January 2006 Volume 48, Number 1 6 Topt10 10 by Jenny Kvamme,DVM Profi Les of the Top Petfood Manufacturers Worldwide, Including Market Data from Various Sources
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0601PETCover.indd 1 1/13/2006 10:57:45 AM Different Tastes. Equally Finicky. But Raise Them Well and They’ll be Friends for Life. Our customer is the one on the left. And figuring what tastes best to her is as much a science as it is for her picky human pal. Fortunately, we've been doing just that – longer and better than anybody else in the business. The Industry's First Choice for Dog and Cat Food Palatants. www.nupetra.com North America: United States 330.665.2127 800.854.2400 [email protected] Latin America: Mexico 55.5611.5897 [email protected] Europe: England +44.1344.637227 [email protected] Australia: Victoria 613.59.711105 [email protected] 016PET2&3.indd 2 1/13/2006 1:43:37 PM Features January 2006 Volume 48, Number 1 6 TopT10 10 By Jenny Kvamme,DVM Profi les of the top petfood manufacturers worldwide, including market data from various sources. 18 Corporate profiles A special ADVERTISING SECTION devoted to bringing you useful information about suppliers to the global petfood industry. 46 Cat food trouble By Anton Beynen,PhD One study indicates that some cat foods are seriously low in omega-3 fatty acids. Departments 4 Editorial Notes By Jenny Kvamme,DVM The future of nutrition: Nestlé Purina meeting focuses on research. 16 Petfood Insights By David Dzanis,DVM,PhD Glucosamine & chondroitin: Time to fi sh or cut bait? 52 Ingredient Issues By Greg Aldrich,PhD Yeast: Why and which one? 56 European Report By Peter Best Hungary grows as an exporter. Allergies join the British agenda. 55 — Meeting Planner 62 — Market Place 58 — Industry News 66 — Advertisers’ Index January 2006 l Petfood Industry l 3 016PET2&3.indd 3 1/13/2006 2:09:52 PM comments Editorial Notes BY JENNIFER KVAMME, DVM The future of nutrition Nestlé Purina meeting focuses’ on research t’s been a busy season for companion animal nutritionists. Most recently I was able to attend The long-term goal the 2005 Nestlé Purina Nutrition IForum in St. Louis, Missouri, USA. The of nutrigenomics is event featured three days of scientifi c presentations as well as a poster session. personalized nutrition. On the fi rst day, Bill Heacock gave a full afternoon session on how to enhance teaching skills. It was interesting how — J. Kvamme the concepts he presented could be applied to everyone from teachers to transcriptomics (gene expression research with Alaskan sled dogs showed supervisors to those giving industry analysis), proteomics (global protein that vitamin E supplementation may presentations. I learned quite a bit about analysis)’ and metabolomics (metabolite have some significant benefits to how to try to keep an audience awake, profi ling) to defi ne a healthy phenotype. animals at risk from high levels of free attentive and interested. The long-term goal of nutrigenomics is radical exposure. personalized nutrition for maintenance Finding disease genes and improvement of individual health 2006 in Switzerland On Friday morning, Dr. Michael and prevention of disease. The 2006 Nutrition Forum is Zody of the Broad Institute of MIT The subject of omics continued with scheduled for October 9-10, 2006 in presented on the current status of the a discussion by Dr. John Milner of Lausanne, Switzerland at the Nestlé canine genome sequence project and the US National Cancer Institute. He Research Center. The topic for 2006 will its implications for finding disease said that expanding the knowledge be “Advances in Veterinary Nutrition genes. The Broad Institute is currently about the physiological consequences for Dogs and Cats.” Veterinarians, collecting samples from dogs affected of nutrigenomics should help identify nutritionists and other scientists with osteosarcoma, hemangiosarcoma, those who will and will not respond to are invited to submit proposals for melanoma, mammary carcinoma, dietary intervention. Adding proteomic consideration for presentation. The lymphoma and mast cell tumors. They measurements should help identify deadline for submission of topics and are also interested in older unaffected vulnerable populations arising from a short description is January 31, 2006. dogs to use as controls. For more dietary change. While more research For more information, contact Dr. information on participating in the is needed to capitalize on “nutritional Dottie Lafl amme at E-mail: Dorothy. research go to www.broad.mit.edu/ preemption” of disease processes such as lafl [email protected]. mammals/dog. cancer, the available evidence serves to Look for research abstracts from propel the science of nutrition forward. this meeting to appear in future issues The “omics” of the Petfood Industry E-newsletter Dietary antioxidants Later in the day, Dr. Martin Kussmann and magazine in Research notes. ● of the Nestlé Research Centre in France and stress discussed applying the various “omic” A very interesting presentation by disciplines to nutrition research. He Dr. Arleigh Reynolds from Nestlé Dr. Kvamme is the associate editor noted that the major methodological Purina PetCare Research in Alaska, of Petfood Industry magazine. She challenge of nutrigenomics (how diet USA reviewed the various infl uences can be reached at 122 S. Wesley affects gene transcription, protein on free radical production, how the Ave., Mt. Morris, IL 61054 USA, Tel: expression and metabolism) is body responds to and may be aided +1.815.734.5637, Fax: +1.815.734.5649, integrating genomics (gene analysis), in its response to free radicals. His E-mail: [email protected]. 4 l Petfood Industry l January 2006 0601PETEditorialNotes.indd 4 1/13/2006 10:58:38 AM January 2006 l Petfood Industry l 5 0601PETEditorialNotes.indd 5 1/13/2006 10:58:46 AM he global petfood and pet care products market reached nearly US$53 billion in 2004. Growth in this market was not as rapid as 2003, but it did exceed the growth seen in 2001/2002. Value growth was supported by the trend favoring premium and superpremium products, especially in the mature markets of North America and Western Europe. Particularly rapid growth was seen in the healthcare subsector, mainly as a result of consumer awareness of pet health. According to Euromonitor International’s 2005 report on The World Market for Pet Food and Pet Care Products, the ongoing humanization trend is proving instrumental in sustaining growth in even the most saturated markets. Humanization was also evident in emerging markets such as China and South Korea during the past year. Challenges and opportunities Globally, the sales of petfood and pet care products are forecast to grow by about US$7 billion over the 2003-2008 period to reach US$57 billion, according to Euromonitor. A key obstacle to growth is that the market remains highly concentrated. North America and Western Europe accounted for 76% of value sales in 2004. Thus, manufacturers face the struggle to increase penetration of prepared petfood in already saturated developed markets, as well as in emerging markets like Eastern Europe, Latin America and Asia-Pacifi c. Manufacturers must also meet rising demand for functional petfood products, the rising population of smaller animals and the increasing popularity of convenience products (i.e., easy-to-open, easy-to- dispose-of). At the same time, potential also exists in the segmentation of the market according to lifestage, age, level of activity, breed, medical condition or gender. On the same level with this segmentation is the trend for BY JENNIFER KVAMME, DVM human-grade ingredients, the use of natural/wholesome ingredients and concern over food safety. In the rest of this article, we will highlight each of the top 10 global petfood players. We will include information derived from various sources, as well as the companies themselves—when available. 6 l Petfood Industry l January 2006 0601PETTop10Manufacturers.indd 6 1/13/2006 11:58:14 AM Top companies worldwide Mars Inc. Table 1. Market shares and value petfood sales (retail US$) of the top petfood companies worldwide. Source: Euromonitor International. Market Retail sales In 2004, the top spot in the global dog and cat food sector share % (US$ billions) was claimed by Mars. The 2004 acquisition of Del Monte’s Company 2003 2004 2003 2004 veterinary brands IVD, Medi-Cal and Techni-Cal helped to Mars Inc 24.6 24.6 8.68 9.63 boost the company’s North American potential. Nestlé SA 24.1 24.1 8.50 9.45 Mars operates its three core businesses—snack food, pet Procter & Gamble 6.8 6.8 2.42 2.68 care and main meal food—under the Masterfoods USA Colgate-Palmolive Co 6.2 6.2 2.20 2.42 umbrella in most parts of the world. Masterfoods USA Del Monte Foods Co 3.0 2.8 1.06 1.09 manufactures and markets complete diets for cats and dogs, Nutro Products Inc 1.5 1.3 0.52 0.51 a variety of pet snacks and treats and a complete line of Agrolimen SA 1.3 1.3 0.45 0.49 prescription diets. Masterfoods is the leader in the wet dog S&M NuTec LLC (treats) 0.5 0.8 0.18 0.31 food category, wet pouch segment and cat snacks segment. Meow Mix Co 0.9 0.8 0.31 0.31 Uni-Charm Corp 0.8 0.8 0.27 0.31 The company also manufactures the top-selling dry dog Nisshin Flour Milling Co Ltd food item within the petfood industry. Masterfoods USA 0.5 0.5 0.19 0.21 Nippon Pet Food Ltd 0.5 0.5 0.18 0.19 has national offi ces in Hackettstown, New Jersey, USA and Sunrise Co Ltd 0.4 0.4 0.14 0.16 Vernon, California, USA. Maruha Corp 0.4 0.4 0.13 0.15 Masterfoods USA focuses on innovation.