Central Garden & Pet Company (CENT): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Central Garden & Pet Company is structuring its business for the next cycle, so I've mapped out their operational blueprint based on their latest moves. Honestly, the story here isn't just about their total consolidated net sales of $3.1 billion for fiscal 2025; it's about the strategic pivot toward margin discipline, evidenced by an improved gross margin of 31.9% and a war chest of $882 million in cash ready for strategic investment. We'll break down how their portfolio of over 65 high-quality brands feeds into key partnerships with major US mass merchants, all while leaning heavily on the resilient pet consumables segment, which is a defintely strategic focus. Dive in below to see the full nine blocks of their current strategy, from their cost structure to their omnichannel channels.

Central Garden & Pet Company (CENT) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Central Garden & Pet Company relies on to move its 65+ brands from production to the consumer, especially as they sharpen their focus on higher-margin areas.

The company's distribution strategy heavily involves major retailers, which is clear when you look at the segment breakdown. Pet consumables, the area they are prioritizing for M&A, already represent about 80% of the total pet segment sales, showing where the bulk of their current retail volume lies. This contrasts with Pet Durables, which have shrunk to less than 20% of pet sales, down from a peak of 35% during the pandemic peak.

Here's a look at the retail channel focus, which directly involves mass merchants and specialty chains:

Central Garden & Pet Company supplies its products through these large channels, including selling Arden-branded outdoor cushions through major retailers in-store and online. Furthermore, for smaller manufacturers whose products Central distributes, they rely on independent distributors to reach regional pet specialty chains and independent retailers, indicating a layered logistics partnership structure.

Regarding raw material and agricultural product suppliers, Central Garden & Pet Company maintains a position upstream by selling an active ingredient, (S)-Methoprene, directly to other manufacturers of insect control products. This shows a B2B supply relationship exists outside of their primary B2C focus.

Logistics partners are critical, especially given the recent operational overhaul. Central largely completed its multi-year Supply Network Design project in the fourth quarter of fiscal 2025. This milestone was designed to increase cost efficiency across logistics and establish enterprise-wide eCommerce fulfillment capabilities, meaning the structure and performance of their logistics partnerships are now modernized for better service speed.

The partnership strategy is also heavily influenced by capital allocation priorities. Central Garden & Pet Company is actively pursuing acquisitions, focusing on margin-accretive consumable businesses to complement its portfolio. As of late 2025, the company stated it was keeping dry powder ready, though deal flow in their core categories was somewhat limited, with expectations for activity to accelerate in the following year. This M&A focus directly shapes potential future partnerships or integrations with targets in pet consumables.

For context on the scale of the business these partnerships support, fiscal 2025 net sales reached $3.1 billion, with non-GAAP operating income at $265 million. Finance: draft 13-week cash view by Friday.

Central Garden & Pet Company (CENT) - Canvas Business Model: Key Activities

You're looking at the core operational engine of Central Garden & Pet Company as of late 2025, focusing on the activities that drive their results, grounded in the fiscal year 2025 performance.

Execution of the Cost and Simplicity agenda

Central Garden & Pet Company actively executes its multi-year Cost and Simplicity program, which targets procurement, manufacturing, logistics, portfolio management, and administrative costs to streamline operations and simplify the business. This focus directly impacted profitability in fiscal 2025. The company recognized $15 million in non-GAAP charges during fiscal 2025, primarily related to these Cost and Simplicity initiatives, such as facility consolidation. The results of this agenda were clear in the margin expansion achieved throughout the year. For the full fiscal year 2025, the consolidated gross margin expanded 240 basis points to 31.9%, up from 29.5% in fiscal 2024. On a non-GAAP basis, this margin expanded 210 basis points. This productivity drive contributed to a significant increase in reported operating income, which reached $250.0 million in fiscal 2025, a 34.9% increase over the $185.0 million reported in fiscal 2024. Non-GAAP operating income was $265 million compared to $223 million the prior year.

