Pet Food Settlement Reached, Gets Initial Approval

Pet food settlement reached, gets initial approval

A Camden, New Jersey, USA judge granted initial approval late last week to the settlement in which companies that manufactured or sold contaminated pet food would compensate pet owners for all costs related to the death or illness of their dogs and cats. Under the deal, granted initial approval by U.S. District Judge Noel Hillman, pet owners in the United States and Canada would be notified of the settlement by June 16, 2008 and would have until early December to submit claims. A final hearing on the US$24 million settlement is scheduled for October 14, 2008, according to the Associated Press. The US$24 million sum is in addition to the US$8 million already paid to some pet owners.

The settlement doesn’t pay pet owners for pain and suffering from injuries to their pets.The settlement allows pet owners to apply for expenses associated with deaths and illnesses, including the costs of veterinarians, time missed from work to care for sick animals, replacement pets, burial expenses and even property damaged because animals got sick. The companies, including Menu Foods, will create a fund allowing consumers to recover up to 100% of their money damages, if they can document their claim, lawyers representing both sides said. Pet owners can request up to US$900 for undocumented claims in case they didn’t save all their receipts. Owners can also be reimbursed if they had their dogs screened for contaminated food – even if they turned out to be healthy. Plaintiffs lawyers are seeking US$6 million of the settlement in fees. Money left over after all claims are paid is to go to animal-welfare charities.

Pet Food Ingredients Under the Microscope

Ingredients under the microscope

Laboratories discuss ingredient testing worldwide

With the recent recall of pet foods fresh on the mind of the industry, pet food safety testing is a topic of interest to just about everyone involved in petfood production. Petfood Industry asked several analytical laboratories their opinion on the top safety issues today inpet food production. We also asked them to give us some insight into the most current testing technologies available.

According to Lars Reimann, chief scientific officer for Eurofins Scientific Inc., three main groups of top ingredient safety issues face petfood manufacturers today. These issues are:

Adulteration/mislabeling (GMOs, diluting more expensive products with less expensive products, natural/organic versus regular products);

Known toxic residues (allergens, heavy metals, pesticides, drug residues, dioxins, microbial contamination); and

Unknown residues (melamine, acetaminophen, bioterrorism toxins, unknown toxic by-products formed during the manufacturing process such as heat-generated toxins like acrylamide, benzene, furans and 3-monochloropropane-1,2-diol).

Global sourcing expands the issues

Reimann notes that the challenge to the industry is to ensure that the ingredients/products it buys at a good price are sufficiently safe for their intended use. Global sourcing has expanded the issues that need to be considered, as well as reduced the responsibility/trust factor between buyer and seller. However, technologies have also evolved that allow regulators and others to test for an ever-increasing number of residues present with increasingly lower detection limits. The real challenge is to educate the consumer, regulators and the industry itself on what constitutes “real” hazards versus “perceived” hazards, he says.

Reimann believes there are improvements continuously being made on the analytics front. “However, the scope of compounds of concern seems to grow as fast (or faster) than the improvements in analytical instrumentation and processes,” he says.

France and Germany: similar/different issues

Outside the US, perception of the top pet food safety issues facing manufacturers differs slightly. Michele Lees of Eurofins in France notes that the most pressing issues include adulteration of pet food ingredients; external contaminants; accidental contamination from dioxins, etc.; naturally occurring contaminants (or contaminants formed from nontoxic ingredients); mycotoxins; and toxic chemicals formed by reaction of nontoxic ingredients (benzene, furan).

According to Werner Nader of Eurofins in Germany, ingredient scandals in the feed industry over the past decade have shadowed the petfood industry in that country. Genetically modified ingredients (a politically charged issue in Europe) in petfood are also quite commonly seen due to cross-contamination at the supplier. Because of the common supply chain for ingredients for feed and petfood, strict controls on the supply side have to be maintained, he says.

Mycotoxins still play a role

Dr. John Richard, a consultant for Romer Labs, sees mycotoxins as a major concern for most pet food manufacturers across the country and internationally. He notes that most petfood companies test for aflatoxins; however, most of them test every ingredient, and that is not necessary as aflatoxins do not occur in all ingredients. “Therefore, many companies are wasting money testing for these mycotoxins,” he says.

