Its a Dogs Life

I don’t make this observation lightly. I have numbers on my side. According to the American Pet Products Association (APPA), an organization whose very reason for existence is to be sure the gravy train continues to chug along for the folks who make products like Alpo and Cat Chow, 62 percent of the households in this county have a pet; this is up from 56 percent in 1988. The APPA further says there are 279 million pets in the United States, and that we’ll spend almost $53 billion on our pets this year. That’s $823 billion in dog dollars.

That number is up from $29.5 billion just a decade ago. Taking into account inflation, population growth and the fact that quite a few people lost their jobs in that decade, that is a boatload of cash.

Moreover, according to the APPA, the pet industry is projected to grow at a pace that will equal 33 percent over the next five years, hitting $67.7 billion in 2016. But statistics can be deceiving. Let’s talk about what we spend that money on. There’s pet transportation like Pet Airways out of Delray Beach, Fla.,  an airline dedicated to animal travel. They don’t ride in the cargo hold like other airlines. Instead, the animals ride on the plane in comfort, with experts who attend to their every need, bringing them gourmet treats and heated towels, fanning them with palm fronds and massaging their paws.

All right, the airline is for real but I made up the rest of it.

Locally, we have Marin and San Francisco Pet Taxi, which will get Fido from here to there should you be too busy to provide the ride. There’s Klyde Street Boutique, a Novato business that can dress your pet in outfits that take in a pretty wide swath of taste. We also have pet psychologists, so if your cat is feeling inadequate, you can get to the bottom of those issues. And there are pet retreats, like Town and Country Pet Resort in Santa Rosa, pet toy stores and pet-targeted bakeries.

Even hospitals have gotten into the act. In the past, hospitals wouldn’t have allowed animals inside under any circumstances as the battle against germs could certainly turn on the odd Poodle. But now hospitals like Texas Children’s Hospital in Houston are allowing some patients to enjoy visits from their dogs. The program was set in motion by PAWS, Pets Are Wonderful Support, a Houston-based nonprofit. The hospital told ABC News it’s never had an animal-related infection in the four years the program has been in place, and the therapeutic value from the visits is significant.

In the interest of full disclosure, I have to confess I’m among the ranks of those who have animals and that I spend an outsized amount of the cash from under the mattress on Riggins, our cat. Our refrigerator may need some filling on occasion, but Riggins’ pantry is always fully stocked with organic cat food of every stripe along with dry food that he likes so much we refer to it as crack. And after visiting LAPCATS (Laguna Adoption Program County Animals Team Sacramento), a stellar cat rescue nonprofit located in Elk Grove, we’re soon adding two more to the family, with Landry and Vince coming on board.

This may or may not make me the male equivalent to the much-feared stereotype of a “cat lady.” I remain secure in the knowledge that this trio of felines lives better than I do, and I’m responsible for that.

Saving the earth for fun and profit

The APPA points out that pet owners also are becoming more and more about being green: “Around the world, people are making conscious efforts to help our planet Eart, and the pet industry is no exception. From natural litters to toys, accessories and organic food options, earth-friendly pet products are sprouting up everywhere.”

Aside from misspelling the name of our planet, I get what they’re saying.

Everybody wants into the act. Companies like Paul Mitchell, Harley Davidson, Origins and Omaha Steaks are churning out products for animals. While you can certainly argue that a motorcycle company doesn’t have anything to do with pets, that won’t slow Harley from enlarging its brand and taking advantage of the pet mania that’s swept the country.

Harley currently offers leashes, spiked collars, pet t-shirts with the Harley name emblazoned on the front, reflective name tags, plush cat toys and a full selection of dog toys. One dog trinket is shaped like a boot and comes in both a men’s and women’s styles so your canine can chew to their hearts content. (This seems like a bad behavior model for the future of the rest of the shoes in your closet, but maybe that’s just me.) There’s a bandana that states your dog is “Bad to the Bone.” And just in case your furry best friend is given to wearing chapeaus, there’s a baseball cap complete with a chin strap so it stays put. The picture on one website I found shows a stuffed animal collie wearing the cap, which leads me to think it couldn’t find a dog willing to model.

