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July 1, 2008
Volume 8, Number 12

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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
  US Marshalls seize petfood products at Petco distribution center 
 
Late last month, at the request of the US Food and Drug Administration (FDA), US Marshalls seized various petfood products stored under unsanitary conditions at the Petco Animal Supplies Distribution Center located in Joliet, Illinois, USA.  US Marshalls seized all FDA-regulated animal food susceptible to rodent and pest contamination. The seized petfood violates the Federal Food, Drug and Cosmetic Act because it was alleged in a case filed by the United States Attorney that they were being held under unsanitary conditions.
 
The distribution center in Joliet, Illinois, USA, provides petfood products and supplies to Petco retail stores in 16 states uncluding Alabama, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, Nebraska, Ohio, Oklahoma, Tennessee, Texas and Wisconsin.

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During an FDA inspection of a Petco distribution hub in April 2008, widespread and active rodent and bird infestation was found. The FDA inspected the facility again in May 2008 and found continuing and widespread infestation. Kevin Whelan, a Petco spokesman, said after the FDA inspection in May, the company "acted aggressively to address any concerns that were raised."

According to the FDA, there have been no reports of pet illness or death associated with the consumption of any petfood distributed by Petco and the government body has no evidence that the food is unsafe for animals. However, the seized products were permeable packages and held under conditions that could affect the food's integrity and quality. 

   Nutro vs. a "watchdog" website
 
Over the past several months, ConsumerAffairs.com, a self-proclaimed consumer news center, has been posting statements and consumer complaints about Nutro petfood products. Nutro contends these postings draw false links between illness and death among pets and the consumption of Nutro petfoods. It further points out the website is not affiliated with the US Consumer Product Safety Commission or Consumer Reports.
 
 
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Reduced retail availability of Nutro products may have sparked rumors of food safety problems. Currently, there are worldwide shortages of ingredients across the human and petfood industries and Nutro has had its share of supply problems. In addition, Nutro has an unyielding policy against substituting ingredients, notes Ladd Hardy, Nutro's senior VP of marketing. "They have to be the ingredients on the label and meet our standards," he says.

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In some of the cases cited in the June 23 posting on ConsumerAffairs.com, outside sources have provided verification that Nutro products were not the cause of any pet health issues. In others, Nutro is taking steps to address pet owners' concerns and determine the cause of the pet health issues, according to Dan Calkins, VP of marketing at Nutro Products, Inc. But at this point, he says, every Nutro product analyzed in relation to the June 23 posting has been shown to be safe. 
 
 Hotels now cater to four-legged guests 
 
With an increasing number of pet owners bringing their four-legged friends on the road, hotels throughout North America and Europe are responding with tail-wagging gourmet menus and other amenities. The latest National Pet Owners Survey taken by the American Pet Products Manufacturers Association shows that 19% of dog owners and 3% of cat owners take their pet with them when traveling for at least two nights. AAA lists more than 13,000 lodging options in its 2008 pet traveling guide. No wonder hotels have responded. Even in these trying economic times, PetTravel.com has seen no visible signs of a downturn in luxury travel for pets, says Jerry Hatfield, who has been in the business for 11 years.

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Dogs can feast on Zen Yo (US$11), a hearty vegetable stir-fry with poached eggs and steamed brown rice that's designed to help pets adjust to jet lag and altitude, at the Arizona Biltmore Resort & Spa in Phoenix, Arizona, USA. Or down an organic Buddy Burger hamburger with cheese (US$5) at Los Angeles' Hyatt Regency Century Plaza, which offers an organic and locally sourced in-room dining service doggie menu with cooked-to-order items. Or start with an appetizer of chicken liver pâté (US$7) before moving on to the braised New Zealand lamb served on a bed of rice (US$15) at the Hard Rock Hotel & Casino in Tampa, Florida, USA.   
 
