Petfood Industry Electronic Newsletter April 17, 2007
 

April 17, 2007
Volume 7, Number 8

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

Recall update: Canadian products affected
The petfood recall expanded further to include products made at a Canadian Menu Foods facility found to have used the ingredient tainted by an industrial chemical. Menu Foods discovered recently that some of the tainted wheat gluten had made it to Canada. Menu spokesperson Sam Bornstein said the amount accounted for just 1% of the adulterated Chinese wheat gluten purchased by Menu Foods. It was used in petfoods made in December and January.

Among the products covered by the expanded recall is Royal Canin Canada's Medi-Cal Feline Dissolution Formula canned diet, made by Menu Foods and sold only through veterinarians. A single production lot contained the contaminated wheat gluten, the company said.

Menu has since posted an updated list of recalled products on its website at http://menufoods.com/recall/. The FDA has blocked wheat gluten imports from a Chinese company while it investigates how melamine could have contaminated the vegetable protein.

Plan now to attend Petfood Forum Europe
Petfood Forum Europe 2007 has a new format and a new location. The symposium will be held in association with Victam International, so Petfood Forum Europe exhibitors can now be located within the Victam trade show. The event will take place May 8, 2007 at Jaarbeurs Halls, Utrecht, Netherlands.

These are a few of the topics for Petfood Forum Europe 2007:

  • European sales trends;
  • Regulations update;
  • Advances in palatability testing;
  • Niche markets.

For details and to register, go to www.wattnet.com/petfoodforum/home.cfm or E-mail Marcia Riddle at Riddle@wattnet. To find out more about Victam International and available hotels, visit www.victam.com.



Three Dog Bakery makes plans to reinvigorate its brand
Three Dog Bakery is unveiling a series of new business initiatives designed to reinvigorate its leadership position in the all-natural dog treat category and drive growth. Focusing on the brand's “oven-baked” and “all-natural” attributes, Three Dog Bakery is launching an array of programs that includes new product introductions, new bakeries and the first packaging update since the products were developed in 1989.

Over the next few months, Three Dog Bakery will be introducing several new products to compliment the existing product lines. Some of the new products include Spearmint Bagels; Itty Bitty Bones; Entree for Dogs; and a reformulated All-Natural Dry Kibble Dog Food. Bakery growth is also an immediate priority for Three Dog Bakery. In the next three years, Three Dog Bakery plans to triple its network of bakeries. Currently, the company has 39 bakeries in the US and Canada and eight in Japan. By 2010, the company plans to have 130 bakeries throughout North America, Japan and Western Europe.

Three Dog Bakery's packaging and graphics have also been completely redesigned. The new packaging is executed in a way that improves functionality and convenience for clients, simplifies the product lines and enlivens the products, according to the company. The company is currently developing a more functional website. The site will incorporate many elements of the new package design, further building on the refreshed visual elements of the brand.

AFB International signs joint venture agreement with Inghams Enterprises
AFB International Inc. recently announced that it has signed a joint venture agreement with Inghams Enterprises, Australia. The terms of the transaction were not released. Under the agreement, Inghams will manufacture and market AFB's BioFlavor and Optimizor brands of palatants for dog and cat food. Inghams will operate two manufacturing facilities in Australia. The plants in Brisbane and Melbourne will produce flavors that have been developed by AFB to meet the palatant needs of the Australian, New Zealand and Asian markets.

With the joint venture, AFB now operates six state-of-the art manufacturing facilities in North America, Brazil , the Netherlands and Australia. With Inghams, the sales and support staff will be expanded to include an office in Melbourne, Australia. The two companies are already working closely together to identify and fulfill the palatability needs of the petfood markets they serve. The joint venture will trade as AFB International Pty Ltd.

Bill Barr & Co. moves its offices
Bill Barr Company moved its offices to 8800 Grant Ave., Overland Park, Kansas  (Suburban Kansas City), and will maintain the same phone numbers and fax number as before. Their move to larger quarters is designed to provide improved service to customers and suppliers in the livestock, poultry and petfood businesses. 