Manufacturing and sourcing of over 65 branded products

A primary activity involves the manufacturing and sourcing of a large portfolio of branded products across the Pet and Garden segments. Central Garden & Pet Company is home to a leading portfolio of more than 65 high-quality brands, including recognized names like Nylabone®, Kaytee®, Pennington®, and Ferry-Morse®. The scale of this activity is reflected in the segment net sales for fiscal 2025.

The Garden segment saw its branded sales increase by $5.4 million in fiscal 2025, while sales of other manufacturers' products decreased by $46.0 million in that same period.

Supply chain optimization and facility consolidation

Central Garden & Pet Company is actively engaged in optimizing its supply chain footprint to become leaner, more agile, and cost-effective. This involves significant facility consolidation efforts. A key milestone in late 2025 was the opening of a state-of-the-art fulfillment center in Salt Lake City, Utah. This new hub consolidates operations from two legacy sites-one in Ontario, California, and another in Salt Lake City, Utah-into a single, modern, direct-to-consumer (DTC)-enabled location. This Salt Lake City site joins other recently opened modern fulfillment centers in Easton, Pennsylvania, and Covington, Georgia. The Covington facility alone streamlined operations by replacing seven older facilities. These three integrated omnichannel fulfillment centers form the backbone of the nationwide logistics network, designed to enhance throughput, reduce complexity, and improve service delivery.

Product innovation and digital marketing investment

Innovation is channeled into a robust pipeline of new products across both segments, focusing on evolving consumer preferences like high-quality pet consumables and sustainable garden solutions. Investment in digital capabilities supports the Central-to-Home strategy. In the first quarter of fiscal 2025, e-commerce sales represented 28% of Pet segment revenues, showing growth of 6% year-over-year. The Garden segment also experienced double-digit e-commerce growth in that quarter, supported by improved content and media strategies. The company is focused on enhancing its digital infrastructure, including retail media strategies and data analytics to reinforce its online presence.

Strategic acquisitions to build scale in core categories

M&A remains a stated strategic lever for growth, focused on acquiring margin-accretive consumable businesses that complement the portfolio and expand presence in attractive categories. Central Garden & Pet Company has a history of completing more than 60 acquisitions since 1992. The most recent material acquisition noted was TDBBS in November 2023, for approximately $60 million, which expanded the company's presence in dog chews and treats and enhanced eCommerce capabilities. The company indicated in late 2025 that while they are actively pursuing deals, deal flow in their core categories remained somewhat limited, and they did not complete any material acquisitions in fiscal 2025. The total disclosed deal value across its history is cited as $1.3 billion.

Finance: draft 13-week cash view by Friday.

Central Garden & Pet Company (CENT) - Canvas Business Model: Key Resources

The Key Resources for Central Garden & Pet Company center on its established brand equity, significant financial flexibility, and operational infrastructure improvements.

The brand portfolio itself is a core asset, comprising more than 65 high-quality brands across the pet and garden sectors. Key examples within this portfolio include Pennington, Kaytee, Nylabone, Aqueon, and Ferry-Morse.

Financially, Central Garden & Pet Company ended fiscal year 2025 with a $882 million strong cash position, an increase from $754 million the previous year. This liquidity supports strategic investment, especially given that total debt remained stable at $1.2 billion and the company reported no borrowings outstanding under its credit facility at year-end.

The logistics and distribution network has seen modernization efforts, notably through the completion of the supply network design project. This involved consolidating two legacy distribution facilities in Ontario, California, and Salt Lake City, Utah, into a single, larger, and more modern site in Salt Lake City. Furthermore, the company opened a new distribution center in Covington, Georgia, and a new e-commerce fulfillment facility in Easton, Pennsylvania.

The value embedded in product formulations and intellectual property is reflected in the company's margin expansion, with the fiscal year 2025 gross margin reaching 31.9%. The management team's execution of the Cost and Simplicity agenda drove a non-GAAP EPS of $2.73 for fiscal year 2025, up from $2.13 the prior year.

