Petfood Industry Electronic Newsletter November 07, 2006
 

November 07, 2006
Volume 6, Number 20

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

Feed Industry Profitability Workshop to be held in December
The American Feed Industry Association (AFIA) and Texas A&M's Office of the Texas State Chemist, in collaboration with the National Renderers Association and the National Grain & Feed Association, are presenting a Feed Industry Profitability Workshop, December 12-14, 2006, in Omaha, Nebraska, USA.

The goal of the course is to help personnel from all sectors of the feed industry manage costs and improve profitability and product quality. A major objective of the course is to help the feed industry begin benchmarking their performance, both internally and with feed mills in other companies and countries. Topics will cover budgeting, interpreting financial statements and assessing feed mill competitiveness, analyzing statistical techniques to improve quality, efficiency and profitability, and financial planning techniques. For registration and program details, visit www.afia.org and click on Events.



Colgate-Palmolive profit slips 1% in third quarter
Colgate-Palmolive Co.'s third-quarter net income fell to US$344.1 million, compared with US$347.2 million a year ago. Excluding charges related to a restructuring plan, as well as stock-based compensation expenses, Colgate-Palmolive reported earnings of US$421.5 million. The company is executing a four-year restructuring plan it unveiled in December 2004. The results came despite record spending on advertising worldwide, according to chief executive, Reuben Mark.

Looking ahead, Colgate-Palmolive forecasts double-digit earnings per share growth for 2006 and 2007, excluding restructuring and stock-based compensation charges. Regional sales showed their greatest strength in Latin America, where revenue grew 15%. North American sales rose 2%, while Europe and South Pacific sales climbed 7%.

Old Mother Hubbard marks 80 years with innovations
Old Mother Hubbard (OMH) has reached its 80th year of manufacturing foods and treats for dogs and cats. OMH celebrates this milestone with the launching of new products and expansion of its marketing programs. The company's latest product innovations are this season's launch of a new line of Wellness treats and the introduction of Wellness 95% Meat.

Nestlé sales show continued strong organic growth
During the first nine months of 2006, consolidated sales of the Nestlé Group amounted to CHF72.2 billion (approximately US$59 billion)—an increase of 9.1% over the comparable period of 2005. PetCare achieved 6.9% organic growth. Europe pet care sales experienced strong growth, with strategic brands such as Bakers, ONE, Gourmet and Beneful doing particularly well. According to company reports, growth in North America continued to accelerate, with continued innovation around the humanization of petfood, including new natural products for dogs and restaurant-inspired recipes for cats.

Petfood Forum for marketers
In 2007, the Petfood Forum in Chicago will offer marketers several reasons to be there. In addition to getting ideas from colleagues and suppliers, there is a great line-up of topics for marketers:

  • New product trends;
  • Popular functional ingredients;
  • Product/packaging case study;
  • Global sales trends; and
  • The future of petfood retailing.

Furthermore, on Wednesday morning, Petfood Forum will feature three general sessions:

  • Large pet retailers on what pet owners want;
  • A roundtable with petfood company CEOs on the future of the industry;
  • And, in-depth, exclusive market research.

This annual symposium and exhibition will be held at the Hyatt Regency O'Hare in Chicago, Illinois, USA on April 16-18, 2007. For details and to register click here, or E-mail Marcia Riddle at mriddle@wattnet.net for more information.

Alltech and University of Kentucky alliance publishes first report
Alltech, in conjunction with the University of Kentucky, has published the first report of the Alltech/University of Kentucky Nutrition Research Alliance at Coldstream Research Farm. This partnership, formed in 2004, has resulted in one PhD dissertation, four scientific journal articles, nine scientific posters, and 25 scientific abstracts in its first full year of operation. The alliance with the University of Kentucky is part of Alltech's Bioscience Center concept. Operating the research facility is a team comprised of Alltech and University of Kentucky researchers and faculty members.

Banfield and Meals On Wheels launch nationwide petfood drive
Banfield, The Pet Hospital, a private veterinary practice franchise, and Meals On Wheels Association of America (MOWAA) have partnered to launch a national petfood drive called “Season of Suppers, a Pet Food Drive for Pets in Need.” The petfood drive kicked off November 1, 2006 and will continue through the end of the year. Banfield and MOWAA plan to collect more than 1 million pounds of petfood in Banfield hospitals across the US.

Banfield hospitals will also attempt to raise US$100,000 in donations for the new program and help connect interested volunteers with their local Meals On Wheels programs. For more information, contact: Christine DelliBovi, Member Relations manager, Meals On Wheels Association of America, Tel: +1.703.548.5558, E-mail: christine@mowaa.org.

