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February 5th, 2008
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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.
» INDUSTRY NEWS
Register for Petfood Forum 2008 and Petfood Focus on Safety
The petfood market continues its rapid pace of growth, despite recent crises. Find out the best opportunities for expansion and how to lead them in your organization!
Petfood Forum 2008 connects you with the people and information you need to continue to advance. This premier event for the petfood industry features plenty of networking opportunities and exciting sessions such as:
- Ingredient popularity and trends.
- Preventing brand theft.
- Packaging case study.
- The natural and organic markets.
- Sustainability and carbon footprints.
- Petfood safety management systems.
- Weight loss through prebiotics.
- Alternative petfoods and the melamine fall-out.
- Ranking the importance of private label worldwide.
- Managing palatability for treats.
- Global trade issues.
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Every petfood company around the world is placing a renewed emphasis on safety and quality. The Petfood Focus on Safety symposium gives you an in-depth look at information you can't afford to miss:
- Crisis contingency planning.
- Good purchasing practices.
- Adverse event reporting and preferred vendors.
- Finding the right insurance.
- Case studies on quality/safety programs at a petfood supplier and a manufacturer.
- ISO 22000-the world's most advanced food safety management system.
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FDA import alert on wheat gluten still in place
The Food and Drug Administration (FDA) blocked imports of 11 types of questionable foods and drugs in 2007, a significant increase from recent years. Last year’s import alerts effectively ban the affected products from the US until they’re tested and proved safe. In the previous two years combined, the FDA added just six alerts that remain in effect, according to FDA data. Three alerts added last year covered products from China, including vegetable proteins wheat gluten and rice protein concentrate.
The FDA’s actions may show it is responding to pressure to improve food safety, said Benjamin England, a former FDA attorney. “They’re starting to focus on imported products more, so they’re finding more things,” he said. Companies can get off import alerts if they prove to the FDA that their products are consistently good. No Chinese firms producing or exporting vegetable proteins, including wheat gluten, have done so.
Demand for US wheat gluten has soared 30% since April 2007 when the FDA restricted imports of Chinese vegetable proteins. From September through November, inbound US shipments of Chinese wheat gluten fell to 2.4 million pounds vs. 14.7 million pounds in the same period a year earlier, according to data from Piers Global Intelligence Solutions.
The FDA’s actions may show it is responding to pressure to improve food safety, said Benjamin England, a former FDA attorney. “They’re starting to focus on imported products more, so they’re finding more things,” he said. Companies can get off import alerts if they prove to the FDA that their products are consistently good. No Chinese firms producing or exporting vegetable proteins, including wheat gluten, have done so.
Demand for US wheat gluten has soared 30% since April 2007 when the FDA restricted imports of Chinese vegetable proteins. From September through November, inbound US shipments of Chinese wheat gluten fell to 2.4 million pounds vs. 14.7 million pounds in the same period a year earlier, according to data from Piers Global Intelligence Solutions.
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Menu Foods increases price of wet petfood
Menu Foods Income Fund has raised the price on its wet petfood sold to its private label customers. The company said the increase is expected to increase its total annualized sales by more than 3%. "While costs continue to rise, the price increase will enable Menu to recover, from private label customers, the cost increases it would otherwise be required to absorb," a spokesman for the company said.
Pet supplement makers want their own regulatory category
With a new director of FDA's veterinary medicine center and heightened concerns about dietary supplement safety, makers of dietary supplements for pets are renewing an effort to get FDA to create a separate regulatory category for their products. Some industry sources say pet supplements are low on the FDA's priority list. The National Animal Supplement Council (NASC) recently submitted to FDA ingredients and accompanying claims that could be part of a regulatory scheme.
Currently there is no separate regulatory category for animal dietary supplements so they are considered either food or drugs, and those considered drugs are technically illegal because they have not been approved. The animal drug industry also wants FDA to crack down on companies that make unsubstantiated health claims, an industry source says. Pet dietary supplement makers need to be legitimized to get investors to back expanding businesses.
NASC met with FDA officials January 10, 2008. The group submitted to FDA a list of about 1,000 ingredients commonly used in pet health products. Also among the ingredients are some NASC thinks should not be used in petfood or animal health products.
Currently there is no separate regulatory category for animal dietary supplements so they are considered either food or drugs, and those considered drugs are technically illegal because they have not been approved. The animal drug industry also wants FDA to crack down on companies that make unsubstantiated health claims, an industry source says. Pet dietary supplement makers need to be legitimized to get investors to back expanding businesses.
NASC met with FDA officials January 10, 2008. The group submitted to FDA a list of about 1,000 ingredients commonly used in pet health products. Also among the ingredients are some NASC thinks should not be used in petfood or animal health products.
