Petfood Industry Electronic Newsletter August 1, 2006
 

August 1, 2006
Volume 6, Number 15

This newsletter is also available in an Acrobat PDF format. To download the PDF click on the following link: Petfood Industry PDF.

Your free copy of the Petfood Industry Electronic Newsletter is sponsored by BioFlavor® from NuPetra LLC. BioFlavor® is the industry's first choice for dog and cat food palatants. For more information, please visit our website at http://www.nupetra.com/.

Here's what's been happening lately:

 

Industry news

Larson promoted to GM of Hampshire Pet Products
Julie Larson has been promoted to general manager of Hampshire Pet Products, LLC. Larson's responsibilities will include leading the development and review of the company's strategic plans and execution of the company's initiatives. Larson has over 25 years of experience in the petfood industry and has been with Hampshire Pet Products since 2000.

USDA halts lifting of ban on Canadian beef
Another case of BSE in a Canadian cow has prompted the US Department of Agriculture (USDA) to hold expanding cattle and beef imports from Canada. The USDA had proposed lifting its ban on Canadian cattle, as well as beef from cattle more than 30 months old, but the latest infected cow was born in 2002—well after Canada imposed feed restrictions. USDA said there will be no decision on expanding beef and cattle trade with Canada until the conclusion of a joint investigation into that nation's latest case of BSE.

USDA spokesman Ed Loyd said the department has withdrawn a proposal that had been under review by the White House Office of Management and Budget. Loyd said the US wants to know how the latest infected animal in Canada acquired the disease.

“We believe it is prudent to hold the rule until the joint investigation into how the animal may have been infected is completed,” Loyd said. “It is important to confirm that Canada's regulatory system designed to protect consumers and livestock is working.”

Gold Line expands dry petfood exports
A UK animal feeds manufacturer is increasing its exports into the European dry petfood market with the help of an Enterprise Award from Home Grown Cereals Authority (HGCA). Gold Line Feeds, (Dodson & Horrell), has been awarded £10,000 for a three-year project involving the export of dry petfood made using wheat, barley and linseed to Europe. Organized twice a year by HGCA, the awards offer support towards the development and marketing of products using UK-grown grain.

Gold Line Feeds currently exports its Gusto brand of dry dog food to France and Italy. With the help of funding from HGCA, it is looking to break into the German, Danish and Swedish markets. The HGCA Enterprise Award will also be used for promotional material, the website and new product development. It is anticipated that the project will use a substantial amount of additional grain over its three-year duration.

Colgate-Palmolive profit dips 17%
Colgate-Palmolive Co. (Hill's Pet Nutrition, 14% of company sales) second-quarter profit slid 17%, as restructuring charges outweighed sales growth. The company noted that net income declined to US$283.6 million from US$342.9 million in the prior-year quarter. Restructuring charges totaled US$115.9 million in the latest period, a sharp increase from the US$28.7 million in charges logged in last year's quarter.

Charges include costs for an early retirement program under a four-year restructuring plan introduced in 2004. Sales were US$3.01 billion, up 6% from US$2.84 billion a year ago and ahead of analysts' consensus target of US$2.96 billion. Unit volume rose 4%. Prices rose about 2% worldwide, while favorable foreign exchange boosted results slightly. Colgate attributed the sales growth to new products and increased advertising spending.

Hill's sales and unit volume grew 9.5% and 5.5%, respectively, to a second-quarter record level. Operating profit increased 5% to a record level during the quarter, after a strong double-digit increase in advertising.

Future scenarios in the Italian pet market
Mediatic has scheduled an event for the Italian pet industry on November 8, 2006, in Reggio Emilia, Italy. Manufacturers, trade press and experts will discuss new trends and development opportunities including products, export countries, distribution channels and international trends. Further information will be available in September 2006. Contact: Mediatic, E-mail: media@mediatic.it, Tel: +39.0522.383620, Fax: +39.0522.381484.

New sales appointments by Pancosma
Pancosma has announced the appointment of two additional sales managers to its sales division. Ronald Kräft has been named sales manager for northern Europe and countries to the East, including Russia and Ukraine. He was recently country manager for Alltech in Germany and Austria. For Southern Europe and North Africa, the sales manager will be Florence Rudeaux. She has worked for the past seven years as business unit manager for the feed additive division of Béghin Meiji.

New construction for DKSH Netherlands BV
Groundbreaking of a new warehouse for DKSH Netherlands BV was held recently. With the expansion of the new warehouse and office space begins the last phases of the merger of LenersanPoortman BV and Holland Diervoeders BV. The production and logistics of petfoods will be brought under one roof and the total capacity will be expanded to 26,000 pallet positions. It is expected that the new building will be completed in early 2007 and that the logistical activities will move from Utrecht to Dordrecht.

