% are sad when their dog can't participate in activities they previously enjoyed at an ideal weight.

• 45% indicate their dog has less energy for playtime

  • 44% say their dog tires easily after minimal activity

  • 27% say their dog is less engaged or playful with their families.

4. ⚖️ Attempts at weight loss

Many owners have tried DIY slimming strategies with limited success:

• Common approaches include reducing food portions, cutting back on treats, and increasing exercise.

• However, 68% of owners who tried these strategies stated their dogs lost only a little weight or no weight at all.

Purina’s recommendations?

Well Purina states that owners should consult their vet for a weight loss plan where they will also most likely provide a specifically formulated weight management food, which surprise surprise, Purina makes!

This is a prime example of why there is so much distrust in the pet food space right now.

All of the funds for studies or supposed helpful survey’s (like this one) are constantly bookended with product placement.

We love this info and insight, but the outlined “DIY” slimming strategies that more or less “failed” are precisely the actions that a vet will recommend trying.

The only real differentiator not cited from the DIY plan is adding a formulated diet food.

DOGGYDEX™

Winner 🏆: DOGGYDEX

Proudly introducing the DoggyDex™, an index comprised of 10 publicly traded companies whose primary focus is the dog/pet industry.

List of tickers used can be found at the very bottom of the newsletter.

The yellow line-plot in the chart represents these companies above (DoggyDex™) and their combined performance against both the S&P 500 and Bitcoin on a weekly basis.

Pawformance is measured by % gains & losses.

• 🏄 This pug can shred: Check out this pug hop on a kneeboard and go for a rip behind his boat.

• 🌋 Dog has some serious hang time: This energetic pup is taking the game, the floor is lava, to a whole new level.

• 🥹 Couple spends an entire year trying to rescue a stray: Watch this compilation of videos of a couple trying to lure a stray away from living in the woods. It took them a year to get him to finally come inside.

DOGGY B-DAY

• $CHWY - Chewy: E-commerce platform for pet supplies

• $IDXX - Idexx Labs: Vet point of care instruments and vet software

• $FRPT - Fresh Pet: Pet food company

• $PETQ - PetIQ: Pet health products and medicines

• $PETS - PetMeds: Online pet pharmacy

• $ZTS - Zoetis: World's largest producer of meds and vaccines for pets and livestock

• $TRUP - Trupanion: Pet insurance company

• $WOOF - Petco Health & Wellness co.: Pet health & wellness company

• $BARK - BarkBox: Subscription service providing dog products, services, and experiences

• $PET - Wag! Group Co.: Tech platform that allows pet owners to connect with industry professionals for services such as, walking, training, etc.