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Jan 05, 2024Freshpet’s New TV Ads Are Getting Pet Owners Off the Couch and Into Stores—and the Company Has the Results to Prove It
A cheeky ad campaign from Freshpet borrows a familiar trope to deliver the message that it's time pet owners ditch kibble and make room in their fridge for fresh pet food—and company officials are already reporting "the best response ever" to the ads, which translates into dollars for the brand's retail partners.
The Secaucus, N.J.-based company's latest campaign launched its new tagline, "Freshpet isn't dog food, it's food food," meaning it belongs in the fridge next to the fruits, vegetables, meats and other foods the whole family eats. And, yes, according to the new campaign, a dog's dinner rightfully deserves a spot on a shelf near a mother-in-law's "famous gelatin mold." (Watch "In-Laws" below.)
The company's second spot, "Dinner Date," offers up a similar sentiment. When a woman goes to her date's home for dinner and the date asks for help in the kitchen, she's not particularly thrilled to discover the dog's food is stored near the carrots being prepped for dinner. The woman is shown the door, and the pup is served up supper. (Watch "Dinner Date" below.)
The ads, executed by New York-based ad agency Terri Sandy, aim to deliver the message that "true pet partners keep their dogs’ mouthwatering meals right where they keep their own: in the fridge. Which makes sense because Freshpet isn't dog food, it's food food. And if you’ve got a problem with that. They’ve got a problem with you," the agency's website says.
"Freshpet's target audience would literally sit on the floor and have a meal with their dogs—and certainly slam the door on a date who dares insult their beloved pet," Lauren Rubenstein, group account director at Terri & Sandy, recently told Marketing Daily. "This campaign works to not only solidify Freshpet's place in the hearts of dog owners, but also in their fridges."
Freshpet has heavily invested in its ad campaign, and, according to officials, it's paying off.
"We have new advertising on the air at heavy media waves that resonates with consumers," Billy Cyr, CEO of Freshpet, said during the company's Q1 2023 earnings call on May 8. "Customers are placing new fridges at the strongest rate ever, and we have a large number of new products in distribution or scheduled to ship in the coming months."
During the company's first quarter in 2023, which ended March 31, Freshpet added 369 net new stores, upgraded 241 stores to larger fridges, and placed second or third chillers in 685 stores, Cyr reported.
"And there are many more of those coming later this year," he added. "We are well on track toward our goal of having 1.7 million cubic feet of space at retail by the end of this year."
Freshpet's COO Scott Morris added that as a result of getting the "best response ever" to the company's TV advertising, "we’re getting tons of people going to the store locator" on the company's website.
Morris also noted the company's five-year strategy.
"Part of that core strategy was [that] we want to change the way consumers think about pet food," he said. "We want them to think about fresh first."
If the company's Q1 results are any indication, pet owners are clearly thinking fresh. Net sales increased 26.7 percent to $167.5 million for the first quarter of 2023 compared to $132.2 million for the first quarter of 2022.
Freshpet's household penetration growth was 7 percent in the past 52 weeks, and buying rate growth was 28 percent, officials reported.
"What is most encouraging is that our number of heavy and super-heavy users grew 18 percent over that time period despite the 20-percent plus increase in pricing," Cyr said. "We believe this reflects solid loyalty among our heaviest users … the high-profit pet-owning households."
Officials referred to high-profit pet-owning households, or HIPPOHs, often throughout the call. The company defines this group as "the people who view us as a regular main meal," Cyr said, adding that 87 percent of its business is made up of this group, and Freshpet now has 3.3 million HIPPOHs in its franchise.
Morris described HIPPOHs as the company's "core, core consumers."
Given how likely it is that the company's core group of shoppers already believe that their pets’ food belongs in the fridge, Freshpet's "rib-tickling" campaign (as described by Terri Sandy officials) serves up two entertaining ads that are likely to resonate with a key demographic of pet owners: Gen Z and millennials.
More than half of Gen Zers (52 percent) and 44 percent of millennials say they’ll engage with creative and entertaining ads, contrasted with 40 percent of Gen X and 42 percent of boomers, according to a new survey commissioned by NCSolutions (NCS), a New York-based company that aims to improve advertising effectiveness for the consumer packaged goods (CPG) ecosystem.
In addition, brands with hilarious ads are more likely to capture Gen Z's attention. Forty-three percent say they prefer ads to be humorous, according to the NSC survey.
Pet lovers on YouTube have been receptive to Freshpet's "Dinner Date" 30-second spot. A quick scroll through the comments on the brand's ad reveal mostly positive responses from viewers, who were entertained and clearly understood the message that for pet owners, dogs often rank above other humans.
Commenter @forveterans49 wrote: "This is one of the funniest commercials ever. Don't mess with people who love their animals—they will cut you out of their lives."
Another quipped: "This is so funny!!," which is followed by another thumbs up from @younggio4018, who wrote "this made me laugh great content ❤ lol"
While millennials are still considered the largest segment of pet owners, Gen Z pet ownership is on the rise. The generation, which is comprised of people born between 1997 and 2012, currently represents 16 percent of pet owners, according to American Pet Products Association (APPA)'s 2023-2024 U.S. National Pet Owners Survey. Millennials make up 33 percent of pet owners, Gen X represents 25 percent, and baby boomers represent 24 percent, according to the APPA survey.
APPA's survey also revealed that for the first time, pet ownership is evenly split between the two younger generations and two older generations. Younger generations report spending more on their pets in the past year but are also more concerned about the expense of pet ownership, while the older generations are focused on the benefits of pet ownership and maintaining the level of care they have always given their pets.
Clearly, pet brands can't afford to count older generations out, but the spending power of the younger generations is still significant.
"The economic impact Gen Z will have in the coming years makes understanding what makes this generation tick particularly significant for brands’ long-term marketing strategies," said Alan Miles, CEO of NCSolutions.
Freshpet plans to continue investing in its marketing strategies, officials report, although a majority of its efforts are planned for the first half of 2023. In Q1, the company spent 15.5 percent of net sales on media in the quarter, CFO Todd Cunfer said during the earnings call.
Cyr anticipates Freshpet will spend more on advertising in Q2 than it did in Q1.
"And then, [our ad spending] tails down in the second half of the year," he said. "But unlike last year, where we spent very little in Q4, our expectation is [that] we will spend a reasonable amount in Q4 as well."
What will the company's team come up with next? Stay tuned.
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