Cobasi wants to return to being leader in pets after losing lead to Petz

A pioneer in the segment, Cobasi invoice R$ 2.1 billion per year and has a 5% market share, compared to 6% of its main rival.

In the fight for leadership in retail of pet products, Cobasi redoubled its bet on own brands to regain the lead, lost in 2020 to rival Petz (PETZ3). A pioneer in the segment, Cobasi invoice R$ 2.1 billion per year and has a 5% market share, compared to 6% of its main rival. In addition to product launches, the company is putting its foot on the accelerator of openings: there will be another 32 units by December, which will add to the 158 already in operation.

The bet on own brands began in 2019, says the president of Cobasi, Paulo Nassar, a partner in the company alongside the brothers Ricardo and João. The company already works with hygiene and food labels. New lines should come this semester, according to the executive – always with proper names, which do not repeat the network’s flag. The idea is to increase the participation of private labels in sales, which today is low, around 4%.

In the fight for leadership in retail of pet products, Cobasi redoubled its bet on own brands to regain the lead, lost in 2020 to rival Petz (PETZ3). A pioneer in the segment, Cobasi invoice R$ 2.1 billion per year and has a 5% market share, compared to 6% of its main rival. In addition to product launches, the company is putting its foot on the accelerator of openings: there will be another 32 units by December, which will add to the 158 already in operation.

The bet on own brands began in 2019, says the president of Cobasi, Paulo Nassar, a partner in the company alongside the brothers Ricardo and João. The company already works with hygiene and food labels. New lines should come this semester, according to the executive – always with proper names, which do not repeat the network’s flag. The idea is to increase the participation of private labels in sales, which today is low, around 4%.

Contrary to competitor Petz, instead of producing the items directly, Cobasi chooses to outsource the manufacturing. Petz bought brands such as Zee.Dog (of accessories for dogs and cats), the maker of sanitary mats Petix and Eleven Chimps, of food for pets. Nassar says, however, that outsourcing avoids “bringing industry risk to retail.”

The entrepreneur says that the brands have helped the retailer to have greater control over prices in stores. “When we look for manufacturers for private labels, we ask for a fixed cost, with an annual contract. This means that there is no price increase,” he explains.

Another difference from the rival is that Cobasi does not see mergers and acquisitions as a path to growth. “We looked at some regional networks, but none made sense”, says the network partner.

new money

Cobasi has grown faster after receiving, in 2021, an investment of BRL 300 million from Itaú’s Kinea fund – the first injection of external money into the company in 30 years. “We thought it was good to do a round, which was very restrictive and selected, and we were able to accelerate several growth verticals. And that has given a lot of results”, he says.

An IPO, as Petz did, is on Cobasi’s radar. “Thinking about succession and perpetuating the company is an excellent path”, says the executive, noting that the company is ready to go public at the “right time”.

The businessman says that the advance of Petz motivated Cobasi to be more in a hurry to grow. Today, the three biggest forces in the market – the third place is Petlove, which was born digital – add up to less than 15% of the sector, which is pulverized in the hands of small family businesses. The annual revenue of the Brazilian pet market is R$ 40 billion, according to consultancy Euromonitor.

“Cobasi is the closest competitor to Petz, offering a similar omnichannel experience, although its range is slightly different from that offered by Petz, due to its greater focus on gardening categories in addition to pet products. We believe that Cobasi is top of mind (the most remembered company) in the pet category, having been the market leader until 2020”, points out a Goldman Sachs report.

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