Dreyer’s Scoops Up a Share of Doggie Treats Market

Dreyer’s, the maker of Haagen-Dazs and other top ice cream brands, has discovered that doggie ice cream is something to bark about.

Sold in the freezer section near the Drumsticks and Popsicles, Frosty Paws Frozen Treats for Dogs has quietly become the most profitable product line at Dreyer’s Grand Ice Cream Holdings Inc., the nation’s largest ice cream company.

Oakland-based Dreyer’s is expanding the line to include a second flavor, peanut butter, and has slapped a Purina label on the product to make it more appealing to dog owners. Purina and Dreyer’s are controlled by Swiss food giant Nestle.

Frosty Paws Original flavor, described by company executives as sort of a doggie vanilla, has been around for more than a decade, growing to a $10-million product line.

Although that’s just a tiny fraction of the nearly $1.6 billion Dreyer’s collected in sales last year, Americans’ penchant for indulging their pets has turned the treat into the highest-profit-margin item produced by the company, said Candy Marciano, a Dreyer’s assistant brand manager. The new Frosty Paws flavor, which sells for $3.59 for a four-pack of 3.5-ounce cups, is being rolled out in most of the state’s major grocery chains.

The success of the Original flavor, mostly on the East Coast, sent Dreyer’s looking for a line extension that would be palatable for the pooch and attractive to the human who pushes the shopping cart.

“Beef-flavored ice cream wouldn’t be that compelling, especially to the owner,” Marciano said. “We did some studies and found that all dogs love peanut butter.”

Dreyer’s is tapping into an explosion in the amount Americans spend on their pets each year, said Bob Vetere, managing director of the American Pet Products Manufacturers Assn. in Reno.

Pet spending has more than doubled to $35.9 billion from $17 billion in 1994, he said. Pet food alone is a $14.5-billion-a-year industry. The typical dog owner spends $68 annually on dog treats.

“We are seeing a trend where human product makers are making line extensions into the pet business,” Vetere said.

Indeed, the idea of serving a dog a treat typically enjoyed by humans sounds intriguing to Kim Santell, owner of Planet Doggy Daycare in Pasadena.

“I would go out and try it,” Santell said, “but I am kind of a dog kook.”

Santell has fed her beagle Kelly and other canines regular ice cream, only to have them vomit. Frosty Paws, however, is lactose free and is formulated to work with a dog’s digestive system, Marciano said.

Dog goodies are an important way of maintaining the human-animal bond, said Scott Campbell, a veterinary nutrition expert at UC Davis. But, as with people, he said, treats should be used in moderation. “Just as there is in humans, we are seeing an increased obesity in dogs.”

A good rule of thumb is to limit treats to no more than 10% of a dog’s recommended daily caloric intake, he said.

*

(BEGIN TEXT OF INFOBOX)

Pampered pets

For 2005, it is estimated that $35.9 billion will be spent on pets in the U.S.

Breakdown (in billions):

Food: $14.5

Supplies/medicine: $8.8

Vet care: $8.6

Grooming and boarding: $2.4

Live animal purchases: $1.6

Source: American Pet Products Manufacturers Assn.