Testing company moves headquarters to Iowa
Eurofins US has moved its corporate headquarters to Des Moines, Iowa, USA. Eurofins expects to hire approximately 50 people in the next two years, according to a news release. Its Des Moines operations will be the base for its North American food and pharmaceutical testing businesses. The company also plans to develop a new food testing laboratory to house vitamin and general nutrition testing functions. The move will be done in phases. Des Moines has been home to Eurofins' Woodson-Tenent laboratory operations for four years.

Exports to Turkey will not need dioxin statement
After intense negotiation between the US Department of Agriculture (USDA) and the Turkish Ministry of Agriculture and Rural Affairs (MARA), officials declared that MARA will no longer require a dioxin statement on the veterinary health certificates accompanying US petfood exports to Turkey. This change is effective immediately. Turkish importers of US petfood are now able to import from all US petfood companies, instead of importing only from the ones who are approved to export to the EU, as had been the case since May 2006.

USDA provided a letter to MARA showing dioxin levels in the United States are below the levels required by Turkish regulations. MARA agreed to accept this letter in place of specific dioxin certification for each individual shipment of US petfood as an interim solution until March 2007, when MARA will no longer require any dioxin certification from the United States.

Rinaldo Franco Spa celebrates 50th anniversary
Rinaldo Franco Spa, an Italian pet accessories business, celebrated its 50th anniversary last month. More than 100 guests attended a gala evening in celebration. Rinaldo Franco Spa, founded in Milan in 1956, was one of the first companies to enter the Italian pet accessory trade. It is still one of Italy's leading companies in this sector, with more than 5,000 items available.

Association websites updated
Recent Internet searches have turned up several websites that have had redesigns. The Pet Food Institute has updated its site (www.petfoodinstitute.org) as has the Pet Food Manufacturer's Assocation in the UK (www.pfma.org.uk). Another site with a new, updated look is the Assocation of American Feed Control Officials (www.aafco.org).
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.



Total US food, drug, mass merchandiser (excluding Wal-Mart data) petfood sales for the 52 weeks ending October 7, 2006. Source: ACNielsen
Category

US$ sales

% chg vs. 2005

Unit volume

% chg vs. 2005
Cat dry
$1.0 billion
1.2%
$209 million
-5.2%

Cat moist

$4.1 million
-30%
$2.8 million
-28.9%
Cat wet
$942 million
-0.9%
$1.6 billion
-8.2%

Dog and cat treats

$757 million
2.7%
$290 million
1.1%
Dog dry
$1.6 billion
2.7%
$187 million
-1.4%
Dog moist
$45 million
-5.5%
$10 million
-8.9%
Dog wet
$ 643 million
2.0%
$773 million
-7.4%
Total
$5.3 billion
1.2%
$3.2 billion
-6.6%

Clean and convenient: the pouch success story
With pet owners being increasingly pressed for time, products that offer convenience and
labor-saving advantages are witnessing the fastest year-on-year growth, according to Euromonitor International's "Pet Food and Pet Care Products in the UK" report. Crucial to this has been the development of convenience-led pet products and, in particular, the launch of petfood in pouch packaging.

Within the wet dog and cat food sectors, the pouch format grew 13% in current value terms in 2004. The Felix pouch from Nestlé Purina was the fastest-selling brand in 2004, with value sales increasing by 57%. Pedigree's pouch also saw strong value growth of over 15% in the same year. These figures illustrate the growing demand among consumers for single-serve petfood packaging formats that retain freshness, can be resealed and are easily discarded after use.

Growth in sales of pouches is attributed to three main developments: multi-pack formats that offer pets a variety of meals; larger pouch sizes that can feed two cats at a time; and the introduction of private label pouches.

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

E-news

B2B E-mail list prices falling (a little)
As reported by emarketer.com, the World Data "Fall 2006 List Price Index" report found that B2B E-mail list prices decreased in October by an average of US$4 per thousand compared with a year ago. World Data found that permission-based B2B E-mail was the highest-priced category, with an average price of US$277 per thousand. Newsletters were the second-highest-priced category, with an average cost of US$178 per thousand, also a decrease of US$3 per thousand from last year. For more information on this topic, see eMarketer's “E-Mail and Word-of-Mouth: Connect with Your Best Customers” report.

Wireless advertising set to double by 2011
In its new report, "US Mobile Marketing forecast: 2006–2011," JupiterResearch predicts that advertising for messaging and display ads for mobile devices will more than double over the next five years. emarketer.com noted that Jupiter projects that ad spending will rise from US$1.4 billion this year to US$2.9 billion in 2011.

In related research concerning consumer attitudes to mobile advertising, Harris Interactive found that 26% of current mobile phone subscribers would be willing to watch advertising on their mobile phone if they received free applications in return. A much smaller number, only 7% of wireless subscribers, said they would be interested in receiving promotional text messages "if they were relevant."