Here are some key financial metrics grounding the resource strength as of the end of fiscal year 2025:

The tangible assets supporting the business model include:

• Portfolio of more than 65 high-quality brands
• Consolidated logistics network with new facilities in Salt Lake City, Covington, and Easton
• Cash and equivalents balance of $882 million
• Intellectual property supporting a 31.9% Gross Margin in FY2025
• Management team achieving record non-GAAP EPS of $2.73 in FY2025

The company's employee base, primarily across North America, is noted at more than 6,000 people.

Central Garden & Pet Company (CENT) - Canvas Business Model: Value Propositions

Central Garden & Pet Company offers a comprehensive range of trusted pet and garden solutions, built on a portfolio of over 60 high-quality brands.

The Pet segment demonstrates significant resilience, largely due to its focus on consumables. Pet consumables represent about 80% of the pet segment sales, showing strong staying power, especially in dog and cat products. Conversely, Pet Durables sales have decreased to less than 20% of pet sales from a peak of 35% during the pandemic era, reflecting both market softening and internal SKU rationalization efforts.

Cost discipline and operational efficiency have directly translated into improved profitability metrics for Central Garden & Pet Company. For the full fiscal year 2025, the company achieved a consolidated gross margin of 31.9%, which was an expansion of 240 basis points over the prior year, driven by productivity efforts like the Cost and Simplicity program.

Convenience is delivered through an extensive omnichannel retail presence, which is increasingly digital. As of the first quarter of fiscal 2025, e-commerce represented 28% of pet segment revenues. By the fourth quarter of fiscal 2025, nearly 3 out of 10 dollars in the pet segment were generated from online channels, supporting overall segment sales.

Central Garden & Pet Company maintains a focus on high-growth categories within its portfolio. For example, the wild bird category experienced a record year despite broader market challenges in fiscal 2025. Furthermore, the Pet segment saw gains in specific areas like dog chews, rawhide, and equine products during the second quarter of fiscal 2025.

Here is a quick look at the segment financial contribution for the full fiscal year 2025:

The company's value proposition is also supported by its scale, serving nearly 10,000 retailer locations with its Pet segment products.

• Pet Segment E-commerce Share (Q1 FY2025): 28% of pet segment revenues.
• Pet Consumables Share of Pet Sales: About 80%.
• Pet Durables Share of Pet Sales: Less than 20%.
• Consolidated Net Sales (FY2025): $3,129.1 million.

Central Garden & Pet Company (CENT) - Canvas Business Model: Customer Relationships

You're looking at how Central Garden & Pet Company keeps its customers engaged and buying, which is key when you see overall fiscal 2025 net sales land at $3.1 billion, down 2% versus the prior year. The relationship strategy leans heavily on dedicated support for big partners and growing digital self-service options.

Dedicated sales teams managing key national retail accounts

Central Garden & Pet Company maintains close ties with its largest retail partners through specialized personnel. This structure is designed to maximize product placement and visibility, especially during peak seasons for the Garden segment. The company utilizes dedicated account-managers and sales teams positioned near several of its most significant customers.

Key customer concentration in the Garden segment for fiscal 2024 showed major reliance on a few players:

In the Pet segment, major retailers like Costco accounted for approximately 14% of net sales in fiscal 2024. The Pet segment also counts Amazon, Walmart, Petco, and Kroger as significant customers. The company supports these relationships with a retail sales and logistics network that provides in-store training and merchandising.

Digital marketing and innovative platforms to build brand loyalty

The focus on digital engagement is clear, especially within the Pet segment, where new products and improved digital engagement drove share gains. Central Garden & Pet Company is reinforcing its online presence through enhanced digital capabilities, retail media strategies, and data analytics.

Digital channel performance metrics from early fiscal 2025 show this focus in action:

• E-commerce sales represented 28% of Pet segment revenues in Q1 FY2025, marking a 6% year-over-year growth rate.
• In Q2 FY2025, e-commerce continued to be a strong contributor, accounting for 27% of pet sales.
• The Garden segment specifically registered double-digit e-commerce growth.

The company is investing in a robust pipeline of new products across both segments, scheduled for launch in fiscal 2025 and beyond, to meet evolving consumer preferences and support brand loyalty online.

