Tuesday, November 06, 2012 10:00:56 PM
Making Pets Profitable
Heidi Brown, 10.16.09, 05:30 PM EDT
Forbes.com
Lisa Bershan, All-American Pet Brands
Lisa Bershan and her husband, Barry Schwartz, were poised to launch a small chain of cheese steak restaurants in lower Manhattan in September 2001. But when two jets crashed into the Twin Towers nine days prior to the grand opening, that plan was rendered impossible.
Without the safety net of government insurance (the restaurants hadn't opened before the tragedy), she and her husband had to come up with a new idea fast. The family dogs--a Shih Tzu and a bulldog--ended up being the inspiration for her new company, All-American Foods.
Bershan, who is in her early 50s, is a born entrepreneur. In high school she sold her mom's lunch sandwiches instead of eating them. In 1978, after graduating from the Fashion Institute of Technology, she started Incredible Edibles, a food company that grew to $30 million in sales within a year and a half. She sold out to Piedmont Foods in 1986 and spent the next 13 years running other small food companies.
Like the one-word advice to Dustin Hoffman's character in The Graduate--"plastics"--the byword Schwartz whispered into Bershan's ear was "breakfast." Although owners feed their dogs twice a day, no one calls the morning meal breakfast. Bershan and her husband launched a line of canine breakfast meals.
Working with an animal nutritionist at Cornell University, they concentrated on recipes. Next came two years of "palatability" tests on pets and the search for a product manufacturer and packager. She chose the name All-American out of patriotism after the attacks and to remind customers that her product is made entirely in the U.S.
Building a network of retail contacts, she tested the food in 7,800 stores and got precious shelf space for her product--with Iams, Eukanuba and Pedigree as competition. Her second act was a doggie low-fat power bar with four flavor varieties; the format allows pet owners to feed their pets on the go. According to Bershan, All-American has pulled down $50 million in sales since incorporating 2003.
http://www.forbes.com/2009/10/16/pets-market-profit-forbes-woman-entrepreneur-petsmart.html
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