OurPet's Company (OPCO) develops, produces and markets various pet accessory and consumable products designed to awaken pets' natural instincts, be it in feeding, playing or waste management. Sold globally through pet specialty retailers, food, drug and mass chains, e-commerce and international channels, the company's products are marketed under the OurPets®, Pet Zone® and PetTastic® brands with well-known sub-brands such as Play-N-Squeak™, Cosmic Catnip™, Durapet™, SmartScoop® and Flappy®. In total, OurPet's has an intellectual property portfolio featuring more than 160 individual patents, giving the company sustainable access to the pet products industry for the foreseeable future.
In recent years, the U.S. pet products and services market has experienced strong growth, with total sales accounting for approximately $73 billion in 2014, according to a report by Packaged Facts. In 2015, this strong performance is expected to continue, building on the recent rise in related ecommerce purchases, as well as an uptick in dog and cat ownership throughout the country. In order to capitalize on this market performance, OurPet's maintains an ongoing new product development program to continually keep an evolutionary and revolutionary new product pipeline feeding its offerings. In July 2015, OurPet's introduced many new products at the national Super Zoo trade show in Las Vegas such as the Catty Whack®, Designer Diner™/Barking Bistro™ and the Zoom Plume™.
The company's capitalization strategy is guided by a management team of experienced industry professionals dedicated to further strengthening its product portfolio through aggressive development of innovative products. Management has a proven track-record of leveraging deep knowledge in the innovation, technology, distribution and pet markets to successfully push through adverse market conditions to achieve increases in revenue, margins and net income.
- Capitalizing on Recession Resistant, Fast Growing Pet Industry
Aggressively Implementing Two Brand Strategy
Solidly Positioned for Increased Growth and Profitability
Innovative Product Offerings Backed by Strong R&D and Patents
Growing Distribution Includes Industry-Leading Retailers
Identifying and Capitalizing on Specific Pet Industry Trends
Innovation inspires every OurPet's product. From toys and waste management to feline and canine feeding solutions, each item is carefully designed and crafted with a cat or dog's unique instinctual needs in mind. OurPet's examines what pets really want and need to thrive – and listens to what pet parents are asking for: to bring the most unique, inspired, and innovative products to the marketplace. Several examples of OurPet's products in key segments are as follows:
Toys for Cats, Catnip and Tuna
OurPet's cat toys are more than just toys … They're tools to enrich and reward the cat, awaken their natural instincts, and bring them closer to their human parents. From Play-N-Squeak™ toys that stimulate hunting instinct to Cosmic Catnip™ products that encourage healthy play and grooming to Go! Cat Go!® toys designed to stimulate all the senses, OurPet's cat toys provide a full range of tools to keep your cat happy and healthy and solidify the pet/parent bond.
OurPet's catnip is the result of many years of research, processing, and commitment to quality. This premium, aromatic herb is 100% natural, proudly North-American-grown, and scientifically formulated to be the strongest, most potent catnip ever produced. OurPet's tuna products are made from the highest-quality, human-grade tuna available. Tuna flakes and topping provide essential nutrients cats need, including protein and Omega-3 fatty acids, which may aid your cat's skin, coat, joints, and immune system.
Cat Feeding Solutions & Waste Management
OurPet's cat bowls and dishes are heavy-duty weight and feature a patented, permanently-bonded rubber ring to prevent skidding and sliding. Cat dishes feature lower profiles to make it easier for cats to dine. For multi-pet households and cats on special diets, the scientifically-developed WonderBowl™ offers a technologically advanced household feeding solution.
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WonderBowl™ Selective Feeder - Perfect for multi-pet homes. Keeps food fresh and prevents kids and unwanted pets from getting into pet`s food. Uses 'D' batteries (not included); adapters and additional tags sold separately.
| ||WonderBowl™ Selective Feeder-Collar Tag - Exclusive tag for the WonderBowl™ Selective Feeder - Attaches to pet's collar; includes battery. |
Toys for Dogs
OurPet's takes play seriously. More than just toys, each product is made to satisfy dogs' deep-rooted instincts with toys like Flappy Ruffy that encourage sporting behaviors such as fetch, retrieval and lively at-home play. Smarter Toys encourage dogs to think and work for their food, stimulating their minds and maintaining health. With OurPet's dog toys, any dog can learn new tricks!
