Petfood Industry Electronic Newsletter June 19, 2007
 

June 19, 2007
Volume 7, Number 12

This newsletter is also available in an Acrobat PDF format. To download the PDF click on the following link: Jun19PDF.

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

FDA disputes petfood findings
Petfood from multiple brands have allegedly tested positive for acetaminophen, a common pain reliever, according to a laboratory in Texas. Both wet and dry dog and cat food samples contained a low concentration of acetaminophen, Donna Coneley, a spokesperson for ExperTox of Deer Park, Texas, USA, told Pet Product News International.

In business since 1995, ExperTox was asked by “individuals or manufacturers” to analyze the petfood samples, Coneley said. On June 12, however, the US Food and Drug Administration (FDA) ruled out acetaminophen as a petfood contaminant, after they found no trace of the substance in five samples of one type of cat and two types of dog food. What is not yet clear is whether the FDA tested the same type of petfood in which ExperTox said it found the highest level of acetaminophen.

According to Julie Zawisza, assistant commissioner of public affairs for the FDA, a third lab hired by a petfood company and a university lab hired by a consumer could not verify ExperTox's findings. Coneley said her lab tested 100 to 150 samples of petfood—and detected acetaminophen in five of those samples. The company declined to name which petfoods had positive tests for acetaminophen, saying only that there were “multiple” brands involved.

ExperTox also found cyanuric acid and/or melamine in some of the samples, Coneley added. ExperTox is reportedly working closely with FDA officials to share their information and samples. Coneley says the company is standing behind their findings.

Del Monte Foods reports pet segment sales up 50%
Del Monte Foods recently released its reported net sales for the year ended April 29, 2007. Sales for the Pet Products segment were US$1.3 million, an increase of 50% compared to fiscal year 2006. The increase was attributed to the Meow Mix and Milk Bone acquisitions by the company.

Petfood Forum Asia planning
As Petfood Industry begins planning for its Petfood Forum Asia 2008 event, we need your input. Please click on this link to participate in a brief survey about topics of interest. The survey will take only a few minutes to complete and will help us bring you the most relevant information for the global petfood industry. Thank you for your time!

Brand sales in flux
Packaged Facts believes that billions of dollars in petfood brand sales are currently up for grabs as a result of the recent petfood recalls. The report estimates a brand shift in the North American market worth US$1.3 billion to US$4.3 billion in petfood retail sales.

In its report Product Safety and Alternative Pet Foods: North American Market Outlook, Packaged Facts traces the government, industry and consumer responses to the petfood recall crisis, all the while keeping an eye on implications for North American sales of alternative petfoods. This report examines the impact of the petfood recall crisis of 2007 on the North American market in terms of consumer, manufacturing, marketing and new product trends. For more information on the report visit www.packagedfacts.com.

Private label gains in shopper attitudes
New Private Label Manufacturers Association (PLMA) research data, released for the first time at the seminar program at PLMA's “World of Private Label,” showed that private label not only gained market share across Europe last year, but also that the impressive market share increases by retailer brands in recent years are being driven by a fundamental shift in shopper attitudes.

In the advanced markets of Western Europe , private label grew despite strong competitive moves by the top brands. In central and eastern Europe , where modern retailing is rapidly taking root, retailer brands are making their biggest market share gains. This year's version of “World of Private Label” featured more than 3,100 exhibit stands representing over 1,600 companies from 70 countries. Overall, this was an increase of over 100 exhibitors.

Petfood safety web seminar
Petfood safety is definitely the hottest topic in the petfood industry these days. 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.

In this webinar, you will hear:

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

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

Equity fund invests in web-based petfood firm
LLR Partners Inc. has made a US$10 million equity investment in Pet Food Direct Inc., an Internet petfood retailer based in Harleysville, Pennsylvania, USA. LLR invests in middle-market companies and is part of the Philadelphia-based Independence Capital Partners family of private-equity funds.

Private label gains in shopper attitudes
New Private Label Manufacturers Association (PLMA) research data showed that private label not only gained market share across Europe last year, but also that the impressive market share increases by retailer brands in recent years are being driven by a fundamental shift in shopper attitudes. In the advanced markets of Western Europe, private label grew despite strong competitive moves by the top brands. In central and eastern Europe, where modern retailing is rapidly taking root, retailer brands are making their biggest market share gains.

