Petfood Industry Electronic Newsletter May 16, 2006
 

May 16, 2006
Volume 6, Number 10

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

Old Mother Hubbard appoints VPs
Old Mother Hubbard welcomes Mark Shuster to the position of vice president of marketing and has named Jeanne Lizotte to the newly-created position of vice president of new products. Shuster will lead Old Mother Hubbard's marketing organization. He will be responsible for developing the company's marketing strategy, identifying new approaches to reach consumers and driving continued rapid growth. Shuster brings over 25 years of experience with fast-paced, consumer-driven brands. Most recently he was the chief marketing officer for Timex Incorporated. As vice president of new products, Lizotte will be responsible for identifying, developing, validating and launching new products. She was previously VP of marketing for Old Mother Hubbard. In the past five years, Lizotte has developed several line extensions for the Old Mother Hubbard and Wellness brands.

AFIA to hold Feed Ingredient Institute and Liquid Feed Symposium
This year the 20th AFIA Feed Ingredient Institute (FII) will be held at the Browne Plaza O'Hare Hotel, in Chicago, Illinois, USA on June 19-22. This intense 3½-day course is designed for feed manufacturers, ingredient suppliers or anyone interested in learning more about the feed industry. Industry professionals conduct the educational sessions. Scheduled courses include basic nutrition and why it is important to the industry. Selecting quality ingredients and feed additives, mixing and processing the feed, quality assurance, regulations and distribution will also be covered. The Institute will conclude with coverage of technologies affecting the industry. A wide variety of personnel benefit from FII attendance, including purchasing agents, quality assurance personnel, nutritionists, sales, administrative, accounting, information systems, transportation and manufacturing staff. For program details, registration and hotel information, visit www.afia.org.

The American Feed Industry Association (AFIA) will also hold its 36th Annual Liquid Feed Symposium at the Sheraton Oklahoma City, Oklahoma, USA on September 6-8, 2006. The theme, “Defining our Position” reflects the focus the program will take on the state of the industry and its future direction. The 2½-day symposium will feature exhibits of the latest innovations in the industry from the top companies. Scheduled program topics include: Ingredient Fundamentals from an International Perspective; Nutrition from an Animal Health Perspective; Electronic Animal Identification and its Value to the Producer; Liquid vs. Dry, Confined Feed Operation; By-product Opportunities; and a Foreign Trade Update. The exhibits will bring you up to date on the latest products. Registration and program details will be available in early June on the AFIA website.

Alltech meeting explores the “nutrigenomic promise”
Delegates from 71 different countries were challenged by “new realities” in pet nutrition and were presented with the emerging new sciences of glycomics and nutrigenomics at the annual Alltech Feed Industry Symposium, which took place in Lexington, Kentucky, USA from April 23-26, 2006. Some of the speakers from the pet sessions included: Dr. Kelly Swanson, University of Illinois, USA, who highlighted the cognitive effect of aging and the promise of genomic biology; Dr. Fernando Rutz of the Universidade Federal de Pelotas, Brazil, who explained how obesity can lead to typical human diseases, such as diabetes; and Dr. Cheryl Dikeman of the Henry Doorly Zoo, USA, who discussed the nutritional link between zoo animals and companion and farm animals. Video highlights from the Symposium are available on www.alltech.com. For a copy of the proceedings, E-mail: info@alltech.com.

Frederick named support manager for Brock Grain Systems
Roger Frederick has recently been named technical and sales support manager for Brock Grain Systems. Frederick will be responsible for overseeing technical support training, installation and sales training programs for Brock's grain conditioning equipment. Frederick joined Brock in 1988 as a regional product sales manager. He has over 33 years experience in the grain industry.

German petfood market up 1.6%
The German market for pet supplies reached €3.1 billion last year, up 2.3% over the previous year. The petfood market grew by 1.6% to €2.3 billion. Data reported to PET in Europe by German pet industry association IVH, stated that the market for cat food continues to be the largest single segment. In addition to a particularly marked increase of 8.6% in dry food sales to €227 million and of 4.7% to €111 million for treats, moist food sales increased by 1.5% to €765 million, resulting in overall growth of 3.2% to €1.1 billion.