Nestlé Purina unveils US$36 million plant expansion; cuts jobs in UK
Nestlé Purina PetCare said it plans to begin expanding its petfood manufacturing plant in St. Joseph, Missouri, USA, this fall, providing another 30-40 jobs in 2007. The US$36 million expansion to the plant, which currently employs 179, will enable the facility to make more wet petfood. The company invested US$10 million in the plant last year for its new Beneful brand of gourmet petfood.

The announcement comes three years after Nestlé closed a dry petfood plant in the area, laying off 250. The company also operates a research facility that employs around 100. The company said it expects to begin construction on the expansion in September and have it ready for operation in late 2007.

This occurs as forty-four jobs at a UK Nestlé Purina petfood manufacturing facility have been eliminated due to a downturn in the Japanese export market. Almost 20% of the workforce in Blayney will be cut by the end of next month. Nestlé Purina's technical and production vice president, Paul English, said, where possible, the redundancies would be offered on a voluntary basis.

Betagro finds some success in Thailand petfood market
Pets are becoming more popular as home companions for urban residents in Thailand. The shift has led to and increase in annual sales of dog and cat food, up more than 10% over the past several years. Nopporn Vayuchote, executive vice president of business development for Betagro Group, said his firm had enjoyed substantial growth in its dog food business in Thailand—which is estimated to be worth 3.6 billion baht this year, up 13% from the year before. He said Betagro held 10% share in the 3.2-billion-baht dog food market last year.

The success has driven Betagro, which mainly focuses on processing and exporting chicken, to invest 100 million baht this year to expand its dog food factory in Lop Buri. The expansion will bring its total capacity to 4,000 tons per month from 1,500 tons now. The firm hopes to capture a 20% share of the dog food market within the next few years.

Nopporn said that the company also planned to add cat food to its production line to tap into the 800-million-baht market in Thailand. He said competition was still light for cat food with only 15 brands, compared to more than 50 brands of dog food, led by Pedigree and CP with about a 22% share each.


Market data

Each month the Petfood Industry E-newsletter will bring you the latest market data available from several different sources including Euromonitor, Information Resources, Inc. (IRI) and ACNielsen.

Today's market research data chart comes to you from: ACNielsen



Total US food, drug, mass merchandiser (excluding Wal-Mart data) private label petfood sales for the 52 weeks ending April 01, 2006.

Source: ACNielsen
Category

US$ sales

% chg vs. 2005
Unit sales
% chg vs. 2005
Cat dry
$82.8 million
3.0%
22.2 million
1.0%

Cat moist

$0.12 million
-76.7%
0.18 million
-67.5%
Cat wet
$66.6 million
-8.2%
199 million
-9.4%

Dog & cat treats

$72.2 million
0.5%
32.8 million
2.6%

Dog moist

$10.9 million
-10.9%
3.7 million
-0.9%

Dog wet

$53.4 million
-6.2%
98 million
-9.3%

Dog dry

$155.4 million
5.0%
27 million
-0.6%
Total petfood
$490.7 million
-0.1%
397 million
-7.1%

Wet dog food innovation may revive market
Beneful Brand Prepared Dog Food might just knock the wet dog food industry out of its lull. According to Euromonitor analyst Elizabeth Higgins, the Beneful prepared food brand is expected to revive the stagnant wet dog food sector with much needed innovation in flavor, freshness, and packaging. “The product makes the consumer feel as if they are cooking a meal for their dog,” says Higgins. Globally, wet dog food 1998-2005 period growth was a low 1.7% with dry dog food at a strong 6.2%. Higgins notes that the innovative packaging with a see through view to the food attracts attention, displaying to consumers the freshness of the product and the appeal it will have to their canine companions.

For more information about Euromonitor International's petfood research or to purchase reports online, click here.



                                                                                                                                                                                                       

E-news

Proving the ROI of RFID
Three technology companies have joined together to propel radio frequency identification (RFID) applications forward. OATSystems, ADT Security Systems and Intel are paying for technology implementation to win grocery retailers over to RFID investment. Grocers are hesitant to engage RFID technology. The up-front costs are too great and the pay-off uncertain. So ADT is contributing RFID readers and antennas, OAT is adding middleware and Intel is offering server processors to remove one of grocers' barriers to track in-store promotions with this emerging technology.

The three vendors and consumer packaged goods manufacturers such as Procter & Gamble have put out a call for retailers to participate in a six-month trial in which they'll show that sell-through of one additional product per store pays for the technology. The data will allow suppliers to plan smarter promotions and retailers to increase sell-through.