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Two sizes available: large and small Easy to clean Durable and built to last
| ||For healthy play and exercise, easy to fill with your dog's favorite treats and promotes physical and mental alertness |
Canine Feeding Solutions & Waste Management
With an extensive line of bowls and feeders, OurPet's offers a feeding solution for every breed and personality. OurPet's bowls are made of high-quality, heavy-duty stainless steel with a patented, permanently-bonded rubber ring on the base that prevents sliding, skidding, and noise. OurPet's raised feeders give dogs a more comfortable feeding position, reducing stress on joints and bones and promoting healthy digestion.
Take the hassle out of everyday dog waste cleanup with OurPet's line of Canine Waste Management products. With solutions for the backyard, walks, and on-the-go, OurPet's waste management makes pick-up easy, hands-free, and hassle-free. A variety of solutions are available to fit any pet parent's busy lifestyle.
The Pet Industry
According to the 2015/2016 APPA National Pet Owners Survey, published by the American Pet Products Manufacturers Association, Inc., in 2014, approximately 79.7 million U.S. households reported owning a pet with an estimated pet population of 77.8 million dogs and 85.8 million cats.
In 2014, total pet industry expenditures reached $74.23 billion, and $77.03 billion is projected for 2015. The pet industry is and has been one of only a handful of industries not significantly impacted by economic recessions. Additional statistics revealed in the APPA 2014/2015 Survey:
- 2014 U.S. retail sales of pet supplies were $43.8 billion.
Increasingly, pets are considered to be members of the family and a growing and valuable source for companionship, relaxation and stress relief, etc. Approximately 65 percent of U.S. households own a pet and of those, 32 percent own more than one.
In general, there is strong competition for the "retail shelf space" especially as related to non-proprietary, commodity pet products. Over 80% of OurPet's products are proprietary with patents or patent pending status. OurPet's generally avoids non-proprietary, commodity products where price is the major consideration and copying is common. OurPet's products are perceived as innovative, quality, upscale products selling at affordable prices.
Pet Industry Fast Facts
- Third largest consumer market ($73.45 billion in 2014)
Projected total U.S. retail sales of expected to grow to approximately $87 billion by 2018
Forecasted compound annual growth rate of 4% through 2018
65% of households own a pet totaling 82.5 million pet owners
Dogs owned by 44% and cats by 35% of households
Average annual spending on non-food pet products: $1,049 for dogs, $846 for cats
Pet Accessories and Treats Category
- Represents 19% of U.S. Pet Industry annual sales
Annual category sales of approximately $14 billion
Forecasted compound annual growth rate of 8%-10% through 2017
Pets are living longer –40% are "seniors"
Barring the impact from any major factors beyond its control, OurPet's strategic business plan calls for annual year over year sales growth of 20% with targeted net income as a % of sales is in the 10%-12% range.
Although past growth has been "organic" or internal, OurPet's is positioned to pursue growth though strategic acquisitions offering marketing or technology competitive advantages. This optimistic outlook is based on the continued healthy growth of the pet industry; the rapid growth of the company's key customers such as Walmart, Petsmart, Amazon and Petco; OurPet's aggressive development and marketing of proprietary products; the expansion within its current marketing base; penetration into new market segments; and the future contributions of OurPet's experienced, highly motivated team.
There are very limited opportunities for the individual investor to participate in the rapidly growing pet industry because most of the companies in this industry are privately held. PetsMart (retailer) (PETM), Central Garden & Pet (pet products distributor) (CENT) and OurPet's (OPCO) (proprietary product manufacturer/marketer) represent most of the limited investment vehicles available to the individual investor.