Decentralized decision-making for agile customer response

To better navigate evolving retail dynamics and market shifts, Central Garden & Pet Company is actively transitioning its operational structure. CFO Brad Smith highlighted a move toward a more agile, decentralized decision-making approach in mid-2025. This strategic shift empowers business units to respond more quickly to customer needs and market changes, supporting the overall Central to Home strategy.

Self-service options via e-commerce platforms

The growth in e-commerce penetration serves as the primary self-service channel for many customers. This channel allows for transactional independence, supported by investments in digital capabilities and conversion rates. The Pet segment's Pet Consumables, which represent about 80% of that segment's sales, show resilience, partly due to the accessibility of these online platforms.

Direct-to-Consumer (DTC) fulfillment capabilities

Central Garden & Pet Company is building out its infrastructure to support direct fulfillment, adapting to changing retail preferences. This includes specific investments in logistics to enhance capabilities for shipping directly to consumers.

Concrete examples of this investment include:

• Upgrading the Eastern Pennsylvania distribution center specifically to enhance DTC capabilities.
• Shipping over 10,000 packages directly to consumers from that upgraded center.
• Opening a new e-commerce fulfillment facility in Easton, Pennsylvania.

These efforts are part of a broader Supply Network Design project completion, which enhanced customer alignment and increased cost efficiency across logistics for the entire business.

Central Garden & Pet Company (CENT) - Canvas Business Model: Channels

Central Garden & Pet Company utilizes a multi-faceted distribution network to reach consumers across its Pet and Garden segments.

The company's reach within the Pet segment supports nearly 10,000 retailer locations and over 5,600 veterinary offices as of fiscal year 2025.

• Mass Merchants (e.g., Walmart) and Club Stores (e.g., Costco) represent a core component of the volume distribution for both segments.
• Home Improvement Retailers (e.g., The Home Depot, Lowe's) are critical for the Garden segment's seasonal sales velocity.
• Pet Specialty Stores remain a relevant channel, though the company has navigated softer demand in durable pet products in some periods of fiscal 2025.
• Independent garden centers and pet shops provide targeted, localized distribution points.

E-commerce is a significant and growing component of the distribution strategy, with new facilities opened to support this growth, such as the one in Easton, Pennsylvania. The company is also streamlining its European presence by winding down UK operations to transition to a direct-export model for customers in the UK and select other European markets.

The focus on operational efficiency, including logistics improvements, directly impacts the effectiveness of these various channels.

Central Garden & Pet Company (CENT) - Canvas Business Model: Customer Segments

The customer base for Central Garden & Pet Company spans two primary, large-scale US markets: pet supplies and lawn & garden care. For fiscal 2025, the company's consolidated net sales reached $3,129.1 million, split between its two main segments.

The Pet segment, which generated approximately $1.8 billion in net sales for fiscal 2025, targets the massive US pet-owning population. The total U.S. pet industry expenditures for 2025 are projected to hit $157 billion. This segment serves a market where 94 million U.S. households now own at least one pet.

The Garden segment contributed about $1.3 billion to fiscal 2025 net sales. This addresses the home gardening consumer, where 88% of Americans grow plants or grass at home. The U.S. Lawn and Garden Products Market is expected to reach $83 billion in 2025.

Central Garden & Pet Company segments its customers based on product focus and purchasing behavior:

• The core US Pet Owners segment focuses on companion animal consumables, which is a significant part of the pet food market estimated at $43.45 billion in 2024, with projected growth.
• Home Gardeners and DIY consumers are the primary focus of the Garden segment, which saw its net sales at $1.3 billion in fiscal 2025.
• The company also serves Professional landscapers and agricultural businesses, though this is a smaller component of the Garden segment compared to DIY. The broader U.S. landscaping market was valued at $148.76 Billion in 2024.
• The customer base shows clear income bifurcation, with value-focused consumers seeking affordability and premium-seeking pet owners driving growth in areas like supplements, which expand at a 10.20% CAGR through 2030.
• Omnichannel shoppers are served through a distribution network that supports nearly 10,000 retailer locations and over 5,600 veterinary offices for the Pet segment alone. E-commerce represented 27% of total Pet sales in Q4 of fiscal 2025.