There's no need for pampered pets to suffer with dry or canned food while outside of the USA, either. In Los Cabos, Mexico, Las Ventanas al Paraíso, a Rosewood Resort, offers The Rin Tin Tin (braised beef short ribs with farro risotto and gravy for US$19), a "Ruff" con Pollo (chicken breast with rice and tomato, US$19), The Claw Cleaner (albacore tuna, chopped egg and sour cream, US$4) and Tomcat's Favorite (a selection of seafood, US$3.50). "The pet menus started as a special service for our many celebrity guests who frequently bring their pets and want them to enjoy the same upscale, healthy diet they have at home," says Lionel Álvarez, managing director of Las Ventanas al Paraíso. "In today's world, pets are truly part of the family, and guests expect them to experience the same level of luxury and pampering."    

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Hilton Hotels and Resorts' now offer their new Pet Friendly program at more than 200 Hilton hotels in the Americas. Upon check-in, guests' pets receive a welcome package of pet pampering treats, including: a travel tote, organic treats, a pocket-sized packet of biodegradable waste bags, a travel-size bottle of disinfectant, deodorizer and one-step cleaner, and a Hilton pet collar tag. Additionally, Hilton's Pet Friendly collection of upscale amenities features a pet bed created by famed artist William Wegman and Crypton Fabrics that is available in-room and can be purchased on www.HiltonToHome.com . Lastly, participating Hiltons will also offer pet concierge service with information about local dog runs, veterinarian offices and pet boutiques. A select amount of Pet Friendly rooms will be designated in each participating Hilton hotel and along with the standard room cleaning procedures, the rooms will undergo a deep cleaning - including carpets, drapery and all upholstered furniture - after each pet guest has checked out. All Pet Friendly rooms will feature a special door hanger alerting hotel staff to the furry guest within. For more information on Hilton's Pet Friendly program, visit www.hilton.com/pets.   
 
 Driven by trends, Nestlé Purina moves into pet health insurance
 
Long known for its petfood and snack products, Nestlé Purina is branching out into a different--but according to company officials, related--category: pet health insurance. "One of our primary focuses as a brand is delivering a lifetime of health and happiness," says Bill Broun, director of business development for Purina PetCare. "This is a move for us that has financial benefits, but it builds on our core franchise of the brand."

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The new insurance product, dubbed PurinaCare, will offer programs that vary by monthly premiums and deductible levels, covering everything from routine vaccinations and flea and tick medications to major surgeries and cancers. After meeting a chosen deductible level, consumers will make a 20% co-pay per procedure and can be reimbursed for the remainder. (Coverage fees vary based on geographic location, pet breed, pet age and other variables.) While many pet insurance plans resemble property and casualty insurance plans, the PurinaCare plan is designed to look like health insurance plans that people are familiar with for themselves, Broun says. "Consumers said there was an unmet need for a simple plan," Broun says. "We're trying to mirror what they're used to."  

The move into insurance for Purina was driven by three trends, Broun says. First, there's an ongoing trend toward "humanization" of pets, viewing them as a part of the family. Second, people are also more interested in wellness for themselves and their pets, including diet and exercise. And, finally, advances in veterinary medicine are helping pets live longer.

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To market the insurance, the company will lean on its well-known brand portfolio and iconography, which includes Puppy, Dog, Kitten and Cat Chow, and treats such as Beggin' Strips and T-Bonz. Much of the initial messaging will be tied to the Internet, from Purina brand Web sites to search marketing and banner displays, Broun says. "The number one way people go and evaluate pet health insurance is through the Web. So that is a major focus for us," he says. The company will also promote the insurance through consumer and veterinary trade print ads, as well as extensive brochures and information available in veterinary offices.   

According to the American Veterinary Medical Association, U.S. pet owners spend an estimated $24.5 billion on veterinary care, over-the-counter drugs and other health supplies for their pets. The American pet health insurance industry is dominated by Veterinary Pet Insurance, which accounts for about 80% of the policies in the country. In 2007, the ASPCA came out with a pet insurance product developed in partnership with Hartville Group, which also markets PetsHealth.

