Petfood Industry Electronic Newsletter July 03, 2007
 

July 03, 2007
Volume 7, Number 13

This newsletter is also available in an Acrobat PDF format. To download the PDF click on the following link: Jul03PDF.

Your free copy of the Petfood Industry Electronic Newsletter is sponsored by AFB International, maker of Optimizor® and BioFlavor® brand palatants. 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.

Here's what's been happening lately:

 

Industry News

Convenience still tops in petfood packaging
Cited by more than four-fifths of pet owners surveyed, convenience still trumps most other factors influencing pet care product purchases, according to Pet Food Packaging and Convenience Trends, a new report from Packaged Facts. Convenience fell second only to price in mass market outlets and third to product quality and knowledgeable sales help in pet specialty channels.

With a particular focus on convenience-oriented, “premiumized” product types, Pet Food Packaging and Convenience Trends is a comprehensive survey of innovative pet convenience products in the food arena. The report examines both the products themselves and what's driving their popularity, providing case histories illustrating key trends in product development and marketing. The report has a particular focus on new packaging types and technologies such as single-serve, pouch, resealable, easy-open and easy-carry. It is available from Packaged Facts by visiting http://www.packagedfacts.com/Pet-Food- Packaging-1480611. It is also available at MarketResearch.com.

ASPCA believes acetaminophen contamination unfounded
The American Society for the Prevention of Cruelty to Animals (ASPCA) has announced that it has been in close touch with veterinary toxicologists at the University of California (Davis), who have conducted independent tests on cat food to analyze for acetaminophen. Their findings reportedly corroborate those of the US Food and Drug Administration (FDA). As such, the ASPCA has stated that it believes that fears of widespread contamination of petfood with acetaminophen are unfounded.

Dr. Robert H. Poppenga, a board-certified veterinary toxicologist and who runs the Toxicology Section of the California Animal Health and Food Safety System (CAHFS) at UC Davis' School of Veterinary Medicine, explained: “A few weeks ago, CAHFS received three cans of cat food supplied to it for testing by an individual pet owner. We were told that this was the same food that had tested positive for acetaminophen and cyanuric acid at a private laboratory in Texas. Further, the cat in question had been diagnosed with acute renal failure, but there was no evidence of liver failure, which is what we see with acetaminophen poisoning. We immediately began conducting our own rigorous tests on these foods, which are in line with nationally-accepted guidelines for such testing. All the samples came back negative for this type of contamination.”

Hill's to build new petfood plant in Emporia
Hill's Pet Nutrition has announced plans to build a new petfood manufacturing plant in Emporia, Kansas, USA. Hill's reportedly plans to start construction on the new US$100 million plant early next year and begin production in 2009. More than 100 people will be employed in the Emporia plant. Hill's will continue to operate its global headquarters, pet nutrition center and canned petfood manufacturing facility in Topeka, Kansas. Hill's reached agreement with the city of Emporia to build the 300,000-square-foot plant on an 80-acre site. The agreement is contingent upon a planned rezoning of a small portion of the tract and completion of analysis of the site, said Hill's in a news release.

Peter Atkins promoted to president of Natura Pet Products
Peter Atkins, co-founder and vice president Natura Pet Products, has been promoted to president. In his expanded capacity, Atkins will be responsible for the day-to-day management and leadership of Natura Pet Products, including long-term product development, brand marketing, interaction with retail and distribution partners and overall quality control.

Mars ups its commitment to pet specialty channel in UK
pbwnews reports that Mars has increased its long-term commitment to the pet specialty channel, investing in product development tailored specifically for pet stores. The company reportedly said that pet specialists have a huge opportunity to increase their sales of the growing premium wet cat food and functional treats categories. Data from the UK indicates that the pet specialist channel is growing at a healthy 3.9% and is worth an estimated £700 million, which is second only to grocery, which is growing at 4.5%. The snacks and treats category is a real sales driver for pet specialist retailers, having grown by 7.5%. It is now worth £27 million and within this, “functional” treats now account for 17%. To capitalize on this category, Mars launched the Pedigree JointCare line at Crufts, with a “staggeringly positive” response from retailers.

Showcasts from Forum and Focus now available
Registration is now open for showcasts of Petfood Forum 2007 and Petfood Focus on Treats presentations. Recorded during Petfood Forum 2007 and Petfood Focus on Treats in Chicago, Illinois, USA earlier this year, our presentation "showcasts” highlight a variety of the various topics discussed this year. Some of the showcasts available include “Global petfood industry outlook;” “Cognitive palatability testing;” “Functional ingredients in treats;” and “Treats for dental health.”