Knowing what tolerance levels exist is important, and guidance is available from the US Food and Drug Administration for the major mycotoxins relative to levels of concern in petfood. “Regarding mycotoxin testing, I encourage companies to put some on the suppliers of the ingredients to test and certify that the ingredient contains no detectable, or at least acceptable (at or below the tolerance levels), levels of specified mycotoxins,” he notes.

Richard indicates that there are many studies ongoing at present to reduce the levels of mycotoxin contamination in the field. These are most specifically pointed at reducing the levels of aflatoxins in commodities through genetic means (biocontrol and breeding). There are some very rapid, accurate and reliable tests on the market today that allow for testing of a number of mycotoxins within a few minutes, he says.

There are new tests being developed all the time by test kit manufacturers and the effort is to make them as fast as possible but not lose accuracy and reliability, according to Richard. The most recent developments in tests for mycotoxins include lateral flow tests. These tests are rapid and most are semi-quantitative, whereby a cutoff value is associated with the test and running the test on a sample will tell you if it is above or below that cutoff level, he notes.

Monitoring quality is an ongoing process

Patricia Jackson, business development manager, diagnostics for VICAM, realizes that in today’s global marketplace, ingredient suppliers face the challenge of providing a consistent and traceable supply of ingredients that will meet the standards of a diverse market. She says that petfood manufacturers do a “fantastic job of monitoring the quality of their ingredients and finished products,” so the most likely source of safety issues could be from unexpected or unintended components added to an ingredient prior to its delivery.

New technologies and new applications for existing technologies are rising to meet the need for more comprehensive screening of raw ingredients, according to Jackson. Near-infrared spectroscopy (NIR), the electronic nose and high-performance liquid chromatography (with mass spectrometry for increased sensitivity and specificity) are just a few she mentions. Each of these technologies offers advantages in detecting undesirable or foreign components in a feed ingredient. In addition, rapid technologies make it possible to screen ingredients as they arrive at the plant.

Audit programs are key

Dr. Scott Brooks, chief operating officer for Food Safety Net Services, recognizes that robust quality assurance programs to verify the quality and safety of ingredients are of critical importance in the safety of petfoods. According to Brooks, these programs, if executed with skill, address ingredient safety issues systematically rather than attempting to tackle individual issues (e.g., melamine). “Petfood companies need to ensure microbial, chemical and physical specifications are set for all ingredients and establish a program to monitor incoming ingredient quality. The programs should include requirements for certificates of analysis with incoming shipments and, importantly, a sampling and testing program to verify critical specification parameters,” he says.

Analytical companies continue to improve turnaround times for results for both chemical and microbial contaminants, according to Brooks. Gene-based assays for microbes are speeding results and will improve with development of DNA microarrays and benefit from growth of nanotechnology applications. In addition to advanced instrumentation capabilities, lateral flow tests will continue to be developed to provide practical, rapid screening for chemical and microbial contaminants, he notes.

Unleashing Seasonal Pet Foods

Unleashing Seasonal Pet Foods

Industry veteran Roman Versch thinks pets and pet owners are ready for winter and summer formulas

Versch says he has kibble in his veins. He first joined the pet industry in 1971 when he began working for a pet retailer in Los Angeles.

“Seasons change and so should your pet’s food,” says Roman Versch, owner of the Pet Depot chain of pet stores. Why? “In the summer, dogs need higher levels of lineolic acids and omega oils in a lower protein and fat formula,” says Versch. “In the winter, dogs need higher levels of protein and fat.” As evidence he points to Chapter 11 of the 2006 NRC publication Nutrient Requirements of Dogs and Cats. Versch will soon find out if pet owners are going to buy the concept.

“Shedding is a profound and obvious effect that seasonal changes have on dogs and cats,” notes Versch, “but it is by no means the only one.” He points out that the seasons are a powerful force in our lives. They affect the activities we do, the foods we crave, the clothes we wear and often, the moods we are in. “Our animals are also affected by seasonal changes,” he says.
A patent and licensing

Working with nutritionists, Versch developed pet foods to address seasonal changes. In October 2006, the US Patent Office awarded him a patent entitled “Selected Climate Change Control of Petfood Formulation and Distribution.” Following up on his patent, Versch founded Seasons Pet Food Co. with the idea of selectively licensing his formulas to companies capable of global and multi channel petfood distribution. He plans to unleash the concept one way or another by August 2008.

