Petfood Industry Electronic Newsletter November 21, 2006

November 21, 2006
Volume 6, Number 22

This newsletter is also available in an Acrobat PDF format. To download the PDF click on the following link: Nov21PDF.

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

Canine fliers get pampered on NWA
Midwest Airlines has introduced a “special welcoming gift” for dogs when they check in with their owners. The Premier Pet Travel Pack will be offered to dogs and their owners traveling from Kansas City, Kansas, USA, or Milwaukee, Wisconsin, USA. Items in the pack include: Fido Friendly, a national travel magazine for owners and their dogs; primrose dog shampoo and conditioner; a dog toy or accessory; bottled water; “gourmet” treats; and a pouch-size serving of dog food from Iams.

Pet Food Institute elects new board chair
The Pet Food Institute (PFI) recently announced the election of the new chairman of the PFI Board of Directors, Terence E. Block, president, North American Pet Foods, Nestlé Purina PetCare Company. Block was elected at the association's Annual Meeting & Suppliers Mart held in Chicago, Illinois, USA, last month. “I'm honored to serve as PFI's board chairman and look forward to working with other PFI members on key issues affecting our industry,” said Block.

NutriOne acquires IP from RINN
NutriOne Corp. has agreed to terms to acquire intellectual property (IP) from Research in Nutrition and Nutraceuticals (RINN). Dr. Simon Phaneuf, director of NutriOne, stated that the primary attribute of this IP is enhancing the nutritional quality of foodstuffs naturally, while extending the shelf life of ingredients. He noted that the patent can be used in the baking, dairy and petfood industries to allow additional nutrients to be added to increase the functionality.

Alcan promotes Gordon to president and CEO
Alcan announces the appointment of Ilene Gordon to president and chief executive officer of Alcan Packaging and senior vice president of Alcan Inc. Gordon, who is presently president of Alcan Packaging Food Americas sector, succeeds Christel Bories, who was recently appointed president and CEO of Alcan Engineered Products. Both appointments take effect December 1, 2006.

Beneful wins Pack Expo Selects awards
Pack Expo International attendees recently elected the package developed for Beneful Prepared Meals as the winner of the inaugural Pack Expo Selects awards program. The Selects program was comprised of a special display and electronic voting system that allowed tradeshow attendees to recognize the year's most innovative packaging designs by voting for their favorite nominee.

Each of the fifteen finalist packages were developed, designed, converted, or produced by one or more Pack Expo International 2006 exhibitors. Contributing exhibitors to the Beneful Prepared Meals product include Alcoa Packaging, Hans Rychiger AG, PDC International Corp., and Printpack Inc. The Meow Mix Market Select wet cat food cup appeared as one of the top five finalists for the award.

AFIA to host OSHA inspections webcast
The American Feed Industry Association (AFIA) is offering its members and interested non-members the opportunity to participate in AFIA's next Webcast Technical Symposium on December 14, 2006 from 2-3:30 p.m. (EST).

The OSHA Inspection webcast will detail what to expect during an Occupational Safety & Health Administration (OSHA) inspection, including the obligations and legislative authority of OSHA and responsibilities of regulated facilities. To register, visit www.afia.org at least two days before the broadcast. For more information, contact Angee Powell at Tel: +1.703.524.0810 or E-mail: apowell@afia.org.

Fancy pubs name their top product award winners
Chomp Inc.'s new training product, Sniffers101, has been awarded a Best New Product Award from the editors of Dog Fancy magazine. The award announcement appears in the December 2006 issue. Sniffers101 was one of nine products chosen and the only consumable pet product selected as a winner. Sniffers101 was cited for its product innovation and creativity.

Each year, Cat Fancy magazine chooses the winners of their Editors' Choice Awards. Castor & Pollux Pet Works was chosen to receive its third and fourth awards in 2006. The award was given to the company's new Organix organic canned feline formulas and the new Natural Ultramix Adult Feline Indoor Formula.

