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Segrest Farms purchased by Central Garden and Pet for $60 Million in cash

CSnyder00

Bearded Wonder
Would like to think it is good. Probably not going to be. It's hard to see good things happening when a company who is not an expert in the fish field buys a large fish operation. They will see dollars and not fish, meaning what they sell will probably diminish in order to produce a larger profit.
 

jonclark96

Past CCA President
I am no expert, and don't have any particular insight besides things I've seen from folks I know in the hobby, but I believe the sale was driven off of the business relationships between Central and the big box stores. PetSmart can now buy a bunch of their livestock from the same company that supplies a lot of their dry goods. One purchasing agreement covers it all, and probably is beneficial to both Central and PetSmart. I don't think that Segrest was privately owned before, so I'm not sure that this will have much impact on the hobbyist, but we will have to wait and see.
 

dogofwar

CCA Members
First, I'd start by acknowledging how much generous support that both Segrest and Central Pet have provided to CCA. Those awesome fish donations at The Big Fish Deal? The set-ups for the Give a Kid a Tank Competition? These companies gave them to CCA and we need to acknowledge and thank them for supporting our club and the hobby.

That said, industry consolidation always raises concerns about whether the interests of consumers (and, in our case, the niche of the market involving people in freshwater fish clubs) will be better served. Segrest CEO Sandy Moore - who's a friend of the club, an amazing and awesome person - has assured us that it will be business as usual at Segrest. And that's a good thing!

The fundamental issue in our hobby is less about getting people to buy their first aquarium set-up (most likely at whatever-Mart) but increasing the rate of success of those new aquarists so that some of them will become lifetime enthusiasts (and mentors to future generations). This is especially important to many of us, as the fish that many of us would like to see Segrest stock (and the equipment that we'd like to see Central Pet develop and supply) aren't for beginners. There needs to be a business case.

When I was a new aquarist, my LFS was a key bridge for learning and asking questions. I would likely have given up without the hands-on help that I received from the several LFS in town when I was a kid. I'd bet many of us remember the person at the LFS that would answer ANY question with patience (and good advice). While some quality LFS exist, they are few and far between today. I attribute the high failure rate to the absence of the hands-on mentorship that used to come from these stores.

This is a business problem / opportunity that our club (along with the organized fish hobby more broadly) can help address. But we need to think bigger than ourselves and the pet industry needs to think bigger than people in freshwater clubs simply being a small niche of the market.

Sure, people in fish clubs buy fish and supplies from Segrest and Central. But fish clubs - and their members - can play an outsize role in growing the hobby by improving the success of beginners and inspiring people with one or two tanks to expand beyond bread-and-butter fish and basic set-up-kits.

CCA is already a leader among clubs in this regard and all of the new folks at The Big Fish Deal (on our active forum and our meetings are a testament), but how can we do more? And how can we work with other not-for-profit clubs in partnering with industry for our mutual success?

These thoughts reflect my personal views :)

Matt
 

JLW

CCA Members
My thoughts on the matter...

These big companies buy and trade each other all the time. Check out http://www.businessinsider.com/10-companies-that-control-what-we-buy-2014-7 . Not fish related, but .... The simple fact is that the move is to consolidate ownership of companies into fewer and fewer hands. Whether or not that is a good or bad thing is beyond this discussion; it's the way things are going.

Generally, when a company purchases another one, it is because that company is profitable. They'd be foolish to swoop in, buy Segrest and tell them, "Now do it this way." The new ownership typically follows a "If it ain't broke, don't fix it" laissez faire mentality, and for good reason. If the company is generating profits, let it continue to do so. The biggest changes that come about as a result of purchases are stuff you would never consider, and beneficial. Employees go from getting Segrest's independent health insurance and 401K to getting one from a huge company; better benefits means happier employees. At one point, CPG was owned by Pfeizer, and another by Rayovac... .these things didn't effect it. :)

Segrest has always had a pretty strong relationship with the box stores; they supply most of the bread and butter fishes. That won't change. They now have access to a much larger distribution network. It'll be interesting to see if they can merge distribution with CPG's pet supplies (CPG also does everything from Pennington Grass Seed to Kaytee wild bird seed). One of the more interesting repercussions is that CPG aquatic companies, such as Aqueon, Coralife, TFH, and Kent, now have access to a huge source of knowledge and ideas in the form of Segrest. Most of the really good innovations in aquarium keeping have filtered (ha) down from the sewage treatment industry; now, there's the very real possibility of innovation coming from the wholesale industry.

I wouldn't expect to see any big changes from a consumer point of view.
 
OK. Before this gets out of hand let me clear up some misinformation.

Segrest was a privately owned company. CGP is a publicly traded company but the controlling interest is and has always been in the hands of the original owner (Bill Brown). CGP has never been owned by Pfizer or Rayovac. That was UPG (Marineland, Tetra). Marineland, Tetra, Rayovac, Black And Decker, and George Foreman are all brands owned by Spectrum Brand Holdings (an investment company).

Segrest is the largest supplier of tropical fish in the U.S. The current management and staff are continuing to run it as they have always been doing. There is no plan to merge it into Central Aquatics. It's business as usual for them.

Most of the crossover projects between Central Aquatics and Segrest will probably be marketing related. There are few areas where livestock and hard goods can cross over. I will probably be involved in any that do.

Petco buys fish from Segrest and is Central's customer so it's not competitive with Petco. Petco bought F&S mainly for their pet medicines business which is many times more profitable than LiveAquaria.

Keep in mind that Central Aquatics already has a huge source of knowledge about engineering and aquarium science. Segrest just adds to that knowledge pool.

Andy
 
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