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April 15, 2008
Volume 8, Number 7

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Petfood Industry eNews.


AFB International, the maker of Optimizor®, BioFlavor®, and Enticer® brand palatants, sponsors your free copy of Petfood Industry Electronic Newsletter. AFB is the petfood industry's first choice for dog and cat food palatants. For more information, please visit our website at http://www.afbinternational.com.

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 » INDUSTRY NEWS
  Recalls spark interest in "Made in America" labeling
According to a survey conducted by CMI Market Research, 75% of American consumers are concerned about food safety issues and pay close attention to food packaging. Last year's petfood recalls have made consumers increasingly aware of where their petfood is made, since the majority of the problematic ingredients and food was made outside the US.  

any pet owners, according to a WeatherChem report, have lost trust in the brands they may have been using for years and are now more apt to stop and take a careful look at new petfood products. According to the same report, many consumers will only buy products that are "Made in America" and if the packaging doesn't convey this clearly then brands are losing important business. One product that has capitalized on this concept is Pet Factory's rawhide products that contain a simple, blue label that's central message is "American Beefhide." WeatherChem attests that if your company produces an American made product, you should be marketing this fact on your packaging in a very prominent way. 

 Health food going to US dogs
US consumers have recently been displaying a hearty appetite for all things healthy, natural, organic and vitamin-infused. Consumer companies are pushing that trend a step further, right into the heart of the canine world.  
 
Cott Corp., a maker of private-label sodas for human consumption, is one of the latest companies taking the health-and-wellness craze to the petfood industry. Cott is rolling out a line of vitamin-infused beverages for dogs, not unlike the enhanced juices and drinks for humans lining grocery and convenience-store shelves.   
 
"This is our first foray into the pet industry," Cott spokeswoman Lucia Ross said. "The same way the trend is healthier food and beverages for people, we believe that healthy beverages for pets are the next step."  

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Cott's move is just an example of how many companies are trying to grab a share of the booming US pet industry. The American Pet Products Manufacturers Association expects Americans to spend about US$43.4 billion on their pets in 2008, up from US$41.2 billion in 2007. About US$16.9 billion of that is expected to be spent on food.
 
Cott spent nearly 18 months on research and development with veterinarians and food scientists to come up with the products designed to meet the specific nutritional needs of dogs. Its "Fortifido" line of fortified waters for dogs includes a peanut-butter flavored water that is fortified with calcium for healthy bones, according to the company. Another is fortified with zinc for healthy skin, and one is spearmint-flavored for fresh breath. Cott recently launched the products in pet specialty stores and is trying for a wider national rollout. It also plans to make the products available online.  
 
Of course, Cott has plenty of competition. Take retailer PetSmart Inc., who is no stranger to the pet market. Their newer offerings include OVN, or Optimum Vitamin Nutrition, tablets that can be added to dog water. They come in three flavors -- chicken, chicken liver and bacon jerky -- and can be used to make gravy for dry food.
 
"The biggest thing in petfood at the moment is natural and organic, because it's been that way a couple years for humans," said Jim D'Aquila, managing director at financial advisory concern Mercanti Group, which specializes in consumer and wellness products. "They are adopting for their pets what they are adopting for themselves."
 
The big question will be how higher-end pet products will fare in a weaker US economy. "The high-end food will continue to grow, but it won't grow at the same rate as it would in a healthy economy," Mr. D'Aquila said. "There is a subset of people there who are seeing this as an essential part of their pet's life."

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 Report available on UK pet market 
Research and Markets now offers Pet Food and Pet Care in the United Kingdom. The report offers a comprehensive guide to the size and shape of the market at a national level, according to the company. Forecasts to 2011 illustrate how the market is set to change. For more information, visit www.researchandmarkets.com/reports/c84442.
 
Both the dog and the cat food sectors continue to grow strongly in the UK, according to the report. However, their growth has been driven by certain categories. In cat food, wet food continues to show excellent growth, which manufacturers have continued to promote by stressing the premium nature of their wet brands; wet dog food, on the other hand, is stagnating. The opposite is true in the dog food sector, where it is dry dog food that is continuing to show excellent growth, with pet owners realizing the potential health benefits of feeding dry dog food and also of the relative ease with which dry dog food can be bought in bulk. Comparatively, dry cat food is showing much lower levels of growth.
 