Focus on Treats topics announced
Petfood Focus on Treats is a comprehensive look at the thriving pet treats market. It will immediately follow Petfood Forum 2007. Presentations are scheduled for Wednesday, April 18 and Thursday, April 19, 2007, at the Hyatt Regency O'Hare, Chicago, Illinois, USA. Organizers have announced the following topics:

New product/market overview;
Case study of a pet treat company;
Functional ingredients in treats;
Treat production innovations;
Treats for species other than cats and dogs;
Packaging—new ideas for treats;
Treat troubles—choking, blockage, obesity; and
Regulatory issues with treats.

For details and to register click here, or E-mail Marcia Riddle at mriddle@wattnet.net for more information.

Menu Foods announces third quarter results
Menu Foods Income Fund recently released its financial results for the quarter ended September 30, 2006. The Fund holds, indirectly, an approximate 65.8% interest, as at September 30, 2006, in the securities and assets of Menu Foods Ltd. and Menu Foods Operating Limited Partnership.

Sales decreased by 3.8% (CA$3.5 million; approximately US$3.07 million), due to the stronger Canadian dollar, which reduced sales by CA$6.8 million, more than offsetting the positive effects of pricing adjustments realized during the quarter. Overall, volume (expressed in cases of 24 cans or pouches) was down 1.9% compared to third quarter results in 2005. Can volume, which represented 75.2% of Menu's volume, decreased in total volume 1.2%. See the full release at www.menufoods.com.

Wal-Mart continues commitment to reduction in packaging
Wal-Mart Stores Inc. recently announced plans to continue its commitment to reducing packaging across its global supply chain by 5 percent by 2013. Wal-Mart's packaging scorecard is a measurement tool that allows suppliers to evaluate themselves relative to other suppliers, based on specific metrics. The metrics evolved from a list of favorable attributes known as the “7 Rs of Packaging: Remove, Reduce, Reuse, Recycle, Renew, Revenue, and Read."

Suppliers will receive an overall score relative to other suppliers, as well as relative scores in each category. On February 1, 2007, Wal-Mart will share the scorecard with its global supply chain of more than 60,000 suppliers. As of February 1, 2008, Wal-Mart will begin using the scorecard to measure its entire supply chain.

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) wet dog food sales for the 52 weeks ending March 19, 2006. Source: Information Resources Inc.

Vendor	US$ sales	% chg vs. 2005	Unit sales	% chg vs. 2005
Cesar Select Dinners	$74.1 million	0.2%	$96.0 million	-0.2%
Alpo Prime Cuts	$72.9 million	-0.3%	$95.2 million	-6.1%
Pedigree	$71.5 million	-5.2%	$84.4 million	-13.9%
Mighty Dog	$64.2 million	-2.4%	$67.3 million	-10.3%
Pedigree Choice Cuts	$53.6 million	-8.7%	$63.1 million	-10.2%
Total	$610 million	-2.3%	$788 million	-9.1%

New report: Pet Food and Pet Care Products in Brazil
Dog food in Brazil recorded impressive growth of 16% in value terms, according to a new report from Euromonitor International: Pet Food and Pet Care Products in Brazil. Dry dog food, which represents 99% of the dog food market, continues to drive overall dog food sales. Aware of owner preferences for the convenience of dry food, players are focusing their budgets on new product developments and marketing campaigns in this sector. Royal Canin was one of the pioneer companies to introduce a line of dry dog food devoted to dogs with renal, intestine, obesity, and heart problems.

Premium and superpremium food also received strong attention from key players in 2006, as these products offer better margins and target a niche group of high-income consumers. New product launches and stronger marketing are expected to spur future sales growth for premium dry dog food, which achieved 20% value growth in 2006, according to the report.

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.

E-news

Check scanning may signal the end of local banking
Many small businesses around the United States are starting to use scanners specially designed to turn paper checks into screen images that can be deposited over the Internet, without having to leave the office. It is a practice called "remote deposit." A law was passed in 2003 giving digital check images the same US legal weight as paper checks (Check 21).

Banks are now issuing scanners to their small-business customers. The device can also be connected to a company's accounting software. After both sides of a check are scanned, the device's software reads the routing number and dollar value and creates an electronic deposit slip. It also updates company account balances and the accounts receivable log.

