How Buddy Bites, fresh off a $1m raise, built a brand that gives back

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IN TODAY’S ISSUE

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It all began with a giant bag of dog food.

Five years ago, Ryan Black was working in real estate finance in Hong Kong. But a fateful lunch with his friend (and now co-founder) Chris Lee changed everything. 

Over lunch at Lee’s home, Black noticed a bulky 25-kilogramme bag of dog food in the living room, which Lee had purchased for his two large rescue dogs.

“I asked [Chris] how he went about buying that pet food, why he bought the pet food he bought. And immediately it was apparent that it was a purchase … influenced by vets, and he wasn't sure why,” said Black.

“So immediately, a few light bulbs went off.”

Living out in Hong Kong’s rural Clearwater Bay, Lee had been piling up huge, unwieldy bags of dog food in his living room. But in a city that thrived on convenience, this struck Black as incongruous.

Black and Lee saw an opportunity to launch a challenger brand to the pet food  incumbents in Hong Kong. Specifically, a direct to consumer, subscription-based dog food brand based on convenience and a mission. 

“We felt that Hong Kong is a place that thrives on convenience, but being able to get things to your door, ideally in a subscription format, wasn't actually that prevalent five years ago. I found that very paradoxical.”

Just as Black and Lee started setting up their business, the pandemic hit.

But as Hong Kong introduced stringent lockdowns and offices grew quiet, Buddy Bites managed not only to survive, but thrive.

“The pandemic hit, and immediately we had a lot of time twiddling our thumbs at work and a lot of people looking to get stuff delivered to their homes. We were one of the few people that were fortunate out of the pandemic, and that it gave us time and demand to launch a business.”

It was, as Black said, “A silver lining.”

PHILANTHROPY-DRIVEN PROFIT

For every two kilogrammes of food sold, Buddy Bites donates one kilogramme to dog shelters. The company now donates dog food to 15 shelters in Hong Kong, and three in Singapore.

“The consumers win because they feel like they're doing good, and they are doing good in the process. And it's tangible. It's not a percentage of profit, a percentage of revenue. We see the bags of food, which I think is important.”

That tangible impact has created significant long-term customer loyalty.

“Pet food consumers are loyal to brands they like, and we find that even more so with the giving back component,” said Black. “Nearly 50% of our consumers from the first month of business over four years ago are still customers today.”

Even better, the shelters themselves have become a marketing engine.

“Anytime a dog is adopted from these shelters… the shelters are very, very kind and promoting us as best they can,” said Black. “Doing good as a brand can be good for the business as well, right? It's not just a cost, it's definitely a benefit.”

That strong foundation helped Buddy Bites land a spot in the Leap Venture Studio programme and close its first major funding round. Mars Petcare is a founding partner of Leap Venture Studio, along with Michelson Found Animals Foundation and R/GA Ventures. 

Buddy Bites was also accepted into Leap Venture Studio & Academy’s 9th annual accelerator programme.

NEW HORIZONS

Now, they’re taking that confidence to new markets. Last month, Buddy Bites recently launched in the UK, a homecoming of sorts for Black (from Edinburgh) and Lee (from Manchester).

“We know what worked in Hong Kong and what didn't, we know what worked in Singapore and what didn't, but every market is slightly nuanced,” said Black. “I think the opportunity is big in the UK, and we're both pretty confident that the giving back model should resonate.”

Buddy Bites is also planning to launch in Taiwan. This time, they’re also looking to launch their first cat food product line.

“We've already worked with our nutritionist to develop cat food recipes,” said Black. “We think we can essentially double our addressable market without changing too much about the business.”

Throughout it all, Black said their mission to feed shelter dogs drives the business forward.

“Giving back is really at the heart of our business,” he said. “Yes, we’re proud to say we do. But we do because consumers want it.”

“We've found that it has been a massive benefit to our business, and we will keep it at the heart of the business.”

IN THE NEWS

🇪🇺 🇬🇧 UK cats and dogs to receive passports for EU under trade deal ● UK-based cats and dogs will once again be eligible for passports to enter the European Union and no longer require costly animal health certificates, under the new UK-EU trade deal.

🇺🇸 Petflation jumps to +1.9% in April versus last year ● Petflation rose from 1.3% to 1.9%, but pet food continues to trend downward, according to PetBusinessProfessor.com.

🇺🇸 Nestlé Purina partners with Men in Blazers Media Network ● Nestlé Purina has partnered with Men in Blazers Media Network, North America's largest soccer-focused media company as its first-ever official pet food and pet treats partner.

🇨🇭 Nestlé to strengthen R&D capabilities in biotechnology and deep tech ● Nestlé plans to overhaul its R&D operations by strengthening its R&D capabilities in biotechnology and establishing a pioneering centre for deep tech, which may yield benefits for pet nutrition.

🇺🇸 🇨🇳 Dogness (International) announces investment in Petcare Internet of Things platform ● Dogness (International) Corporation has agreed to acquire a 19.5% equity interest in Dogness Intelligent Technology, which focuses on R&D of pet-related Internet of Things and app platforms.

🇺🇸 Dechra launches Catney One ● Dechra has launched Catney One, a health supplement for feline kidney health that reduces phosphate absorption.

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