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With the pet obesity rate reaching record levels in both the US and UK, pet health and pet hygiene proved to be one of the biggest concerns of pet owners in 2006, according to Research and Markets. This has resulted in new health focused multi-functional foods aimed at improving pet health, with product launches aimed at boosting pet paws, claws, eyes, coats, skin, teeth and even brain power. Key terms included omega 3 and 6, macro-nutrient profile, wheat and gluten-free and hypoallergenic.

Convenience has also been at a premium, hastening the decline of the canned format, whereas innovations such as Whiskas and Felix pouches and Ollis non-slip trays have continued to perform well. Despite a general stagnation in pet numbers in the UK, the petfood and pet care market is one of the most robust. With anthropomorphism gathering pace, manufacturers are increasingly able to persuade pet owners to trade up to superpremium and premium products which will drive value sales growth over the forecast period projected by the report. Research and Markets thinks we can expect to see an increasingly segmented market as manufacturers with similar high-quality products seek to drive value by diversifying their products.

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 Pet Fair Asia expected to be a success
Over 300 companies from the pet product sector have registered for the Pet Fair Asia. The show will take place from September 3-5, 2008 in Shanghai, China. At present, the anticipated number of exhibitors is already 20% up over the last show. PIJAC Canada, the Canadian manufacturers' association, will be represented at the show for the first time with an exhibitors' pavilion. Pet medical products and pet medical treatment facilities will also be presented at the show in the "Veterinary products" section. In parallel with this, a China Vet Forum will be organized, in which world-authoritative veterinary experts and well-known professionals will share their opinions with the attendees, who are veterinarians and pet hospital staff.

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 More professional look to Anido 2008

The leading trade event for the pet care market in Belgium, Anido 2008, ended this year with a striking professional character to the many visitors. The show was visited by not only Belgians, but also a large number of Dutch and French pet industry attendees. One hundred and twenty businesses in all were represented at Anido 2008 and the exhibitor area was 17% larger than last year's space. All together, 4,575 visitors came to Anido.

At the New on Anido Forum, visitors could vote for what they considered to be the best new pet products. There were more than 20 entries in the food category alone. Products eligible for the competition had to have been launched on the Belgian market after September 15, 2007. The next Anido show will take place in spring of 2010.

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 WATT launches EcoAgri.Biz
WATT has launched EcoAgri.Biz, a comprehensive, global and completely digital news product providing companies and individuals in animal agribusiness markets with practical sustainability advice and solutions. Link to the digital magazine at http://www.ecoagribiz-digital.com/ecoagribiz/200803/
 » MARKET DATA
Each month the Petfood Industry eNewsletter will bring you the latest market data available from several different sources including Euromonitor International, Packaged Facts, Information Resources Inc. (IRI) and ACNielsen.

Euromonitor  

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Pets become an important feature in Portuguese households

Pets are becoming an integral part of Portuguese households, and consequently, consumers are paying more attention to their needs. Not only in their food but also comfort, hygiene and health are becoming more pressing issues.

In 2007, the petfood and pet care products market generated EUR208 million, following growth of 7% in current value terms. Cat and dog food, mixers and treats were the main triggers for the development of the market. Demographic statistics show that even with an aging population, Portuguese households are increasing, which is proving to have a positive impact on the pet food and pet care products market.

The market is expected see a constant value compound annual growth rate (CAGR) of 3% over the next five years, and is expected to reach EUR244 million (US$327.5 million) by 2012. Dog and cat food continues to be the main trigger to the development of the market, specifically, mixers and treats. Dog and cat food is expected to see a constant value and volume CAGRs of 3% over the forecast period, to reach EUR199 million (US$313.3 million) in 2012. This situation will continue due to the increased awareness of the benefits of animal-specific food and its benefits.

http://www.euromonitor.com/Pet_Food_And_Pet_Care_Products?DCMP=AFC-petfoodemail

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 » PRODUCT NEWS
 Awkward bag carrier
Grabbit Tool Co.'s newest product, the Bag Grabbit allows awkward, heavy bags, such as those petfoods are found in, to be carried like a briefcase. With their "linear grappling" the Bag Grabbit attaches the bag and distributes the bag's weight over a five-inch edge. Bag Grabbit will handle bags made of any pliable fabric (e.g. plastic, paper, poly weave and burlap). www.grabbittool.com

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 Flexible films from Pliant
Pliant Corp. has a line of engineered films for bulk food and liquid packaging applications. The line includes economical over wraps, high-impact frozen food films and bulk liquid packaging films. The films are designed to reduce flavor and aroma transfer through packaging, according to the company. www.pliantcorp.com

