Q&A with Rick Ruffolo from Phelps Pet Products February 5, 2021

Q&A with Rick Ruffolo from Phelps Pet Products

What encouraged you to join the pet industry?

Actually, I have worked across many different categories in my career, and what is repeatedly said about the pet industry, which has been my experience as well, is it’s made up of people who genuinely care about pets and the relationships their pets have with their families.

It’s the most collegial group of industry partners I have ever seen. People get along, they work well together, even if they compete, and at the end of the day it’s really an industry full of emotion and positivity. It’s hard to get too upset when you are working in the pet category. It’s not like we are making widgets. Whether it’s food or treats or some sort of pet accessory, these are items that are going to be used, eaten, or played with by dogs and cats—it’s going to be a part of their lives, this is something that is real.

How does the overall pet industry compare today to when you first joined?

It’s interesting. I have been in the industry only a few years, but what I have found remarkable is the statistic that dogs today live two times longer than they did when I was a kid. So, 40 years ago, dogs lived whatever length of time by breed, but on average that length of life is now twice as long. From an industry perspective, it opens up all sorts of important services and needs that weren’t prevalent 30 or 40 years ago. That to me is the biggest change I have seen over the years. These pets are living longer so you have them in your life longer, and as a result, you have more opportunities to care for them and care for them potentially differently than you might have in the past.

Which pet industry trends have caught your attention and how is Phelps Pet Products addressing them?

As a result of dogs living longer and being in your life for a much more significant period of time than they did 30 years ago, there are two key trends that have evolved. The first one is we don’t talk about it being dog “ownership” anymore, it’s evolved past ‘you own a dog’ to being ‘pet parents’. Pet owners are referred to now as parents. That wasn’t how you talked about it in the past. It was more of you owned a dog or had a dog—it was a possession. But now, your dog is referred to as a family member. That insight is driving literally everything in the category. Think about it, when you talk about the word “parent” versus “owner,” it elicits completely different emotional content. It means the person is going to be more caring, more involved, more informed, and the decisions they make are going to be more intentional because they know it’s impacting the well-being or lifestyle of their child/pet. Calling yourself a “pet parent” definitionally changes the way you treat your dog.

Secondly, the idea of being a parent is really amazing in terms of its impact on all of the trends, in particular, the trend of “humanization”. Pet parents read more labels, just like they would for their newborn. They care about clean labels and whether they can pronounce the names of the ingredients on the label. Where they can, they are buying organic certified items, they are looking for ingredients that may have a function. For instance, how do you help your dog through the aging process, address skin and coat issues, and ease digestive concerns?  Pet parents are trying to find solutions for these issues in a proactive manner, as well as in a reactive mode as they desperately try to “fix” these health issues after the fact with their vet and related medical services. Pet parents want their dog’s lifestyle to reflect wellness every day. Humanization has opened up ways for people to care for their pets through services that didn’t exist 30 years ago. The pet specialty channel always has been a strong and important provider of services, counsel, products, and insight. However, consumers now are seeking out online resources because they have a need or desire to be exceptionally informed about certain conditions that directly impact their dog. In this context, the most important steps we can take as an industry is to provide transparent information on our labels regarding ingredients, etc. and offer greater breadth in product assortment so consumers are able to make informed decisions. At Phelps, we are addressing this need by creating a diverse assortment of recipes that address specific customer/dog needs from USDA Certified Organic treats, non-GMO, 100 percent protein meatless jerky treats, treats with “functional” ingredients, chicken/ingredient allergies, and treats using “upcycled” ingredients, among others. We are providing our customers with full transparency and “clean label” ingredients so they can make informed choices for their dogs.

By the way – we also have increased our efforts in seasonal dog treats as over 80 percent of pet parents purchase pet gifts to celebrate Christmas, their dog’s birthday, and other occasions.

 

How is the company setting itself apart from competitors within the pet industry?

So, Phelps Pet Products has been around since 1966 in one form or another over the years. Over the last few years we invested heavily in trying to address the evolving needs of the pet parent versus those of the pet owner. What I mean by that is Phelps Pet Products today primarily serves retailer and brand programs behind the scenes—we are their private label partners. We are a nationally-known contract manufacturing partner to big retailers across all channels: pet specialty store, independent pet, grocery, drug stores, e-commerce, and mass merchants. We also provide specialized treats to certain national brands who are unable to make the treats themselves. This means we work with a lot of folks in the category, but you likely would never see our name as a consumer because we tend to be more of a “behind-the-scenes” team player. We focus on creating the expertise, the confidence, and the capabilities to produce value-added treats. For example, we are specialists in USDA Certified Organic meats, Marine Stewardship Council Certified Seafood, we are an early charter member of Upcycled Food Association, which means we use ingredients that are certified as “upcycled” – which provides a huge benefit to the environment. Then, early in 2020, we came out with the first ever 100 percent plant-based “meatless” jerky. This has been a significant trend in human food, and it now has become a very exciting new dog treat trend. We already have a few meatless products in the market, as well as several more brands readying for launch in 2021. It’s another example of us trying to align with where the trends are on the human side. Another example is the new line we launched in 2020 called the Phelps Wellness Collection, which you can find online and in select retailers. They are “functional” treats featuring ingredients that help with dog wellness-related concerns.  We certainly weren’t the first ones to identify these needs, but instead of in a pill form, we make them as tasty dog treats. Everyone knows how challenging and how much of a struggle it can be to give your dog a pill. We designed these treats to be a simple, tasty way to bridge that gap. Of course, there are times when pet parents really need to give their dogs a prescribed supplement or pharmaceutical pill. Our hope is that the Phelps Wellness Collection becomes an easy way for pet parents to integrate positive “wellness” habits into your dog’s daily life.

Who has been your biggest advocate and supporter?

My parents “allowed” Santa Claus to bring me my first dog (a toy poodle) in a stocking when I was 10, which was actually quite cute, completely unexpected, and one of the most vivid memories of my childhood. They clearly supported and inspired me throughout the first 20+ years of my life, and today, my wife and five kids are my biggest cheerleaders and most trusted advisors. They are a source of daily inspiration and are the first to give me honest feedback (even when I’m not looking for it).

Professionally, there have been so many people who have had a positive influence on me.  I have spent my career innovating across categories, which has sort of been my thing. I have been fortunate to work with notable brands, big companies, and great people. I have been able to take ideas, bring them to the market, and most of the time, they have been successful. The pet industry has been one of the most accepting categories for innovation that I have seen, and in the short time that I have been involved, we have been able to successfully introduce plant-based treats, upcycled products, and the Phelps Wellness Collection, among others. People embrace innovation, and they actively seek out new ways to meet the needs of their dogs. I view this as a very exciting category today, and I anticipate it will continue to be dynamic and full of innovation for many years into the future. Everybody talks about it being recession-proof, and maybe from a business stand-point that is probably true, but for me, it is less about it being recession-proof and more about its wellness benefit for society. I mean, think about how many people have struggled through this pandemic, and how many have been helped through the stress because they had pets in their lives. Without a doubt for a large portion of the population, pets have played an important role throughout the pandemic. It’s been a win for people and also a win for pets.

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