Ever since it was founded in 1995, OurPet’s Company (OTCQX: OPCO) has been blazing new trails… taking the roads less traveled. It’s driving force and co-founder Dr. Steven Tsengas is an engineer and inventor. He has been elected to the National Inventors Hall of Fame. That engineering expertise and open approach to new ideas has been employed, over the years, to develop OPCO’s stable of over 1,000 products. In addition, the company has another 30 or so products in the pipeline plus an intellectual property stockpile of over 160 patents. This is a company thinking ahead. It is in talks with a Japanese IT firm with the aim of incorporating wireless technology into up-and-coming products.
OurPet’s Company focuses on providing solutions such as mitigating the pathologies of aging pets. Its first product was a Big Dog Feeder that made it easier for big dogs to eat by elevating the feeding bowl. When it was developed in 1995, the idea was novel. For large dogs, eating at ground floor level is not healthy or comfortable. Their physical structure can be compromised leading to arthritis at the joints. The Big Dog Feeder has been a huge success. But over the past twenty years, the company has moved into other areas. Today its largest category of sales, which are on track to cross $23 million, is pet toys. In its 3rd Qtr 10-Q filing, the company gave a breakdown of each category as a percentage of total sales:
• Toys & Accessories – 50%
• Bowls & Feeders – 35%
• Edibles – 7%
• Waste & Odor Products – 5%
• Dog Houses & Health Products – 3%
The company has been growing at twice the rate of the industry. Since 2010, it has had an annual compounded growth rate of about 6%. In 2011, it initiated a two-pronged branding strategy. The OurPets brand is aimed at the pet specialty market, while the Pet Zone brand is designed for the mass market. This strategy has undoubtedly paid off.
The management team is ambitious. In a recent interview they stated their objective to double the size of the company. As part of that strategy, they are investing heavily in distribution and marketing infrastructure. They also plan to make the waste and odor category a more significant part of the company’s business, with their Smart Scoop product line spearheading the drive. The company’s total net revenue has steadily increased:
• 2010 – $17,091,741
• 2011 – $19,667,134
• 2012 – $20,160,751
• 2013 – $21,554,106
• 2014 – $22,770,562
The pet industry has proved to be recession resistant, since pets are dearly loved members of the family. There are an estimated 350 million pets in the U.S. and Canada. About 93 million are cats and 85 million are dogs. The average pet owner spends $1,200 per year for a cat and $1,800 per year for a dog. With OPCO’s remarkably innovative product line-up, that money will surely be spent wisely.
For more information, visit the company’s website at www.ourpets.com
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