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May 20, 2008
Volume 8, Number 9

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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
  AVMA urges petfood makers to list calories 
Future petfood labels that indicate the number of calories per serving could help obese animals shed extra pounds, the American Veterinary Medical Association (AVMA) has recommended to the Food and Drug Administration (FDA). "Pet owners do not always know how much to feed. They may not realize the high number of calories associated with some of the petfood," said John Branam, testifying on behalf of the AVMA. 
The FDA held the hearing last week as part of legislation last year requiring the Center for Veterinary Medicine (CVM) to establish petfood labeling standards in two years. According to the AVMA, 54 million pets in the US are obese, an "epidemic" that the association says is growing at an alarming rate.

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But Nancy Cook, vice president of the Pet Food Institute's technical and regulatory affairs, said calorie labels are unnecessary and won't prevent obesity in pets. Many petfood labels already contain serving sizes based on a pet's size. Calorie information can be obtained from food manufacturers, Cook also said.

But the AVMA said it's not the jobs of consumers and veterinarians to track down manufacturers for that information. A standard nutritional label that lists the number of calories per weight of food and per household items such as a can or a cup would prevent owners from overfeeding their pets, the AVMA said. The information also would help consumers and veterinarians compare and choose the best food product, Branam said. For example, two cups of one product could have the same calories as one cup of another product.

 Report links 2006 Salmonella infections to dry dog food 
The US Centers for Disease Control and Prevention (CDC) have revealed a strong link of Salmonella infection in humans to contaminated dry dog food, the first time such a link has been uncovered, according to US officials. Furthermore, Salmonella infections from dry dog food may be an under-recognized source of illness in people, especially young children, officials from the CDC said. "This is the first time human illness has been linked to dry dog food," said CDC epidemiologist Dr. Casey Barton Behravesh, who co-authored a report on the finding.
The CDC isn't sure how the Salmonella bacteria got into the dog food. "There are a number of possible ways that that could happen, and that's something we are still trying to figure out," Dr. Barton Behravesh said, adding that there have been previous cases of people contracting Salmonella infection from contaminated pet treats. The incidents of people becoming infected with Salmonella from dry dog food occurred in 2006 and 2007.

An estimated 70 people, mostly in the Northeast region of the US, were infected by dog food produced by Mars Petcare at its Pennsylvania, USA plant. About 40% of those infections involved infants, according to the report, published in the May 16, 2008 issue of the CDC's Morbidity and Mortality Weekly Report, viewable here . Most of the cases occurred in Pennsylvania (29), New York (nine) and Ohio (seven). There were also reported cases in Alabama, California, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, North Dakota, South Carolina and Virginia. No deaths were reported, according to the report. No pets became ill. However, Salmonella was identified in feces samples from dogs that ate the dry food.

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In addition, Salmonella was found in open bags of the petfood fed to the dogs and in unopened bags of dog food made in the Pennsylvania, USA plant, the CDC said. Mars Petcare voluntarily recalled some bags of the two brands of food involved, but neither of the recalled brands was related to human illness. 

Salmonella infection typically comes from undercooked eggs, poultry, or meat, but can also result from direct contact with farm animals, reptiles and pets. To prevent infection, the CDC recommends consumers wash their hands immediately after handling the food, including dry dog food. "The most important thing is to wash your hands right after you handle any dry dog food, any other petfood, pet treats, even supplements or vitamins," Barton Behravesh said. "In addition, keep infants and other young children away from petfood, because kids tend to want to see what their dogs are eating and grab at the petfood and play with it or even put it in their mouth." 

 Petfood costs big bones as commodity prices rise
Retailers and manufacturers alike are hiking petfood prices, and the cost of kibble is only expected to climb even higher in the coming months. At PetSmart, for example, the cost of Hill's Science Diet dog chow is up about US$2 a bag, to US$36 this year, says Michael Sapp, vice-president of dog and cat consumables. Sapp also notes that other top-selling brands such as Pedigree, manufactured by Mars, and Purina, made by Nestlé, have been shrinking the size of their bags. "We're getting price increases and package downsizing," he said. "People are paying the same amount for less product."
Petfood manufacturers have figured out several ways to push through price increases. PetSmart's Sapp says the popular bag of Purina Dog Chow has shrunk from 50 lb. to 44 lb., but the retail price has remained the same at about US$17. The story is much the same with Pedigree's Complete Nutrition, which has shrunk from a 44 lb. bag to 40 lb. That bag sells for about US$18.

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The onward march of commodity prices is to blame for most of the price hikes on petfood. The price of key ingredients such as corn and rice, for example, are up some 30% in the past year. Petfood manufacturers say they have been able to offset much, but not all, of the commodity cost increases through the price hikes. "Like the entire food sector, we're seeing sharply escalating energy, transportation and ingredient costs," says Purina spokesman Keith Schopp.

Retailers and analysts say sales of organic and natural petfood products remain relatively strong, a category that got a big boost after last year's recalls of tainted petfood. These brands, many of them manufactured by small privately held companies, such as Blue Buffalo, command high prices per pound. "People are becoming much more conscious of what's in the bag," said Dave Bolen, chief merchandising officer of Petco stores.

