Pet owners have spent north of $65 billion annually on their furry friends in recent years and investors are picking up on the trend, investing millions into pet-related startups.
Just Food for Dogs (JFFD) in Irvine is one of the better-funded upstart companies in the space; the fresh whole foods pioneer raised $68 million last month, among the larger venture capital funding rounds for an Orange County-based firm this year.
The deal brings its total funding to $89 million.
The 9-year-old company plans a growth tear with the cash infusion; it’s pumping resources into brick and mortar, where it makes and serves its meals, treats and supplements. JFFD plans to double its employee count to 650 as it opens new locations next year.
“We’re bringing [the product] to market in a unique way,” Chief Executive Carey Tischler told the Business Journal this month.
It’s the experiential delivery of the product, with certified consultants and veterinarians offering guidance, that is key to the company’s position as front-runner in the market, according to Tischler.
“We’re not just a website and a co-packer with customer service representatives. We take a lot of pride in that extra touch,” Tischler said.
The Business Journal estimates JFFD’s current annual sales at more than $300 million; the company said it expects sales in 2020 to nearly double.
Newport Beach Beginnings
The company started with a single test kitchen along Pacific Coast Highway.
Founder and owner Shawn Buckley pursued the concept after finding store-bought dog food used lower-quality ingredients or topped out, even at the higher-end, in a processed products universe.
He embarked on a mission with Dr. Oscar Chavez, a veterinarian and chief medical officer of JFFD, to research and develop pet food products using USDA-certified and human-grade quality ingredients in freshly made meals.
Chicken and white rice meals runs about $7; lamb and brown rice registers around $8.50. Beef is on the menu as well.
Serving size varies per pup.
Since then, JFFD has also developed a few recipes for cats, with more on the way.
It’s also added dozens of locations in six markets spanning San Diego to Seattle.
The company was based in Los Alamitos for a few years, before relocating to Irvine in 2018.
Expanding Its Pawprint
Momentum is expected to continue; the company opened a pet kitchen in New York City’s Union Square this year and recently broke ground on one in Chicago along Lincoln Park.
It expects to have about 200 retail locations—a mix of stand-alone sites and dedicated areas in other stores—by year-end, and is actively looking for real estate in Austin, Dallas and Houston.
It’s a strategic expansion, Buckley said.
Flagship “kitchens” serve as a base for making and selling food, and distribute to local “pantries” in veterinary hospitals and pet stores including those of Petco Animals Supplies Inc. and Pet Food Express.
The partnerships are pay-for-play, with no ownership by the larger retailer. “They have something we don’t have, which is AAA real estate and hundreds of people a day walking through the door.”
The presence helps brick and mortar stores fight digital retailers like Amazon (Nasdaq: AMZN) or Chewy.com.
Catterton Connections
Before joining JFFD four years ago, Tischler worked with portfolio pet companies as an exec at L Catterton. The private equity firm has global reach, a consumer focus, and is something of a and pet industry player, with a small fotune invested in pet startups.
Last year, it sold Ainsworth Pet Nutrition to the J.M. Smucker Co. (NYSE: SJM) for $1.9 billion.
Catterton participated in Just Food for Dog’s Series B round in 2017 and led its $68 million Series C in November.
Tischler, a proud owner of a 5-pound, long-haired chihuahua, ran the firm remotely at first, relocating to Irvine this year. He said after learning pet owners wanted a healthy food option, then stepping into the Newport Beach kitchen, he knew it would be a success.
“It was a matter of when, not if.”
