🚨 California champagne company, Korbel, is launching a line of dog toys.

Korbel is aiming to target the wine drinking dog parents

THIS WEEK'S TOPICS:

• 🛷 New dog sledding tour opens in Colorado

• 📈 The best performing pet stock in 2024

• 🐋 Dog deckhand saves whale watching business

 🛷 NEW DOG SLEDDING TOUR OPENS IN COLORADO

Colorado’s high country is abuzz this winter with the launch of a new private dog sledding adventure, Colorado Dog Sledding, founded by six-time Iditarod champion Dallas Seavey.

Renowned for his success in one of the most grueling endurance events on Earth, Seavey’s arrival from Alaska signals a promising development in the dog-sledding tourism sector.

Outdoor enthusiasts, dog lovers, and thrill seekers are now setting their eyes on Summit County to experience a slice of authentic sled dog culture, all while reveling in Colorado’s breathtaking alpine landscapes.

Dog sledding, long associated with the rugged Alaskan wilderness, has found a much more hospitable new home in Colorado.

This business expansion showcases the growing demand for unique canine-focused activities in tourism hotspots.

As an Iditarod champion, Seavey brings both pedigree and credibility, ensuring guests receive an authentic and well-managed experience.

The fact that he has guided teams over more than 1,000 miles of ice and snow multiple times highlights not only his expertise, but also the high caliber of training and care these dogs receive.

From a commercial perspective, the dog-sledding industry is experiencing notable growth as visitors seek memorable, off-the-beaten-path adventures:

• Dog sled tours in Colorado attract over 20,000 visitors each winter season.

• Outdoor recreation contributes an estimated $62.5 billion annually to Colorado’s economy, with winter sports accounting for a sizeable portion.

• Dog mushing experiences can fetch prices ranging from $200 - $500 per ride, appealing to travelers who value one-of-a-kind adventures.

Yet, with increased attention comes heightened scrutiny.

Organizations such as PETA raise concerns over the well-being of sled dogs.

They question whether commercial tours place undue stress on animals and whether proper rest, nutrition, and veterinary care are consistently provided.

Ethical dog sledding advocates, on the other hand, argue that, when managed by respected mushers like Seavey, dogs are treated like professional athletes, with top-tier veterinary oversight and carefully planned training regimens.

As dog sledding gains momentum in more populated snow destinations like Colorado, it reflects a broader trend of travelers favoring more IRL immersive experiences that blend natural beauty and authenticity.

For prospective entrepreneurs, this niche market offers exciting opportunities, but also moral responsibilities.

Responsible animal care, transparent operating practices, and a commitment to ethical standards are paramount to ensuring that dog sledding continues to thrive in Colorado, delighting visitors and safeguarding the health and happiness of the four-legged team members who truly make it all possible.

📈 THE BEST PERFORMING PET STOCK IN 2024

Trupanion ($TRUP) emerged as the top-performing pet stock in 2024, showcasing remarkable growth in a rapidly expanding pet insurance market.

The company's shares soared 72.8% year-to-date, outpacing competitors and reflecting the increasing demand for pet healthcare services.

Industry Growth

The pet insurance industry experienced significant expansion in 2024, and while the final numbers haven’t been published yet, let’s take a look at the previous year’s benchmarks:

• The North American pet health insurance sector grew by 21.9% in 2023

• Total premiums sold reached a record $4.27 billion in 2023

• Over 6.25 million pets were insured across North America, a 20.9% increase from 2022

The U.S. pet insurance market, valued at $4.99 billion in 2024, is projected to reach $15.71 billion by 2030, growing at a CAGR of 20.98%.

Trupanion's Strong Performance

Trupanion's success in 2024 can be attributed to several factors:

• Q3 2024 total revenue of $327.5 million, a 15% increase year-over-year

• 66% year-over-year increase in subscription discretionary profit in Q3

• Generated $30 million in free cash flow over 12 months

The company's focus on aligning the cost of veterinary care with member pricing contributed to its outperformance.

