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October 16, 2007
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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.
» INDUSTRY NEWS
Grand jury focuses on petfood plant
In Muskogee, Oklahoma, USA in September, a federal grand jury investigating political corruption heard testimony from former state Rep. Joe Hutchison and former state Sen. Gene Stipe's estranged business partner, Steve Phipps. While grand jury proceedings are secret, the lineup of witnesses indicates the testimony may have centered on financial transactions involving a McAlester dog food plant built largely with state and city taxpayer money.
Phipps is co-owner of National Pet Products, which incorporated in June 2002. Four months later, the company received US$419,000 in state money earmarked by then-state Rep. Mike Mass, US$250,000 from the city of McAlester and US$100,000 from the McAlester Foundation, a quasi-private entity. An FBI affidavit alleges Stipe arranged for the state funding and picked the plant's location—a piece of property he owned. Records show Stipe received US$190,000 for the property, which he had bought five years earlier for about US$75,000.
Phipps has agreed to cooperate with the ongoing investigation as part of his guilty plea to a conspiracy charge. Phipps admitted paying kickbacks to three legislators who secured state money for his businesses.
Phipps is co-owner of National Pet Products, which incorporated in June 2002. Four months later, the company received US$419,000 in state money earmarked by then-state Rep. Mike Mass, US$250,000 from the city of McAlester and US$100,000 from the McAlester Foundation, a quasi-private entity. An FBI affidavit alleges Stipe arranged for the state funding and picked the plant's location—a piece of property he owned. Records show Stipe received US$190,000 for the property, which he had bought five years earlier for about US$75,000.
Phipps has agreed to cooperate with the ongoing investigation as part of his guilty plea to a conspiracy charge. Phipps admitted paying kickbacks to three legislators who secured state money for his businesses.
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Industry heal thyself?
Food industries and federal regulators are, according to the Wall Street Journal, increasingly advocating “preventive controls” following a rash of food-borne illnesses: have companies police themselves and take action to prevent outbreaks. But this system of “preventive controls” has worked in the past only with adequate regulatory enforcement and industry support—neither of which is guaranteed. Mike Taylor, a food-safety expert who worked in the administrations of George H.W. Bush and Bill Clinton was quoted as saying, “The reason you have regulation is some companies don't have the market incentive to meet high food-quality standards. The public doesn't trust a system that leaves it entirely to the industry.”
A White House cabinet-level group set up to address import safety problems has recently touted preventive controls as a solution. The FDA is likely to advocate preventive controls as part of a new food-safety plan set for release soon.
A White House cabinet-level group set up to address import safety problems has recently touted preventive controls as a solution. The FDA is likely to advocate preventive controls as part of a new food-safety plan set for release soon.
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Petsmart cuts profits forecasts
Continuing to recover from the petfood recalls, Petsmart Inc. cut its third quarter and 2007 profit forecasts last week, citing weak consumer spending, sending its shares down by five percent. Chief Executive Philip Francis said weak consumer spending, along with unusually warm weather that hurt sales in key cold weather categories, will cut into business. For the current quarter, Petsmart expects earnings of US17 cents to US20 cents a share. Previously, the company forecast US21 cents to US23 cents.
Francis said the recalls would cut Petsmart sales by “some tens of millions of dollars” by the end of the year. He expects to have all brands back on shelves by the second quarter of next year. Petsmart, which already cut third quarter same-store sales outlook in August citing the recall, said sales would come in below its original forecast of a rise in the low- to mid-single digits.
For the full year, the company forecast earnings of US$2.02 to US$2.07 a share, including a gain from the sale of shares of MMI Holdings Inc, which operates Petsmart’s in-store veterinary hospitals. It previously forecast US$2.08 to US$2.10 a share.
Francis said the recalls would cut Petsmart sales by “some tens of millions of dollars” by the end of the year. He expects to have all brands back on shelves by the second quarter of next year. Petsmart, which already cut third quarter same-store sales outlook in August citing the recall, said sales would come in below its original forecast of a rise in the low- to mid-single digits.
For the full year, the company forecast earnings of US$2.02 to US$2.07 a share, including a gain from the sale of shares of MMI Holdings Inc, which operates Petsmart’s in-store veterinary hospitals. It previously forecast US$2.08 to US$2.10 a share.
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New laboratory opens in Atlanta
Food Safety Net Services has announced its newest, full service laboratory located in Atlanta, Georgia, USA. The state-of-the-art facility opened on October 15, 2007. Food Safety Net Services are excited to present this facility to their clients and looks to continue to provide technical standards and customer service in support of industry issues. For more information about the Atlanta laboratory or any other FSNS facilities throughout the United States visit www.food-safetynet.com or call +1.888.525.9788.