Sizoo expects good turnout in September
The international show for pet professionals, Sizoo, is finalizing details for its next show, which will be held September 20-23 this year. The show expects 120 direct exhibitors, representing up to 450 pet care and petfood brands. Sizoo will host technical sessions for different types of professionals: a session for veterinarians on dermatology; a session for the specialist retail trade to debate how to make a business more cost-effective and face the challenge of franchise chains, among other aspects; and, lastly, a session for breeders focused on reproduction.  

Sizoo 2007 will also provide the setting for a wide range of activities and technical sessions, such as the New Products Contest. The Pet Festival will be sponsored by the leading companies of the pet care and petfood sector, such as Affinity, Iv San Bernard, Marterfoods and Royal Canin. The Festival will showcase pet products and accessories from over 50 companies. The event, open to the public, expects an audience of over 45,000 people, among professionals, amateurs and pet lovers.



Bachelor Controls chosen as finalist for System Integrator of the Year
Bachelor Controls Inc. (BCI) was named a finalist in Control Engineering magazine's first System Integrator of the Year awards. The 2007 System Integrator of the Year award was designed and administered by Control Engineering consulting editor Dr. Vance VanDoren. VanDoren worked with the Control System Integrators Association (CSIA) and other industry leaders to judge entries from system integrators from all over the world. Submitting system integration firms were split into three categories based on annual revenue and each firm was judged on achievements in the areas of technical expertise, business skills and customer satisfaction.

Pet food Industry launches new website
Petfood professionals can now access a wealth of nutrition information on the new PetfoodIndustry.com. This site from the editors of Petfood Industry features articles on nutrition, ingredients and related topics, along with research, news and product information, from the magazine, related E-newsletters and conferences (Petfood Forum and Petfood Focus). In addition, users can register to access specialized content such as white papers and webinars. All the content is fully searchable and can be customized according to users' needs. To create interaction and an online community, a new discussion board allows users to post thoughts, questions and experiences. More features will be added in the coming months. Check out the new site at www.petfoodindustry.com.

 

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 drug stores with US$1 million and over in sales (excluding Wal-Mart) petfood sales for the 52 weeks ending April 21, 2007. Source: ACNielsen.

Category

US$ sales

% chg vs. 2006

Unit volume

% chg vs. 2006

Dry cat food
$30.8 million
13.3%
$6.3 million
-0.5%

Semi-moist cat food

$0.04 million
-10.4%
$0.02 million
-12.2%
Wet cat food
$24.2 million
3.3%
$35.6 million
-3.8%

Dog & cat treats

$20.5 million
15.3%
$7.1 million
7.2%

Dry dog food

$29.2 million
16.3%
$4.8 million
10.5%
Semi-moist dog food
$0.03 million
-39.8%
$0.01 million
-91.3%
Wet dog food
$12.1 million
7.8%
$13 million
0.9%
Total (includes "other")
$126 million
9.1%
$69.3 million
-1.7%

Baby boomers drive growth in pet industry
An increasing number of baby boomers in the United States is forecast to impact the petfood and pet care industry over the next five years, according to the latest research from Euromonitor International. Sales of petfood are predicted to grow by 14% from 2006 to 2011 reaching a total of US$24.4 billion in 2011. Baby boomers are expected to see higher disposable income levels between 2006 and 2011 as they are living on their own without families to support. They increasingly view their pets as members of the family and as such, spend more of their disposable income on food and accessories for them. As a result the pet industry will benefit over the next five years as the emotional spend on pets continues to rise.

Sales of pet care accessories in particular are forecast to grow as consumers turn to accessories, clothes and carriers because they enjoy spoiling their pets with the latest and most fashionable products. Euromonitor International predicts that value sales of pet care products will increase by 22.5% in the US from 2006 to 2011, reaching US$7.5 billion in 2011. Manufacturers that respond to this demand with unique and stylish products are predicted to receive the greatest benefit according to Euromonitor.