Market Dynamics

Several factors drove Trupanion's success:

1. 🩺 Rising awareness of pet healthcare

2. 🙋‍♂️ Expanding subscriber base

3. 👩‍⚕️ Partnerships with veterinarians

4. 💻 Seamless digital tools for transactions and claims

5. 💸 Increasing veterinary care costs

As pet owners increasingly view their animals as family members, Trupanion's role in ensuring affordable and accessible care has solidified its position at the top in the industry.

Challenges & Opportunities

Despite its strong performance, Trupanion faces some serious headwinds:

• High short interest, with 26.1% of outstanding shares held by short sellers as of June 2024

• Concerns about profitability in the pet insurance sector

However, opportunities for growth remain:

• Increasing veterinary claim cost trends may drive demand for pet insurance

• Potential for improved communication between vets and pet owners about insurance needs

The Road Ahead

Trupanion's success in 2024 reflects the growing importance of pet insurance in a market where pet owners are increasingly willing to invest in their animals' health.

As the industry continues to expand, Trupanion's focus on customer satisfaction, partnerships with veterinarians, and sensitive pricing strategies position it well for continued growth.

However, the company will need to address profitability concerns and navigate the challenges of a competitive market to maintain its leadership position in the pet insurance industry.

🐋 DOG DECKHAND SAVES WHALE WATCHING BUSINESS

Word around San Francisco is that the real star of one local whale-watching tour might just be a four-legged “deckhand,” named Bear.

In a world where tourism ventures often struggle to stand out, this dog’s uncanny ability to pull in wet lines, spot whales, and greet passengers with a wagging tail has pushed the company into the limelight, and revitalized San Francisco Whale Tours bottom line.

They even used him in their slogan, ‘Bear with me’ as it does take some patience and luck to spot the giants lurking in the bay.

The business, once on the brink of slowing bookings, discovered that incorporating a dog into its daily tours offered something new and irresistible to visitors.

Videos of the pup retrieving lines, leaning over the boat’s edge to “help,” and flashing a friendly smile to passengers have gone viral on social media.

@thatgoodnewsgirl

He went from being completely unwanted to being the most popular crew member on the Kitty Kat. 🐕 Deckhand Bear is incredibly skilled at wh... See more

As a result, social media craved tourists from near and far are FOMO-ing to book a cruise, not just to see whales breaching in the distance, but to catch a glimpse of the famous canine deckhand in action.

By harnessing the viral power of the dog’s skillful and playful antics, the whale-watching company has also tapped into the emotional irresistible connection between man and dog.

This strategy perfectly illustrates the impact of offering a unique experience: while wildlife sightings remain the central draw, the inclusion of an adorable and helpful dog sets the tour apart from competitors.

Key performance highlights include:

• 25% increase in overall tour bookings since the dog joined the crew

• 40% surge in social media engagement (likes, shares, and comments) across Facebook and Instagram

• 50% spike in repeat customers who cite the dog as a primary reason for choosing this tour again

• Expanded demographic appeal: younger families and pet lovers now make up nearly 30% of all bookings

Beyond the numbers, the canine deckhand has boosted team morale and created a more welcoming atmosphere.

Crew members report that working alongside a friendly pup encourages them to be even more attentive to passenger needs, elevating the overall customer experience.

In turn, visitors walk away with lasting memories, plenty of photos, and stories that continue to ripple through their friend groups.

In an industry where innovation and differentiation are vital, this dog-led marketing phenomenon underlines how simple, heartwarming ideas can make waves 😉.

DOGGYDEX™

Winner 🏆: S&P 500

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.

• 👯 Build a lego replica of your dog: Buildem Pets allows you to build lego-like replicas of your dog’s breed, what a fun way to argue with the family in constructing your dog’s lookalike!

• 🦌 Pug reindeer meets real reindeer: The famous Kuma strapped on a set of antlers and greeted some IRL reindeer this holiday season, they didn’t know what to make of him.

• 🎯 German Shepherd learns to shoot rubberband: Watch this GS impressively knock down targets by flinging a band with her paw and teeth!

• $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

• $ELAN - Elanco: Manufactures pet disease prevention products

• $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.