Cool Weather Blend is formulated with extra protein and fat to ensure that pets get all the energy they need to fuel their higher energy requirements during cold climatic conditions. It will be sold November through April.

A new path
Superior pet nutrition is a well-worn path in the US, notes Versch. “Customers must have a powerful reason to switch from pet food brands they are satisfied with and current petfood leaders in the US will not willingly give away market share.”

He strongly believes Seasons Pet Food Co. is the right company to create a new path based on seasonal formulas. “A survey done by the company shows that the seasons concept is one that 78.6% of consumers are willing to try,” says Versch, “because it makes sense.” When he’s told no one is asking for seasonal formulations, he responds that no one was asking for iPods or jet skis, but millions of people are buying them now.

Versch sees an analogy between seasonal pet foods and hairball control petfoods. “Hill’s Science Diet introduced its hairball formula in 1996 and changed the market overnight,” he says. “Consumers eagerly converted to Hill’s feline hairball formulas with the advantage of natural hairball disposal through food.” Hill’s improved retailer support and created excitement for specialty retailers because the product was not available through mass merchant locations.

Summer Blend contains higher lineolic acids and omega 3 and 6 oils blended in a lower protein formulation. It will be sold May through October.

Kibble in his veins
“I’ve got kibble in my veins,” comments Versch. He first joined the pet industry in 1971 when he began working for a pet retailer in Los Angeles. There he learned to position and sell petfood products including the original Nutro Pet Food and Science Diet when it was packaged in brown bags and “Acme Buttermilk” kibble from Breeder’s Choice. “As petfood varieties increased,” he says, “consumers became more selective in their petfood purchases. Gradually, the industry shifted to natural, holistic trends and breed specific products found on shelves today.”

When working in retail, Versch and others on the staff noticed a pattern every summer: Customers came in desperately seeking advice for helping their pets suffering from dry, itchy coats and hot spots. “We always asked what they were feeding and a pattern of high-protein, corn-based diets emerged,” says Versch. “We further discovered that these customers were often adding canned diets high in protein on top of the high-protein kibble. We recommended lower protein kibble and a skin and coat supplement and many customers came back happy with the results.”

Visible benefits
The seasons are a powerful force in our lives. They affect the activities we do, the foods we crave, the clothes we wear and often, the moods we are in. Pets are also affected by seasonal changes.

Versch is confident that pet owners feeding Seasons Pet Food will “have a pet with a great coat and better body condition.” He says one reason why so many pets are overweight is that they receive calories at a steady rate all year, even when they don’t need as many calories in the summer. “Our formulas increase fat when pets actually need it: on the lower end of the thermo-neutral and critical cold zone,” says Versch. “Fat is decreased when pets least need it during the upper end of ambient temperatures. We also increase very absorbable essential fatty acids which support a healthy coat.” Seasons Summer Blend will be sold May through October. The Seasons Cool Weather Blend will be sold November through April.

These questions remain
For everything there is a season. The seasonal petfood concept is appealing, but are pet owners ready for winter and summer formulas? Do seasons really affect indoor pets that much? Will inventory/stocking be a problem? What benefits will pet owners actually see? Time will tell.

New to the NRC requirements
Entirely new to the 2006 NRC publication Nutrient Requirements of Dogs and Cats is a report on the effects of physical activity and the environment on nutrient requirements (Chapter 11). Starting with dogs as athletes, effects of sprinting and endurance activities on nutrient requirements are explored. The effects of temperature, high and low, are examined for energy requirements. Nutrient requirements as a function of amount of exercise and ambient temperatures are discussed for water, protein, fats, carbohydrates, minerals and vitamins.

New Packaging Technology Increases Product Safety

Keep a lid on it
Packaging testing technology that will protect your products

The TFT Sealer trims, folds and tapes woven polypropylene bagging material to provide a sturdy, durable seal, yet is easy to open, according to Doboy Inc.