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Pea processing plant opens
A protein processing factory being opened officially this week in south-western Norway by Norwegian minister of agriculture Terje Riis Johansen marks the start of business for new company Agrimarin Production AS. The plant, located at Kavalberg near Stavanger, will be processing about 100,000 tons of peas per year for petfood and feed uses that include in aquaculture diets as a “green” substitute for fishmeal. Agrimarin Production is linked to Norwegian feed-producing farm co-operative Felleskjøpet Rogaland Agder, which makes about 310,000 tons of animal feeds per year at its Stavanger mill.
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Hill’s to sponsor fellow in clinical nutrition
A ceremony has been scheduled at the University of Tennessee, College of Veterinary Medicine (UT CVM) to celebrate Hill’s Pet Nutrition’s sponsorship of the UT CVM Nutritional Support Service. At the event, the UT CVM will introduce the first Hill’s Fellow in Clinical Nutrition, Dr. Beth Hamper. The ceremony, with a reception to follow, will take place October 30, 2007 at the University of Tennessee’s Trial Gardens Patio. Attendees will include: Dr. Beth Hamper, Hill’s Fellow in Clinical Nutrition; Dr. Bob DeNovo, Dr. Buddy Moore and Dr. Michael Blackwell from the University of Tennessee College of Veterinary Medicine; and Dr. Jennifer Gardner and Dr. Hein Meyer of Hill’s Pet Nutrition.
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Menu appoints food safety pioneer
The Menu Foods Income Fund’s Board of Trustees announces the appointment of Gale Prince to its Board of Trustees and chair of Board of Directors’ Food Safety and Quality Assurance Committee. “Gale Prince is a highly regarded food safety expert in Canada and the US with over 40 years experience in the retail food safety field,” says C. Ian Ross, Chairman of the Board. “With his lengthy record of service in industry, government and regulatory organizations, Gale is in a unique position to make a significant contribution to the Menu Foods team.”
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Petfood Forum and Focus coming in April
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 at Petfood Industry and Watt Publishing Co.’s Petfood Forum and Focus events at the Hyatt Regency O'Hare Hotel, Chicago, Illinois, USA.
Petfood Forum 2008 connects you with the people and information you need to continue to advance. This premier event taking place April 14-16 for the petfood industry features networking opportunities and exciting, informative sessions such as:
Every petfood company around the world is placing a renewed emphasis on safety and quality. The Petfood Focus on Safety symposium, April 16-17, gives you an in-depth look at:
Petfood Forum 2008 connects you with the people and information you need to continue to advance. This premier event taking place April 14-16 for the petfood industry features networking opportunities and exciting, informative 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, April 16-17, gives you an in-depth look at:
- 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
- A panel discussion on the consumer connection: how best to communicate with consumers, especially during a safety crisis.
Registration is now OPEN. Visit www.petfoodindustry.com/petfoodforum.aspx
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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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Market Sizes - Historic/ Forecast - Retail Value RSP - US$ mn - Fixed 2007 Exchange Rates - Value at Current Prices |
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2002 |
2007 |
2012 |
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Brazil |
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Pet care products |
259.6 |
307.6 |
424 |
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Humanization of pets increases investments in modern pet care products
According to Euromonitor International’s new Pet Food and Pet Care in Brazil report, Brazilians are increasingly looking to indulge their pets with accessories that include clothing, beds, toys and cosmetics. Consequently, retailers are expanding their product range, including supermarkets/hypermarkets that restrictively sold petfood and a few accessories such as bones and bowls, are increasingly expanding the pet section with cosmetics and clothing.
The growth prospects of pet care products, in particular cosmetics, attracted new players and investments in new product developments. Cosmotec released Pet Society Oto Clean Up, a kind of white foundation to disguise spots close to dog’s eyes, and Pet Society Dental Guard, a dental cream for dogs and cats made with natural ingredients like chamomile and mint oils. Natural Pet also invested in cosmetics with natural ingredients such as shampoos with aloe Vera extract and aromatherapy properties.
For more information about Petfood and Pet Care Product reports from Euromonitor International and to buy reports online, visit:
According to Euromonitor International’s new Pet Food and Pet Care in Brazil report, Brazilians are increasingly looking to indulge their pets with accessories that include clothing, beds, toys and cosmetics. Consequently, retailers are expanding their product range, including supermarkets/hypermarkets that restrictively sold petfood and a few accessories such as bones and bowls, are increasingly expanding the pet section with cosmetics and clothing.