K-Tron completes acquisition of Chinese business
K-Tron International Inc. recently reported that it has closed its agreement to acquire certain assets of Wuxi Chenghao Machinery Co. Ltd. , a privately owned company in the People's Republic of China. The purchased assets were transferred from the seller to a newly created wholly foreign-owned enterprise established by K-Tron, which will conduct business under the name Wuxi K-Tron Colormax Machinery Co. Ltd. The total cost of the transaction over a five-year period, including the purchase price and payments under related employment and other arrangements with Wuxi Chenghao's owner, could be as much as approximately US$3.5 million.

Wuxi K-Tron Colormax will be located in Luoshe Key Open Industrial Park, Wuxi City, in the Huishan district of Jiangsu province, approximately 60 miles west of Shanghai. The company will initially employ approximately 65 people and will design, manufacture, market and service volumetric and gravimetric single and twin screw feeders and controls, vibratory trays, pelletizers and pneumatic screen changers for use in plastics compounding and injection molding processes.

Gilmour promoted to Stedman president
Stedman announces the promotion of Dennis M. Gilmour to company president. Gilmour has been with Stedman for nearly 30 years, starting with the company in 1978 as a sales engineer. Since his hire, Gilmour has held such positions as district sales supervisor, sales manager, vice president sales & marketing and senior vice president.

New National Pet Food Commission formed
The Pet Food Institute (PFI) has announced the formation of the National Pet Food Commission, composed of nationally-recognized veterinarians, toxicologists, state and federal regulators and nutritionists, to further strengthen industry procedures and safeguards in light of recent petfood recalls.

The industry-government partnership will have two main goals:

  • To investigate the cause of the current petfood recall.
  • To recommend steps the industry and government should take to further build on safety and quality standards already in place.

Information on the National Pet Food Commission's charge and a complete list of commissioners are available at http://www.petfoodreport.com/. At the conclusion of its work, the National Pet Food Commission will issue a report outlining its findings and offering its recommendations to the industry and regulators.

PFI President Duane Ekedahl announced formation of the National Pet Food Commission today during his testimony before the US Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies. Ekedahl was joined at the hearing by Dr. Angele Thompson, an expert in nutritional biochemistry and a member of the American Academy of Veterinary Nutrition, who will chair the National Pet Food Commission. Dr. Thompson said the commission will have its first meeting in the coming days.

Market data

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.




Top US food, drug and mass merchandiser (excluding Wal-Mart) dry cat food sales for the 52 weeks ending October 8, 2006. Top individual brand sales by vendor. Source: Information Resources Inc.

Vendor

US$ sales

% chg vs. 2005

Unit sales

% chg vs. 2005

Meow Mix
$119 million
8.7%
$22.1 million
4.7%

Iams

$118.5 million
-13.3%
$11.9 million
-17.2%
Private label
$81.1 million
1.8%
$20.7 million
-2.0%

Purina Cat Chow

$78.1 million
0.2%
$13.1 million
-3.0%
Friskies
$56.5 million
-9.4%
$10.6 million
-15.5%
Purina Cat Chow Indoor Formula
$54.4 million
10.9%
$8.6 million
1.7%
Purina ONE
$53.3 million
-2.5%
$10 million
-11.2%
Friskies Chefs Blend
$38.4 million
-18.3%
$8.5 million
-22.8%
Purina Kit n Ka Boodle
$38.1 million
-8.7%
$5.8 million
-10.8%
Friskies Fancy Feast
$25.5 million
73.7%
$6.8 million
58.9%
Purina Kitten Chow
$24.5 million
-12.2%
$6.4 million
-13.3%



New report: Pet Food and Pet Care in Venezuela
Following the discovery in 2005 that certain Nestlé Purina products, manufactured at the La Encrucijada plant in Venezuela, were contaminated with aflatoxins, the company reacted by recalling all the products that were manufactured at this plant. These products included the brands Dog Chow, Puppy Chow, K-Nina, Perrarina Plus, Nutriperro, Cat Chow, Friskies, Gatsy, Fiel, Pajarina and Aro. Given the rapid response, and also the way the company openly admitted its mistake and offered compensation to injured parties, the company managed to recover much of its lost value share in Dog Chow and Perrarina during 2006, according to a new report from Euromonitor International—Pet Food and Pet Care Products in Venezuela.

