Procter & Gamble, the company that makes Iams and Eukanuba, admits they have been greatly affected by the massive pet food recalls.
“Unfortunately, even though those wet and semi-moist products are a small, less than 10% of our product line, we frankly got hit pretty hard,” P&G Chairman-CEO A.G. Lafley said on a conference call.
Market share for Iams’ wet pet food sector has dropped to 1.1% in the four weeks ended July 14 from 3.9% in the four-week period before the recalls.
Even P&G’s shares in the dry pet food market have also been down since the recall. The shares are running one to one and a half share points lower since the four weeks ended February 24, the last period unaffected by the pet food recalls.
The losses combine to more than $20 million in sales since the recalls and around $70 million in annual sales if this continues.
Source: Advertising Age