Presented by Petfood Industry magazine and sponsored by Petfood Forum, Petfood Focus and WATT Publishing, the showcasts feature special guest speakers from around the world. To order any of the available showcasts (US$199 each) visit https://secure.iian.ibeam.com/events/watt001/22617/. Please continue to check the site as more showcasts will become available soon. If you're looking for more information on Petfood Forum 2007 or the upcoming Petfood Forum 2008, please go to www.petfoodindustry.com.

Food safety crackdown in China commences
Regulators in China have reported recently closed 180 food plants where inspectors uncovered more than 23,000 food safety violations. The nationwide crackdown, which the government said began last December, also found that many small food makers were using industrial chemicals, banned dyes and other illegal ingredients in things like candy and seafood. The announcement came as part of an apparent overhaul of food safety regulations after a series of international food scares involving Chinese exports.

China has strongly denied that its food exports are hazardous and has seemingly retaliated against criticisms in recent weeks by seizing American and European imports. Still, the government has moved aggressively in recent months to enforce food safety regulations and to weed out fake or contaminated food products. Regulators have said an investigation involving 33,000 law enforcement officials found illegal food-production and meat-processing operations, fake soy sauce and the use of banned food additives.

Corruption and bribery are also reportedly part of the food and drug industry in that country. But, not all the problems stem from corruption or malfeasance. A. T. Kearney, an international management consulting firm, issued a report recently saying that one cause of food safety problems in China was inadequate logistics systems and a lack of cold storage. The firm said China needed to invest about US$100 billion over the next 10 years to upgrade its logistics and refrigeration abilities and to put new standards into effect. In China, the study said, there are only about 30,000 refrigerated trucks for transporting food; the United States has about 280,000.

K-Tron launches new website
The K-Tron Process Group announces the launch of the new www.ktron.com, a new and improved website featuring a new “Industries Served” section with detailed descriptions of more than 20 feeder and pneumatic conveying applications in the plastics, food, pharmaceutical and chemical industries. According to the company, the updated navigation will be familiar to repeat visitors and has been enhanced to help new visitors find what they need more easily. The website continues to be available in five languages including English, German, French, Portuguese and Spanish.

Web seminar on keeping customers
Increasingly, making petfood safety and traceability a well-documented priority is an important way to increase and keep a loyal customer base. At no charge, on July 12, 2:00 p.m. Eastern (USA), join petfood safety and traceability experts Julie Lenzer Kirk of Interstates Companies and Matt Frederking of Poet Nutrition for a discussion of how to avoid high-profile contamination incidents and what to do if one happens anyway.

This webinar will cover:

  • The why and how of automated traceability systems.
  • Expert advice on ways to build trust with your suppliers and improve your QA efforts.
  • Practical ideas on what to do when a contamination crisis occurs.

For more information and to register, go to www.petfoodindustry.com.

The Bundy Companies acquire Shaffer
Russell T. Bundy, president & CEO of The Bundy Companies, recently announced the group has acquired Shaffer Manufacturing Corporation of Sidney, Ohio, USA. Bundy stated, “Shaffer has established itself as a leader in horizontal mixers, serving the bread, roll, cookie, cracker, snack, confectionery and petfood markets.” The Bundy Companies, headquartered in Urbana, Ohio, is a leading supplier to the baking industry worldwide.

New solid state fermentation facility planned
A joint venture between Genebiotech, a Korean biotechnology firm, and Nutra-Flo Protein and Biotech Products, a Sioux City, Iowa, USA feed ingredient company, will create a high-tech soy fermentation facility in North Sioux City, the first of its kind in the United States according to news reports. The US$8.76 million project will break ground in 2007 and production is expected to begin in early 2008. The company will utilize advanced Korean technology and a solid state fermentation technique to use soy and other plant origin products to manufacture animal feeds. The expansion is reportedly being driven by a global demand to supply animal diets with high-quality protein sources. Once complete, the Nutraferma facility will be the largest solid state fermentation installation in the United States.

Novus announces Gasperoni promotion
Novus International Inc., a leading innovator of animal health and nutrition programs, has announced the promotion of Dr. Giovanni Gasperoni from vice president to executive vice president, marketing and sales.