One brand that benefited from this incident was Pedigree. This premium dog food brand became the leader of dog food in all categories: wet food, dry food and treats. The company used an advertisement focused on health featuring veterinarians as promoters of the products. Even though it is an imported brand, Pedigree has a good distribution network and thus managed to absorb the excess demand.

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

Clear, high-moisture barrier lidstock
Ampac Flexibles introduces a new clear high-moisture barrier lidstock that can seal to trays, cups, etc., made from a wide variety of plastic materials. Flexi-Free 6985 is said to be the first high-moisture barrier lidstock without a foil layer that is suitable for universal application. The two-ply, 2.5 mil lamination is made from polyvinylidene choride- (PVDC) coated polyester and a peelable sealant layer.

New on-line water activity control system
Drying Technology Inc. announces the development of an on-line water activity control system to prevent the growth of mold and other harmful organisms in products being dried. This new control system is an extension of their Delta T moisture control technology. The Delta T uses a patented, “inside the dryer” moisture sensor to achieve moisture control of products exiting dryers, ovens, etc.

Ergonomic lifter/transporter with powered lift
Southworth Products Corp. introduces a new Dandy Lift with a battery-powered lift mechanism. According to Southworth, the new Powered Dandy Lift is clean, quiet, user-friendly and even more convenient for transporting, lifting and positioning loads in high-tech, industrial, retail and office environments. Other features include a battery status indicator and onboard charger, full shielding of all electrical components, smooth-rolling casters, parking locks and a comfort-shaped handle.

Jumbo display digital probe lab thermometer
DeltaTrak Inc. announces the new waterproof FlashCheck Jumbo Display Digital Probe Lab Thermometer, Model 11002, specially designed with a round probe tip for laboratory and veterinary use. Model 11002 has a large dual scale and highly visible 1.5-in. x 0.5-in. LCD display and it is IP56-waterproof rated.

E-news

Study: E-Mail may lose the war against spam
A recent study reported by E-Commerce Times suggests that spam is killing E-mail's vitality in the business world. Spam and alternative communication technologies have begun to lower the value of E-mail as a mission-critical application for business, according to a study released by IDC, a technology research firm.

Nearly 97 billion E-mails will flow through the world's electronic arteries daily this year, IDC predicted, and more than 40 billion of them will be spam. “This is the first year that spam E-mail volumes are expected to exceed person-to-person E-mail volumes sent worldwide,” IDC said.

Not everyone agrees, however, that E-mail is losing its vaunted status in the communications hierarchy. Companies aren't being driven away from E-mail by spammers, declares Dan Druker, executive vice president for marketing for Postini, an E-mail security and hosting company. “We don't see a shifting away from E-mail driven by the bad guys,” he said. If anything, he continued, companies remain more determined than ever to fight spammers.

Blogs rank among top websites
The line between websites and blogs is growing hazy. “Most web surfers don't even realize they are reading blogs,” said David Sifry of Technorati. “The distinction between blogs and mainstream media is blurring rapidly.” In fact, according to the State of the Live Web report from Technorati, some of the most visited sites on the web are now blogs. The report found that 22 of the 100 most popular websites in the fourth quarter of 2008 were blogs, up from 12 in the third quarter.

Blogging is an international phenomenon, with 37% of all blogs in Japanese. English-language blogs rank second, at 33%, and Chinese is the third-most-blogged language, at 8%. Blogging has even caught on in Iran. Farsi is now the 10th-most-popular blogging language.

Globalization replaces localization
Nearly half of the respondents to a Marketing Sherpa survey have either globalized their websites or plan to do so within the next 12 months, according to the firm's Website Globalization Report 2007. Over 30% of the marketing executives surveyed had already globalized their sites, which involves translation and localization for audiences around the world. Another 17% planned to do so within the next year.

More than half of those who globalized said that they had spent less than US$50,000, although half say they expect to increase that amount. Among large corporations, 18% said they had spent more than US$500,000 on the process. Over 16% of US sites offer some Spanish-language content on their sites, and another 22% plan to do so during the next 12 months. Small companies are especially interested in adding Spanish to their sites.

