(FORTUNE Small Business) – After Johnson and Melton doubled the amount of Cloud Star pet products that they donate to animal shelters, the company's annual sales increased 50%, to $4.5 million in 2003.

A LEG UP: In 1999, Johnson and Melton launched their company, which makes all-natural cat and dog treats, shampoos, and soaps, when they couldn't find food for their allergy-prone pound puppy. The company, based in San Luis Obispo, Calif., was profitable one year later, but it took two more years for the married couple to realize that their policy of donating products to the 20 neediest area shelters was making for successful marketing. "So many people were calling, wondering why they saw our stuff in shelters but not stores," says Melton, 30. "But when the retailers started calling, that's when we decided to add 30 more places to our donation list."

POOCH PERFECT: Now pet shops and health-food stores are starting to devote more shelf space to the home-grown brand. Cloud Star sees this as an opportunity for product expansion. Up next: flea and tick wash. — MAGGIE OVERFELT