This year’s economic crisis is prompting Americans to cut back on their spending. For some it might be switching from name brands to generics. Others are cutting out the frills and thrills they once enjoyed including vacations and dining out. But there’s only so far pet owners will go to trim their spending.

The proof can be found in Kern Company Distributing, a family-owned business specializing in the distribution of pet products to independent and private pet stores.

Bobby Kern, who manages the operation, says the company has experienced steady profit growth, despite the economy. He says the company is on pace to grow profits by 30 percent this year.

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The company’s main product lines are dog and cat foods but Kern says, "A to Z if you have the pet, we can feed it."

In his line, Kern explains there are two types of products: mass-market and independent. The mass-market products includes brands such as Science Diet and Pedigree. Independent brands are not the generic brands generally found in superstores, but fall right in between. They have names such as Chicken Soup for the Dog Lover’s Soul and Taste of the Wild. Consumers can find them in pet stores.

"People have been forced to cut back on the money they spend on their pets," Kern said. "But, owners are willing to compromise price, not quality. That is where the independent products come in."

Independent products are as wholesome and can be healthier for pets than mass-market products.

Kern cites one big reason in the change for consumers from mass market to independent products is that pet owners have started educating themselves on healthy, quality choices for their animals.

"Independent pet food is all manufactured in the U.S.," said Kern, noting many of the mass-market brands are produced overseas, which became an issue in February when some mass market pet foods were were recalled.

"Twenty years ago you saw dogs in people’s yards and outside in the dog house," Kern said. "Now pets more often then not live inside and are more a part of the family – they’re companions."

Kern Company Distributing has been fairing well through these economic struggles and is proof that pet owners are scaling back but still making informed decisions on what to feed their pets.

"Independent pet food is top quality food for an inexpensive price," stated Kern.

By way of comparison he said a 35-pound bag of Nutro Natural Choice dog food costs about $50. Chicken Soup for the Dog Lover’s Soul has the same kind of ingredients for about $32 for a 40-pound bag.

Bankrate.com, a website designed to help pet owners set up a pet-friendly budget, assess the values of the pets and set up pet trusts, estimates Americans spend more than $36.3 billion annually on their pets, especially during holidays. On average, pet owners spend about $100 per year on Christmas gifts for their pets.

"I haven’t cut back on how I take care of my dog yet," said Paul Schuster, a local pet owner. "But I have cut back on some of my excess spending."

Shuster has owned his golden retriever, Lilly, for more than four years and he says his three children wouldn’t let him get rid of her even if he wanted.

"Until you asked about my pet spending, I guess that is one area of spending I never thought to cut back on," he said.

Schuster admits Lilly is "very much a part of the family." She gets taken to a dog park nearly every day and hasn’t missed a family vacation since the Schusters got her.

"She is part of our family, but it’s not like we pamper her too much," said Schuster. "You see the dogs carried around in handbags with diamond collars, that’s just not our style."

But Schuster said the family will get Lilly a couple of presents this holiday season. He says it’s a tradition for the children.

When asked about her pet spending habits, Jennifer Paulson, a cat owner, said "My cats are rather picky about what they eat so I haven’t cut back on what I feed my kitties. I have, however, cut back on the amount I have spent on toys and accessories."

Paulson has three cats. She doubts many pet owners will make changes in spending because "pets are loved and people tend to take care of those they love more than themselves at times."

It will be interesting to see how consumers cut their spending and exactly which markets will profit, and which will falter. From the sounds of it, there are several companies that have the perfect products to gain customers in a troubled market.

"Some say pets are recession proof," said Bobby Kern. "Though this is not 100 percent true, our company is still going to reach our profit goal this year."