The growth prospects of pet care products, in particular cosmetics, attracted new players and investments in new product developments. Cosmotec released Pet Society Oto Clean Up, a kind of white foundation to disguise spots close to dog’s eyes, and Pet Society Dental Guard, a dental cream for dogs and cats made with natural ingredients like chamomile and mint oils. Natural Pet also invested in cosmetics with natural ingredients such as shampoos with aloe Vera extract and aromatherapy properties.
For more information about Petfood and Pet Care Product reports from Euromonitor International and to buy reports online, visit:
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» PRODUCT NEWS
Cross directional laser technology
LaserTear cross machine directional (CMD) scoring technology from Alcan Packaging can improve petfood processing with easy-open convenience, superior appearance and tamper evidence, according to the company. CMD laser-scored film works with zipper applications and creates a unique, “hooded” package that allows for the removal of the entire package header to expose the resealable feature. By scoring below the zipper, this innovation delivers easier consumer access and eliminates the potential for contents to collect between the zipper and the package. Compatible with vertical form/fill/seal equipment, Alcan Packaging’s film featuring LaserTear CMD scoring exhibits excellent machinability, running at top speeds and meeting operational demands. www.alcanpackaging.com
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Newly approved histamine test for tuna
Neogen Corporation has received approval from the AOAC Research Institute for its quantitative test for histamine that eliminates the need for the use of hazardous materials in the testing process, according to Neogen. Veratox for Histamine (AOAC-RI No. 070703) is a direct competitive ELISA test for the detection of histamine in fresh, canned or pouched tuna, packed in either oil or water. The test uses a uniquely simple water extraction process, and returns results in the range of 2.5 to 50 parts per million. The Veratox for Histamine AOAC validation studies showed a 95.4% recovery rate of spiked samples, when compared to the AOAC official fluorometric method, and no cross-reactivity to all other commonly occurring biogenic amines. www.neogen.com
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Antioxidant FDA approved for animal consumption
PPL-240 is an antioxidant that has been clinically proven to protect cells against the damaging effects of free radicals, thereby providing protection against certain illnesses, according to Gourmetceuticals LLC. FDA approved for both human and animal consumption, PPL-240 is a nutraceutical and functional food component available in a highly stable, water soluble powder that can easily be added to petfood products. www.gourmetceuticals.com
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Easy-open ends from Crown
Crown Holdings Inc. has announced its patented Easylift easy-open ends which significantly improve tab access, while retaining the opening performance of Crown’s Eole technology, according to the company. The end’s improved tab access makes it easier and faster for consumers to open canned food products without using a can opener or other tools. Easylift easy-open ends are also compatible with existing can line equipment. Only one-off adjustments are needed, allowing manufacturers to incorporate the innovative ends with no production downtime. They also continue to perform through all levels of the supply chain. www.crowncork.com.
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» RESEARCH NEWS
Need more fatty acids?
“Petfoods are manufactured to maintain the health of healthy pets and already contain adequate essential fatty acids,” says Dr. John Bauer, a professor of clinical nutrition at Texas A&M University's College of Veterinary Medicine. “But some pets may need more EFAs in their diet from time to time.” Bauer is one of the authors of a study investigating the role of essential fatty acids in canine skin health.
“The best example is how a dog with dry, maybe scaly skin, would benefit from having some additional oil containing EFAs added to its diet,” Dr. Bauer says. “But, pet owners should not self-medicate. A veterinarian should recommend an appropriate amount of oil to be added to the diet.”
Dr. Bauer and his colleagues fed dogs with skin and coat problems dry petfood mixed with higher amounts of linseed or sunflower oil and noticed improvements in about 28 days. The most noticeable improvements were seen at about seven weeks.
“The best example is how a dog with dry, maybe scaly skin, would benefit from having some additional oil containing EFAs added to its diet,” Dr. Bauer says. “But, pet owners should not self-medicate. A veterinarian should recommend an appropriate amount of oil to be added to the diet.”
Dr. Bauer and his colleagues fed dogs with skin and coat problems dry petfood mixed with higher amounts of linseed or sunflower oil and noticed improvements in about 28 days. The most noticeable improvements were seen at about seven weeks.
Source: Kirby, Hester, Bauer, 2007. JAVMA, Vol. 230, No. 11, pages 1641-1644.
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Improving cognitive function
Nutritional supplements have successfully been used to improve the memory, ability to learn and cognitive function of old dogs—and might be able to do the same thing with humans. This according to a new study published in the FASEB Journal, produced by the Federation of American Societies for Experimental Biology.
