[23 February/Food Dive]

General Mills has announced that it will be acquiring pet food maker, Blue Buffalo, in a USD8 billion deal. This move will make it the US leader in the natural pet food category.  Blue Buffalo was founded in 2002 and reported sales of USD1.3 billion in its most recent financial year, manufactures dry and canned products that are either grain free or made from human-grade meat and produce.  This acquisition will see General Mills become the latest big food company enter the pet food space following companies like Nestle and Mars.  Market data suggests that retail pet food sales are outpaced packaged food sales last year, with increases of 3.7% and 1.2% respectively.  Blue Buffalo products are targeted at millennial consumers and the company has had significant success in e-commerce.