Industry news

Nestlé: Strong first half 2006 sales
In the first six months of 2006, consolidated sales of the Nestlé Group amounted to CHF47 million, an increase of 11% over the year prior. The increase in reported sales was mainly driven by above-target organic growth of 6.4%, resulting from a historically high real internal growth of 4.8%, as well as a pricing effect of 1.6%. The Group's core food, beverage and nutrition business supplied the bulk of organic growth (6% of a total of 6.4%), based on strong real internal growth of 4.3% and yielded three-fourths of the margin improvement. PetCare performed well worldwide, with real internal growth of 4.6% and organic growth of 6.6%. Market share in Europe is growing and the product mix is improving. Progress was also achieved in markets such as Japan and China, as well as in Latin America, while North America continued to perform well, according to a company press release.

Fressnapf milestone: Opens first Maxi Zoo in Ireland
The very first Fressnapf outlet in the Republic of Ireland has opened its doors in Cork under the name Maxi Zoo, according to reports. "The Fressnapf model with its large retail spaces, huge product range and aggressive pricing is new in Ireland," said Fressnapf's managing partner Torsten Toeller. There are plans to open more Maxi Zoo stores in Ireland over the next few years.

According to research by Fressnapf, around 50% of the Irish population (of four million) own a pet. The Irish spend almost 40 euros per head on their pets each year. The pet market generated revenue of over 150 million euros in 2005, and is increasing in value by more than 6% a year, and by around 2.5% in volume. The petfood and accessories trade in Ireland is regarded as a booming business in a flourishing economy.

Attention readers: Petfood Forum Europe 2007 survey
We are planning the program for Petfood Forum Europe 2007 to be held May 8, 2007 in Utrech, The Netherlands in conjunction with Victam. We need your input, so 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 European petfood industry in 2007.

Nutro celebrates 80th
This year Nutro Products, Inc. will celebrate its 80th anniversary by opening a new, state-of-the-art production facility in Victorville, California, USA. According to PET in Europe, Nutro continues to focus on expanding its production capacity for its high-quality, superpremium petfoods. The company is now operating in more than 50 countries and is experiencing strong double-digit sales growth internationally.

PFI Annual Meeting & Suppliers Mart
The yearly Pet Food Institute meeting will be held at the Westin Hotel in downtown Chicago, Illinois, USA on Monday, October 23 and Tuesday, October 24. The keynote address will be given by Gary Blumenthal, president and CEO of World Perspectives, Inc., while the guest speaker for the annual industry breakfast will be Chuck Todd, editor-in-chief of The Hotline. He will be speaking on "The November Election – A Preview." For more information on this event, or to register, go to www.petfoodinstitute.org.

FDA fails to issue final feed ban by target date
The US Food and Drug Administration (FDA) recently missed the deadline for issuing the final version of a regulation banning cattle material at high risk for carrying mad cow disease from all animal feed. A FDA spokesperson said the hold-up is due to the agency's re-analysis of its economic impact estimation after a number of cattle industry proponents claimed FDA underestimated the impact the proposed rule would have on them.

A feed industry source said a second economic assessment commissioned by The National Renderers Association gave FDA the most pause. The renderers had Informa Economics, a food and agriculture consulting company, perform a second economic assessment that industry contends shows FDA underestimated the impact of the proposed rule on industry by more than US$130 million. FDA estimated industry would lose US$16 million a year from increased costs and lost revenues. Informa Economics figured the financial hit at US$150 million each year, almost US$130 million of which would be due to the loss of existing channels for dead cattle and calf processing.

“It would, in our opinion, be highly irresponsible for FDA to enact this rule without first fully exploring the cost, feasibility and environmental impact of alternative disposal options for this newly-prohibited cattle material, and simultaneously offering specific guidelines for the proper handling, transport and disposal of this material that minimizes both environmental risk and industry cost,” the report states.

FDA did not offer a new date for when the feed ban would be finalized, but a spokesperson said the agency is working to issue the final rule “as expeditiously as possible.”