There is an increased awareness about the importance of pet food packaging integrity across many industries, and with the scrutiny heightening on ours, the pressure is on to invest in better quality inspection technologies that can be applied for both off-line testing and in-line automated inspection. Companies that keep using destructive test methods that were developed and approved for use decades ago should re-evaluate their process and investigate technologies that provide valuable data that will improve manufacturing processes, increase pet food safety and help reduce overall costs.

Consistency and reliability
According to Tony Stauffer, president of Packaging Technologies and Inspection LLC (PTI), packaging testing has changed over the past decade by becoming simpler, more cost effective and efficient. Most important is the fact that package integrity testing has become more reliable, thanks in part to high precision non-destructive inspection technologies coupled with a user-friendly approach.

There is a growing need for the development of rapid, non-destructive, non-invasive testing technologies. Some of the non-destructive test methods that address this are:

* Vacuum/ pressure decay;
* Airborne ultrasound inspection; and
* Force load testing.

These methods are not only reliable, but yield repeatable, quantifiable statistical test data. Because they are non-destructive, the same samples can be repeatedly tested, a greater number of samples can be tested and even the actual market product itself can be tested.

Other methods, like water bath, dye tests, and peel and burst tests, are simple to perform and require less expensive equipment, but are destructive to both package and product. These tests also produce test results that are dependent on technique, sample preparation and operator variability, making them more time consuming in the end. Not to mention results from peel and burst tests can be difficult to interpret or correlate to manufacturing process parameters, package quality or shelf-life performance.

Detection and inspection
According to Mettler-Toledo Safeline, processors and packagers in the petfood industry face certain unique challenges, including detecting contaminants, detecting damaged or missing products and identifying overfill and underfill. A presentation about x-ray technology and how it addresses these concerns is available for download at www.mt.com/xraytechnology. The presentation, entitled X-ray Inspection The Future of Packaging Inspection, explains the technology and its specific application to our industry, as well as demonstrates that x-ray provides capabilities not available in metal detectors or vision systems.

From cans and jars to pouches and bags, different packaging materials require different safety precautions.

Checking for seal integrity using Seal-Scan, an airborne ultrasonic inspection technology from PTI, is a fast, efficient, non-destructive method to verify seal quality and pinpoint type, size and location of seal defects, according to the company. The inspection technology is also capable of testing many different types of packaging materials, such as aluminum, foil, paper or a combination of materials.
Integrated packaging solutions

See the rest of this article: Pet Food Safety.

Pet Supplement Makers Want Their Own Regulatory Category

Some pet food industry sources say pet supplements are low on the FDA’s priority list.

With a new director of FDA’s veterinary medicine center and heightened concerns about pet food safety, makers of dietary supplements for pets are renewing an effort to get FDA to create a separate regulatory category for their products. Some industry sources say pet supplements are low on the FDA’s priority list. The National Animal Supplement Council (NASC) recently submitted to FDA ingredients and accompanying claims that could be part of a regulatory scheme.

Currently there is no separate regulatory category for animal dietary supplements so they are considered either food or drugs, and those considered drugs are technically illegal because they have not been approved. The animal drug industry also wants FDA to crack down on companies that make unsubstantiated health claims, an industry source says.

Pet dietary supplement makers need to be legitimized to get investors to back expanding businesses.

NASC met with FDA officials January 10, 2008. The group submitted to FDA a list of about 1,000 ingredients commonly used in pet health products and statements NASC requires its members use if they include such ingredients. Also among the ingredients are some NASC thinks should not be used in petfood or animal health products.

The Best Pet Food Classifieds

PetFoodIndustry.com, a leader in the petfood magazine category, now has a great classified section online.

No matter what sort of company you are looking to buy from, you will most likely find it in this section. They have ads from pet food equipment dealers, ingredient makers, packaging companies and more, making it a veritable one-stop-shop for your pet industry needs!

You can find it here: Pet Food Industry Classifieds

Consumer Response to Pet Food Recalls

Seventy-three percent of consumers say they are “confident or very confident” in the safety of their petfood.

Sales data from Information Resources Inc. indicate US petfood sales dropped about 3.5% after March 16, 2007—the date of the first of several petfood recalls. Hardest hit were sales of wet dog and cat foods. According to PFI, US veterinarians are reporting the recall issue is winding down.