Market trends for dog food present a different picture—while dry food (including semi-moist food) was up 3.1% to €369 million, sales of moist food fell by 3% to €326 million, and sales of treats were down 0.8% to €253 million. As a result, overall sales in the dog food segment declined 0.1% to €948 million. IVH also reported that the supermarket chains (including drugstores and discount stores) continued to be the main sales channel for petfood, with a share of 67% and sales of €1.5 billion.

Smurfit-Stone sells off consumer packaging segment
Smurfit-Stone Container Corporation recently announced that it has entered into a definitive agreement to sell all of the assets of its consumer packaging segment to a company formed by Texas Pacific Group for approximately US$1.04 billion in cash. Texas Pacific Group has arranged fully-committed financing for the transaction, which the parties expect to complete by the end of the second quarter. The businesses to be sold employ approximately 6,600 employees and include: Four coated recycled boxboard mills; thirty-nine consumer packaging converting operations in the United States including folding carton, multi-wall and specialty bag, flexible packaging, label, contract packaging and lamination businesses; and one consumer packaging converting plant in Brampton, Ontario, Canada.

Smurfit-Stone also announces that John M. Riconosciuto has resigned as the company's chief operating officer to become the chief executive officer of the newly-formed consumer packaging business for Texas Pacific Group. 

Olson names NIAA director of educational programs
Kenneth E. Olson, PhD, PAS, has been named director of educational programs at the National Institute for Animal Agriculture (NIAA). In addition to Johne's, Olson will oversee a similar initiative that NIAA operates, addressing scrapie education in sheep and goats; NIAA's animal handling and transportation resources; provide NIAA members with additional continuing education (CE) opportunities; and develop new education programs for the industry.

Probiotic dog treats
Vets Plus has introduced Probios® Dog Treats. According to the company, Probios is the world's most widely-recognized, researched and used brand of direct-fed microbials. Probios Dog Treats provide the benefits of yogurt in a biscuit. Probios Treats reportedly contain a source of live (viable) natural-occurring microorganisms to help maintain normal intestinal health. Probios Dog Treats are available in three varieties—Probios Treats Digestion Support, Probios Treats with glucosamine and Probios Treats Soft & Shiny Coat.

Vets Plus, Inc. manufactures and distributes Probios brand microbial products under license agreement from Chr. Hansen. Website: www.probios.com.

Caged bird treats
L'Avian Plus introduces its all-natural TropikTreet™ premium caged bird treats. TropikTreet for Cockatiels, TropikTreet for Parrots and TropikTreet for Large Parrots are made with real nuts and real fruit like papaya, pineapple, bananas. Website: www.lavianplus.com.

Petfood Forum 2007
Petfood Forum 2007 will be in Chicago, Illinois, USA on April 16-18, 2007. Focus will be held April 18-19, 2007. Please send your topic and speaker ideas for Forum and Focus to phillips@wattmm.com. Your input will help us assemble the best educational sessions possible.

Interzoo notes
Petfood companies and treats suppliers from at least 30 countries were prominent among the 1,270-plus exhibitors last week at the “world's biggest pet supplies show”—Interzoo. This 29th edition of the fair in Nuremberg, Germany not only had the highest-yet number of exhibits, it also set a new record for surface area by covering a total of almost 79,000 square meters. Petfoods represented the largest single product section in terms of area, but snacks and treats came a close second for number of exhibits. Meat-based treats/chews from China were strongly represented in the ranks of numerous Asian suppliers, no doubt reflecting the opening of the European Union market to Chinese products in November 2005.

Alongside well-known international petfood players were some newer names. Two of them, Nory from China and Lesa from Turkey, were started by established family businesses that worked in completely separate sectors (fishing tackle and textiles, respectively) in their home countries. In both cases, the families decided to diversify because they saw growth opportunities in petfoods.