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Goglio SpA gives shares to Intesa SanPaolo Group
Intesa SanPaolo, by means of IMI Investimenti, an active company in the private equity sector, enters the company structure of Goglio SpA with a 16% share and subscribes a convertible debenture loan for an overall commitment of 20 million Euro (US $29.7 million). Following the agreement, Intesa SanPaolo will have the right to choose two directors aiming at putting strategies into practice and undertaking necessary activities to strengthen Goglio Group.
Goglio is a multinational group with a 157-year history that works in the packaging sector, integrating production of multilayer flexible packaging, plastic accessories (degassing valves, dispensers, spouts) and automatic packaging lines for powders, granules, chunk and liquid products. The group has today eight production plants, four in Italy, two in the United States, one in Holland, and one in China. Goglio produces many different packaging solutions for the petfood industry, both dry and wet, proposing its Fres-co System line, which integrates flexible packaging with the relevant packaging machines.
Basing on forecast, at the end of 2007 Goglio will reach a turnover of about 300 million Euro (US $445.5 million), in line with the development plans. Ebitda 2007 is expected to be improving compared with 2006 (more than +10%).
Goglio is a multinational group with a 157-year history that works in the packaging sector, integrating production of multilayer flexible packaging, plastic accessories (degassing valves, dispensers, spouts) and automatic packaging lines for powders, granules, chunk and liquid products. The group has today eight production plants, four in Italy, two in the United States, one in Holland, and one in China. Goglio produces many different packaging solutions for the petfood industry, both dry and wet, proposing its Fres-co System line, which integrates flexible packaging with the relevant packaging machines.
Basing on forecast, at the end of 2007 Goglio will reach a turnover of about 300 million Euro (US $445.5 million), in line with the development plans. Ebitda 2007 is expected to be improving compared with 2006 (more than +10%).
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Pet Smart endures 'challenging consumer environment'
Pet Smart has announced that it now expects comparable store sales growth of between 0.0% and 1% for the fourth quarter of its 2007 fiscal year. “We experienced relatively weak sales during the later half of November and the majority of December in what we believe was a challenging consumer environment,” said Philip L. Francis, chairman and CEO. “We are encouraged by slight improvements during the last week of December and first part of January; however, it is unlikely those improvements are significant enough for us to achieve our previously announced EPS estimates.” The company will announce its fourth quarter and 2007 earnings on March 5, 2008.
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Franchise Bancorp Inc. earnings increase driven by Global Pet Food's growth
Franchise Bancorp Inc. announced the unaudited results of the company's first quarter ending November 30, 2007. On a consolidated basis of all divisions; Global Pet Foods, Liv Gift Group and Living Lighting, earnings were US $127,614, up from US $21,615 in 2006. Operating earnings yielded US $335,735, an increase of US $216,616 over the first quarter ending November 30, 2006. Total Revenue was up 48% at US $1.8 million, an increase of US $583,735 over 2006.
The petfood division, which operates under two trade names — Global Pet Foods and Ryan's Pet Foods — continues to have the greatest impact on the company's growth. During this quarter, Global opened eight new franchised stores and one company owned store, bringing the total to 95 stores. Global's total system-wide sales jumped 35.5% from US $9.7 million to US $13 million. Profitability in the Global division increased by 96%.
The petfood division, which operates under two trade names — Global Pet Foods and Ryan's Pet Foods — continues to have the greatest impact on the company's growth. During this quarter, Global opened eight new franchised stores and one company owned store, bringing the total to 95 stores. Global's total system-wide sales jumped 35.5% from US $9.7 million to US $13 million. Profitability in the Global division increased by 96%.
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Name change and top award for GA Petfood Partners
GA Pet Food Partners is the new name for Golden Acres, a manufacturer of own label premium dry petfoods. Ben Helm, sales and marketing director for GA Pet Food Partners said, “Partnership is what we’re about. We work with some of the biggest petfood brands in the world—and some of the smallest ones too. But, unlike many of our competitors, we don’t believe in having our own brands. That’s because at Golden Acres Pet Food Partners we see ourselves as a partner not as a competitor to our customers. It makes sense to update our brand as it best describes what we do and the relationship we have with our partners.”
The rebranding has also coincided with the news that GA Pet Food Partners have been awarded a Grade A from the British Retail Consortium (BRC) for quality — the highest grade possible. Ben Helm had this to say about receiving the award, “This demonstrates that all petfoods manufactured at GA are done so to the highest quality. The BRC award is recognized internationally as the standard that must be achieved to be able to make for the leading brands and petfood partners and confirms GA Pet Food Partners as Europe’s leading manufacturer of own label premium dry pet foods.” GA Pet Food Partners’ new website is: www.ga-petfoodpartners.co.uk.
