Mars Canada Petcare p3 2017 better world for pets update

Hello everyone,

I hope you’re having a great start to the spring season! As the grass starts to green, I’m pleased to share that our consumption on the business has turned around dramatically, and after some challenges last year, we are back to gaining share in the category for 5 periods in a row. Our consumption interventions are definitely paying off, and we have strength across the board in all categories in the latest 12 weeks. This is a terrific sign, and should start translating to net sales value (NSV) growth by the end of Q2.

Like spring, our fast pace is off to a slower start this year than we had hoped. Though we’re tracking well, we are off plan as a result. We’re targeting the end of P6 to be back to growth, and deliver our plan by Q4. This does not give us a lot of room for error so it’s critical to improve our pacing and match our consumption offtake as we accelerate into the second quarter.

Here’s a little more on why we’re where we are and what we’re doing about it to get back on track to growth.

Business Update

Simply put, we are not hitting our plan for topline. The category has slowed versus our planning stance assumptions (+3% at planning in the fall of 2016, versus 0% latest 12 weeks). This has put pressure on our plan pacing. As well, we’re still digging out from 2 orders that shifted from LCL and Costco into P12, 2016 from P1, 2017. It will take a few periods to burn through that inventory. Finally, we have some activity and innovation we are lapping from last year at this time, and some of our restages have had to be delayed as a result, particularly on the Specialty side in NUTRO and GREENIES. However, once the consumer is voting for us with their wallets, increasing the household numbers that are buying and using our fine brands, we’ll turn this around! We’re actively deploying further interventions in the short term to get us back on track.

We’re keeping our investment in advertising and consumer promotions (A&C) spend strong to preserve and extend our consumption and share momentum. Further, our new dog dry restages will hit the market beginning in period 5, and we are deploying targeted defense/offence plans to protect our oral care leadership, and shore up CESAR dry, as competition has increased dramatically in these two key battlegrounds.

We are also working hard to offset the cost pressure due to the soft topline. Our earnings are right on track thanks in large part to the fine efforts from our Supply folks – thank you BPP! Your work to keep our Affiliate and Domestic business in stock has helped to over deliver on the Affiliate P&L and preserve our overall earnings shape. Overheads are favourable to plan, adding further tailwind to our earnings, and Cash is right where it needs to be.

We have crystal clarity of mission for our 2017 priorities, and I know we can get back to plan if we all keep these objectives in mind as we go about our day to day!

Celebrations and Latest News

Our home, safe and sound

Congratulations to Colin Mackie, Shelley Raymond and the entire team at BPP for achieving another incredible safety milestone – 1.2 million hours with ZERO lost time incidents! Way to keep us safe!

New Nutro is in the house

Congratulations to SPT account leaders and the retail team for their flawless execution of instore conversion from old Nutro to “Feed Clean” Nutro! The team converted 123 Petsmart stores to new planograms in less than 5 days and we had $0 dollar waste on Nutro in Eastern Canada distributors. In addition, the team put up over 40 displays on new Nutro at Indy West in the first 2 weeks of the initiative. As a result, our SPT business is exiting Q1 flat to 2016 - on plan - while transitioning 130 SKUS. Amazing work team!

Hail Cesar.ca

cesar.ca site is up and running and looks fantastic! Now consumers don’t have to go far to learn how to love them back! Thank you Dena Mehraban and team for making us look so good!

The Work Better with Pets Campaign is on

Mars global is kicking off the Work Better with Pets campaign and you can be a part of it! Click here to share your personal story along with photos or video of you and your dog right here in Bolton or in your home office, and you could be included in the global campaign! At Mars we know the value pets bring to our lives; let’s show the world what Canada is doing to make a better world by bringing our dogs to work!

In the community

Join us for a PAWSatively pet friendly Home Show April 21-23

As part of our redoubled effort to make our communities better for pets, the PAWS team (check out our new logo!) convinced the Caledon Chamber of Commerce to make the upcoming Caledon Home and Lifestyle Show pet friendly for the first time ever! After all, pets are an important part of our homes and lives, so why wouldn't they be welcome? If you’d like to volunteer to help staff our awesome, pet-friendly pop up booth please contact Saira Absar. You can also show your support by visiting our display between April 21-23 at the Albion Bolton Community Centre. Make sure you bring your four-legged family members along for the fun!

Congratulations everyone on a solid Q1 performance. I’m looking forward to rounding the corner into Q2 with some great plans and an amazing team at the ready. Let’s keep that wind at our backs!

Chris

Stay FIERCER my friends!

Mars Petcare Canada Internal Communication 2017

Credits:

Created with images by psiortal.pl - "Pufka & Bono after rain 😜" • S@ndrine Néel - "Fin gourmet" • williami5 - "Inquisitive" • scarlett1991 - "cat sun flower flower"

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