In this study, Beagle dogs between 7.6 and 8.8 years of age received a twice daily supplement of alpha-lipoic acid (LA) and acetyl-L-carnitine (ALC) over two months. They made significantly fewer errors in reaching the learning criterion on two landmark discrimination tasks compared to controls administered a methylcellulose placebo. This research suggests 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.
The study builds on similar findings made several years ago, done with mice and published in Proceedings of the National Academy of Sciences. In that research, the activity and energy level of old rats taking these same supplements almost doubled, and memory and cognitive function improved.
In this study, Beagle dogs between 7.6 and 8.8 years of age received a twice daily supplement of alpha-lipoic acid (LA) and acetyl-L-carnitine (ALC) over two months. They made significantly fewer errors in reaching the learning criterion on two landmark discrimination tasks compared to controls administered a methylcellulose placebo. This research suggests 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.
The study builds on similar findings made several years ago, done with mice and published in Proceedings of the National Academy of Sciences. In that research, the activity and energy level of old rats taking these same supplements almost doubled, and memory and cognitive function improved.
Source: Milgram, et al, 2007. Oregon State University press release.
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Kitten milk intake constant
The daily milk intake of 14 domestic short-haired kittens from five litters was estimated during 1–4 weeks postpartum using the isotope dilution technique. Kittens received a single intraperitoneal injection of tritiated water, and blood samples were obtained from the jugular vein for radioactivity measurements at 2 and 96 hr. after injection. One kitten in each litter was used as a control to allow calculation of recycling of tritiated water. The mean (± SEM) biological half-life of tritiated water in the kittens increased from 2.4 ± 0.1 d in wk 1 to 4.9 ± 0.2 d in wk 4 postpartum. Recycling of tritiated water accounted for (mean ± SEM) 5.9 ± 0.8, 12.0 ± 0.5, 7.7 ± 1.3 and 10.0 ± 1.3% of the kittens’ daily water intake during postnatal wk 1–4, respectively. Daily milk intake of the kittens during 1–4 weeks postpartum was 47.3 ± 0.8, 47.4 ± 1.5, 48.7 ± 1.6 and 43.7 ± 2.0 g, respectively.
There was no effect of gender on milk intake. The daily metabolizable energy requirement of suckling kittens, estimated by multiple regression analysis, was 356 kJ/kg0.75, whereas the metabolizable energy required per gram of gain was estimated to be 7.8 kJ/d. The milk intake of suckling kittens remained relatively constant throughout the first 4 wk of lactation, and during this period, they seemed to have a lower energy requirement for maintenance.
There was no effect of gender on milk intake. The daily metabolizable energy requirement of suckling kittens, estimated by multiple regression analysis, was 356 kJ/kg0.75, whereas the metabolizable energy required per gram of gain was estimated to be 7.8 kJ/d. The milk intake of suckling kittens remained relatively constant throughout the first 4 wk of lactation, and during this period, they seemed to have a lower energy requirement for maintenance.
Source: Hendriks and Wamberg, 2007. J. Nutr. 130: 77-82.
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» POSITIONS AVAILABLE
Slide-Rite Account Manager
COMPANY DESCRIPTION:
Pactiv is a $3.0 Billion dollar consumer packaging company located in the northern suburbs of Chicago. Pactiv’s Hefty® brand is one of the nation’s most widely recognized brands. More than 80% of Pactiv’s sales come from market sectors in which we hold the No. 1 or No. 2 market position. Please see the attached Company profile for additional information or our website at www.pactiv.com.
POSITION DESCRIPTION:
This is an entry level sales position based out of our Corporate Headquarters in Lake Forest, IL. We are an international organization focused on the sale of the Slide-Rite® patented closure system and proprietary attachment equipment. Our customer base includes large consumer packaged goods companies such as Sargento, Masterfoods, and Perdue. This is a technical sale typically requiring a consultative selling approach.
We are rapidly growing without losing our entrepreneurial feel. As a result, the position is highly visible and offers the opportunity to quickly gain a wide range of experience and responsibility.
For the selected individual, we offer a competitive salary and benefits, company car, very lucrative incentive plan and an extensive training program.
POSITION QUALIFICATIONS:
- BS in Packaging
- Demonstrated project management skills.
- Ability to effectively communicate to a wide range of audiences required.
- Must be willing to travel overnight approximately 25-60%.
- Knowledge of high speed machinery and packaging machinery is a plus
- Basic knowledge of polymer materials preferred.
- Demonstrated leadership in extra-curricular activities strongly preferred.
Send resume and cover letter: Chad Rupert - crupert@pactiv.com
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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» 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.
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.
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
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.
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©2007 All rights reserved.
303 N. Main Street, Rockford, IL 61101 USA
©2007 All rights reserved.