OurPet's strategy to successfully execute its business plan is anchored to keen focus on the following on high growth categories in non-food pet products, including:
- Feline waste and odor control solutions ($250 million/year category)
Interactive cat and dog toys and accessories ($1 billion/year category)
Healthy feeding/storage systems ($100 million/year category)
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Dr. Steven Tsengas - Chairman, Pres, CEO, Director
Dr. Steven Tsengas has personally founded more than half a dozen high-tech and consumer product companies since 1976. He has also provided financial and managerial assistance to several successful entrepreneurial start-ups. Dr. Tsengas received his BS in Industrial Engineering from the State of New York University at Buffalo, his MS in Business from the University of Rochester, W. Simon Graduate School of Management, and his Ph.D. degree in Natural Health from Clayton College of Natural Health. He holds numerous patents, has taught and lectured at various colleges and was elected to the National Inventors Hall of Fame. He is a member of the American Society of Patent Holders and is active in various professional, community and technical associations including the Ohio Venture Association, American Naturopathic Medical Association, Lakeland Community College Students in Free Enterprise (SIFE) advisor and National SIFE Competition Judge, Lake County Development Council Trustee and Chairman of the Economic Forum Committee and Workforce Investment Board Member. Dr. Steve's most recent achievement is being named a 2010 Fellow of the Ohio Academy of Science, the leading organization in Ohio to foster curiosity, discovery, and innovation and to unite all who value education, science, engineering, technology, or their applications for the benefit of society.
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Dean S. Tsengas - VP/GM/Corp. Sec
Dean S. Tsengas earned his Bachelor of Science in Industrial Engineering Degree from the University of Toledo, and has completed several graduate level courses in marketing and organizational behavior at Cleveland State University. He has attended numerous business and technical seminars such as Strategic Long Range Business Planning, Dale Carnegie, Taguchi Techniques, MRPII, ISO 9000, Bazic 8 Training, etc. From 1986-1994, Tsengas was employed by Taylor Molding Systems, Inc. and Dowty Silcofab USA, Inc. (custom molding of precision elastomeric products) and Arrow International (gaming products) in various positions including quality assurance manager, industrial/plant engineer, manager of application engineering and customer support specialist. Since 1994, as vice president of OurPet's Company, Tsengas has played a key role in the launch of the pet-products venture and has held various engineering, marketing and operational responsibilities. Under his managerial guidance OurPet's has developed extensive supply chain management, warehouse and QA capabilities. Tsengas is active in several professional and technical organizations.
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Scott R. Mendes - CFO/Treasurer
Scott R. Mendes received both his MBA in Accounting and Finance (1979) and his undergraduate degree in English (1976) from Vanderbilt University in Nashville, Tennessee, where he was awarded the Faculty Award for Distinguished Achievement. Mendes has been CFO of OurPet's since February 2, 2009. Prior to his joining OurPet's, Mendes was corporate controller for Safeguard Properties, Inc. for 12 years where he was instrumental to that business' ability to manage a sustained growth rate of 30% year-over-year. His experience includes establishing accounting and information systems; all treasury functions, including cash management, banking relations, budgeting and financial analysis; and building and managing an operational infrastructure capable of handling rapid growth. Mendes also has a blend of manufacturing and entrepreneurial background as a part owner of a consumer electronics firm.
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Gabriella DeSantis - VP of Marketing
Gabriella DeSantis earned her B.S. in Business Administration and Marketing/Advertising from Long Island University and her MBA in Marketing Management and Corporate Finance from Pace University in New York. Gabriella joined The OurPet's Co. in 2012 with over 20 years of new product development experience. Most recently, she was Marketing Director for United Pet Group, where she led the Nature's Miracle brand team, and Senior Marketing Manager for Health Care Products, Inc., where she successfully managed marketing strategies, resulting in significant and measurable growth. Her additional expertise includes building targeted, market-driven strategies that appeal to consumer behavior and forging key alliances that result in profitable relationships. Gabriella leverages strong analytical and decisive leadership to instill an atmosphere of innovation and a keen focus on operational excellence.
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Kathleen Homyock - VP of Sales
Kathleen Homyock graduated with an MBA in Finance from Cleveland State University and a bachelor's degree in Marketing from Baldwin-Wallace University. A recent addition to OurPet's senior executive team, Kathleen's multi-level experience spans from startup and entrepreneurial organization to multi-national Fortune 500 firms leading cross-functional teams with initiatives to build, manage and/or recapture industry leadership positions. She is an accomplished leader with more than 30 years of demonstrated success in business development, strategic planning, marketing, brand building and relationship management. While with Loctite Corporation, she penetrated the Wholesale Club channel as a new business initiative with sole sales responsibility for DURO® brand super glue and Permatex® automotive repair products. Revenue grew more than 29% in 24 months. She also managed media relations and investor conferences in the banking/capital markets sector (investment banking, M&A, equity research, sales and trading) resulting in positive coverage and deepened C-level client relationships.
|OurPet's Company |
1300 East Street
Fairport Harbor, OH 44077
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