Paul Mitchell and Origins offer hair care products for people and now they have shampoo for our four-legged friends. Omaha Steaks has a line of pet treats that includes a steak-based snack as well as dog cookies. And in the best tradition of the meat seller, there’s of course a package deal that includes four free steak burgers and a grill timer.

Not really.

Stay and play

Pet-friendly hotels are everywhere. According to Expedia.com, the hotel room aggregation and sales website, at least 40 hotels in Napa, Sonoma and Marin counties accept pets. And it isn’t just that you don’t need to sneak your pooch into the room anymore, it’s that some of these folks are putting giant pillows in the room designed for your pet to lounge on, or even providing plush pet robes. While you may find a mint on your pillow as part of the turndown service, your pet may have a treat waiting as well.

The trend toward welcoming pets is a substantial change for the hospitality industry. In the past, sneaking a dog into your room was not only frowned upon, it was grounds for bouncing you from the establishment—and good luck getting the room payment back. But the hospitality industry has come to realize that, by designating a limited number of rooms for those accompanied by their pet, it’s only enlarging the pool of guests it can serve and adding to its revenue stream. Moreover, news of a pet-friendly designation spreads quickly via the Internet and word of mouth, driving both business growth and repeat guests.

Likewise, more retailers are trying to cash in on the fact that nothing is too good for our pets, who aren’t just four-legged companions but, rather, members of the family. Go into a Home Depot, Marshall’s or T.J. Maxx, and you’ll find an aisle dedicated to pet products.  While pet doors and dog houses certainly fit with Home Depot’s core business model of do-it-yourself home improvements, the large selection of pet beds and toys point to the home improvement chain looking to cater to the needs of everybody living in the house. And while Home Depot is a big box retailer where space isn’t exactly at a premium, it’s still interesting that it’s made a choice to not only dedicate space to pet products but to incur the costs associated with adding inventory.

Marshall’s and T.J. Maxx are owned by TJX Company and have long been retailers focused on selling clothing at discount prices, with Marshall’s targeting a slightly more upscale shopper and T.J. Maxx catering to bargain-minded consumers. But now both have jumped into stocking pet products, dedicating an aisle to everything from food bowls to pet bedding.

It isn’t just retailers looking to cash in on pet product sales. In New York City, where real estate is at a premium, Rose Associates has teamed with dog specialists The Spot Experience to provide in-house and outdoor services to the 4,500 residents living in the two dozen buildings Rose counts in its portfolio.

Some of the pet industry expansion is fueled by the media, and according to television industry chatter, that’s likely to continue into the fall when CBS, Disney, Time Warner and Discovery Communications are all rumored to be rolling out TV series with dogs as their stars.

And they say in showbiz to never work with kids or animals?

Road tripping

With an economy that’s growing at a pace normally reserved for a Barry Zito fastball, the fact that spending on pets is increasing seems surprising. But Susan Brautovich, owner of SF Pet Taxi and Marin Pet Taxi, says she fully understands the trend and why it works. “Spending on pets seems to have an inverse relationship to the state of the economy,” she says over the phone, sounding a lot like an economics professor as she brings a dog home from Tappen Hill, a luxury boarding facility in Sebastopol, for a family returning from a European vacation. She explains that, in a down economy, people tend to spend more, not less, on their pets. “I think people feel like there are a lot of parts to their lives that they can’t control right now, but they can make sure their pet is cared for the way they want.”

Brautovich also attributes the increase in United States spending on pets to a more basic human need. “People seem to feel good giving their pets the best possible care even if they’re denying themselves a few luxuries these days, so the idea of spending more money is not as much of an issue because of how it makes them feel.”

Marin Pet Taxi is a good example of a company that’s taking advantage of spending on pets. The company has only been around one year and was originally started as a way of supporting another pet business that Brautovich had. But she’s found that pet transportation is a sector with a demand. “People who travel a lot find it really convenient to have their pets picked up at home and delivered to the boarder so they can just head for the airport and not worry about it,” she says. “And when they get home, they love to have their pet waiting for them. You wouldn’t believe how much people miss their pets.