The rebranding has also coincided with the news that GA Pet Food Partners have been awarded a Grade A from the British Retail Consortium (BRC) for quality — the highest grade possible. Ben Helm had this to say about receiving the award, “This demonstrates that all petfoods manufactured at GA are done so to the highest quality. The BRC award is recognized internationally as the standard that must be achieved to be able to make for the leading brands and petfood partners and confirms GA Pet Food Partners as Europe’s leading manufacturer of own label premium dry pet foods.” GA Pet Food Partners’ new website is: www.ga-petfoodpartners.co.uk.
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Strong Glee-Petindex in store for 2008
Glee-Petindex organizers have confirmed that hundreds of big name pet brands have already booked their spaces for 2008. There have also been positive results from a recent online visitor survey, indicating that Glee’s 33rd show — taking place on 21-23 September 2008 at Birmingham’s NEC — will again be a magnet for the industry.
Petindex moved to the larger space of Halls 6-8 in 2007, where it will again be located in 2008. The ever increasing reputation of the show attracted 3.5% more visiting pet retailers (up to 2,706). Product interest in pet products was up nearly 7% on 2007 (to 6,021). With many exhibitors reporting a record year for sales enquiries, more than 60% of 2007 exhibitors have already rebooked — many of whom have been upgrading their stand to capitalize on the increasing popularity of the show. Brand new booking enquiries are also being received.
Petindex moved to the larger space of Halls 6-8 in 2007, where it will again be located in 2008. The ever increasing reputation of the show attracted 3.5% more visiting pet retailers (up to 2,706). Product interest in pet products was up nearly 7% on 2007 (to 6,021). With many exhibitors reporting a record year for sales enquiries, more than 60% of 2007 exhibitors have already rebooked — many of whom have been upgrading their stand to capitalize on the increasing popularity of the show. Brand new booking enquiries are also being received.
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» MARKET DATA
Each month the Petfood Industry E-newsletter will bring you the latest market data available from several different sources including Euromonitor International, Packaged Facts, Information Resources Inc. (IRI) and ACNielsen.
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Pouches Aid Sales of Wet Petfood in France
The introduction of pouches has allowed manufacturers to add value and therefore continue to create value sales growth. First of all, it is a way of premiumizing products which are constantly in danger of being commoditised due to the rise of private label and hard discounters.
With time-pressed lifestyles likely to become more common, this format allows consumers to save precious time and to not worry about whether they are giving their pet the correct amount of vitamins etc. In addition, pouches offer convenience combined with ecologically friendly packaging, since they are easier to recycle than cans or aluminium trays.
Pouches offer convenience, with their single-serve format, as well as the perception of freshness, in that they avoid the food dosage issue for pet owners. This may become an increasingly important factor in the future as packaging laws become stricter. Pouches will also prove popular for the growing ranks of elderly pet owners who are looking to avoid carrying heavy packs to and from the shops.
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
Source: Y. Pan, 2006. Use of soy isoflavones for weight management in spayed/neutered dogs. FASEB J. 20:A854-A855.
The introduction of pouches has allowed manufacturers to add value and therefore continue to create value sales growth. First of all, it is a way of premiumizing products which are constantly in danger of being commoditised due to the rise of private label and hard discounters.
With time-pressed lifestyles likely to become more common, this format allows consumers to save precious time and to not worry about whether they are giving their pet the correct amount of vitamins etc. In addition, pouches offer convenience combined with ecologically friendly packaging, since they are easier to recycle than cans or aluminium trays.
Pouches offer convenience, with their single-serve format, as well as the perception of freshness, in that they avoid the food dosage issue for pet owners. This may become an increasingly important factor in the future as packaging laws become stricter. Pouches will also prove popular for the growing ranks of elderly pet owners who are looking to avoid carrying heavy packs to and from the shops.