Here is a breakdown of the scale and focus across the key customer segments as reflected in the 2025 fiscal year results and market context:

You see the Pet segment's operating income was $216 million in fiscal 2025, while the Garden segment's operating income was $142 million. The company's overall gross margin improved to 31.9% in fiscal 2025.

For the pet owners, the company supports distribution through nearly 10,000 retailer locations. For the home gardeners, 88% of Americans engage in growing plants or grass at home.

The bifurcation in pet spending is clear: while overall pet sales are massive, specific high-growth areas like supplements show a 10.20% CAGR, indicating a strong premium segment. Meanwhile, 63% of owners shop more selectively due to inflation.

Finance: review the Q1 2026 sales forecast against the $3,129.1 million FY2025 baseline by Wednesday.

Central Garden & Pet Company (CENT) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Central Garden & Pet Company's operations as of late 2025. Understanding these costs is key to seeing where the margin discipline is being applied.

The largest component of cost structure is the direct cost of the products sold. For fiscal year 2025, the Cost of Goods Sold (COGS) for Central Garden & Pet Company was calculated to be approximately $2,131.8 million, based on reported Net Sales of $3,129.1 million and a Gross Profit of $997.3 million.

Operating expenses, which cover everything outside of direct production costs, are also substantial. Selling, General and Administrative (SG&A) expenses for fiscal 2025 totaled $747.3 million. This figure is derived from the reported Gross Profit of $997.3 million and the Operating Income of $250.0 million for the same period.

Central Garden & Pet Company has been actively managing its footprint, leading to specific, non-recurring costs. These are tied to the multi-year Cost and Simplicity program initiatives.

• Total non-GAAP charges recognized in fiscal 2025 related to these initiatives were $15 million.
• These charges included costs for the consolidation of two legacy Garden distribution facilities into a single site in Salt Lake City, Utah.
• Further costs were associated with the strategic wind-down of Central Garden & Pet Company's U.K. operations, transitioning to a direct export-only model.

The company's investment in its physical assets and infrastructure, or Capital Expenditures (CapEx), was anticipated to be around $60 million for fiscal 2025. This figure was part of a previously stated guidance range of $60 million to $70 million.

External factors like trade policy also directly influence the cost base. Tariffs on imported goods represent a measurable headwind, with about 13% of the company's total import costs being subject to these duties, primarily impacting the Pet segment. The company noted that improved productivity helped offset the initial impact of these tariffs during the year.

Here's a quick look at the major cost line items for fiscal 2025:

The ongoing execution of the Cost and Simplicity program is designed to drive efficiencies across procurement and logistics to counteract these costs, including tariff impacts. Finance: draft 13-week cash view by Friday.

Central Garden & Pet Company (CENT) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for Central Garden & Pet Company's revenue streams as of the close of fiscal year 2025. Here's the quick math on where the money came from.

The total consolidated net sales for Central Garden & Pet Company for fiscal year 2025 landed at $3.1 billion. This figure represents a slight decrease of 2% compared to the prior fiscal year's net sales of $3.2 billion.

The revenue base is clearly split between the two primary operating segments:

The company's strategic focus definitely includes revenue derived from high-margin consumables. This focus contributed to a gross margin expansion of 240 basis points for the full fiscal year 2025, reaching 31.9%. The CEO noted that margin expansion was driven by a favorable product mix.

Another key component of the revenue generation involves wholesale distribution to major retailers. The Garden segment experienced a sales decrease partly due to the loss of two product lines within Central Garden & Pet Company's third-party distribution business in fiscal 2025. This shows that the distribution channel is a measurable part of the top line.

Central Garden & Pet Company generates revenue through its extensive portfolio, which includes over 60 high-quality brands across both sectors. The streams can be categorized by the nature of the product:

• Revenue from pet care products and accessories.
• Revenue from lawn, garden, and outdoor living supplies.
• Revenue from high-margin consumables, a strategic focus area.
• Revenue from wholesale distribution channels.

Finance: draft 13-week cash view by Friday.