Pet food maker GA Pet Foods is worried about a $1,000 drop in sales and has cut prices to try to stem the decline.
In a memo to employees on Tuesday, the company said the pet food industry “is experiencing a price shock that has impacted our business model and is affecting the entire industry.”
The pet food maker has struggled to sell its pet food products in recent years because pet owners are increasingly switching to cheaper ingredients.
GA Pet is among several companies that have been hit by the pet supply shortage that has been plaguing pet food makers for the past several months.
On Tuesday, a report from the food company showed that pet food companies were down nearly 1.4% in the third quarter, while pet food sales fell by 4.1% in April.
The report was a surprise, since the food industry typically focuses on quarterly sales and doesn’t track quarterly declines in sales.
GA says the pet market has become more competitive over the past year, but it’s still too soon to know whether pet food shortages are impacting pet food businesses.
In its statement, GA Pet said it “looks forward to discussing the impact on the pet industry at the next round of quarterly conference calls.”
GA Pet has been trying to get pet owners to buy its pet foods as part of a strategy called “Pet Food for Life,” a plan GA says is designed to boost pet nutrition and ease pet food costs.
The company says its plan is aimed at increasing pet owners’ purchasing power.