For more information, Euromonitor International's Petfood and Pet Care Products in the US 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

Complete systems integration
Columbia now offers complete systems integration services as an addition to its complete line of palletizing solutions. By adding this to its product line, Columbia can provide complete turnkey solutions that incorporate conveyors, barcode readers, case and bag elevators, bag weighers, bag flatteners, shuttle cars, stretchwrappers and more. Complete systems integration includes project management, controls, installation, wiring, commissioning and preventive maintenance from one source.

Open-mouth bagger
Premier Tech Systems' PTK-1700 Open-Mouth Bagger is capable of filling up to 25 plastic, paper or polywoven bags per minute with powdered or granular material. It features a touch screen control system, stainless steel product contact surfaces and can be integrated with all types of bag closing systems.

E-News

Get your E-mail message past spam filters
Four more Internet service providers will start charging banks, E-commerce sites and other large E-mail senders for guaranteed delivery. In deals recently announced, Goodmail Systems is expanding its CertifiedEmail program to Comcast, Cox Communications, Time Warner Cable's Road Runner and Verizon Communications. Yahoo and Time Warner's AOL became inaugural participants last year.

Individuals, businesses and organizations will be able to continue sending messages for free, but they risk finding those missives caught in increasingly aggressive spam filters. With Goodmail, a company can pay a quarter of a penny per message to bypass those filters and reach in-boxes directly. Recipients see a blue seal verifying that the message is legitimate; senders get confirmations and can resend messages lost in transit. Nonprofit groups can participate, too, at about a tenth of the commercial rates.

At least half of the fees go to the service provider. For now, Goodmail will approve only companies and organizations in existence for at least a year, to thwart fly-by-night operations. Those that have prompted too many spam complaints will be disqualified. The service is designed to certify credit card statements, E-commerce receipts and other communications with existing customers. It does potentially give a boost to larger corporations and groups that can afford the charge, but their messages are the ones most likely to be mischaracterized as junk.

Peter Castleton, Verizon's director of consumer broadband services, said his company would still let senders apply for “whitelisting”—and thus bypass filters as well—without charge. Goodmail's service, he said, is for those that want approval at multiple ISPs at once.

B2B buyers use search technology
Over eight in 10 US technology buyers begin their research for information on a major search engine, according to KnowledgeStorm and MarketingSherpa's "Connecting Through Content, Issue Two: Content Distribution--Where Information Intersects With Interest" report, fielded in April 2007. Over half of buyers scan three to five pages of search results on average. Only 11% stop at the first page.

According to emarketer.com, over half of buyers read sponsored links "frequently" or "sometimes." Just over a third click on such links "frequently" or "sometimes." Some 14% of technology buyers said they frequently read sponsored links, and 6% frequently click on them. Nearly four in 10 technology buyers "sometimes" read the sponsored links, and 28% "sometimes" click on them.

Nearly two-thirds of B2B marketers use a paid ad strategy to place their content on search results, and about the same proportion have a strategy for ensuring high organic/natural placement on search engines. Eight in 10 technology buyers said offline marketing, such as magazine ads or direct mail, "sometimes" or "frequently" leads them online to seek information.

Research News

Nutrient digestibility in African grey parrots fed pelleted diets
A feeding trial was performed to study the influence of particle size in extruded parrot pellets on apparent digestibility and excreta consistency and pH. Two test diets were alternately provided to eight African grey parrots according to a 2×2 crossover design. Both diets were similar in nutrient content and ingredient composition but differed in particle size of the composing particles of individual pellets. Apparent digestibility of macronutrients was studied using the total collection method. Next, the appearance of the excreta was studied by calculation of weight-surface ratio of individual excrements as an objective measurement of consistency.



Last, excreta pH was measured directly on fresh excrements and on homogenized 10% excreta solutions. Neither apparent digestibility coefficients nor excreta pH values were significantly different in parrots fed the two diets. However, excreta consistency was significantly (P < 0.05) more solid when fed the coarse diet than when fed with the finely ground diet. The results of this study suggest that excreta consistency can be improved through larger particle size, without adverse effects on nutritive value of the diet.

Source: I.D. Kalmar, G. Werquin and G.P.J Janssens, 2007. JAPAN 91(5-6):210-216.

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.





Contact Information

To submit any information you would like us to consider for publication on our website, in the printed magazine, or on this newsletter, E-mail your information to Jenny Kvamme, DVM.

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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.