  UK pet care market still growing, despite economic slowdown

The pet care market in the UK is worth an estimated £1.65 billon (US$3.28 billion) a year, with year-on-year growth of 5%, according to figures from market analysts TNS. Cat food is growing by 5.1% year-on-year and dog food by 4.8%. The increase in value in the dog food market is being driven by growth in dry dog food and dog treats. Wet dog food and dog biscuits are in decline.

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In the cat food category, on the other hand, wet cat food has helped drive growth, helped by new product development (NPD) from both Felix and Whiskas launching into the premium wet multi-serve market. TNS says the move "further reinforces the importance of premiumisation to the pet care category, despite the economic slowdown." Wet single-serve cat food has also grown the market by £45.5 million (US$90.6 million), largely due to the continued success of pouch varieties.

Cat and dog treats have grown by 24% and 15% respectively, boosted by positive press articles about pet nutrition, which is also driving NPD, according to TNS. Sales in Pedigree treats in the dog food market doubled last year while Whiskas are leading the cat treat market.

Top 10 UK Petfood Brands:
1. Felix Cat Food
2. Whiskas Singles
3. Felix AGAIL Pouch Cat Food
4. Bakers Complete Dog Food
5. Tesco Premium Cuts Cat Food
6. Whiskas Adult Cat Food
7. Purina Gourmet Pearl Pouch
8. Whiskas Fishermans Pouch
9. Go-Cat
10. Wagg Dog Food
Source: TNS

  Australia rejects plans to use culled kangaroos into petfood 
The Australian State Government has rejected a plan to turn culled kangaroos into petfood, saying it would constitute commercial harvesting. Southern Grampians Shire Council is supporting a bid by Tesbury Meats -- who want to collect the kangaroos and process them into petfood at their Hamilton meat works -- and has approached the Government on their behalf. The proposal comes after residents in some of Melbourne's bayside and urban fringe suburbs this month called for a cull of opossums and cockatoos. A large-scale cull of the animals is unlikely because opossums and cockatoos are protected species.
 
Thousands of kangaroos are culled in Victoria each year under the Department of Sustainability and Environment permits and must be left to decompose where they are killed. Southern Grampians mayor Marcus Rentsch said the petfood proposal would create at least two new jobs in the regional town. "All they are trying to do is remove the carcasses -- they are an environmental and health risk, it's not good to have them just sitting there," he said. Mr Rentsch said Tesbury Meats had plans to collect the culled kangaroos, freeze them and transport them to its Hamilton processing plant.
 
Government spokeswoman Jessica Harris said there were no plans for a commercial kangaroo industry in Victoria. "Current provisions do not allow for commercial use of kangaroo meat and there are no plans to change this," she said. "A previous inquiry has found that a commercial kangaroo processing industry would not be viable."
 
 » 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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Local companies look to develop more flavors to match imported rivals

According to the latest research from Euromonitor International, Venezuelan consumers are demanding more flavor options and value-added health options for their pets. Domestic producers are reacting to consumers' demands, while also taking advantage of imported brands by increasing their product offerings and production capabilities.

The petfood and pet care products market is poised for strong volume and value growth during 2007-2012. Producers should be able to increase both volume and value sales if product offerings can meet consumers' demands. For example, Nutripet Andina CA, which is owned by Venezuela's largest company, Empresas Polar CA, is developing additional flavors to be introduced. While the new flavor offerings are not yet public, the company plans to increase the number of its product presentations from 18 to 25. Its production plant has already been equipped to accommodate this increase in the number of flavors.

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
  Business Process Management software
CSB-System recently released its new version of the Business Process Management software. This module, according to the company, allows customers to document business processes integrated in the business application, reduce training costs of new personnel and increase the effectiveness of cross training employees. External auditors can reproduce all business processes during reviews easier, regardless if these are USDA inspections, ISO-certifications or sarbannes-oxley audits. With the introduction of "interactive workflows," users can define complex business processes, such as approvals, and monitor the progress. The results, CSB says, are higher degrees of process execution and results in overall bottom-line improvements. www.csb.com

