February 18th, 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.

AFB International

 
 
INDUSTRY NEWS: Last chance to save on Petfood Forum 2008 and Petfood Focus on Safety registration
MARKET DATA: Vietnam’s developing retail environment helps increase product awareness
PRODUCT NEWS: Test for tetracyclines in milk
RESEARCH NEWS: Combating age-associated cognitive decline
POSITIONS AVAILABLE: Need a position listed? Contact gstadel@wattnet.net today!
AVAILABLE SURVEYS: Attention Petfood Manufacturers!
 » INDUSTRY NEWS
 Last chance to save on Petfood Forum 2008 and Petfood Focus on Safety registration
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! Register by March 1 to save 10% or more.

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.
Registration online at: www.petfoodindustry.com/petfoodforum.aspx. Register by March 1 and save 10% or register for both events and save 25%!

 
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Geelen Counterflow
 

 Menu Foods posts US$62M net loss
Menu Foods Income Fund reported a net loss of US$62.13 million on US$244.8 million in sales for fiscal year 2007, down from US$6.43 million in net income on US$356.2 million in sales during 2006.

“It would not be an overstatement to say that 2007 was the most unsettling time in Menu’s 37-year history,” the income trust said in its year-end report.

The recalls of last year directly cost Menu Foods US$55 million, but they also cost the company “significant sales” after it suspended shipments of all cuts-and-gravy products. Customers who accounted for approximately 37% of Menu’s volume in 2006 have since stopped buying its products, according to the company. Menu also restructured starting in October, selling a South Dakota production plant. Its workforce at the end of 2007 was down 27% from 2006 levels.

As reported, Menu “followed the leading national brand manufacturers” in January 2008 and raised the prices charged to its private-label customers. These increases are expected to increase Menu’s sales figures by over 3% and help it recover some of the cost increases the company had eaten since its last price increase, the company said.

 
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CJ Foods

 Women’s influence on petfood packaging
Petfood and care manufacturers absolutely need to cater to the female buyer when selecting packaging to brand products since women are the buyers of pet products in eight out of 10 households, according to the American Pet Products Manufacturers Association. Furthermore, women are more likely to own dogs and cats, and their emotional commitment to their pets can transfer easily into spending more money on accessories, treats and toys (Mintel Pet Survey, 2006).

According to research developed through Weatherchem focus groups conducted over a number of years, women know exactly what appeals to them, even more so than men. If packaging does not meet their requirements, their buying decision is clearly influenced. Weatherchem found four areas that influence the packaging preferences of women: packaging color, shape, product image and text.

For instance, if the product shape was not ergonomic or if a package is difficult to lift and carry, it is much more difficult to sell to women. Packages like Purina’s Tidy Cats litter and Deli-Cat brand cat food are more appealing to the female buyer, according to Weatherchem. Both items come in large jug containers that are easy to store and have convenient carrying handles to make using the product effortless for the consumer. Adding a directional dispensing closure to such packages would make it even more user-friendly.

 
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 Mars workers meet over redundancy plan
The National Union of Workers in Australia has expressed concern about the process of deciding who will be made redundant at the Mars petfood factory in Bathurst in central western New South Wales. The union met with workers at the plant in mid-February, after management announced its plans to cut 55 jobs. A union spokesman, Mark Ptolemy, said the company has refused the union’s request for voluntary redundancies and he is concerned that the redundancy process will not be fair and transparent.

“If a worker has to fill out a form and it’s assessed by the company, that information can be held by the company, maybe for a later round of redundancies,” he said. “Also, and we’re not suggesting Mars will do this, but it leaves the door open for an unscrupulous employer to target union members, and maybe through this assessment process use the backdoor way of getting rid of those deemed to be troublemakers.”