The report claims that among those globalizing their English sites, German is the most-supported language on the web, although Spanish is expected to catch up within 12 months, and simplified Chinese is coming on strong as well.

Research notes

Diet type affects viscosity of ileal digesta
Two experiments were conducted to determine effects of diet type on viscosity of ileal digesta of dogs and simulated gastric and small intestinal digesta. In Experiment 1, three canned and three dry dog foods were surveyed for effects on ileal digesta viscosity. Experiment 2 evaluated the same six diets for effects on simulated gastric and small intestinal digesta. Canned diets and dry diets contained an average 22.7% and 89.9% dry matter (DM), respectively.

Concentrations of total dietary fiber (TDF) in the diets ranged from 1.8% to 26.5%. Ileal digesta viscosities ranged from 1326 to 46,641 and 7748 to 10,208 cP for canned and dry treatments, respectively. Ileal DM concentrations ranged from 8.2% to 16.2% and 15.4% to 15.8% for canned and dry treatments, respectively. Dry matter intake ranged from 224 to 290 and 295 to 325 g/day for canned and dry treatments, respectively.

During gastric digestion simulation, viscosity peaked at 2 and 4 hours for all three canned diets and dry diets, respectively. During small intestinal digestion simulation, viscosity peaked between 6 and 12 hours for most diets except one canned diet and one dry diet, which contained high concentrations of TDF (25.1% and 26.5%, respectively).

Viscosity of these solutions peaked between 12 and 18 hours. Viscosity of ileal digesta and simulated gastric and small intestinal digesta was the lowest after consumption of canned diets with the exception of the canned diet containing very high concentrations of dietary fiber (25.1% TDF). Ileal digesta viscosity of dogs appears to be responsive to the diet type characteristics.

Source: C.L. Dikeman, M. R. Murphy, G. C. Fahey Jr, 2007. Journal of Animal Physiology and Animal Nutrition 91(3-4):139-147.

Metabolomic approach to assessing the efficacy of an antioxidant cocktail
This study investigated the effect of an antioxidant cocktail used to reduce oxidative stress in trained and untrained dogs. The dogs' diet varied only in the antioxidant cocktail. Forty-eight dogs were randomly allocated to one of four groups (n= 12): supplemented/trained, supplemented/untrained, unsupplemented/trained and unsupplemented/untrained. Groups were stratified for age and gender. The dogs were placed on the dietary regimen for 6 weeks before entry and were fed for an additional 12 weeks before sample collection. Plasma samples were collected immediately (within 10 minutes) after a strenuous exercise bout and at 24 hours after exercise to assess recovery. Samples were subjected to metabolomic analysis using nuclear magnetic resonance (NMR) technology. Statistical analyses included ANOVA, multi-variate analyses, principal components analysis (PCA) and partial least squares for discriminant analysis (PLS-DA), where appropriate.

Significant results were observed in both the untrained and trained dogs on the supplement compared with the unsupplemented dogs. The supplemented/trained dogs had significantly greater recovery as assessed by return to or below baseline values at 24 hours after exercise for many key compounds, including phenylalanine, histidine and lipids. The unsupplemented/trained groups still had elevated tyrosine, phenylalanine, methionine and lipid levels at 24 hours after exercise. Similar results were observed in the unsupplemented/untrained dogs. For example, numerous compounds were below baseline at 24 hours after exercise in the supplemented groups versus the unsupplemented groups. Significant differences were also observed when groups were compared across time. At baseline, supplementation resulted in decreased glutamine in both the trained and untrained dogs. Most notably, supplementation in the trained group resulted in less pyruvate, acetoacetate, phenylalanine, methionine, histidine, free fatty acids and lipoproteins at 24 hours after exercise compared with the unsupplemented/trained group. We conclude that antioxidant supplementation is protective in both trained and untrained dogs.

Source: M.K. Waldron, et al., 2007. Proceedings of the Nestlé Purina Nutrition Forum, Lausanne, Switzerland.



Positions available

Sales account manager needed
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. Individuals with entry-level sales experience are encouraged to apply. Contact Judy Gehler with your resume at jgehler@spf-usa.com or fax to +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.

References



Petfood Industry Books
Petfood Forum and Focus Books


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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.