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CAT FANCY

Animal lovers have discretionary income, and they're increasingly spending it on their pets.Baby boomers are driving that trend with their abundance of disposable income, said Raymond Jones, a managing director at Northbrook, Ill.-based Dechert-Hampe & Co. "What are they going to do with that money now that their children have grown?" Jones asked. "They'll spend some of it on their pets. That is what

Animal lovers have discretionary income, and they're increasingly spending it on their pets.

Baby boomers are driving that trend with their abundance of disposable income, said Raymond Jones, a managing director at Northbrook, Ill.-based Dechert-Hampe & Co. "What are they going to do with that money now that their children have grown?" Jones asked. "They'll spend some of it on their pets. That is what is happening right now."

People who eat well also want their pets to eat well, said Brad Johnson, pet food category manager, Wild Oats Markets. "Pet food is not the largest category for us, but it is one that is near and dear to our customers' hearts. We want them to know that we have the same interest in their pets' health as we do in their health."

It's not just urbanites taking their pooches to doggie day cares and spas. In rural areas, there is a growing tendency for people to treat pets like family members.

"There are fewer and fewer farmers," said Steve Mogg, co-owner of two-store Hy-Klas Foods, Plattsburg, Mo. "Rural areas are becoming more like bedroom communities. People are not living the same lifestyle. They are trading up. ... People are spending more money on their pets."

Accordingly, the fastest-growing pet foods are premium ones, with big and small manufacturers alike scrapping for market share.

In the supermarket channel, Nestle Purina PetCare's Beneful is top dog among the top 10 dry dog foods in dollar volume, up 20% for the 52 weeks ended Feb. 20, according to Information Resources Inc. data.

Positioned as nutritious and tasty, Beneful has become the dry dog food with the fifth-highest dollar volume in supermarkets since it was introduced in June 2001, according to IRI.

Sales at Wheeling, Ill.-based Evanger's Dog and Cat Food Co., a maker of natural pet food, have doubled since October 2002, as mid- to high-end supermarket retailers expand their super-premium pet food offerings, said Holly Sher, president.

Its latest line, Hand-Packed Specialties, is made with human-grade ingredients, with no additives, preservatives or by-products. It's "as close to human food as you can get," she said. In addition to giving retailers a higher-margin brand, Hand-Packed caters to consumers who pay as much attention to their pets' health as their own, Sher said. "People are spending more and more money on pet food, and everybody wants something different that is good for their pets."