Other introductions provided a new slant to existing companies, such as the creation of Provimi Pet Food NL to bring together sales and administration for the Provimi Group's wet and dry petfood activities in the Netherlands, while retaining their product brand identities. Healthcare giant Bayer (Germany) highlighted its recent launch of the Mira range of petfoods in Argentina, to add to the long-established Progres line. British manufacturer Naturediet was exhibiting to begin exports from its newly opened, state-of-the art factory in eastern England. Calibra (Czech Republic) was present as a first-time exhibitor to begin an export campaign.

PetCom, founded in Germany in January 2006 as a sister company spun-off from palatant producer GePro in the PHW group, was unveiled at Interzoo. PetCom has taken over the storage, milling and transport operations of the former Heibo site in Minden, Germany. This site was upgraded in 2001 to handle 100,000 tons/year.

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: Information Resources, Inc.



Total US food, drug, mass merchandiser dry dog food sales for the latest 52 weeks ending March 19, 2006.

Source: Information Resources, Inc., a leading global provider of enterprise market information solutions.
Brand

US$ sales

% chg vs. 2005
Unit sales
% chg vs. 2005
Iams
265 million
-1.0%
20.3 million
-2.8%

Purina ONE

155 million
-0.7%
12.3 million
-7.5%
Beneful
150 million
27.8%
17 million
22.3%

Private label

140 million
1.5%
23.8 million
-4.1%

Pedigree Mealtime

116 million
-26.1%
11.8 million
-24.5%
Total
1.6 billion
-0.9%
184 million
-4.1%

It's a dog's world in India
Dogs were still the most preferred pets in India in 2005, with cats and other pets a distant second. In 2005, the dog population grew by a strong 23% over the review period, creating growth in dog food value growth. Sales of dog food in India are expected to rise by 15% in 2005 over 2004.

Dry dog food remains the preferred dog food among India's pet owners, due to ease of storage and availability. Wet food for dogs is usually non-vegetarian, a negative factor with consumers in India unwilling to refrigerate it alongside their vegetarian food. Instead, dogs are often fed homemade food also eaten by their owners, with consumer interest in prepared dog food a relatively new trend. Companies are striving to convert unprepared dog food purchasers to branded food and any gains are beneficial to sales.

For more information about Euromonitor International's petfood research, click here.



                                                                                                                                                                                                       

E-news

Global digital divide is closing
According to the sixth annual “E-readiness Rankings” of the world's largest economies, published by the Economist Intelligence Unit (EIU), using a model developed together with the IBM Institute for Business Value, with over 1 billion Internet users and 2 billion mobile-phone users worldwide, the world is more E-ready than ever. The EIU describes a country's E-readiness as a comprehensive measure of its overall E-business environment, including the potential for Internet-based business.

emarketer.com noted that most of the top countries in this year's E-readiness rankings saw little movement between them from 2005 to 2006. West European countries took six of the top ten spots. Three of those countries—Denmark in 1st place, Sweden in 4th and Finland in 7th—remain best in class in key areas of connectivity, such as mobile penetration and Internet use. The US, Australia, Canada and Hong Kong took the other top ten slots.

While the least E-ready country covered in the study was Azerbaijan, scoring only 2.9, virtually all countries in the 2006 E-readiness rankings improved their scores this year. Moreover, the improvement was greater in the lower tiers of the rankings than at the top, signaling a decline in the distance separating the best from the rest.

“This is the first time we see a level playing field between developed and developing nations in terms of connectivity,” IBM's Peter Korsten told Reuters. “The digital divide no longer looks quite the chasm many people once feared,” added Daniel Franklin of the EIU.

When Americans buy they go online first
In a survey conducted by Burst Media, nearly half (49.8%) of respondents cited television as the media that most effectively captured their attention, followed by the Internet, with magazines, newspapers and radio trailing. Not a bad showing for the newest medium on the list. When respondents were asked about purchasing influence, which ranks higher in marketers' concerns than general attention grabbing, the Internet was revealed to be even more significant.