In a study of Wal-Mart's RFID program, the Massachusetts Institute of Technology found a 19% increase in promotional sales attributable to RFID tags, readers and data analysis. This trial aims to help CPG suppliers and retailers increase sales, decrease marketing costs and increase shopper satisfaction. ROI will also appear in the information value of the RFID data. Infrastructure will be in place next month, and the RFID-tracked promotions will run through the holidays, with results released in the first quarter of 2007.

Product news

Spray-dried cooked chicken liver
American Dehydrated Foods, Inc. (ADF) sources their fresh chicken livers from USDA-inspected food facilities. ADF offers spray-dried cooked chicken liver with a choice of natural or other antioxidants, containing a minimum fat content of 20% and minimum 56% protein. Other liver options for the formulator include a spray-dried cooked chicken liver and chicken blend for a higher fat content and chicken for your label; a spray-dried cooked pork liver with a minimum 60% protein; and an “Allergen Free” Spray-Dried Chicken Liver Hydrolysate. All ADF products are shelf stable up to one year.

Inclusion or application of a spray-dried liver product from ADF enhances the palatability of most formulas. Low maximum moisture, coupled with high levels of highly-digestible protein, make the spray-dried liver products from ADF easy-to-use in formulations. And ADF's quality assurances and standardized nutrients provide a consistent, accurate level of digestible nutrients for inclusion in your petfoods and treats.

New grain test for DON
Romer Labs introduces FluoroQuant® DON Plus (FQ DON Plus), a new test for deoxynivalenol (DON) levels in wheat, barley, malted barley and corn. The FQ DON Plus test is a four-step procedure. The user weighs, blends and filters a sample for two minutes. The resulting extract is placed in a test tube, cleaned and dried then heated and cooled. The final readings come from placing the extract in a calibrated fluorometer. The entire process takes approximately 10 minutes to complete. The Fusarium graminearum fungus is the principle producer of DON (or vomitoxin) in grains. It survives on old, infected residue left on the field from the previous growing season.

Research notes

Responses to diets containing alternative carbohydrates
Several blends of carbohydrates containing fructooligosaccharides (FOS) and/or mannanoligosaccharides (MOS) from yeast cell wall were evaluated as proxies for traditional dietary fibers in animal protein-based diets fed to dogs. Six mixed-breed dogs with hound bloodlines were fitted with ileal “T”-type cannulas. In a 6 x 6 Latin square design with 14-day periods, six diets with different carbohydrate sources were tested. Dogs were offered 175 g twice daily of a brewer's rice and poultry by-product meal-based diet supplemented with no additional fiber (CO); 2.5% cellulose (CL); 2.5% beet pulp (BP); 1.0% cellulose + 1.5% FOS (CF); 1.0% cellulose + 1.2% FOS + 0.3% MOS (CFM1); or 1.0% cellulose + 0.9% FOS + 0.6% MOS (CFM2).

Chromic oxide was provided in gelatin capsules as a digestion marker at each feeding. On day 11 through 14 of each period, ileal samples and total feces excreted were collected. On day 14, a blood sample was collected for bacterial enumeration by serial dilution and plating on selective agars. Treatment least squares means were compared using a Tukey adjustment. Feed intake, fecal score and fecal pH were similar among treatments, but wet fecal output tended (P = 0.09) to be higher for dogs fed BP compared with CFM1. Fecal Bifidobacterium concentrations were higher for CF (P = 0.02) and CFM2 (P = 0.09) than for CL, and tended to be higher (P = 0.06) for CF than for CO.

Lactobacillus concentrations tended to be increased (P = 0.07) for CF compared to CL and CO. Total anaerobic microbe concentrations were increased for CF (P = 0.04) and CFM2 (P = 0.05) compared to CL, while total aerobe microbe concentrations were increased for CF compared to CL (P = 0.05) and CO (P = 0.06). White blood cell counts and serum immunoglobulin concentrations were not affected by treatment. These data suggest that fiber blends containing FOS and/or MOS modulate intestinal microbial populations but do not appear to affect immunological status of the dog.

Source: Middelbos, I.S., et al., 2006. Gut microbial and immunological responses of dogs to diets containing alternative carbohydrates with properties similar to those of dietary fibers. Proceedings of the 2006 ADSA ASAS Joint Annual Meeting, Minneapolis, Minnesota, USA.

