Petfood Industry Electronic Newsletter October 3, 2006
 

October 03 , 2006
Volume 6, Number 19

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

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

Nutrition News to debut very soon
Readers of the Petfood Industry E-newsletter will be receiving a brand new electronic newsletter in the very near future. This monthly newsletter offers the latest information available on veterinary nutrition, ingredients and palatability issues. If you are interested in receiving this newsletter each month, be sure to click on the "Subscribe" link found on the newsletter page you receive by E-mail. Be sure to send your feedback on the initial newsletter to the editor, Jenny Kvamme, DVM, at jkvamme@wattnet.net.



Alltech announces new hires, promotions
Alltech has restructured its Regulatory Department. Monica Fanti has been appointed the Global Regulatory Affairs Officer. Fanti has worked for Alltech for the last 20 years and is involved in the registration of products for the 85 countries in which Alltech does business.

Dr. Steve Traylor joins Alltech as the Regulatory Technical Coordinator. He will be responsible for providing technical support for the regulatory department; coordination and monitoring of regulatory research projects; and submission of regulatory dossiers for the United States and Canada. Before joining Alltech, Traylor was the Feed Coordinator with the University of Kentucky Division of Regulatory Services. He also served on the AAFCO Board of Directors and as a member of the FDA Animal Feed Safety Team.

Erin Kennedy has been promoted to assistant manager, and she will continue to be involved in Asia Pacific regulatory affairs. Kristen Green joins Alltech as the Latin America Regulatory Coordinator. Green is a recent graduate of the Patterson School of Diplomacy and International Commerce where she received a Master's degree in International Politics and Development.

Zip-Pak expands sales management team
Zip-Pak recently added Milan Iglendza, Arnie Santa Ana and Janet White to its sales team. As regional sales manager, Iglendza will be responsible for growing business in the Midwest and southwest US, while helping to develop the market in Mexico. Santa Ana will head up West Coast US sales efforts as regional sales manager. White joins Zip-Pak as key account manager and is charged with managing a number of the company's top-tier accounts, including Tyson, Smithfield, Del Monte Foods and Sargento. Iglendza and Santa Ana will work out of Zip-Pak's Orangeburg, New York, USA office, and White will manage key accounts from the company's Ottawa, Illinois, USA office.

Bio-Medical Services introduces Specialty Diet Food Allergy Test
Bio-Medical Services (BMS), a reference laboratory that provides allergy testing for dogs, cats and horses, announces its new Specialty Diet Food Test. According to the company, this new service was created in response to the recent wave of holistic and alternative ingredients now being introduced into petfoods.

The Specialty Diet Food Test is now available to veterinarians. The test is an in vitro or laboratory test that measures a serum antibody called IgE. IgE is produced at elevated levels in animals affected by allergy. The food allergy test detects IgE specific for individual food allergen proteins. In vitro allergy tests are accurate, reproducible and only require a small blood sample from the patient, according to BMS.

This new product will test pets for allergic reactions to 10 ingredients, such as duck, venison, apple, berry mix, tomato and green peas—in addition to others. “We are very excited to introduce this new food panel,” said Dr. Susan Keesee, president and chief scientific officer of Bio-Medical Services. “We have noticed a trend by petfood companies to include non-traditional ingredients in new food formulas entering the market. We are staying on top of that trend by introducing the new Specialty Diet Food Test to provide yet another important tool for veterinarians to help pet owners diagnose allergic reactions to ingredients in food.”

WATT names new Petfood Industry publisher
Steve Akins joined WATT recently as publisher of Petfood Industry magazine. Akins will be personally responsible for domestic sales and sales management of WATT's Petfood Industry franchise. Prior to joining WATT, Akins held the position of associate publisher of two publications in the fire and rescue market. In addition, Akins held sales and sales management positions at Bill Communications, Crain and Verticalnet. He brings extensive experience in creating and selling Internet media, print and in-person events.