That doesn't mean the economy isn't taking a bite out of pet profits in other areas, however. Faced with high gasoline prices, many consumers are consolidating their shopping trips, stocking up at supermarkets or discounter retailers such as Wal-Mart or Target rather than making a separate trip to the pet store. In announcing his company's fourth-quarter earnings on March 5, 2008, PetSmart chief Phil Francis reduced his expected earnings for this year to approximately US$1.59 per share, down from the US$1.95 per share the company reported for 2007. He also said he was reducing the number of new stores he is opening by 20% next year and planning fewer new Pet Hotel boarding facilities at existing locations.

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 Menu Foods on the rebound

Menu Foods Income Fund says its business is on the way to recovering from the impact of last year's recalls, although on a smaller scale. The petfood maker said it lost it lost an estimated US$2.2 million or 10.8 cents per unit for the three months ended March 31, 2008 compared with a loss of US$17.5 million or 91.8 cents per unit a year ago. Quarterly revenue was US$55.6 million, down from US$64.5 million.

Investors cheered the news. "We have made considerable progress and our prospects look better today than at any other time during this past year," president and chief executive Paul Henderson said in a statement. "As we move the business forward, we do so focusing on our core competency - the manufacture of high quality wet petfood. We will continue to work to solidify our customer base and further adjust our cost structure in line with our ongoing business."

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In April 2008, Menu Foods reached a "comprehensive cross-border agreement in principle" on litigation arising from its tainted petfood scandal. The mediated settlement of the case, which combined an array of class-action suits filed in the United States, came just over a year after the recalls. Dozens of cases against Menu Foods and many of the companies that own the private labels were consolidated in a federal court in Camden, New Jersey, USA. The definitive terms of the deal, together with a motion for preliminary approval thereof, are scheduled to be filed with the US District Court on May 20, 2008, with a hearing scheduled on May 30, 2008. The scheduling for Canadian court is expected to occur at roughly the same time. 

 SPF North America opens new facility
SPF North America, a supplier of palatability solutions to the international petfood industry, has recently extended its industrial network. The company's newest campus, located in Greenwood, South Carolina, USA, includes an efficient palatability enhancer manufacturing facility equipped with liquid production technologies and advanced drying processes, including microgranulation technology. The campus will also soon house the North American division of the company's research center with an increased staff of scientists and a Panelis palatability test center. The green facility was built to or above USDA-APHIS regulations, and was designed to help preserve and respect the natural environment, according to SPF. The SPF North America headquarters and production facility is located at 5300 Highway 25 N, Hodges, SC, USA 29653.
 » 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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 Premium wet cat food showing signs of continued growth in France

According to the latest research from Euromonitor International, superpremium dry cat food was the fastest growing category in France during 2007. Growth was driven by manufacturers widening the range of products, implicitly driving cat owners to re-think the well-being of their pets. Furthermore, the offering of specific products for particular needs (breed, age or certain health issues) is a way to generate repeat business and brand loyalty among consumers.

Generally speaking, cat owners spend less on average for petfood than dog owners, obviously because cats eat less than dogs (or at least less than medium and large dogs). However, because of these smaller consumption quantities, cat owners seem not to perceive superpremium products as being excessively expensive. If manufacturers can maintain this perception, then superpremium cat food is likely to continue to experience growth.

For more information about Petfood and Pet Care Product reports from Euromonitor International and to buy reports online, visit:

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

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 » PRODUCT NEWS
 A-B-C's latest model
The Model 65 tray former from A-B-C Packaging is a machine built with a steel frame and all-mechanical drive, which allows it to form up to 30 trays per minute. Features include an adjustable forming and sealing section that ensures square trays with straight vertical sidewalls for easy tray packing and stable palletizing as well as a mandrel to provide complete tray compression for adhesive bonding and secure load handling. The Model 65 tray former also provides reduced maintenance design with sealed bearings, lubricated air cylinders, and Venturi vacuum system, states the company. www.abcpackaging.com  

 Shrink bags cater to bone-in meat
The Vector 80 High Abuse Plastic Shrink Bags cater to bone-in case-ready meat & poultry products.  The first custom printable high-abuse bag, Vector 80 bags are available in clear plastic and popular colors like red, white, metallic blue, silver or smoked. According to the company, Vector 80 has excellent oxygen and moisture barrier properties and is resistant to sharp, abrasive surfaces that can pierce ordinary vacuum bags and pouches. www.vectorpackaging.com

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 Nylex makes some cool bins
Cool bins from Nylex Rotomould are insulated with high density foams and are injected between the two panels of plastic, thus ensuring the products are fresh, says the company. The cool bins are designed from tough polyethylene and consist of triple layer construction making it resistant to extreme temperatures. Cool bins from Nylex Rotomould are also sealed with food grade natural sponge rubber and provide protection and insulation for seafood, fruits, vegetables and petfood. www.nylexrotomould.com.au 
 New aflatoxin test released
VICAM has expanded their line of mycotoxin test kits to include AflaCheck: a qualitative, one step immunoassay method for the detection of aflatoxin. AflaCheck provides fast and accurate, yes or no results for the presence of aflatoxin at levels as low as 10 ppb, according to the company, with an alternative testing protocol for detecting levels in excess of 20 ppb. VICAM also states that this test is able to provide results in as little as 3 minutes, in the field or in the lab, and without the use of expensive equipment or reagent chemicals. www.vicam.com