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 Test for tetracyclines in milk
Neogen Corp. has developed the quickest test available for tetracycline residues in milk, according to the company. TetraStar dairy antibiotic test for tetracyclines complements the company's BetaStar test for the beta-lactam group of dairy antibiotics, which includes amoxicillin, ampicillin, cephapirin, cloxacillin and penicillin. TetraStar produces clear results in six minutes, and like BetaStar, is a simple dipstick test that requires only minimal training and equipment to produce accurate results. www.neogen.com

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 Film with zipper included
INNO-LOK is an automated filling film with the zipper material already built in offered by the company Cello-Poly. The film does not require modification to filling equipment or cause a reduction in cycle rates or output. The zipper is pre-applied transverse to the edges of the film and does not travel into the sealed area. This application eliminates zipper distortion and leaking, which can occur during the heat-sealing process with traditional zippers. www.cello-poly.com

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 » RESEARCH NEWS
 Plant sterol benefits
Plant sterols, or phytosterols, come from vegetable oils, nuts, seeds and grains. They may have many beneficial effects including cholesterol-lowering action, anti-cancer, anti-inflammatory and anti-oxidation activities.
 
The beneficial physiological effects of plant sterols could be further enhanced by esterification to other beneficial substances such as olive oil, fish oil and ascorbic acid. The addition of plant sterols to the diet is a safe, effective means to reduce the risk of various diseases.
 
Source: S.S. AbuMweis, et al., 2007. Plant sterols: natural plant components with potential beneficial health effects. Inform, December.
 
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Green tea protects liver
The incidence of nonalcoholic fatty liver disease (NAFLD) has risen along with the ongoing obesity epidemic. Green tea extract (GTE) inhibits intestinal lipid absorption and may regulate hepatic lipid accumulation. This study's objective was to determine whether GTE protects against hepatic lipid accumulation during the development of NAFLD in an obese model. The results suggest that GTE protects against NAFLD by limiting hepatic lipid accumulation and injury without affecting hepatic antioxidant status and adiponectin-mediated lipid metabolism.
 
Source: R.S. Bruno, et al., 2008. Green tea extract protects leptin-deficient, spontaneously obese mice from hepatic steatosis and injury. J Nutr138: 323-331.

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 » POSITIONS AVAILABLE

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--Animal Nutritionist

Trouw Nutrition USA is a leading manufacturer of unique feed ingredients, base mixes and premixes for the agricultural and companion animal nutrition industry. The company is part of the Trouw Nutrition International Business Group of Nutreco. Trouw Nutrition International is the leading European premix and specialty feeds supplier with extending global positions. Nutreco is based in the Netherlands and has operations in more than 25 countries. 

Due to our growth and commitment to meet our objectives in the United States, we are in constant search for talented people who aim to work in a challenging but supportive organization and be part of a global network of experts - experts with an entrepreneurial drive who put the customer first and take responsibility for the further development of our business.

Because of our growth scenario we are currently searching for an Animal Nutritionist. Main job responsibilities are to ensure all products are properly formulated, labeled and in compliance with applicable regulations, to ensure integrity and accuracy of customer formulas and to review formulas to ensure production efficiency with optimized formulation cost within customer and TNUSA guidelines.  Additional responsibilities include providing technical nutritional support for company personnel and customers.

 A minimum of a Master of Science degree is required with a PhD preferred along with experience working in a customer service environment.  Knowledge of AAFCO regulations is desired.  Preferred candidates will be goal oriented and possess excellent interpersonal skills and sound judgment.  Well developed written and oral communication skills are essential.  Appropriate computer skills in formulation software, word processing, spreadsheet applications and email programs are also essential.  Previous experience in the pet food industry would be helpful.

For consideration, please fax, mail or e-mail your resume with salary history to the attention of:

Animal Nutritionist Position
Trouw Nutrition USA P.O. Box 219
Highland, IL 62249 Fax: 618-654-3157
openpositions@nutreco.com


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» CONTACT INFO

To submit any information you would like us to consider for publication on our website, in the printed magazine, or in this newsletter, E-mail your information to Jessica Taylor Bond, jbond@wattnet.net.

Have questions or comments about what you've just read? E-mail the editor at editor@petfoodindustry.com or post your thoughts on the Petfood Industry discussion forums online at www.petfoodindustry.com.

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AFB International, the maker of Optimizor®, BioFlavor®, and Enticer® brand palatants, sponsors your free copy of Petfood Industry Electronic Newsletter. AFB is the petfood industry's first choice for dog and cat food palatants. For more information, please visit our website at http://www.afbinternational.com.

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