SmartPak CEO named one of the USA's best bosses
Winning Workplaces has announced Paal Gisholt, president and CEO of SmartPak, as one of this year's Best Bosses. He is one of 18 Best Bosses selected nationally. A related story will appear in the October 2006 issue of Fortune Small Business. The full list of winners is available online at www.winningworkplaces.org.

“As I learned more about Winning Workplaces, it became evident that this award really recognizes a group's achievement in building a winning culture,” said Gisholt. “Since we started SmartPak six years ago, we've placed tremendous importance on empowering individuals to make an impact while having fun along the way. I am incredibly proud of our team and the positive work environment we have fostered.”

In September , the company was named one of Inc.'s 500 fastest growing companies in the US for the second consecutive year. SmartPak's three-year growth rate of 437% earned it the No. 312 spot on Inc.'s list, making it the eleventh fastest growing privately held consumer products company in the country. SmartPak specializes in high-end, customized nutritional programs for horses and dogs. It was featured in the August 2006 issue of Petfood Industry magazine.



Nutrition topics at Forum 2007
Petfood Forum 2007, April 16-17, will be in Chicago, Illinois, USA. Organizers have announced that various experts will cover the following nutrition topics:

  • Genomics—customized diets;
  • Nutrition for skin and gut health;
  • Point/Counterpoint—the new NRC requirements;
  • Scrutinizing superpremium petfoods;
  • Obesity prevention;
  • Popular functional ingredients; and
  • Innovative treats.

For a list of all symposium topics and registration details contact: Marcia Riddle (attendees) at E-mail: mriddle@wattnet.net; Tel: +1.815.734.5633 or Ginny Stadel (exhibitors) at E-mail: gstadel@wattnet.net; Tel: +1.815.734.5691.

WTO rules against EU biotech approvals process
The World Trade Organization (WTO) recently released its final report, finding the European Union's failure to act on biotechnology approvals was in effect a moratorium on biotech products. According to the US Grains Council, this report upholds the claim by the United States, Argentina and Canada that the EU's failure to act on biotech applications constitutes an unjustifiable impediment to trade. Also, the report requires EU member states to eliminate national bans on products already approved by the EU. France, Germany, Luxembourg, Austria, Italy and Greece have each banned EU-approved biotech products, but did not provide sufficient scientific evidence of risks to either people or the environment. The European Union has 60 days to appeal the ruling. The WTO's Appellate Body then has up to 90 days to review the ruling and issue a report on any appeal.

Morris Animal Foundation offers sponsorship opportunities
Morris Animal Foundation (MAF) provides a unique opportunity for individuals or groups to sponsor its animal health study/research projects. MAF has published its 2007 listing of 101 animal research studies available for sponsorship. All are invited to sponsor or co-sponsor with a total gift of US$3,000 or more per study. Projects address the health and well-being of dogs, cats, horses, llamas/alpacas and wildlife. Founded in 1948, 100% of MAF donations are used to fund research to protect, treat and cure the world's animals.

The complete list of research studies can be viewed at www.MorrisAnimalFoundation.org. MAF's 2007 selection of studies is being conducted at 49 of the world's most elite veterinary colleges, zoological institutions and scientific research centers. To discuss the details on any study, or for more information on study sponsorship, contact Tobie McPhail at tmcphail@MorrisAnimalFoundation.org or call +1.800.243.2345.

Market data

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

Today's market research data chart comes to you from: ACNielsen



Total US food, drug, mass merchandiser (excluding Wal-Mart data) petfood sales for the 52 weeks ending September 9, 2006.

