A leading global consumer-focused investment firm, L Catterton, has announced a significant investment of around $60 million in Drools Pet Food, India's top local pet food company. This marks L Catterton's entry into the Indian pet food sector and aligns with its successful track record of growing pet food businesses worldwide.
With L Catterton's expertise in the sector, Drools aims to solidify its position as the largest domestic player in India's rapidly growing pet food market. The market is projected to experience an annual growth rate of approximately 20% over the next five years, reaching over $1.2 billion by 2028. This growth is driven by factors such as increasing pet adoption, urbanization, and smaller household sizes in the country. Additionally, rising income levels and the humanization of pets have led to higher spending on packaged pet food instead of home-cooked meals.
Drools has capitalized on these favorable trends and has achieved nearly quadruple revenue growth in the past three years. The company has established an omni-channel presence across India, offering a diverse portfolio of dog and cat food brands, including the flagship brand Drools®, as well as Pure Pet, Meat Up, Canine Creek, and Kitty Yum. These brands cater to the evolving demands of Indian pet parents.
One of Drools' key strengths is its ability to produce high-quality pet food across various price points and distribute them through multiple channels. Its products are available online on platforms like Amazon and Flipkart, as well as through a network of over 34,000 points of sale, including specialty vet shops, veterinary clinics, and general trade stores.
Anjana Sasidharan, a partner in L Catterton Asia, emphasized Drools' focus on product quality and its loyal customer base. She stated, "This is an exciting time to be entering the country's pet food market, which we believe is at an inflection point, and we look forward to working closely with the Drools team to further scale its business."
Fahim Sultan, founder of Drools, expressed his dedication to sustainable growth and the positive impact on the pet food sector. He emphasized the partnership with L Catterton as an opportunity to enhance their market position and leverage L Catterton's consumer insights, operational expertise, and commercial network. With the Indian pet market maturing across metros, Tier 1, and Tier 2 cities, Sultan sees significant growth potential for years to come.
L Catterton has a strong track record in building successful pet food brands globally. Their past and current investments in the sector include well-known names such as Butternut Box, Canidae, Harringtons, Instinct®, JustFoodForDogs, Lily's Kitchen, Old Mother Hubbard®, Partner Pet, Petlove, Pure & Natural, Rachael Ray® Nutrish®, and Wagg. With their extensive experience and industry knowledge, L Catterton aims to support Drools in unlocking a new phase of growth and reinforcing its brand portfolio while attracting top talent.
The partnership between L Catterton and Drools showcases the immense potential of the Indian pet food market and the commitment to providing high-quality pet nutrition options to meet the evolving needs of pet owners across the country.