Over time, the system will also mean less photocopying and filing of paper. There are other advantages. Companies that use more than one bank because their offices are in different locations can consolidate their accounts using remote deposit.

Product news

In-line process control for wet and dry petfoods
Ometric Corp. offers SpectrInline Processware Pet 1.5, a new application of real-time, in-line process control for the pet nutrition industry. The system is installed directly in the process line, and provides real-time measurement of the concentration of the compounds of interest. Manufacturing applications include blending, mixing monitoring, drying monitoring, material inspection, extrusion, coating, and other desired quality control points.

X-ray inspection line
The Loma X⁴ system offers users a new state-of-the art sensing technology. The X⁴ line incorporates the latest-generation line scan sensor for efficiency of X-ray to signal conversion, according to Loma. This new technology allows detection of a variety of contaminants including: ferrous, non-ferrous and stainless steel; glass; stones, ceramic and cement; calcified bones; polyvinyl chloride (PVC) and Teflon fluoropolymers; natural rubber; and product or spice clumps. The units also examine different "zones" with different product densities. This identifies contaminants, under-filled and mis-filled zones, missing items, and/or broken items.

Horizontal batch cookers
Mepaco has developed its new line of ThermaBlend cookers for viscous food products. ThermaBlend cookers are built using an hourglass design that provides a larger heating surface for better heat transfer, according to the company. The cookers feature dual-ribbon agitators, a wrap-around ASME heat jacket, and a scraper system to prevent burn-on, while maximizing even transfer of heat to the product.

Corner labeling systems
EPI's corner labeling systems apply labels to the leading or trailing edge of your carton. The label is applied to two sides of your package so that batch and product data can be seen on two sides of the carton, according to company literature. The system can be integrated with most cartoner lines. A printer can be added to the system to print barcode, date, or other production data.

Vertical reciprocating conveyors
TKF's line of vertical reciprocating conveyor (VRC) solutions is economical and efficient says the company. All feature counterweighted lift mechanisms to reduce HP and power requirements, while a new shaft-mounted drive reduces maintenance requirements, without a loss in HP. VRCs are used in a wide variety of applications where items need to be moved from one level to another, including basements, mezzanines, balconies, or within multi-story buildings.

Research notes

Low plasma taurine in Newfoundlands associated with diet
Taurine status and husbandry were examined in 216 privately owned Newfoundlands, a giant dog breed with high incidence of idiopathic DCM (1.3–2.5%). Plasma taurine concentration was positively correlated (P<0.01) with plasma cyst(e)ine (r=0.37) and methionine (r=0.35) concentrations and was similar across age, sex, neutering status, body weight, and body-condition scores. Plasma taurine concentration was low ( 40 µ mol/L) in 8% of dogs. Dogs with low plasma taurine were older, less active, had more medical problems and treatments, and had lower plasma albumin, cyst(e)ine, tryptophan, and -amino-n-butyric acid concentrations than the other dogs (P<0.05).

Of 9 taurine-deficient, clinically evaluated dogs, three had DCM that was reversed by taurine supplementation and one had retinal degeneration. When given a diet apparently adequate in sulfur amino acids (5.4 g/kg) for 3 weeks, six Newfoundlands (52.5 ± 2.3 kg, 3.5-7 years of age), compared with six beagles (13.2 ± 2.3 kg, 5.5 years of age), had lower (P<0.01) concentrations of plasma taurine (49 ± 16 vs. 97 ± 25 µ mol/L) and cyst(e)ine and blood glutathione, lower (P<0.01) de novo taurine synthesis (59 ± 15 vs. 124 ± 27 mg · kg ^–0.75 · d ^–1 ), and greater (P< 0.05) fecal bile acid excretion (1.7 ± 0.2 vs. 1.4 ± 0.2 µmol/g). Newfoundlands would appear to have a higher dietary sulfur amino acid requirement than beagles, a model breed used in nutrient requirement determinations.

Source: Backus, R.C. et al., 2006. J Nutr 136:2525-2533.

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References

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