Seventy-three percent of consumers say they are “confident or very confident” in the safety of their petfood according to three rounds of public opinion surveys conducted by the Pet Food Institute (PFI). PFI recently announced the results of three public opinion surveys conducted since April 4, April 24 and May 18-21. Results also show that nearly an identical percentage say they are staying with their preferred brand of petfood. The first two surveys were commissioned by PFI and had a margin of error of +/- 3%. The third survey was part of an omnibus poll and has a margin of error of +/- 4.5%.

See the rest of this article: Pet Food Safety

FDA May Discuss new Pet Food Labeling Requirements

Speak now or pay later

As of the time of this writing, the US Food and Drug Administration (FDA) has yet to issue an official Federal Register notice specifying the date and agenda of the public meeting to discuss the impact of the FDA Amendments Act of 2007 on the promulgation of new federal petfood labeling requirements.

Many in the public and industry are eagerly awaiting the opportunity to hear FDA’s plans and/or comment on this matter. In the interim, however, FDA has recently published two notices in the Federal Register where it has requested public input regarding related matters: its Food Protection Plan (FPP) (Docket No. FDA-2008-N-0188); and third-party certification programs for foods and feeds (Docket No. FDA-2008-N-0183). These notices may be viewed at http://www.fda.gov/OHRMS/DOCKETS/98fr/E8-6833.pdf and http://www.fda.gov/OHRMS/DOCKETS/98fr/E8-6705.pdf, respectively.

Food Protection Plan
FDA’s plan for protecting the nation’s food supply was released in November of 2007 and can be viewed in full at http://www.fda.gov/oc/initiatives/advance/food/plan.html. Briefly, it is described as a comprehensive strategy to help protect the food supply from both unintentional contamination and deliberate attack. The three major components of the plan are to facilitate improvements in prevention, intervention and response.

For each component, the document details the steps needed to implement its objectives in improving food protection, including proposals for new legislation to provide FDA with greater authorities. For example, to aid FDA in responding to contamination incidents, it asks the US Congress for powers to issue mandatory recalls when necessary and to enhance access to company records during emergencies.

Obviously this applies to all sorts of food, but the affects on pet food safety cannot be overstated. While the document tends to discuss the issue in terms of the human food supply, it is clear to note that the FPP is also intended to apply to animal feeds. FDA understands that ensuring the safety of feeds for food-producing animals has a direct impact on the safety of the final food product derived from those animals, and hence must be an integral part of any viable plan.

This understanding is evidenced by the recent assignment of Dr. Stephen Sundlof as FDA’s Director of the Center for Food Safety and Applied Nutrition (which oversees human food safety issues for the agency). As a veterinarian, a toxicologist and the long-time former Director of FDA’s Center for Veterinary Medicine, Dr. Sundlof is uniquely qualified to help lead the agency in both food and feed safety matters. Petfoods are not forgotten in the FPP, either. Last year’s petfood recall due to contamination with melamine and related compounds is discussed several times within the document as an example of where oversight of the food supply needs fixing.

Third-party certification programs
In its efforts to ensure safety of foods and feeds, FDA inspection personnel simply cannot be everywhere, especially with regard to imported products. One of the proposals within the FPP, but discussed more thoroughly in the second notice, is the possibility for FDA to accredit (or recognize entities that accredit) third parties to conduct inspections and evaluate products and facilities to ensure compliance with FDA requirements. Such third parties could include other federal agencies, state and foreign governments and private companies.

See the rest of this article: Pet Food Labeling Requirements

EU Announces New Rules for Animal Feed Labeling

EU: New rules for animal feed labeling
Red-tape reduction for petfood and animal feed

In an effort to increase overall pet food safety, the European Commission (EU) recently proposed simpler rules for the marketing of animal feeds and petfood. The proposal simplifies the existing procedures for labeling and marketing animal feed and petfood, making the overall system more efficient while maintaining the same level of protection of animal health, animal welfare and public health, the commission stated. The proposal also aims to greatly reduce red tape for feed operators by removing unnecessary administrative burdens and technical requirements, which are no longer necessary since an integrated pet food safety approach has now been implemented from farm to fork. Pre-market authorizations are to be made proportionate to risks and no longer based on pre-defined feed groups, such as products acting as protein sources.

