Case Study: BSM Partners Accelerates Importation of Client’s Products into the United States at a Lower Commissioning Fee
The challenge
Importing pet food products from a foreign country into the United States (US) is a highly complicated and expensive process. The US market is the largest companion animal market in the world and provides a lucrative market for pet brands.1 One of BSM Partners’ clients had 20+ pet food products that they wanted to bring to the US market, but they faced numerous challenges that prevented them from doing so, including:
- High commissioning fees of 30%.
- Complex regulatory landscape in the US and AAFCO compliance.
- Product label compliance and conformity.
The solution
BSM Partners’ Food Safety, Quality Assurance, and Regulatory (FSQAR) Services utilized their expertise to devise a plan for importing the client’s products to the US market and minimizing the cost associated with doing so. The client was also advised to simultaneously pursue entrance into the Canadian market to maximize their e-commerce reach. The following process was presented to the client:
- Approve foreign manufacturing plants with APHIS equivalency for export.
- Review ingredients to ensure that all ingredients are approved within the US and make changes or substitutions as needed.
- Identify distribution channels and partners to reduce the commissioning fees.
- Lead product packaging design to ensure AAFCO and FDA compliance, with strategic labeling to position the products for success in Canada.
- Provide direction for bringing the product into US retailers and e-commerce.
- Register new packaging with states to be legally compliant.
The result
The client successfully imported 20+ pet food products into the US and Canadian markets with AAFCO-compliant labels, increasing their revenue and market reach. The US pet market alone exceeds 136 billion USD annually.2 Enabling successful importation into the US market empowers pet product manufacturers to shine in the largest global pet market.
The numbers
- 45% savings in commissioning fees.
- Six months from first contact with BSM Partners to product launch in the US market.
BSM Partners
BSM Partners is a leading consulting firm in the pet and human food industries. BSM Partners is a collective of professionals across various industries, backgrounds, and life experiences. We leverage our shared expertise for our clients and draw on our deep connections in the industry to help you succeed. We are prepared for every challenge your business might face. From product development to replenishment, we have you covered. Our services include research, consumer insights, product innovation, food safety and quality, regulatory, nutrition, veterinary, transformation, operations support, and engineering. With BSM Partners as part of your team, nothing is impossible!
References
- Shahbandeh, M. 2024. Global pet product market share 2020, by leading country. Link: https://www.statista.com/statistics/1188890/pet-product-market-share-by-leading-country/.
- American Pet Products Association. 2023. Pet Industry Market Size, Trends & Ownership Statistics. Link: https://www.americanpetproducts.org/news/News-Public-Relations/pet-industry-market-size-trends-ownership-statistics#:~:text=Actual%20Sales%20within%20the%20U.S.%20Market%20in%202021,our%20pets%20in%20the%20U.S.
About the author: August Konie, MS, MBA, has been a Food Safety and Quality Professional with various teams for over 25 years. He currently serves as Principal of BSM Assurance and Director of FSQAR at BSM Partners.
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