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
Probiotics for cats and dogs
Liv-Pro from MLF Biotech is a multi-strain blend of probiotics enhanced with additional functional ingredients for promoting digestive health, immune function, urinary tract support, and bone and joint support. The probiotic blend is meant for cats and dogs, according to the company, and is traceable and safe for animal consumption. www.mlfbiotech.com
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No mess dispensing closure
Weatherchem Corp. designs and manufactures the NutraFlapper Closure, a dispensing closure that allows for easy use in pet product packaging. It has a half-moon shaped orifice that provides controlled, no clog, no mess dispensing, according to the company. NutraFlapper closes with its signature audible "snap" that signifies locked-in freshness. www.weatherchem.com
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Integrated nutritional values
The Nutritional Value Calculation from CSB System International allows for an automatic calculation of nutritional components and ingredients lists of petfood products. The module can be integrated into the Recipe Management system as part of an overall production module from the company. Using standardized interfaces, external databases can be imported, such as the USDA nutritional database, and can then assign the content to ingredients. Based on the recipe composition, the module calculates the nutritional values and ingredient lists and feeds the information directly to integrated labeling module software. www.csb-system.com
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Moisture meter gets stamp of approval
The Aquamatic 5100 from Perten Instruments was recently tested in the Czech Republic, Slovenia and Croatia and has fulfilled all performance requirements. In addition to moisture, the Aquamatic also determines specific weight and temperature. Other moisture meters need several calibrations per grain type, but according to the company the Aquamatic only needs one calibration for all grains and oilseeds. USDA research states that the 150 MHz technology and UMA (Unified Moisture Algorithm) reduces rebound effect and gives the true moisture content rather than the surface moisture content. All results are stored on the integrated flash memory and the Aquamatic is barcode reader-ready. www.perten.com
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» RESEARCH NEWS
Isoflavones reduce fat accumulation
Estrogen plays an important role in regulating energy and fat metabolism, and maintaining normal body composition in both female and male animals. Both soy isoflavones and exogenous estrogen have been shown to significantly reduce body fat accumulation in ovariectomized rodents.
In this study, we fed spayed/neutered Labrador Retrievers with either a control diet (Ctl, n=13) or a test diet containing soy isoflavones (Iso, n=14) that came from soy germ meal. Both diets had similar amounts of dietary protein, fat and caloric density. The dogs were fed 25% more than their maintenance energy requirement. At the end of the 12-month study, the dogs in the Ctl group gained twice as much body weight as the dogs in the Iso group (5.54 vs. 2.68 kg). For the first time, the results from this study showed that soy isoflavones-containing diet was very effective in reducing body fat accumulation in spayed/neutered dogs.
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Source: Y. Pan, 2006. Use of soy isoflavones for weight management in spayed/neutered dogs. FASEB J. 20:A854-A855.
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Protein and the fecal microbiota of cats
The objective of this study was to identify changes in the fecal microbiota of cats fed high- or moderate-protein diets. Eight healthy female adult domestic shorthair cats (1 yr old) were acclimated to a control diet (38% protein) for 4 weeks. After acclimation, fresh fecal samples were collected and stored at –80°C. Cats were then randomly allotted to a moderate-protein (34% protein; n=4) or high-protein (53% protein; n=4) diet and fed for 8 weeks. Fresh fecal samples were again collected and stored at –80°C.
Following DNA extraction, denaturing gradient gel electrophoresis and quantitative polymerase chain reaction were performed to identify qualitative and quantitative changes in microbiota, respectively. Dice’s similarity index was calculated as a measure of microbial diversity. Compared to baseline, cats fed the high-protein diet had a similarity index of 40.6% compared to 66.7% for those fed the moderate-protein diet. The study concludes that consumption of high protein diets results in vast changes in the intestinal microbiota.
Source: D.C. Lubbs, et al, 2007. Qualitative and quantitative changes in fecal microbiota of cats fed high- or moderate-protein diets. FASEB J. 21: 705.2
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Following DNA extraction, denaturing gradient gel electrophoresis and quantitative polymerase chain reaction were performed to identify qualitative and quantitative changes in microbiota, respectively. Dice’s similarity index was calculated as a measure of microbial diversity. Compared to baseline, cats fed the high-protein diet had a similarity index of 40.6% compared to 66.7% for those fed the moderate-protein diet. The study concludes that consumption of high protein diets results in vast changes in the intestinal microbiota.
Source: D.C. Lubbs, et al, 2007. Qualitative and quantitative changes in fecal microbiota of cats fed high- or moderate-protein diets. FASEB J. 21: 705.2
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» POSITIONS AVAILABLE
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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» AVAILABLE SURVEYS
Attention Petfood Manufactures!
We would like to get your insight and learn about your production of Premium and Super Premium pet foods and treats as well as your plans for developing these products in the future. Petfood Industry is conducting this survey on behalf of one of our marketing partners. Please help us learn more about Premium and Super Premium production by taking this survey!
We would like to get your insight and learn about your production of Premium and Super Premium pet foods and treats as well as your plans for developing these products in the future. Petfood Industry is conducting this survey on behalf of one of our marketing partners. Please help us learn more about Premium and Super Premium production by taking this survey!
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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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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.
We are always interested in hearing your ideas about the value of this newsletter, or whether you have any problems downloading or viewing this document. If you would like to discontinue your free subscription to this newsletter, or if you have additional E-mail addresses to add or remove from our subscriber list, please contact Petfoodindustry@wattnet.com.
» CALENDAR
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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©2007 All rights reserved.