Q&A Interview: Michael Baker, President and CEO, Pet Food Experts

How did the Animal Supply Company transaction come to be? 

The acquisition of select assets of Animal Supply Company stemmed from a long-standing relationship between the two organizations. I credit Animal Supply Company—and its original founders and management team—with inspiring many of the foundational strategic decisions my team and I made in the early 2000s. 

Pet Food Experts was founded in 1989 as a distributor focused solely on Iams/Eukanuba, with more than 90 percent of our revenue concentrated in a single vendor. By the time I acquired Pet Food Experts from my parents in 2005, I had already been in contact with Animal Supply Company to seek their guidance on how to diversify our brand portfolio and better position the business for the future. They were always generous with their time and open to discuss every topic, big or small, when we sought their advice. I can’t think of anything Animal Supply Company was doing that Pet Food Experts didn’t emulate in one way or another.

Fast forward to 2024 and our ninth formal attempt to combine the two businesses. Despite Animal Supply Company’s distressed financial condition, my partners and I felt compelled to move forward with our transaction and are extremely bullish about the future! 

Many facets of this transaction fit our vision to strengthen and expand Pet Food Experts’ role in the pet specialty distribution space. This transaction is unlike any we’ve undertaken before, in both scale and complexity. Animal Supply Company had built a well-established cold chain (refrigerated and frozen), a robust delivery network (including cross docks and forward distribution centers) and a 3PL channel (direct-to-vet clinics and consumers) network—all of which enhance and diversify Pet Food Experts’ logistical capabilities. 

While Animal Supply Company’s neighborhood pet business has been impacted by its financial challenges, Pet Food Experts remains deeply committed to supporting neighborhood pet retailers, who have always been, and will continue to be, our main focus.

With that said, we now have the opportunity to “reboot” several key sales regions, beginning with the Southeast in June, by leveraging our strong Pet Food Experts brand portfolio and renewed momentum!

How will this transaction enhance PFX’s market share, expansion goals and connections with vendor and retail partners?

This transaction significantly expands our geographic reach into the Southeast—a long-time goal for Pet Food Experts and me! This sales region will be serviced out of our full distribution center in Suwanee, GA, supported by a cross-dock in Burlington, NC and a forward distribution center in Orlando, FL. 

In addition, we now have distribution centers in Stockton, CA and Orville, OH, along with strategically located cross docks and forward distribution centers. These infrastructure enhancements allow us to better serve retailers and vendor partners across a broader footprint and in a more customer-centric way, both from a supply chain and service perspective.

This expansion also significantly strengthens our cold-chain capabilities by adding refrigerated pet food into our already diverse frozen raw and gently cooked brand portfolio. 

How is PFX’s leadership team communicating with employees from both PFX and ASC about how this transaction will impact them and what they can expect during the integration process?

Communication has been a top priority for us ever since it became clear this deal was finally coming together, after more than a decade of discussions between Animal Supply Company and Pet Food Experts. 

In the weeks leading up to the February 26 closing date, our ability to communicate broadly was limited for legal reasons, and we had to keep conversations at the highest level. The WARN notice that made headlines further complicated things and intensified the need for answers to what felt like simple, yet important, questions for both teams. 

While many of our previous acquisitions were significantly smaller in scale, we fully understand that change can bring uncertainty. That’s why we’ve aimed to be as transparent and proactive in communicating with team members from both Animal Supply Company and Pet Food Experts.

Truthfully, we are still working to find the right balance with sharing updates, as our integration plans continue to evolve day by day. We have published, and continue to refine, internal FAQs, and we’ve also established a dedicated internal communications channel called ‘Thought Bubble’ where employees can ask questions 24/7. 

Our message has been clear: We’re bringing together the best of both organizations—our people and teams, operational best practices, and most importantly, a long-term commitment to sound financial discipline in everything we do. 