More than half of the respondents said the Internet was their primary source for information about products or services they might purchase. emarketer.com stated that even more striking was the difference in use of the Internet between income segments. Use of the Internet to gather product information rises dramatically as household income (HHI) increases. In other words, the higher the HHI, the more the Internet influences purchasing.

If marketers test these findings in the real world and find they hold up, the already steady flow of ad dollars from television to the Internet could turn into a flood.

Get ready for “cellcasts”
“The cell phone will become the next podcast-listening device,” says Barbara Rechterman, executive vice-president at GoDaddy.com, which is looking to try mobile podcast advertising. Long tied to PCs or iPods—hence the name—podcasting fans are moving on to mobile phones, which increasingly boast more computer-like features.

Plus, new software recently available from outfits such as Pod2Mobile and UpSnap allows users of basic phone models to download and listen to podcasts wirelessly, cutting the PC and portable music player out of the equation. With UpSnap, which launched 100 free mobile podcasts on March 27, you can simply dial a number to listen to your program from your phone. In a few weeks, the service will also allow users to get podcasts to their phones wirelessly by sending UpSnap a text message. Rival Pod2Mob allows for the text message feature and has built a user base in excess of 100,000 since its launch last summer.

Those thousands of mobile podcasting fans could turn into millions this year. Within six months, more people will listen to podcasts via wireless phones than via iPods, believes Mike Chapman, an analyst with consultancy eMarketer. More than 50 million Americans will listen to or watch podcasts by 2010, up from 10 million this year, the firm says. Ever-smarter wireless phones “will become a driving force [in podcasting],” Chapman says. “In the second half of 2006, people listening to podcasts, or watching video podcasts, on cell phones will become commonplace.”


Product news

Large animal indirect calorimeter cage
Oxymax-XL from Columbus Instruments is a special version of the “Oxymax” VO2/VCO2 Metabolic Computer that has been configured for use with large subjects. Oxymax-XL supports air supply flows from 1000 to 15,000 LPM, making it useful for animals ranging in size from large pigs and dogs to horses. Oxymax-XL supports one channel and can be configured for either positive or negative ventilation conditions. Unique to Oxymax-XL is its rapid response. Oxymax-XL can be used with large animal cages or with animals wearing masks, when fast response measurements are required (ex. exercise treadmill). All flowmeters employed in Oxymax-XL are NIST certified. In addition to the standard monitoring of VO2 and VCO2, Oxymax-XL can be equipped with an optional methane (VCH4) sensor for making accurate calorimetric assessments on ruminant subjects. Oxymax-XL may also be outfitted with special sensors and air supply systems unique to the intended application.

Ergonomic work positioners
The Lift Stik™ from Presto Lifts may be the most versatile lifter transporter ever built. Its innovative compact design distributes the load evenly over four oversized casters that roll easily over thresholds and uneven floors. Lift is achieved by a powered, continuous chain in the Lift Stik's single mast. The narrow mast design provides unmatched visibility. A hand-held push-button remote allows the operator to lift or lower the platform from any side of the unit and at dual speeds for safe, efficient control. Because the lift is mechanical and not hydraulic, there is zero drift and no possibility of messy hydraulic leaks. The battery-charge indicator is mounted centrally on the push handle in direct view, and an automatic cut-off function prevents overcharging.

Ideal for stockrooms, assembly areas, laboratories, offices and retail stores, Lift Stiks are available in four models with load capacities ranging from 185 to 445 lbs. Maximum lift heights of the platform/forks range from 52-65 inches. The unit's ergonomic contoured “sponge grip” handles can be adjusted to accommodate operators of different heights. Units are available with either platform or fork design.