Source: ACNielsen
Category

US$ sales

% chg vs. 2005

Unit volume

% chg vs. 2005
Cat dry
$1.0 billion
1.0%
$3.1 million
-14.3%

Cat moist

$4.3 million
-29.9%
$0.37 million
-58.6%
Cat wet
$939 million
-1.6%
$3.1 million
-14.3%

Dog & cat treats

$755 million
2.7%
$0.37 million
-58.6%
Dog dry
$1.6 billion
2.3%
$0.01 million
-96.8%
Dog moist
$46 million
-6.2%
$0.01 million
-96.8%
Dog wet
$640 million
1.4%
$0.01 million
-96.8%
Total
$5.3 billion
0.9%
$3.5 million
-30.1%

Strong growth potential for dog food in Brazil
Sales of dog food in Brazil are expected to grow by 7% in value terms between 2005-2010 to reach over R$5.5 billion, according to a new report from Euromonitor International— Pet Food and Pet Care Products in Brazil. Dry dog food will continue to drive sales, accounting for 96% of dog food value by 2010.

Wet dog food is expected to remain less popular than dry dog food, but its growth will still be noteworthy thanks to packaging innovations—especially the introduction of more easy-open cans—and to the arrival of new players. Moreover, due to campaigns that encourage owners to replace homemade food with prepared food, wet dog food may still play an important role in the market. After all, specialists are unanimous in affirming that replacement should not be made abruptly. They all say that owners should mix homemade food with wet dog food at the beginning, and only later should they stop feeding their pets with homemade food.

Dog treats and mixers have considerable growth potential in the Brazilian market, as consumers become increasingly familiar with the benefits of such products, particularly those promising nutritional and health improvements. In addition, the number of new product developments will attest to the growing popularity of such products. Euromonitor International forecasts that sales of dog treats and mixers will reach R$95 million by 2010.

Click here for more information about petfood and pet care reports from Euromonitor International and to buy reports online.



                                                                                                                                                                                                       

E-news

US online ad spending figures released for first half of 2006
According to the latest figures and reports by emarketer.com, US online advertising revenues for the first six months of 2006 were approximately US$7.9 billion—a 37% increase over the first half of 2005. In addition, Internet advertising revenues totaled nearly US$4.1 billion for the second quarter of 2006, representing a 36% increase over the same period in 2005 and a 5.5% increase over the first quarter of 2006. Paid search advertising, accounting for 40% of online ad revenues, continued to be the most popular online ad format, followed by display and classified advertising.

The future of online ad spending
eMarketer projects online ad spending growth rates of 26.8% and 15.1%, respectively, in 2006 and 2007. Translated to dollars, this year's growth rate equals US$15.9 billion. Even as spending growth subsides, the continued positive gains will push US online ad spending over US$21 billion in two years and past the US$25 billion mark by the end of 2010. In the US , for the foreseeable future at least, online ad spending will continue to carry overall advertising spending—making up for, or nearly so, shortfalls in other media.

Five key trends will account for sustained growth of Internet ad spending:
  • Ad spending will shift from other media, most notably broadcast television and newspapers, to the Internet.
  • Larger Internet ad budgets will emerge in general as companies both grow more accustomed to various online ad formats and increasingly seek the audience found on the Web.
  • Higher prices for both branding ads (video and plain display) and direct response vehicles (mainly paid search).
  • Branding objectives becoming increasingly relevant online, which will lead more marketers who have spent little for Internet advertising to devote larger budget shares to various interactive formats, especially video.
  • The continued small shares many large marketers budget for Internet advertising, which need to budge by only a few percentage points to create relatively large gains for this advertising medium.

Product news

Pallet dispenser
A-B-C Packaging has introduced the Model 601 Pallet Dispenser with a side-clamp design that grips and lifts the entire stack to allow the bottom pallet to feed independently from the stack to the palletizing station. This design allows the dispenser to run pallets with protruding nails or loose boards, while minimizing further pallet damage and eliminating handling concerns during warehousing and shipping. The side-clamp design is a superior handling method, compared to traditional hydraulic dispensers that use a pusher ram to strip pallets from the bottom of the stack—which can cause additional damage to imperfect pallets.