 
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 Dynamic growth in private label share, cat food sales in Denmark
The increase in current value sales of petfood and pet care products in Denmark exceeded inflation in 2007, according to Pet Food and Pet Care in Denmark, a report from Research and Markets. All sectors recorded reasonable value growth rates last year, but value sales cat food proved the most dynamic. This was mainly because the cat population continued to increase considerably and so the demand for cat food increased. With the shift toward premium and superpremium products, premium dry cat food was the most dynamic subsector in 2007. Despite a further decline in the population of large breed dogs, and thus less demand for dog food, the growth in dog food value sales was the above the inflation rate. This was primarily because consumers bought higher quality products.

 
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Extru-Tech
 

Private label sales also increased significantly in 2007. This was despite a higher proportion of dog and cat food sales from specialty stores that sold branded products. The development came mainly as the result of intensified efforts from discounters and supermarkets/hypermarkets to sell private label dog and cat food. Private label was more prominent in premium products and was therefore able to the meet the increasing trend for such products. Danish consumers, still price conscious, welcomed this development. While private label shares increased in the premium range, its share growth in the mid-priced range was by far the most significant.

For more information from Pet Food and Pet Care in Denmark, visit www.researchandmarkets.com/reports/c80003.

 
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 Milk-Bone celebrates its 100th anniversary
In honor of the brand’s 100th anniversary, Del Monte Pet Products, a division of Del Monte Foods, announced that its Milk-Bone brand will celebrate with the launch of the Make a Milk-Bone Moment contest. The top 100 Milk-Bone Moments will be posted on www.Milk-Bone.com, and people will vote to determine the Milk-Bone Moment grand prize winner, who will receive a US$100,000 contract to serve as the first-ever Milk-Bone 100th Anniversary SpokesDog.

In addition to the Make a Milk-Bone Moment contest, Milk-Bone will continue its yearlong celebration with a variety of activities, including:

  • Milk-Bone will make a donation of US$ 1 million to provide more than 100 dogs to the Milk-Bone Canine Heroes program, as well as a significant donation of Milk-Bone product to canine assistance programs across the US.
  • Milk-Bone will host a 100th Anniversary event in New York City, New York, USA, the birthplace of Milk-Bone.
  • In the spring, the Make a Milk-Bone Moment contest mobile tour will be stopping in 14 US cities.
 
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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/200801/

 
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 Passing of a leader
Leslie A. Watt, retired president and CEO of WATT Publishing Co., the publisher of Petfood Industry, recently died in his sleep. He was 94 years old. He took WATT into the international marketplace in the late 1950s. During his 60-plus year career, Watt received many accolades, awards and recognitions for business and for his philanthropy.

 
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AFB International - Missy
 » 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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Euromonitor
 
0802.2_graph
Vietnam’s developing retail environment helps increase product awareness
Being ranked as the third most attractive country for retailing investment, Vietnam is fast becoming an attractive market for giant retailers. The expansion of both supermarkets and convenience stores facilitates exposure for non-essential products such as petfood and pet care products.

Traditional pet shops will have to find a new niche, including offering an expanding range of brands and products. The on-site presence of licensed and qualified veterinarians to see to pet health and dispense advice on pet care would be key to ensuring survival.

Large store formats such as supermarkets and hypermarkets, with the strength to carry a plethora of brands and products at low prices, would typically not be able to offer specialized advice and suggestions. Modern retail outlets will however outshine pet shops with their positioning as a one-stop shopping center for all grocery and non-grocery products. This serves well for repeated purchases, where product knowledge is high and there is a lower need for product education services.

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
 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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Clextral
 

 Eliminate bump turns
FleetwoodGoldcoWyard has updated its product RoboMax from its case palletizing line. The RoboMax is designed to replace existing lane dividers, case-turning conveyors and case-turning bumpers with servo-controlled area gantry robots mounted over a continuous mat top belt. The RoboMax can be supplied as a new machine or as an upgrade to an existing FleetwoodGoldcoWyard Maximizer, according to the company. www.FGWA.com
 
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Phazir
 

 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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JRS - Arbocel
 

