Bonnie
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So what's really going on here? What's the backstory? Why is a pet food giant like Purina suing a much smaller industry player like Blue Buffalo?It's impossible to know exactly what prompted Purina's lawsuit, but here's one likely piece of the puzzle, courtesy of the Seattle Times:"…concern over what we feed our pets has transformed the industry in recent years. It also has a lot to do, observers say, with St. Louis-based Nestle Purina Petcare and its decision last month to challenge a smaller, but rapidly growing, competitor in federal court."The lawsuit, which accuses Connecticut-based Blue Buffalo of false advertising, is essentially a fight over the upper tier of the pet-food market — the fastest-growing segment of the $23 billion industry."According to industry experts, almost half that $23 billion is spent within the premium pet food category, which includes Blue Buffalo. In addition, the premium pet food market is expected to experience impressive growth over the next five years, while the mid-priced category grows at a much slower rate, and the economy category remains flat.Blue Buffalo came on the scene in 2002 and has grown quickly to command 5 percent of the U.S. pet food market. Last year, Blue's revenue was reportedly in the $600 million range.