“I also find that people who are without cars, are ill or can no longer handle a large pet call me to take their pets to the vet or groomer for them. I’ll stay with the pet at the vet appointment and give the owner a report when I bring the pet home. And some people are just too busy to interrupt their workday to take their dog or cat to the vet.”

Her business offers taxi service to and from doggie day care, vet appointments, groomer appointments, boarding drop off and pick up and airport service. The latter has an interesting twist. When a pet boards a plane or any other interstate carrier, it actually becomes “livestock” and falls under the auspices of the U.S. Department of Agriculture, which issues Handler’s Licenses to those involved in transporting animals. Marin Pet Taxi holds a USDA license and is fully insured and bonded.

The company hasn’t done much in the way of advertising for fear of becoming too busy, according to Brautovich, who operates the business on her own (though she does have two other associates who can lend a hand when bookings become too fierce). “It’s a very personal service, and we generally only take one pet [or pet family] at a time,” she says.

Marin Pet Taxi is realistic about another reason it’s been successful thus far. “Demographics play a big role in this. This kind of business makes sense in San Francisco and Marin but probably wouldn’t go in a less affluent community.” Brautovich understands that, not only are people busy and willing to pay for her services, but there’s a graying factor as well. She says she has a client who needs to board his dogs often due to frequent stays in the hospital, and uses Marin Pet Taxi to take them back and forth. “This man really loves his dogs and insists on the best care for them, even though his own health is challenging. I think his situation is going to become more and more typical as the population gets older.”

Four-legged gourmets

Baby boomers have certainly influenced quite a few business models and consumer patterns over the years and, in this case, the trend continues. As boomers become empty nesters, they oftentimes find themselves spending more time with their pets and become more than willing to spend money to make their four-legged friends happy.

Area restaurants are seeing the upside to pet mania as well. In Marin, the county changed its health code policy in 2010 to let dogs sit with their owners as long as the eatery has outdoor seating. And the change was driven by restaurants lobbying the county to let diners and their dogs sit together. According to Dogfriendly.com, at least three dozen Marin restaurants welcome dogs on their patios. In Napa, the website says there are 17 different eateries that have gone to the dogs, and in Sonoma they number 24.

While the slow food movement, farmers markets and the idea of eating organic and local has gained momentum, Natalie Bradshaw of Napa Valley Vineyard Dog reports that her business has grown because people are paying closer attention to what they feed their pets. The original location of Vineyard Dog, on Main Street in Napa, has closed in favor of a larger location on Washington Square in Yountville. “The new location gives us more room so we can add products for cats, too. The fact is, there’s a food movement going on with dogs and cats now as well, people are reading the labels and finding out what they should be feeding their pets,” says Bradshaw.

“More of us are looking at ourselves as parents for our pets, taking a more holistic approach, cooking for them,” she says. “There are more small companies out there making pet food because they want to do the right thing. Of course, they also want to make money. But they aren’t motivated by money the way large corporations are.”

Bradshaw knows of what she speaks. She retired early from a 25-year career as a bond broker for Bank of America, an institution that knows something about the pursuit of the long green. In 2008, she moved to Napa with her two dogs and soon discovered that finding high-quality dog food was difficult. About the same time, Vineyard Dog went on the market, so in 2008 she purchased the store. Since then, her focus has been on dog food. “There may not be anybody in the state who knows as much about dog food as I do,” she says, adding that she and her staff are willing to teach consumers what to look for.

Her employees spend a fair amount of time educating dog owners on what to look for in their pet’s chow. “We tell them that even if they don’t buy their food from us, they should pay attention to ingredients. Some brands have little or no meat content and some contain ingredients that can be found in euthanized animals.”

The new location includes a wide variety of foods for both dogs and cats, with price points from low to upper end, according to Bradshaw. The choices include foods and supplements designed for pets that have maladies such as diabetes, skin conditions and cancer.

Nobody should be surprised that the pet industry continues to grow in a challenging environment, according to Bradshaw. “You need to understand this is a $60 billion industry—billion with a B. We look at our pets as members of our families. We aren’t making them sleep outside and we’re spending more and more time with them.”

Bill Meagher is a contributing editor at NorthBay biz magazine. He is the co-author of Three Months: A Caregiving Journey from Heartache to Healing and is currently at work on another book project.