Product news

Pre-extruded hot melt glue dots
DML Solutions offers an alternative to double-sided tapes, liquids and dispensing equipment. Dots of removable or permanent adhesive can be used to attach items to packaging such as coupons and samples. Various levels of tackiness are available with Glue Dots.

Optimize performance and product quality
The EVOLUM LT 145 extruder offers optimum torque and higher screw speeds for maximum throughput, according to Clextral Inc. EVOLUM incorporates temperature control for managing complex recipes in the processing of premium dry and semi-moist petfoods. The EVOLUM LT 145 operates at throughputs from 5-10 tons per hour. The machine includes ergonomically-designed anti-slip steel footmounts, as well as handrails and footrails to allow access for sanitation and maintenance. Call Clextral Inc. at Tel: +1.813.854.4434.

Vibratory boot-mounted rotary feeders
A new line of boot-mounted rotary feeders for retrofitting on existing bucket conveyors or bucket elevators has been introduced by Gough Econ Inc. According to the company, the new boot-mounted rotary feeders are easy to install and retrofit on all bucket conveyors from 9-48 inches wide. The feeders are powered by two vibratory motors mounted directly onto the load unit of existing bucket conveyors or elevators.

Compact stacker is power driven
Presto Lifts Inc. introduces a new line of fully powered stackers. The new Power Stak line features a narrow-mast design and offset control handle, providing operators with a clear view in front. Forward and reverse drive “thumb” switches are located on both sides of the handle to accommodate left and right hand operation. An auto-reversing belly switch protects operators from potential injury when walking the unit backwards, while an automatic brake immediately halts travel when reversed.

Vacuum packaging machines with leak check
Fully automatic Rollstock vacuum packaging machines are available in a variety of web widths from 285 mm to 459 mm. Machines feature programmable PLC controls with readable diagnostics and a vacuum leak check program. The chain system is guided and has an auto-tensioning system to reduce stretch and wear. Dies are manufactured from solid aluminum block and lifted by a triple knee lever system, driven by a 4-inch air cylinder with variable height control.


Research notes

REE and body composition of dogs fed high-fat and low-fat diets
To test the hypothesis that high-fat diets result in decreased resting energy expenditure (REE), this study measured REE using indirect calorimetry in 10 adult intact male Labrador Retrievers, eating weight maintenance high-fat (HF, 41% energy, average daily intake: 8018 ± 1247 kJ/day, mean ± SD) and low-fat (LF, 14% energy, average daily intake: 7331 ± 771 kJ/day) diets for a 30-day period. At the end of each dietary treatment, body composition measurements were performed using dual-energy X-ray absorptiometry.

The mean ± SD REE was not different between diets (4940 ± 361 vs. 4861 ± 413 kJ/day on HF and LF diets, respectively). Measurements of fat-free mass (FFM) and fat mass (FM) also did not differ between diets (FFM: 26.8 ± 2.3 kg vs. 26.3 ± 2.5 kg; FM: 3.0 ± 2.3 vs. 3.1 ± 1.5 kg on HF and LF diets, respectively). In summary, using a whole body calorimeter, no evidence was found of a decrease in REE or a change in body composition on a HF diet compared with LF diet.

Source: Yoo, S. et al., 2006. Journal of Animal Physiology and Animal Nutrition 90(5-6):185-191.

Influence of the feed base excess on urine parameters in cats
In this study, the base excess (BE) was used as a method to predict the influence of the food on the urinary pH on cats. Nine cat foods (six dry and three canned) were consecutively fed to eight cats. The urine pH, volume, specific gravity and water and food intake were determined daily. The base excess [BE; mmol/kg dry matter (DM)] was calculated from the compounds in the food (BE = 49.9*Ca+82.3*Mg*+43.5*-Na+25.6*K-64.6*P-13.4*Met-16.6*Cys-28.2*Cl).

The BE of the tested foods was between -287.35 and 133.38 mmol/kg DM. The mean urine pH varied between 5.76 (SD = 0.13) and 7.16 (SD = 0.22). The BE correlated with the mean urine pH (pH = 6.25+0.0023*BE; r = 0.74**). The urine volume (ml/kg BW/day) correlated significantly positive with the K- (r = 0.71**) and significantly negative with the P-content (r = -0.67**), the Ca-content (r = -0.50**) followed by the Mg-content (r = -0.36**) of the food.

The correlation coefficients between the anions/cations in the food and the urine pH was for K 0.36**, for P -0.61**, the Met+Cys -0.60** and Cl -0.27**. In practice, the correlation between urine pH and BE would help to pre-estimate the effect of food on the urine pH and to prevent urolith formation.

Source: Wagner, E., Keusch, Ch. and Iben, Ch., 2006. Journal of Animal Physiology and Animal Nutrition 90(1-2):19-24.



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References

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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.