New York based KKR, a Global investment firm, has partnered with Gambol Pet Group, a leading provider of pet food headquartered in Shandong Province, China.
KKR makes its investment from its China Growth Fund. Further details of the transaction are not disclosed.
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The partnership Gambol and KKR is to expand the Company’s production capacity in key markets including China, Thailand, countries in Europe, and the US, where it is currently the largest private-label provider of pet treats to Walmart.
Gambol further aims to leverage KKR’s experience in food production and in implementing best practices in the area of food safety and security to provide even greater pet nutrition solutions to customers around the world.
In its local market, Gambol’s “Myfoodie” pet food brand holds the #1 ranking in China’s pet treat category and is a leader in the dry food category, according to China Feed Industry Association.
The pet category is one of the fastest-growing consumer sectors in China with a compound annual growth rate of over 30% in the past few years, according to the data from Goumin.com. However, the market is still fragmented and under-developed, posing opportunities for players like Gambol with differentiation in technology and product quality.
In addition, China’s pet food sector is still at a nascent stage compared to other markets. According to Stratop Group, only 13% of Chinese urban households have pet dogs. Meanwhile, more than 36% of American households own dogs, according to the American Veterinary Medical Association. In China, packaged pet food penetration is only 14%, compared to more than 90% in the US.
Chris Sun, Director at KKR China, said, “Gambol is well-positioned to capture new opportunities in the pet food sector globally and in China given Gambol’s extensive industry expertise, product innovation capabilities and long-term commitment to producing safe, high- -quality pet food. We look forward to working alongside this experienced and capable management team to build a true industry leader in the emerging pet market.”