Research notes

Prediction of urine pH using dietary cations and anions
The objective of these studies was to determine if urine pH can be predicted using the nutrient components of feline foods. One hundred fifty foods (90 dry foods and 60 wet foods) were fed to groups of 10 adult cats (mean, 8.5 years of age) to determine the urine pH of cats fed each food. The food was fed for a period of seven days, and pH was determined on freshly-voided urine on Days 5 to 7 of the test. Through stepwise regression it was determined which cations, anions and sulfur-containing amino acids were of importance for urine pH prediction. Three models were developed for urine pH prediction. These models included: Wet and dry foods; wet only foods; and dry only foods. The cations included in all models were sodium, potassium and magnesium. Calcium was excluded from the wet only model. The anions for all models were chloride, sulfur and phosphorus. Including sulfur in the model allowed for the exclusion of methionine and cysteine from the dry model. The study concluded that urine pH of adult cats can be predicted from the nutrient components of the food, thus reducing the number of animal studies in order to optimize urine pH (for struvite and/or oxalate prevention) for specific products. Separate formulas must be used for dry and wet foods in order to maintain accuracy.

Source: Yamka, RM, Friesen, KG and Schakenraad, H, 2006. The prediction of urine pH using dietary cations and anions in cats fed dry and wet foods. Intern J Appl Res Vet Med 4(1):58-66.

Effect of nutritional interventions on longevity of senior cats
The objective of this study was to evaluate whether antioxidants, alone or in combination with other nutritional supplements, increase health and longevity in a population of older cats. A group of 90 cats between the ages of seven and 17 years was blocked into three groups by age, body condition score and gender. Cats were assigned to one of three diets: Control (basal diet of nutritionally complete cat food); basal diet with added antioxidants (vitamin E and ß-carotene); and basal diet with added antioxidants, dried whole chicory root (source of prebiotic) and a blend of supplemental n-3 and n-6 fatty acids. The diets were fed exclusively for the remaining lifetime of each cat. Physical exams, body condition scores, complete blood count, serum chemistries, plasma fatty acids, serum antioxidant status, fecal microflora, urinalysis and body composition by dual-energy x-ray absorptiometry were performed at study initiation and at periodic intervals thereafter. After 5 years, cats fed the diet with the antioxidants vitamin E and ß-carotene, dried chicory root and a blend of n-3 and n-6 fatty acids lived significantly longer than cats fed the control diet. Positive indicators of reduced disease incidence and improved intestinal health were also observed.

Source: Cupp, CJ, Clementine, JP, Kerr, WW, Patil , AR and Perez-Camargo, G, 2006. Effect of nutritional interventions on longevity of senior cats. Intern J Appl Res Vet Med 4(1): 34-50.



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 support manager
DSM Nutritional Products, Inc., the successor to Roche Vitamins, Inc., a recognized leader in vitamin nutrition, and a leading supplier of bulk vitamins, carotenoids and nutraceuticals to the feed, food, pharmaceutical and cosmetics industries, offers a uniquely challenging opportunity on our Animal Nutrition and Health team, providing technical support related to petfood accounts.

As part of a global team, you will provide technical support to petfood account managers while taking a leading role in initiating business development activities with petfood accounts throughout North America. Meeting global business objectives and excellent project management are critical components of the position. Responsibilities also include support of marketing activities, development of sales tools, sales training and involvement in industry events.

Although this position offers you the unique opportunity to work from a home office, ideally based in Central USA, it will require an estimated 60% travel throughout the US and Canada. A BS in Biological Sciences is a minimum educational requirement; however, an MS or PhD in Nutrition or related Life Science is preferred. 5-10 years technical experience in the petfood industry, animal feed formulation capabilities and the ability to translate scientific knowledge to commercial applications are also essential.

We offer a competitive salary and comprehensive benefits. Interested candidates should forward a resume to: DSM Nutritional Products, Inc. attn: Human Resources, 45 Waterview Blvd., Parsippany, NJ 07045 USA or E-mail: human-resources.parsippany@DSM.com. An Equal Opportunity Employer.

References

Watt Books – Weekly Specials
Every week or two a new special will be listed. This may be a new book or an opportunity to purchase a book at a reduced price.  


Visit Watt Books for more reference materials, OR Contact Sherry Hartzell: +1.815.734.5620 hartzell@wattmm.com


Contact information

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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.