Better Choice Company
Better Choice Company specializes in pet products and services aimed at enhancing the health and wellness of dogs and cats, primarily through its Halo brand. The company has a diverse product range and a strong presence in e-commerce, with significant growth in both domestic and international markets.
Services
Better Choice Company specializes in providing a comprehensive range of pet products and services designed to enhance the health and happiness of dogs and cats. The company focuses on offering high-quality, science-based nutrition through its innovative recipes, which are carefully formulated with the expertise of leading veterinary and nutrition experts. The portfolio includes foods, treats, toppers, dental products, chews, and supplements, all designed to support the overall well-being of pets.
Products
The company offers an extensive portfolio of pet health and wellness products under the Halo brand. These include kibble, canned dog and cat food, freeze-dried raw dog food and treats, vegan dog food and treats, oral care products, and various supplements. The core products are known for their high-quality, thoughtfully sourced ingredients, and are designed to deliver natural, science-based nutrition to pets. In addition, the company's innovative Halo Elevate brand has gained significant traction, showing notable growth in retail channels like Petco.
E-Commerce
E-Commerce constitutes the largest channel for Better Choice Company, with significant partnerships with online retail giants Amazon and Chewy. The company boasts a subscription rate of approximately 50% among its online shoppers, showcasing a strong digital presence and customer loyalty. This strategic focus on e-commerce has positioned the company well in adapting to mainstream trends around pet humanization and wellness.
Growth Channels
One of the fastest-growing channels for Better Choice Company is its International sector, which demonstrated a significant year-over-year net sales growth of 48% in 2022. The company has secured strong distribution partnerships in Asia, fueling this growth. Specialty channels are also identified as key areas for expansion, with the company planning to launch Halo products in 2,000 to 2,500 new stores through partnerships with Petco, Pet Supplies Plus, and independent pet stores.
Financial Performance
In 2022, Better Choice Company reported full-year net sales of $54.7 million, marking a 19% increase from the previous year. This growth was driven by significant expansions in various sales channels, including a 72% increase in Brick & Mortar net sales, attributed largely to the launch of Halo Elevate. The company's gross margin for 2022 was 27.9%, reflecting the impact of one-time inventory rationalization. Moreover, the company raised $40 million in gross proceeds and converted $23 million of debt into common equity upon its listing on the NYSE American Exchange.