I am a fan of healthy and organic food... for people, not pets. Organic food is good for the body and for the environment since no fertilizers or pesticides can leak into ground water, rivers or oceans and negatively effect natural ecosystems. At first thought, it seems logical that healthy and organic food for pets would also sell well. This is the hope of Freshpet, FRPT, who sells healthy and organic pet food. But wait a minute! Is this a good business plan? Apparently so, after coming public in November, the stock dropped from $19 to $14, but has now rebounded to $20. Are people really going to buy healthy and organic food for their pets?
It is a sad reflection on today's society that so many people around the world are hungry, but pet owners spend extra money on healthy and organic pet food. Shows the propensity of people to spend on their pets who have literally taken a set at the dinner table. Is this what makes people happy? To feed their pets healthy and organic food? Where are we headed as a society? Think of how ridiculous this looks with 24% of Sub-Saharan Africans undernourished. 805 million people, 11% of the world's population, are undernourished. These people might be able to make scientific or cultural advancements for humanity, if it weren't for being held back because they cannot get 3 square meals a day. What can a pet do? Make one person happy? Or a few people? I am not suggesting that pets are insignificant, but this is ridiculous. A sad reflection on the state of society. I couldn't buy this stock and sleep at night knowing I am investing in organic pet food when so people don't have food at all. FRPT will probably end up being a great investment to further insult and injury to many who will never know a thing about FRPT or organic pet food.
Michael Grove, CFA