Yeast culture vs. brewer's dried yeast as dry cat food palatability enhancers
In this study, yeast culture and brewer's dried yeast were offered to cats to determine palatability preference. Yeast culture and brewer's dry yeast were included in a 32% protein, 20% fat cat food and offered to a panel of cats on two consecutive days. Twenty adult domestic long- and short-haired cats with a median age of six were randomly assigned to the panel. Cats were housed at a commercial nutrition laboratory. The yeast products were added to the diets, prior to extrusion, at 1.25% of the ration dry matter. One hundred fifty grams of each ration were offered to the cats and bowl position was reversed daily to prevent “left-right” bias.

The brewer's dry yeast was approached first on 19 of 40 occasions, but only consumed first on 10 of those 40 occasions. Total daily consumption was not statistically different between the two yeast products with the yeast culture ration consumed an average of 22.25 ± 13.4 g per day and the brewer's yeast ration 27.05 ± 13.7 grams per day. Cats tended to consume more of the yeast culture ration per kg of body weight (P = 0.08). The brewer's dry yeast ration was consumed at 5.6 ± 2.55 g/kg of body weight and yeast culture ration at 7.58 ± 4.24 g/kg. Additionally, the yeast culture was preferred by 11 of the 20 cats based on total consumption. Total daily consumption averaged 445.5 g for the brewer's dry yeast ration and 541 g for the yeast culture ration.

In conclusion, there was no statistical difference between intake of cat food containing brewer's dry yeast and yeast culture; however, intake per kg of body weight tended to be higher for yeast culture.

Source: Jones, J.W. and Leiner, B., 2006. Comparison of yeast culture and brewer's dried yeast as palatability enhancers in dry cat food. Proceedings of the 2006 ADSA ASAS Joint Annual Meeting, Minneapolis, Minnesota, USA.



Positions available

Our help wanted listings aim to inform petfood industry professionals about employment opportunities worldwide. Contact our sales staff at henson@wattmm.com or stadel@wattmm.com for more information on placing a listing in upcoming issues.

Technical services manager
A petfood manufacturer is looking for a person with the following qualifications:

  • Prior experience in the petfood industry;
  • Food Science or Animal Science degree; and
  • Experience in quality and food safety management.

Position will be responsible for all aspects of quality control. Will oversee four quality control technicians; and implement, oversee and update all quality procedures and manuals. Will coordinate testing of all raw materials and finished products to assure they meet quality standards. Must be self-motivated and organized. Computer skills a must. EOE. Send resume, including salary requirements, to: Hagen Pet Foods, Inc., PO Box 29, Waverly, NY 14892 USA. E-mail: human.resources-hpf@rchagen.com.

Manager of Regulatory Affairs and Quality Assurance
Trouw Nutrition USA, a leading manufacturer of unique feed ingredients, base mixes and premixes for the agricultural and companion animal nutrition industry, employs the best and brightest. We are committed to offering a challenging and rewarding environment within which to work by providing employees with clear vision and direction, performance and career development, a competitive salary structure and bonus system, along with an attractive and comprehensive benefit package.

Trouw Nutrition USA desires to hire a manager of Regulatory Affairs and Quality Assurance to be located at its Highland, Illinois, USA corporate offices (just 30 miles east of St. Louis, Missouri). In this position you will be reporting to the director of Quality Assurance and will be responsible to assist in the development, implementation, maintenance and monitoring of the Quality Program to ensure that the products and production processes of Trouw Nutrition USA meet or exceed quality expectations of customers and of the company and are fully compliant with legislative and product specifications.

Additional responsibilities include ensuring regulatory compliance for feed and feed ingredients on a global basis by monitoring regulatory changes and facilitating sales and by registering products in the USA and internationally with appropriate regulatory and governmental agencies in a timely and effective manner.

Qualified applicants should have a technical or college degree in a related field, experience in regulatory or quality assurance activities, experience with and/or a willingness to learn about dealing with government officials. A working knowledge of FDA, USDA, APHIS, AAFCO and other agencies’ rules and regulations is considered a plus, as is internal quality audit experience and training capability. In addition, this position requires the person to be a good, systematic documenter having computer skills in word processing and spreadsheet applications and E-mail programs, with good oral and written communication skills.

For consideration, please fax, mail or E-mail your resume with salary history to the attention of: Human Resource Manager, Trouw Nutrition USA, PO Box 219, Highland, IL 62249 USA, Fax: +1.618.654.3157, E-mail: susan.boostrom@nutreco.com.

References

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Your free copy of the Petfood Industry Electronic Newsletter is sponsored by BioFlavor® from NuPetra LLC. BioFlavor® is the industry's first choice for dog and cat food palatants. For more information, please visit our website at http://www.nupetra.com.