PetCo reaffirms FY2025 outlook amid tariffs, VEGDOG raises €9m

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Happy Friday!

This week, U.S. pet retail giant PetCo reported Q1 earnings, with CEO Joel Anderson reaffirming full-year guidance (assuming U.S. tariffs remain unchanged).

Meanwhile, South Korea’s Connecting the Dots made its pet sector debut by acquiring pet-sitting platform DogMate.

What’s interesting: Connecting the Dots targets pet services over consumer goods - a trend to watch. We dive into more child-to-furbaby crossovers in our spotlight.

Last but definitely not least: We spoke to Asian luxury pet fashion brand VETRESKA. Co-founder Donald Kng shared how the brand’s unique blend of luxury fashion and pet care created a cult following. Don’t miss the full interview.

Have a great weekend!

IN TODAY’S EDITION

FROM OUR SPONSOR

🇺🇸 Petco posts Q1 earnings, reaffirms FY2025 outlook ● Petco Health and Wellness Company announced a 2.3% fall year on year in first-quarter earnings to US$1.5 billion, in line with company expectations. PetCo CEO Joel Anderson reaffirmed the company’s full-year guidance, which “assumes that the current tariffs on imports into the U.S. from China and other countries as of June 5, 2025 will stay at current levels and do not increase for the remainder of the year”. PetCo expects its full-year sales to fall by low single digits year on year. 

🇺🇸 Cat feeding startup Sphinx breaks Kickstarter records ● Pet tech startup Sphinx has raised over US$400,000 from more than 880 backers since launching on Kickstarter last week. Sphinx has also partnered with Rayne Nutrition and Savage Cat Food.

🇺🇸 American Feed Industry Association (AFIA) announces organisational realignment ● The realignment will create three AFIA departments for policy, member experience and operations, and reinforce the Institute for Feed Education and Research’s (IFEEDER) capacity to advance animal food industry research and education needs.

🇺🇸 Big Idea Ventures and Mars Petcare launch 2025 Global Pet Food Innovation Program in collaboration with AAK, Bühler, and Givaudan ● The initiative aims to accelerate sustainable innovation in the pet food sector by supporting startups with novel ingredients, sustainable fats and proteins, and advanced processing technologies.

🇩🇪 VEGDOG secures €9 million for European expansion ● VEGDOG has successfully completed its Series A financing round. The Germany-based startup, which offers the first vegan, gluten-free, and 100% complete range of dog food, received growth financing of approximately €9 million. 

🇨🇦 Ultrack Systems acquires 60% stake in Better Pets ● Logistics technology company Ultrack Systems Inc., has entered the pet care market by acquiring a 60% controlling interest in pet wellness company Better Pets.

🇰🇷 Connecting the Dots acquires DogMate to enter South Korea's pet care market ● Child care services company Connecting the Dots will acquire the pet care platform DogMate by participating in a third-party allocation of new shares.

🇧🇷 Brazil antitrust body approves Petz, Cobasi merger ● The merger of Petz and Cobasi, Brazil’s two largest pet product retailers, could still be appealed within the next 15 days.

🇧🇷 Enifer partners with FS to produce mycoproteins in Brazil from corn ethanol sidestreams ● The partnership marks the first time Finnish mycoprotein company Enifer’s PEKILO Pet and PEKILO Aqua production processes have operated outside Europe, and the first time corn ethanol-derived thin stillage has been used as feedstock.

PRODUCT NEWS

🇺🇸 Spot & Tango launches PupGum ● Dog nutrition and wellness brand Spot & Tango’s PupGum is a dental chew for dogs made with a patent-pending postbiotic that’s clinically proven to reduce bad breath in just seven days.

🇺🇸 Waggle expands pet safety product portfolio ● Waggle's expanded product line includes advanced pet monitors with built-in cellular connectivity, pet cameras with two-way audio and treat dispensing capabilities, and bundles integrating multiple monitoring technologies.

🇺🇸 PawCo launches Magic Bars ● PawCo has launched Magic Bars, a protein bar formulated with functional, human-grade ingredients to support wellness in adult dogs.

SPOTLIGHT: CHILD-FOCUSED BRANDS TAP INTO THE PET BOOM

This week, South Korea-based child care services startup Connecting the Dots announced its acquisition of pet care platform DogMate, marking the former’s entry into the pet industry.

From human babies to fur babies, the progression feels like a natural crossover. We explored how other brands have made similar moves:

Jazwares: U.S. toy company Jazwares’ colourful Squishmallows plush toys have been a big hit with children since they first launched in 2017 (under their original owner, Kelly Toys Holdings LLC, which was acquired by Jazwares in 2020).  

In March 2025, Jazwares launched Chew Mees by Squishmallows. These pet toys are designed in the same cheerful, colourful style, with reinforced seams to withstand pet play.

Fisher-Price: In January 2023, Fisher-Price launched a line of dog toys available at PetSmart. The product line includes Sound Bites Xylophone, Attack-A-Stack Chase & Toss Toy, and Pull Along Rocket, designed to support developmental needs such as teething and calming in puppies.

Hanna Andersson: Last year, children’s apparel company Hanna Andersson collaborated with fashion brand Baggu to launch a collection that included matching outfits for children, parents, and pets. The line featured "pet johns" for dogs and cats.

PatPat: PatPat has expanded its offerings to include pet apparel and accessories, allowing families to dress their pets in coordinated outfits alongside their children.

What makes Connecting the Dots’ acquisition of DogMate particularly noteworthy is its focus on pet services rather than consumer products. The acquisition could signal a broader shift in where investment is heading. One to watch!

Luxury Pet Care News is a newsletter covering global trends, growth opportunities and success stories in the premium pet industry.

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