Taking into consideration the state of the distribution channel and pet industry, how does this transaction compare to when PFX acquired Monarch Pet Products or UPP?  What are some of the benchmarks PFX considers when evaluating an acquisition target?

The Monarch and UPP acquisitions were important growth milestones for Pet Food Experts. They provided valuable experience and gave us the confidence to tackle a more complex transaction like Animal Supply Company. 

Given its size, scale and diverse business offerings, this integration is a long-term game-changer—not only for Pet Food Experts but also for our expanding network of customers and vendor partners. 

How did you decide to return to lead your family’s company as President and CEO?

When the Animal Supply Company transaction became a reality, I felt compelled to return to my post to lead the business that has defined my entire career. As I stated earlier, this has been in the works for over a decade. The opportunity to maximize the positive impact Pet Food Experts can have across an even broader portion of the pet specialty industry was too special to pass up! Working alongside my incredible and ever-expanding Pet Food Experts team to shape the future of the business—and our industry—is truly a dream come true.

At this point in your career, what are your professional goals, and what opportunities are there in the industry to help you achieve them?

My focus is on strengthening Pet Food Experts’ position as the leading US pet specialty distributor, while maintaining the culture of service and partnership that has always defined us. We’ve all seen what can happen when a small, regional distributor grows too quickly and loses its center. 

My greatest challenge will always be staying grounded and remembering where both Pet Food Experts and I came from. The fact that I still own and operate nine neighborhood pet stores gives me invaluable insight and perspective. I see firsthand how hard my retail team works to serve pet parents in our local communities, and will never lose sight of the critical value Pet Food Experts—and all distributors—bring to the thousands of retailers we support. 

The industry is evolving rapidly, and I see huge opportunities in technology, logistics and automation. These changes will keep me and my team on our toes. There’s so much that goes into getting bags of dog food and cat litter from point A to point B, and my ultimate goal remains the same: to make doing business with Pet Food Experts as easy and enjoyable as possible. This has never changed!

What do you feel is the role of distributors in the pet industry?

Distributors play a crucial role in bridging the gap between manufacturers and retailers. We ensure products reach stores efficiently and reliably, helping pet specialty retailers compete in a challenging and ever-evolving marketplace. 

How has the distribution landscape of the pet industry evolved in the last five years?

The industry has experienced significant shifts, especially with the rise of e-commerce and direct-to-consumer models. At the same time, there’s been a growing demand for fresh and frozen pet foods, requiring distributors to build out specialized cold-chain capabilities. The companies that have been able to adapt and innovate are the ones continuing to thrive.

Where do you see the distribution segment headed in the coming years?

I believe we’ll see continued consolidation, with the most financially strong and operationally efficient distributors leading the way. Technology and automation will play an even larger role in logistics, and there will likely be an increased demand for tailored, data-driven solutions that help retailers manage inventory and optimize operations.

What are the top concerns and issues distributors are facing?

Pet specialty retailers continue to face pressure from larger competitors—particularly e-commerce—which has contributed to soft top-line sales for several quarters, across all categories. As distributors, we have to remain hyper-focused on delivering consistent, industry-leading service and leveraging our relationships to bring innovative brands and products to market that keep pet parents engaged and supportive of our channel.

Given the highly competitive nature of the distribution segment, what is Pet Food Experts’ strategy to stand out from your peers?

Our strategy has always been rooted in relationships and service. We differentiate ourselves through best-in-class logistics, strong vendor partnerships and a multigenerational commitment to neighborhood pet retailers. With the Animal Supply Company transaction, we’re doubling down on this commitment by investing in new logistical capabilities, expanded geographic reach and enhanced infrastructure—all to deliver the highest level of service to our partners.

What do you attribute to PFX’s continued success? What are some key values and features of PFX that make you a leader?

Our continued success comes down to our people, our partnerships and our unwavering commitment to doing business the right way. We prioritize trust, integrity and collaboration in everything we do. Our ability to adapt and innovate, while staying true to our core values, is what sets us apart.