35 March 2016 Pet Product News International
Pet Product News: Share with readers
Phillips’ history from its beginnings as
a feed store to a regional operation to a
national distribution powerhouse. What
would your grandfather say if he could
witness his company’s scope today?
Blaine Phillips: Phillips was
founded 78 years ago in 1938 by
my grandfather Ralph as a feed
mill servicing the local Pennsylvania market in a little town
called Germansville. At the time,
we were one little store servicing
local farmers with horse, dairy,
chicken, cow and pig feed. The
market changed and the local
population started to increase—
it was cheaper to live in Pennsylvania than the surrounding New
York and New Jersey markets.
The demands for different
products, including dog food, increased. We found ourselves expanding into four feed stores to
keep up with the ever-growing
demand, and together my grandfather, my father and myself operated them. When Purina ProPlan
first launched its food, the company’s sales representatives went
out to its feed store partners and
asked if they would be interested
in distributing to a 50-mile radius
around the stores. My dad and I
both said yes. Our territory kept
expanding into what it is today.
My grandfather, Ralph,
would be absolutely shocked—
yet so proud and very happy—to
see what Phillips is today. It’s a
great American business story.
My father, LaVern, has retired
from the business, but he is able
to pop in and see how things are
going today.
PPN: How many vendors does Phillips
work with, how many distributor facilities does the company own/operate, how
many brands does the company carry,
and how many retailers does it serve?
BP: We operate 19 facilities from
coast to coast.
Our vendor portfolio varies
by region to accommodate our
retail partners’ requests and
consumer demands. We track
retailers’ requests and arrange
the portfolio to reflect what they
want. We make sure to feature
different price point levels, segments and categories of products
so the retailer can be stocked for
all consumer types.
PPN: When did you take over leadership from your father? How did
growing up in the Phillips family
and working your way up from the
warehouse provide special insight
into the business and prepare you
to lead and grow the operation?
BP: It was the mid-1980s
when I took over leadership of the company. My
father and my grandfather both had very strong
work ethics, and I do, as well. I
have done every job at Phillips,
and I have complete respect for
what it takes to get the job done.
I’ve worked in the warehouse
stocking and putting product
away, I’ve driven a tractor-trailer making customer deliveries
and vendor pickups, and I’ve
placed orders in the system. I
have a thorough understanding,
knowledge and appreciation for
how the business runs and what
all our team members do.
PPN: In the late 1990s, the purchase of
a Georgia company went bad and really
hurt the company. Clearly it didn’t make
the company gun-shy about executing
other acquisitions, but what were the
lessons learned?
BP: It was an experience that
made us stronger. We made
a bad decision and it did not
work out, but we learned a lot
from it. It was very hard for us
to close down the Georgia facility, as we were a family business that had employees relying on us. However, we knew
it was the right decision for all.
It has made us smarter when
it comes to acquisitions today.
It is important for a company
to take risks if they want to become better and grow.
PPN: Many industry experts, including
the president of the Pet Industry Distributors Association, Steve King, have
noted that there are only about 50 distributors serving U.S. pet specialty retailers, compared to about three times
that amount 10 years ago. Major distributors distribute larger, more established
brands; smaller operations serve newer
and smaller brands to gain market share.
How will this current structure continue
to affect independent pet retailers and
small/new manufacturers?
BP: There are significantly more
than 50 distributors in the market today.
If there’s demand for a prod-
uct from retailers, we listen. We
want to make sure our retailers
can stay current with the trends
and can offer their consumers
the latest products. Variety,
freshness and product innova-
tion are what keep the consum-
ers coming back to their stores.
PPN: What do you say to those who claim
that distributor consolidation means
fewer opportunities for smaller retailers
and manufacturers? What would you say
to independent retailers and small manufacturers who are leery of huge distributorships to quell their fears?
BP: Using fewer distributors
creates efficiencies and helps
reduce costs for the retailer.
When retailers work with fewer
distributors, retailers
can create a real partnership with their distributor and take advantage of the services
the distributor offers.
PPN: Share with independent
retailers why your four regional
shows are must-attend events.
BP: Phillips takes a different approach with our
shows. There’s the buying
aspect of our shows, which
is great because it really
allows retailers and vendors to
connect in an efficient manner
and take advantage of some
great deals. At the same time, we
offer an educational component.
We understand that the retailer is taking the time to step away
from the business, so we really
want to make sure there’s value
in it for them. We offer seminars
on marketing for their store, inventory, POS systems, etc. … We
cover several topics in our seminars, which are free for retailers
to sign up for and attend.
PPN: What is Phillips’ i T Kit, and how
does this tool help your retail partners?
BP: The i T Kit, which was rolled
out in early 2014, is specifically
for our independent retailers,
which are the lifeblood of Phil-
lips. The kit was an answer to
changing demographics among
consumers and a changing land-
scape in regard to competition.
We started to see more e-com-
merce and big-box chains pop
up and more people wanting to
get into the pet industry.
The i T Kit is filled with business solutions that allow them
to compete like a big-box store,
and it features everything from
mobile marketing solutions to
assistance with website design.
We used our size and influence
to go out and negotiate discounts on various programs in
order to turn around and offer
them to retailers at a discount
price. We make nothing on the
program; we simply want independents to remain healthy.
It features components that
reinforce three things: drive, retain and enhance. We’re trying
to drive consumers into that independent channel, we’re helping the independent retain that
consumer, and we’re helping
enhance that consumer’s experience while they’re shopping
the retailer’s store. The millennial demographic in particular
is looking for technology or
other mediums during their
shopping experience.
PPN: What big-picture industry trends
are top of mind for Phillips as the company goes forward?
BP: Everybody is buzzing about
the millennials and their shopping behaviors, and we’re trying
to make sure that we have tools to
help the independent go after that
demographic. We also keep our
assortment fresh, making sure
our portfolio has the products the
retailer wants and selection they
want, when they want it. ■
Tools for Partners; Products for Pets
Blaine Phillips, CEO of Easton, Pa.-based Phillips Pet Food & Supplies, talked to Pet Product
News about why he’s proud of his company’s ability to rapidly adapt to the changing needs of
the pet industry and provide its retail partners with all of the products customers seek.
BEHIND THE SCENES
Blaine Phillips, CEO of
Phillips Pet Food & Supplies
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PHILLIPS DISTRIBUTION FAMILY
Our commitment is simple: To provide our customers with the products and services that
will contribute to the growth and profitability of their businesses. The pet specialty business
continues to change rapidly, and we embrace the changing needs. We also are committed
to the changes in technology and the effects it has on our industry. We now provide website
ordering, scanners and barcode catalogs to help the ease and accuracy of orders.
Our dedicated sales force of more than 90 people will assist you with pricing, adver-
tising and merchandising concepts. Many upgrades and additions in our customer service,
sales, transportation and distribution personnel have put us in an excellent position to give
you constant satisfaction.—Blaine Phillips, CEOof Phillips Pet Food&Supplies
Phillips Pet Food & Supplies’ four
regional buying shows—West Coast,
New England, southern and mid-Atlan-
tic—have become must-attend events
for many retailers and suppliers. The
company also has a major presence
at Global Pet Expo in Orlando, Fla., and
SuperZoo in Las Vegas, the pet indus-
try’s two annual, national pet shows.
The company also will be exhibiting at
the new P3 show in Chicago.
work ethics, and I do, as well. I
the distributor offers.
PPN:
retailers why your four regional
shows are must-attend events.
BP:
ferent approach with our
shows. There’s the buying
aspect of our shows, which
is great because it really