 Dry, dehumidify or cool
The Rotary Batch Dryer-Dehumidifier-Cooler from Munson Machinery is for direct or indirect drying, dehumidifying or cooling of bulk solid materials. The configuration for direct drying, dehumidifying or cooling is equipped with a material intake chute with ports for introducing heated or cooled air directly into the batch. Configurations for indirect drying, dehumidifying or cooling come with a jacketed vessel that heats or cools the batch indirectly, and are offered with nitrogen-purged systems that eliminate exposure to the atmosphere. www.munsonmachinery.com
 
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Extru-Tech
 
 » RESEARCH NEWS
 Combating age-associated cognitive decline
Beagle dogs between 7.6 and 8.8 years of age administered a twice daily supplement of alpha-lipoic acid (LA) and acetyl-L-carnitine (ALC) over approximately two months made significantly fewer errors in reaching the learning criterion on two landmark discrimination tasks compared to controls administered a methylcellulose placebo.

Testing started after a five day wash-in. The improved performance on the landmark task of dogs supplemented with LA + ALC provides evidence of the effectiveness of this supplement in improving discrimination and allocentric spatial learning. We suggest that long-term maintenance on LA and ALC may be effective in attenuating age-associated cognitive decline by slowing the rate of mitochondrial decay and cellular aging.

Source: N.W. Milgram, et al, 2007. Acetyl-L-carnitine and alpha-lipoic acid supplementation of aged beagle dogs improves learning in two landmark discrimination tests. FASEB J. 21: 3756-3762.

 
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Conforma Clad
 

 Antioxidants improve feline IBD
The objective of this study is to evaluate the effect of antioxidants on immune and inflammatory parameters in cats with inflammatory bowel disease (IBD). In this study, 10 healthy and 10 IBD cats were fed wet food with low antioxidants (Ctrl) and test food (Aox) with added vitamin E, vitamin C and beta carotene for four weeks each in a randomized cross-over design. Both foods were completely balanced for adult cats.

Serum vitamin E and C, DNA damage (comet assay), lymphocyte subsets and proliferation were measured at weeks four and eight. The results showed that serum vitamin E and C were significantly increased in healthy and IBD cats on the Aox vs. Ctrl food. The Aox food tended to reduce the lymphocyte proliferation activity in both groups of cats. The results showed that IBD cats have a dysregulated and hyper-inflammatory immune response compared to healthy cats. Higher levels of antioxidants or nutrients such as fish oil may be indicated for decreasing inflammation.

Source: C. Khoo, et al, 2007. Effect of a dietary antioxidant package on immune function and antioxidant status of IBD cats. FASEB J. 21: 705.1

 
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 Bixin stimulates feline immunity
Bixin is an antioxidant compound extracted from the annatto seed. Female domestic cats were fed daily for 16 weeks with 0, 1, 5 or 10 mg bixin (n = 14/group). Blood was sampled on weeks zero, six, 12 and 16. All cats were then vaccinated with an attenuated polyvalent vaccine on weeks 12 and 14. Skin hypersensitivity response (DTH) to saline, concanavalin A, the vaccine, and histamine was assessed on weeks 12 and 16. Cats fed 5 mg. bixin generally showed the highest immune stimulatory and antioxidative action. In this treatment, bixin enhanced lymphoblastogenic response, populations of T helper and T cytotoxic cells, NK cytotoxicity and IgG production. Bixin also inhibited DNA damage.

At 10 mg., bixin stimulated DTH response to con A, percent of total T and T cytotoxic cells, and IgG production; however, it inhibited mitogen-induced lymphocyte proliferation. All doses of bixin reduced skin response to histamine and CD18 subpopulations. Therefore, dietary bixin, especially at the 5 mg. dose, heightened cell-mediated and humoral immune response, and inhibited DNA oxidative damage and inflammation in cats.

Source: J.S. Park, et al, 2007. Bixin stimulates immune response in cats. FASEB J. 21: 546.18

 
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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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Market Place
 
 » 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!

 
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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.

AFB International

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