Consumer Wellness Center posts review of 570 petfood ingredients
The non-profit Consumer Wellness Center recently posted a “detailed nutritional review of 570 petfood ingredients commonly found in petfood products (both canned and dry).” The list was created by petfood formulator Dr. Lisa Newman, consumer health advocate Mike Adams and the non-profit Consumer Wellness Center (http://www.ConsumerWellness.org). It reportedly “tells the blatant truth about harmful, disease-promoting ingredients commonly used in petfood products across North America.” The list can be found online at http://www.newstarget.com/Report_pet_food_ingredients_0.html.

In the report, the ingredients of 448 popular petfood products sold in the United States were apparently analyzed and organized by frequency of appearance. Newman then “provided a nutritional analysis and comment for each ingredient.” Four lists were created: petfood ingredients by rating (from five stars down to one star, with five stars indicating the best quality ingredients); petfood ingredients by frequency (sorted by how frequently they appear in petfood products); petfood ingredients listed alphabetically; and the “worst petfood ingredients (listing of “low-quality/hazardous” ingredients).

Omega Protein makes sales promotions
Scott Herbert has been promoted to senior vice president of sales and marketing. Herbert joined the Company in 1992. Chris Schneider has been promoted to director of domestic sales, agriproducts. Schneider joined the company last March and has been in charge of the domestic petfood and aquaculture markets.

 

Each month the Petfood Industry E-newsletter will bring you the latest market data available from several different sources including Euromonitor International, Information Resources Inc. (IRI) and ACNielsen.

Market Data

Top US food, drug and mass merchandiser (excluding Wal-Mart) wet dog food sales for the 52 weeks ending October 8, 2006. Source: Information Resources Inc.

Brand

US$ sales

% chg vs. 2006

Unit sales

% chg vs. 2006

Cesar Select Dinners
$87.2 million
7.3%
$111 million
5.4%

Purina Alpo Prime Cuts

$74.8 million
-0.2%
$94.6 million
-7.0%
Pedigree
$72.3 million
-2.8%
$81.2 million
-11.0%

Purina Mighty Dog

$60.9 million
-7.9%
$60.4 million
-15.5%

Pedigree Choice Cuts

$55.5 million
-2.6%
$61.5 million
-8.8%
Private label
$48.6 million
-6.0%
$86.6 million
-10.0%
Pedigree Little Champions
$46.3 million
-1.1%
$43.4 million
-22.8%
Purina Alpo
$20.4 million
-10.2%
$17.8 million
-22.7%
Iams
$19.3 million
-10.9%
$16.8 million
-17.7%
Purina Alpo Chop House Originals
$17.8 million
571.8%
$24.3 million
493.5%
Kibbles 'N Bits
$16.2 million
-27.9%
$13.8 million
-48.6%
Purina Alpo Prime Slices
$14.6 million
-2.6%
$23.0 million
-6.0%
Purina Beneful
$14.1million
--
$8.6 million
--
Purina Mighty Dog Prime Cuts
$13.2 million
-8.2%
$12.6 million
-20.9%
Iams Select Bites
$11.8 million
84.1%
$10.1 million
64.9%
Total
$623 million
0.7%
$749 million
-9.2%

International brands lead in China
In China, international companies such as Nestlé, Mars and Royal Canin continued to lead in 2006, supported by the growing preference that pet owners have for premium and mid-priced brands. These players benefited from active marketing campaigns, including pet contests held in the big cities, which increased brand awareness and stimulated value sales. Local companies lag behind in product development and distribution and cannot afford to effectively compete with multinationals. Most domestic players focus on economy products, which are perceived as less nutritional. This has a negative impact on domestic brands' product image and value sales.

For more information, Euromonitor International's Petfood and Pet Care Products-China market report offers a comprehensive guide to the size and shape of the market at a national level. Euromonitor International publishes petfood and pet care reports on 52 country markets. Click here for more information about petfood and pet care reports from Euromonitor International and to buy reports online.



                                                                                                                                                                                                       

Product News

Magi-N.ext extruder line
The new Magi-N.ext extruder system from Dinnissen allows manufacturers to produce economic/basic, premium and superpremium petfoods in a number of variations. The Magi-N.ext uses the Hamex hammermill, the CZ Sifter, Pegasus vacuum core coater, gravimetric dosage, automated weighing and the Pirouette Dryer.

Versatile portion depositor
NuTEC's 725 C-Frame Filling & Portion Depositor fits into existing production lines and can deposit a variety of portions, fillings and toppings. Deposit sizes of up to 1-3/8 inches thick can be formed. According to the company, the hydraulic 725 C-Frame System minimizes maintenance, reduces downtime and lowers repair costs.

