Success Insight: A Chamber Member's Story

 

 

Make no bones about it. M.I. Industries-a producer of all-natural and organic nutritional pet products under the Nature's Variety label-is benefiting from a booming export market, giving the Nebraska company plenty to bark about.

 

M.I. Industries exports about 15% of its pet products, including dry, canned, raw frozen, freeze dried, and roasted treats, to 14 markets, mostly in Western Europe and Asia. "Europe, in general, is ahead of the U.S. in the consumption of organic products, whether it's for people or pets," says Bob Milligan, chairman of M.I. Industries.

 

Exports make up a majority of M.I. Industries' other product lines-biological, pharmaceutical, and base cosmetic products derived from animal proteins and amino acids. Milligan says that's because the bulk of the pharmaceutical and cosmetic industry is located in Europe, which has protocols in place to deal with natural derivatives.

 

M.I. Industries has to pass muster with a number of federal regulatory agencies, including the Food and Drug Administration, the Agriculture Department, and the Federal Trade Commission. Further, it has to comply with regulations in the various states where it sells to independent pet stores, veterinarians, groomers, and kennels as well as to Costco, Petco, and Trader Joe's. M.I. Industries also has to deal with the regulatory agencies in its overseas markets. After years of juggling diverse regulations, Milligan hired a person to work on compliance full time.

 

M.I. Industries collaborates with the University of Nebraska to develop new products and reformulate old ones. Through this partnership, the company has added rabbit, venison, lamb, duck, and other meat formulas to its product line.

 

The company is always on the lookout for better, though sometimes more expensive, packaging to maintain preservation and freshness. It was one of the first to use foil laminate packaging and Ziploc® closures for its Nature's Variety kibble products.

 

Packaging and regulatory compliance costs don't leave Nature's Variety with a large budget for marketing, so Milligan has had to be creative. "The good news is we have a great story to tell, great ingredients, and great performance results. The bad news is we have a great story to tell, and it costs a lot of money to educate the consumer."

 

To build customer loyalty, M.I. Industries sends birthday greetings to its customers' pets and coupons to customers who register on the Nature's Variety Web site. The company also does an average of 50 demonstrations a week in retail stores, giving customers an opportunity to learn about the products.

 

To share a Success InSight, e-mail Greg Galdabini at ggaldabi@uschamber.com or phone 202-463-5563.