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 » RESEARCH NEWS
 Energy restriction decreases energy expenditure
Dietary energy restriction (ER) is used to treat obesity in cats but it is often unsuccessful. This study examined whether ER results in a sustained decrease in mass-adjusted energy expenditure (EE) that may oppose weight loss and promote weight regain. EE and body composition were measured in 10 adult neutered cats at three time points: baseline (obese cats), during weight loss (40% ER) and following weight regain.

The cats started with a body weight (BW) of 6.1 ± 0.30 kg, body condition score (BCS) of 7.6 ± 0.14 (on a 9-point scale) and fat body mass (FM) of 38 ± 1.0% of BW. After weight loss, BW was 5.0 ± 0.19 kg, BCS was 5.5 ± 0.07 kg and FM was 31 ± 1.6% (P < 0.01). After weight regain, BW was 6.2 ± 0.30 kg, BCS was 7.7 ± 0.16 and FM was 42 ± 1.8% (P < 0.01). Total EE decreased from 1258 ± 33.7 kJ/d to 1025 ± 39.6 kJ/d during weight loss (P < 0.001). After weight regain, EE was still lower than baseline (1103 ± 41.5 kJ/d, P < 0.001). Energy intake (EI) at baseline (1337 ± 50.6 kJ/d) was higher than EI after weight loss and regain (1217 ± 61.2 kJ/d), resulting in no differences in energy balance (78 ± 30.4 and 104 ± 35.4 kJ/d, respectively, P = 0.581). These results support the hypothesis that ER results in a mass-adjusted decrease in EE in cats that is maintained after weight regain.

Source: C. Villaverde, et al., 2008. Energy restriction results in a mass-adjusted decrease in energy expenditure in cats that is maintained after weight regain. J. Nutr. 138: 856-860.

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 Balancing antioxidants
Further research should be conducted in order to fully explore the role of oxidative stress in health and disease. Yet, we can say that although oxidative stress is involved in the pathogenesis of many diseases, its complete annihilation may lead to even worse clinical effects. We have evolved and adapted to symbiotically live with mitochondria and mitochondria-related persistent, yet low-grade, oxidative stress, which in turn may contribute to the physiological functioning of the cell. Thus, reducing oxidative stress to levels below the physiological threshold may trigger intracellular signaling pathways further damaging cellular machinery.
This could represent a critical area for future scientific investigations, with tremendous social implications. Indeed, vitamin supplements are regularly taken all over the world because their prescription is just based on the media-driven assumption that oxidative stress is harmful for health and supplements are beneficial. However, when considering antioxidant therapy, it should be remembered that more is not necessarily better.
Source: Laviano, A, 2007. Never underestimate the power of ROS. Current Nutr Food Sci, Vol 4, 2, p. 183.

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» POSITIONS AVAILABLE

--National Sales Manager/SensoraTM

Summary:  Manage, develop and maintain strategic customer relationships to maximize Company sales and profits; service existing customers and work with target customers in North America. Implement sales strategies determined by the Business Plan.

Responsibilities:
-Sell flavor and palatability products to the North America pet food industry.
-Build, develop and manage relationships between SensoraTM and its targeted customer base.
-Identify customer requirements for new portfolio items.
-Build knowledge of the competitive landscape.
-Participate in the strategic commercial planning process. ensuring adherence to Company guidelines and standards
-Provide information towards market area forecasting. Submit data as needed to maintain optimum customer satisfaction and Company profitability.
-Maintain current knowledge of computer applications, technical knowledge of specific focus areas and other requirements to perform job functions; participate in training courses as directed.
-Communicate with management/executive personnel, keeping them informed regarding issues/changes in the assigned areas.
-Apply cooperative work skills, build consensus and contribute to Company goals and values.

Reports to: President, Simmons Feed Ingredients (a SensoraTM member company).

Location: Midwestern U.S.

Position Requirements:
-Minimum B.S. food science or related education and minimum 5 years of technical ingredient sales experience.
-Pet food-related and/or savory flavor-related experience preferred.
-Requisite sales training and proven track record
-Ability to work with cross-functional teams
-Basic skills in Microsoft Word, Excel, PowerPoint, and Project
-Basic knowledge of food ingredient functionality

The successful candidate will be an excellent communicator, will be adaptable, will demonstrate initiative and judgment, will be service oriented, will embrace a continuous improvement approach, will understand and work well in a cross-functional environment, will embrace self-development, and will work to the highest standards.

The Company offers a competitive compensation package with benefits including 401k, health insurance, vacation and holidays. To apply for this position please submit a current resume via email to james.northern@mane.com.


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» CONTACT INFO

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 » CALENDAR

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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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