“While reducing administration, it will not reduce the high standards set at the EU level for public or animal health,” said Liz Lynne MEP, LibDem European Agriculture spokesperson for England and Wales. “The new proposals will also leave pet owners better informed about the contents of the food they are buying for their animals.”

The draft regulation sets out certain general provisions for the labeling of all feed, such as the need to indicate the type of feed, the name and address of the operator, the list of feed additives and the net weight. On top of this, specific mandatory labelling requirements are laid down for feed materials, compound feed (including petfood) and “dietetic” feed. Any claim attached to a feed must be properly substantiated. “Dietetic” feed must be included on a list of evaluated intended uses. With regard to pet ood, the labeling requirements are tailored to the needs of pet owners, who do not require the same level of detail as farmers on the composition of feed or the scientific name of pet food additives. Labels on petfood must carry a telephone number that customers can call for more information on the contents if desired.

The Top 10 Global Pet Food Leaders: Part 2

Welcome to part 2 of the Top 10 Global Pet Food Leaders (companies 1-5).

1. Mars Petcare
World headquarters: McLean, Virginia, USA (Mars Petcare: Franklin, Tennessee, USA)
Approximate 2006 global retail sales: US$10.71 billion
Officers: Doug Cahill, president, Mars Petcare US
Top brands: Pedigree, Cesar, Sheba, The Goodlife Recipe, Whiskas, Greenies, Royal Canin
New products: Cesar Gourmet Filets in sauce, WholeMeals for Dogs, Multi-pack Whiskas Favourites and Fisherman’s Choice (UK)
Websites: www.mars.com; www.marspetcare.com

Mars Petcare, the pet division of Mars Inc., continues to grow by relying on innovation and leveraging the expertise within its Waltham Centre for Pet Nutrition. Sales across its core brands, such as Pedigree, Cesar and Whiskas, have remained strong, Mars says. The introduction of the Goodlife Recipe was the largest brand launch in Mars Petcare US history, according to the company, and the line has performed well.

That launch contributed to Mars’ earning the number two spot for new dog products in 2007 and the number one spot for new cat products (Table 4). The company also launched two Whiskas steam-cooked 12-pack cat foods exclusively to UK independent retailers in late 2007. WholeMeals for Dogs is the first single-piece meal designed for dogs, according to Mars, and will be available at pet specialty retailers in the US in February.

The company asserts all its products, branded and private label pet food, undergo industry-leading testing and quality control, and its stringent quality program extends to its supply chain.

2. Nestlé Purina PetCare
World headquarters: Vevey, Switzerland (Nestlé Purina PetCare: St. Louis, Missouri, USA)
Approximate 2006 global retail sales: US$10.48 billion
Officers: W. Patrick McGinnis, CEO, Nestlé Purina PetCare; Terence Block, president, PetCare NA; Rock Foster, CFO
Top brands: Purina, Friskies, Alpo, Beggin’ Strips, Beneful, Busy Bone, Fancy Feast, Mighty Dog, Pro Plan, Bakers, Felix, Go Cat, Gourmet Gold, Vital Balance, Vitalife, Cheweez, DeliCat, TBonz, HiPro
New products: Friskies dry food line: Seafood Sensations, Indoor Delights, Signature Blend, Feline Favorites; Pro Plan Dry Senior Cat Food
Websites: www.nestle.com; www.purina.com
Employees: 7,000

Successful new products, such as the expanded Friskies dry cat food line, as well as a continued emphasis on innovation based on humanization secured Nestlé Purina Petcare (part of Nestlé SA) another flourishing year. It was the number one company for new dog products and number two in new cat products (Table 4).

With 24% of the total market share in 2006 (Table 2), Nestlé is focusing development on niche markets. The Pro Plan Dry Senior Cat Food line is an example, specially designed for aging and elderly cats.

Premium and super premium pet food brands have been driving growth in the UK. Top performing brands include Pro Plan and Bakers Complete. Eastern Europe is another growth area for the company, where in August Nestlé Russia announced plans to open a factory in Vorsino, Kaluga Region.