US$14.5 billion in premium petfood sold in USA
America 's fascination with upscale gourmet is being passed onto pets, as sales of premium petfoods—natural/organic, fortified/functional, weight control and lifestage, among others—helped boost 2005 sales to US$14.5 billion. According to Pet Food in the US: Riding the Premium Wave, a new report from Packaged Facts, converting consumers and their pets to higher-priced, premium foods will continue to be a major market driver of success in the petfood market—which is projected to reach nearly US$19 billion by 2010. Priced at US$3,500, this report is available from Packaged Facts by visiting http://www.packagedfacts.com/pub/1190796.html. It is also available at www.MarketResearch.com.

Simultaneously, 2006 is shaping up to be a banner year for sheer number of new product entries. During the first six months, marketers launched 175 new petfood (dog and cat) products, including extensions of existing lines, encompassing 844 SKUs, almost as many as appeared in all of 2005.

Bruns named VP for ADM Grain Group
Archer Daniels Midland (ADM) company has named Matthew Bruns vice president-export trading for the Grain Group. In this position, he will be responsible for ADM's North American grain export trading business. Bruns joined the company in 1995, and has held various management and trading positions in the United States, Europe and China. He most recently served as manager-China oilseed processing, and will relocate from Shanghai, China to the company's headquarters in Decatur, Illinois, USA.

9Lives handled container wins Best of Show
A package for Del Monte 9Lives cat food has been named winner of the Bernard M. Seid Best of Show Award in the 43rd annual Package of the Year Award sponsored by the National Association of Container Distributors (www.nacd.net). Distributor All-Pak (www.all-pak.com) worked with Del Monte to design the award-winning container and bring it to market.

One unique element to the package is the inclusion of a feeding bowl/measuring cup that snaps over the container's threaded closure. This component also let Del Monte add a giveaway can of its moist cat food. To keep the can stable atop the container's threaded closure, a locking feature on the closed end portion of the feeding bowl/measuring cup was included. The bowl/cup component also snaps back onto the threaded closure if the consumer opts to use it as a measuring cup rather than a feeding bowl. To see other NACD winners in this year's competition, visit www.packworld.com/go/w173.

AFIA puts finishing touches on strategic redesign
The American Feed Industry Association (AFIA) recently completed an organizational restructuring to better position itself in responding to accelerated industry change, as well as membership needs and interests. The redesign was launched as Joel Newman assumed the Association's CEO post in January 2005 and took nearly a year and a half to complete. It began with a comprehensive membership survey and concluded with the proposed restructuring of AFIA's committees and councils, which continues today.

CFIA confirms 8th case of BSE
Canada has confirmed the country's eighth case of bovine spongiform encephalopathy (BSE) from an animal in Alberta , less than a month after the US suspended a plan to allow more imports of Canadian beef. Canadian Food Inspection Agency (CFIA) testing confirmed the case in a beef cow that's between eight and 10 years old. No part of the animal's carcass entered the human or animal feed systems, the agency said in a statement.

The latest case reduces the chances the US Department of Agriculture will ease restrictions on shipments of Canadian cattle more than 30 months old, and on beef from older animals, a commodity analyst said. The US said on July 28 it won't decide on expanding beef and cattle trade with Canada until the conclusion of a joint probe into a seventh case reported last month. A complete summary of the investigation is available online.

International Scientific Congress on global health and environment
The Clextral Group is hosting an International Scientific Congress, focused on “Health & Environment” in Saint-Etienne, France on October 18-19, 2006. Information on global issues concerning food processing and the preservation of our environment will be presented by industry leaders in commercial and research organizations.

Midwest Ingredients alliance with V.I.M. Recyclers
Midwest Ingredients has announced that it has developed a strategic business relationship with V.I.M. Recyclers. V.I.M. helps companies divert material from entering their waste stream. V.I.M. supplies and maintains recycling equipment, trains workers and markets recyclable materials. Some of the industrial recyclables include paper, multi-wall ingredient bags, cardboard, wax cardboard, plastics and much more.

This alliance provides both parties the opportunity to co-market. For example, when V.I.M. goes to a cookie manufacturer to handle the paper and cardboard waste, instead of just working on the recyclable end, V.I.M. will now ask what they do with broken cookies, which provides more of a value-added service where Midwest Ingredients can use its expertise.