Pet-Food Trends Strengthen Blue Buffalo's Moat
The narrow-moat pet food leader has a good reputation, a premium-only lineup, and an attractive valuation.
We think Blue Buffalo is an attractive way for investors to benefit from trends favoring high-end pet food.
Pets have taken on the role of children in older and younger households alike. As a result, pet owners have sought premium pet foods that mirror trends in human categories, favoring natural, clean-label, and high-protein items. Blue Buffalo is the leader in wholesome, natural pet food, with about a one third market share in this category, which should continue to grow faster than the overall pet food market.
Zain Akbari does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.