3. P&G Pet Care
World headquarters: Cincinnati, Ohio, USA (P&G Pet Care: Dayton, Ohio, USA)
Approximate 2006 global retail sales: US$2.86 billion
Officers: A.G. Lafley, CEO and chairman
Top brands: Eukanuba, Iams
New products: Eukanuba Healthy Extras Puppy Growth Biscuits, Eukanuba Mature Care Formula for Cats, Iams Premium Protection for Dogs and Cats, Iams Healthy Naturals, Iams Digestive Care for Cats
Websites: www.pg.com; www.eukanuba.com, www.iams.com

Since the petfood recalls last March, Procter & Gamble’s shares in the pet segment have been down, running 1 to 1.5 share points lower since the four weeks ended February 24, 2006, the last period before the crisis. “Unfortunately, even though these wet and semi-moist products are less than 10% of our product line, we frankly got hit pretty hard,” stated A.G. Lafley, P&G CEO and chair.

Even though P&G’s larger dry food business was unaffected by the recall, many have speculated, due to dropping sales and shares, that P&G may sell their Iams and Eukanuba brands.

P&G Petcare managed a healthy US$2.86 billion in retail sales in 2006, with a strong showing in new product launches in both dog and cat food (Table 4). Iams Premium Protection line for Dogs and Cats, launched in August 2007, boasts offerings for eight of the top 10 dog health problems and seven of the top 10 cat health problems with a barrage of ingredients and antioxidants, according to P&G.

4. Hill’s Pet Nutrition
World headquarters: New York, New York, USA (Hill’s Pet Nutrition: Topeka, Kansas, USA)
Approximate 2006 global retail sales: US$2.77 billion
Officers: Robert Wheeler, Hill’s Pet Nutrition CEO; Neil Thompson, Hill’s Pet Nutrition president of Americas; Janet Donlin, Chief Veterinary Business Channel
Top brands: Hill’s Science Diet, Hill’s Prescription Diet
New products: Science Diet Nature’s Best Canine petfood, Prescription Diet Canine and Feline Treats
Websites: www.colgate.com; www.HillsPet.com; www.HillsVet.com
Employees: Over 2,800

With companies outside of North America growing the most, Hill’s Pet Nutrition still managed 8.8% in growth from 2005 to 2006 and an overall growth rate of 60.9% since 2000 (Table 3). Hill’s says its keys to expansion are building and strengthening relationships in the veterinary profession and continuous innovations and improvements in wellness and therapeutic petfood nutrition. Hill’s also announced plans to build a new manufacturing plant in Emporia, Kansas, USA.

Less than 1% of Hill’s products were affected by the recalls, and the company strives to remain known for the highest quality and safety standards. After the recalls it added additional pet food safety checks on raw materials and finished products prior to release.

This past year Hill’s relaunched Science Diet Nature’s Best Canine petfood and introduced Prescription Diet Canine and Feline Treats.

5. Del Monte Pet Products
World headquarters: San Francisco, California, USA
Approximate 2006 global retail sales: US$1.67 billion
Officers: Richard G. Wolford, chairman of the board, president and CEO; Jeff Watters, Del Monte Pet Products senior vice president
Top brands: Meow Mix, Kibbles n’ Bits, 9Lives, Milk-Bone, Pup-Peroni, Pounce, Wagwells, Gravy Train, Jerky Treats, Canine Carry Outs, Snausages, Nature’s Recipe, Alley Cat, Meaty Bone
New products: Nature’s Recipe Farm Stand Selects, Kibbles n’ Bits Brushing Bites Dog Food
Website: www.delmonte.com
Employees: 1,760

Although Del Monte’s shares dipped US$0.73, or 7.5%, the company had an astounding 57.6% growth from 2005-2006 (Table 3). The company produced second-quarter earnings per share of 13 cents vs. 11 cents last year. Sales rose 5% with growth in new petfood offerings. Del Monte is hoping competitors in the industry push through a price hike early this year to offset the rising costs of grains used in brands such as their Meow Mix and Kibbles n Bits brands.

Del Monte’s net sales for the year ended April 29, 2007, were US$1.3 million, an increase of 50% compared to fiscal year 2006. The increase was driven by volume gains primarily due to continued momentum of Meow Mix cat food and Milk Bone dog treats. Growth from new products and net pricing actions also positively contributed to the increase in net sales, with 16 SKUs in new cat food products (Table 4).