Natural, edible ingredients
ADF reminds petfood and treat manufacturers that in addition to the finest, most nutritious petfood ingredients, it also can supply edible all-natural ingredients from food-grade, USDA-inspected facilities. These USDA-approved poultry products include meat, broth and shelf-stable fat and broth/fat combination dehydrated powders. In addition to an all-natural designation, these products also use all-natural methods of preservation to help supply a clean label.

For edible, natural ingredients, ADF can supply meat, broth, fat or a broth/fat combination product. The shelf-stable fat is liquid and the broth and other combination fat/broth ingredients are sold dry. The liquid shelf-stable fat is generally topically applied to kibble. The dry broth and broth/fat combination products help conserve energy for easy and economical shipment and transportation. In addition, all ADF powders flow easily out of the container into any processing situation.


Research notes

Dietary modification for treatment of feline kidney disease
This study was conducted in order to determine whether a renal diet modified in protein, phosphorus, sodium and lipid content was superior to an adult maintenance diet in minimizing uremic episodes and mortality rate in cats with stage 2 or 3 chronic kidney disease (CKD). A double-masked, randomized, controlled clinical trial was conducted on 45 client-owned cats with spontaneous stage 2 or 3 CKD.

Cats were randomly assigned to an adult maintenance diet (n = 23 cats) or a renal diet (22) and evaluated tri-monthly for up to 24 months. Efficacy of the renal diet, compared with the maintenance diet, in minimizing uremia, renal-related deaths and all causes of death were evaluated. Serum urea nitrogen concentrations were significantly lower and blood bicarbonate concentrations were significantly higher in the renal diet group at baseline and during the 12- and 24-month intervals. Significant differences were not detected in body weight; Hct; urine protein-to-creatine; and parathyroid hormone concentrations. A significantly greater percentage of cats fed the maintenance diet had uremic episodes (26%), compared with cats fed the renal diet (0%). A significant reduction in renal-related deaths, but not all causes of death were detected in cats fed the renal diet.

The renal diet evaluated in this study was found to be superior to an adult maintenance diet in minimizing uremic episodes and renal-related deaths in cats with spontaneous stage 2 or 3 CKD.

Source: Ross, S.J., et al., 2006. Clinical evaluation of dietary modification for treatment of spontaneous chronic kidney disease in cats. JAVMA 229:949-957.

Protein profiling or organic stone matrix and urine
Two-thirds of the organic matrix in urinary stones consists of proteins. Their relationship to calculogenesis remains controversial with regard to their effect as inhibitors or promoters during stone formation. The purpose of the present study was to determine the differences in peptide and protein pattern between the urine of stone formers ( n = 23) and control dogs ( n = 12), as well as between organic matrix of different urinary stones (struvite n = 11, calcium oxalate n = 8, uric acid n = 4) using surface-enhanced laser desorption/ionization time-of-flight mass spectrometry.

Specific differences in protein and peptide profiles were found in the organic matrix of different mineral compositions. Characteristic differences were also found in urinary peptide and protein pattern, especially in molecular masses below 20 kDa between affected and healthy dogs. Based on the obtained molecular masses, they were in some cases tentatively identified as proteins that are known to be involved in stone formation in humans. The study shows that in dogs, specific-urinary peptides and proteins might be associated with urolithiasis. It indicates the importance to further characterize those proteins for possible diagnostic purposes in prognosis and therapy.

Source: Forterre, S., et al., 2006. Protein profiling or organic stone matrix and urine from dogs with urolithiasis. Journal of Animal Physiology and Animal Nutrition 90(5-6):192-199.


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.

Help wanted: Various positions available
Openings for sales and marketing personnel, nutritionists, processing experts. Rapidly-growing national leader in uncompromised, science-based superpremium natural petfoods, clinical diets and supplements. Send resume to: Wysong Corporation, Attn: Cathy Adams, 7550 Eastman Ave., Midland, MI 48642 USA, Fax: +1.989.631.8801, E-mail: cadams21212@aol.com.

References

Watt Books

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Contact information

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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.