E-News

Multiple online ad placements impress
For online marketers who think that the last ad impression (or click) seen is the most likely to lead to a conversion, a look at the Atlas Institute's How Overlap Impacts Reach, Frequency and Conversions study may be in order. The study, conducted in the first quarter of 2007, found that US consumers were more likely to convert after viewing ads on multiple websites, suggesting that conversions should be attributed to a full set of impressions and/or clicks, rather than just the single one that preceded the conversion.

Two out of three consumers who eventually bought a product or took a responsive action were reached by ads across multiple portal sites before converting. Nine in 10 consumers who converted were reached by placements other than the last ad seen. Also, 86.1% of ads which led to a responsive action were seen on multiple placements. A previous Atlas study called The Combined Impact of Search and Display Advertising showed that sponsored search and display advertising together provided a 22% higher conversion rate over search alone. Of course, multiple placements are not right for every campaign, and they are not always easy to make. A June 2006 study by WebAdvantage.net found that 79% of experienced online video ad buyers were very or somewhat concerned about sizing ads for multiple placements.

Research News

Fish oil increases cholesterol storage in mice
Although fish oil has hypolipidemic and antiatherosclerotic properties, the potential for white adipose tissue (WAT) to mediate these effects has not been studied. LDL-receptor deficient (LDLR–/–) mice were fed high fat, olive oil-containing diets supplemented with additional olive oil or with fish oil for 12 weeks. Fish oil feeding significantly reduced plasma lipid levels. In contrast, lipid storage in WAT was increased in fish oil-fed mice as evidenced by increased total fat (P<0.05) and perigonadal WAT mass (P<0.05), increased cholesterol storage (P<0.001) and adipocyte hypertrophy.

Despite increased adipose tissue mass, WAT-specific inflammation and insulin sensitivity were improved (P< 0.05), concomitant with reduced macrophage infiltration. Furthermore, fish oil increased WAT and plasma levels of adiponectin. In addition, fish oil feeding decreased the formation of proinflammatory F2- isoprostanes, markers of oxidative stress (P<0.05). The increased WAT lipid storage in fish oil-fed mice was associated with reduced lipid accumulation in liver (P<0.05) and decreased atherosclerotic lesion area (P< 0.05). Taken together, these data highlight the specific role of WAT in regulating dietary fish oil-mediated improvement in systemic lipid homeostasis and atherosclerosis.

Source:
V. Saraswathi et al., 2007. J Nutr 137(7):1776-1782.

Cancer cells inhibited by pomegranate juice
Mammary cancer has been associated with numerous factors, including diet. Polyphenolic antioxidants found in pomegranate fruits have been shown to reduce tumor burden and inhibit angiogenesis and cell growth. Feline mammary carcinomas (FMC) are known to have similar invasive behavior, histologic appearance and overall poor prognosis to estrogen receptor negative (ER-) invasive human mammary cancer. In this study, supplementation with an antioxidant-rich whole food (pomegranate) was evaluated for anti-cancer properties in an ER- human breast cancer cell line (MDA-MB-231) as a model for FMC.

Antioxidant capacity and polyphenolic content of pomegranate juices (PJ) were characterized by reportable methods. ER- cells were exposed to PJ at various concentrations (0.5%, 1%, 5%) and to Cisplatin (5 ug/ml, 10 ug/ml, 15 ug/ml) doses for 48 and 72 hours. MTT assays were performed to evaluate the ability of PJ to inhibit tumor cell growth. Statistical significance was determined using PROC GLM (SAS 9.1) with alpha=0.05.

Cell proliferation of the ER- cancer cells was inhibited by pomegranate juice in a dose- and time-dependent manner (p<0.0001). Maximal inhibition was seen for pomegranate juice formulations at the 5% dose, and the response was comparable to that of high-dose Cisplatin. This first-phase study shows that PJ may be a useful nutrient-based, non-chemotherapeutic alternative for the inhibition of ER- breast cancer cell proliferation.

Source: A.E. Tanner et al., 2007. Proceedings of the AAVN 7th Annual Clinical Nutrition and Research Symposium, Seattle, Washington, USA.



Positions Available

Sales account manager sought
SPF North America Inc., the worldwide leader of palatability enhancers, is seeking a sales account manager. This position will play a major role in our development in North America. Contact Judy Gehler with your resume at jgehler@spf-usa.com or Fax: +1.715.926.5285.

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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Your free copy of the Petfood Industry Electronic Newsletter is sponsored by AFB International, maker of Optimizor® and BioFlavor® brand palatants. 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.