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  Cost-effective vacuum packaging machines
Manufactured in Kansas City, Missouri, USA, Rollstock vacuum packaging machines use inexpensive, off-the-shelf North American parts, according to the company. In addition, Rollstock states that these packaging machines are readily available and provide reduced cost of ownership. Available in a variety of web widths from 285 mm to 459 mm, all Rollstock machines feature programmable PLC controls with readable diagnostics and a vacuum leak check program.  The chain system is guided and has an auto tensioning system to reduce stretch and wear.  Dies are manufactured in Rollstock's facility from solid aluminum block and lifted by a triple knee lever system, driven by a 4 -inch air cylinder with variable height control.  www.rollstock.com

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  Mondi launches biodegradable packaging solutions
Mondi, an international paper and packaging group, has recently launched its portfolio of biodegradable packaging solutions under the brand name Sustainex. Sustainex combines the material properties of paper or board with those of biopolymers. According to the company, it is a versatile biodegradable and sustainable packaging material thanks to its excellent sealability, gas and grease barrier, and thermal resistance. www.mondigroup.com

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  New, green packaging
Excel has recently released a new product: a reinforced paper pouch/bag.  Constructed for strength and barrier qualities, Excel says it can hold up to 40 lbs. and has 3 layers -- paper, polyester, poly. It can have zippers, die-cut clear windows and pouch designs.  According to the company, this product can provide a major "source reduction" in the amount of non-recyclable plastics used in a plastic or current paper/plastic pouches/bags. The bags are designed to have the same strength and barrier qualities, but are thinner and do not consume as much raw material.  www.custom-ad.com

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 » RESEARCH NEWS
  Obesity and gut microbiota
Gut microbiota are becoming increasingly recognized as a factor affecting host gene expression (phenotype). Microbial energy harvest in the intestinal tract by fermentation has been implicated as contributing to obesity, and methanogenic Archaea organisms are believed to increase efficiency of energy harvest by eliminating hydrogen to form methane.
 
Methanogenesis and methanogens have been described in many species, but not the dog. We evaluated methanogenesis of dog intestinal microbiota using an in vitro fermentation system. Selected substrates were subjected to 12 hour fermentation in gas-tight tubes after inoculation with fecal slurry derived from three canine donors.
 
Short-chain fatty acids and gas production (methane, hydrogen) were measured. Short-chain fatty acid production was higher for pectin and β-fructan substrates compared with beet pulp and yeast cell wall. Significant methane production was detected for all substrates except wood cellulose. Beet pulp generated more methane than any other substrate and was moderately fermentable. These data suggest that the dog intestinal tract harbors methanogenic Archaea that have yet to be identified.
 
Source: I. S. Middelbos, et al., 2008. In vitro evaluation of methanogenesis in the dog. FASEB J. 22:444.5.

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  Dietary methylcelluloses reduce insulinemia
Hydroxypropylmethylcellulose (HPMC) and methylcellulose (MC) are modified cellulose dietary fibers that generate viscous solutions in the gastrointestinal (GI) tract. This study assessed the effects of high viscosity (HV) HPMC, ultra-HV (UHV) HPMC, and medium viscosity MC on postprandial glucose and insulin responses in overweight and obese men and women.
 
After overnight fasts, subjects consumed five breakfast meals containing 75 g carbohydrate, each of which contained a certain HPMC/MC preparation. Glucose and insulin responses were determined pre-meal and for two hours postprandially.
 
Peak insulin was reduced for all HPMC/MC conditions compared with the control. Insulin was lower than the control after meals containing two grams of  HV-HPMC, two grams of UHV-HPMC and four grams MC. GI symptoms did not differ among treatments. These findings indicate that HV-HPMC (one and two grams), UHV-HPMC (two grams) and MC (four grams) consumption reduced postprandial insulin blood levels consistent with delayed glucose absorption.
 
Source: K.C. Maki, et al., 2008. Hydroxypropylmethylcellulose and methylcellulose consumption reduce postprandial insulinemia in overweight and obese men and women. J. Nutr. 138: 292-296.  

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Our help wanted listings aim to inform petfood industry professionals about employment opportunities worldwide. Contact gstadel@wattnet.net for more information on placing a listing in upcoming issues.   

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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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