GfK: Grain-free pet food has potential to outgrow natural

“Natural” pet food may get all the headlines, but grain-free is the engine powering the natural juggernaut. New data from GfK’s point-of-sale pet panel, which represents more than 11,000 pet specialty stores, shows that grain-free dog and cat food now accounts for one-third (34%) of all pet food sales, and 48% of the “natural” category.
Overall, grain-free SKUs brought in $2.6 billion in the past year (October 2014 to September 2015), a growth rate of 25%. Dog items accounted for $2.1 billion of those sales, with grain-free dog treats spiking a remarkable 43% year over year. And grain-free items now represent 46% of all sales in the Dog Wet category.
In some ways, grain-free’s success is a matter of sheer quantity; 45% of all pet food items introduced in the past year were grain-free – 1,557 new products, compared to 1,355 during the previous 12 months.
Another reason for grain-free’s elevated revenue is the category’s hefty price per pound – $3.01, on average; that is 26% higher than the overall pet food figure of $2.39 per pound.
“Grain-free has the potential to outgrow the natural category, because it also reaches into non-natural food and treats,” said Maria Lange, business group director of GfK’s POS Tracking (Pet) team. “Without grain-free, the natural category would be declining in growth – and we think grain-free’s potential is far from spent. Cat SKUs, in particular, represent an untapped opportunity for new grain-free sales gains.”
GfK’s POS pet panel in the US helps both retailers and manufacturers make smarter decisions. Pet specialty stores can gain free insights into the marketplace simply by sharing their sales data with GfK; and manufacturers can obtain unmatched reports on nationwide trends, as well as the performance of their own products and of competitors.

Dogs get scratch and sniff book for holidays

‘Is That My Dinner?’ taps into dogs’ keen sense of smell

Red Tettemer O'Connell + Partners (RTO+P) has released a playful holiday scratch and sniff book just for dogs, called “Is That My Dinner?” for the healthy, human-­grade pet food company, The Honest Kitchen.
To showcase The Honest Kitchen’s product and to communicate the benefits of feeding pets healthy grade food, “Is That My Dinner?” taps into the one thing we all know our dogs love – smelling. In partnership with illustrator Annie Davidson, who co-­designed and executed the artwork, “Is That My Dinner?” is a story about a hopeful puppy, scratching and sniffing his way through a holiday party in search of a proper holiday meal. Throughout the book, the readers/smellers are taken through a selection of scratch and sniff scents including pumpkin and peppermint.
“We thought it would be super fun to really think outside of the box and create a slightly retro holiday campaign that would showcase our recipes in a unique way,” said The Honest Kitchen CEO Lucy Postins. “We wanted to highlight the difference between our human grade whole foods for pets and conventional kibble and cans, which most dogs and cats eat. RTO+P has done an incredible job devising the idea of a scratch and sniff book, and we’re excited to show it off as we get closer and closer to extra treat season.”
A perfect stocking stuffer for the holidays, each copy of “Is That My Dinner?” will be available nationwide at retail stores and will contain samples of The Honest Kitchen’s “Embark” and “Love” products as part of the bundle. RTO+P has also created a new website www.isthatmydinner.com, featuring coupons redeemable in stores and will handle the social media on Facebook and Twitter.
“The Honest Kitchen has been a perfect partner throughout this creative process, even helping out with getting our smells right,” said Steve Red, president and chief creative officer at RTO+P. “That’s what we love about THK – they’re not afraid to take risks and like us, they really, really love dogs.”

FDA releases final foreign supplier rule

The US Food and Drug Administration (FDA) has released its final rule for Foreign Supplier Verification Programs (FSVP) for Food for Humans and Animals. This rule is part of FDA’s implementation of the Food Safety Modernization Act (FSMA). Most importers will be required to comply with FDA’s FSVP rule in May 2017 (18 months after publication).
FDA defines an FSVP as a program that verifies “that (importers’) foreign suppliers are producing food in a manner that provides the same level of public health protection as the preventive controls or produce safety regulations, as appropriate, and to ensure that the supplier’s food is not adulterated and is not misbranded with respect to allergen labeling.” The FSVP rule covers importers of food and beverages, which FDA defines as “the US owner or consignee of a food offered for import into the United States.” If there is no US owner or consignee, the exporter’s US agent is the importer.
Importers must create an FSVP for each food imported from each foreign supplier. If they import the same food from two different suppliers, that will require two FSVPs. One element of an FSVP is a hazard analysis. Importers must determine potential biological, chemical, and physical hazards posed by each food they import.
Importers must also evaluate the performance of each of their foreign suppliers and use that evaluation to approve suppliers. This includes evaluating each supplier’s history of compliance with FDA food safety regulations, “including whether the foreign supplier is the subject of an FDA warning letter or import alert.” Importers should only import from approved foreign suppliers.
For approved foreign suppliers, importers must determine appropriate supplier verification activities, conduct those activities, and conduct corrective actions. Examples of verification activities may include annual on-site audits of a supplier’s facility, sampling and testing, and review of a supplier’s food safety records. Importers should choose verification activities that appropriately fit the risks of each supplier.
Importers may designate a third party to conduct a hazard analysis, a supplier risk evaluation, or to perform verification activities on their behalf. Registrar Corp’s food safety specialists can develop or review a food safety plan that identifies potential hazards associated with a food or supplier and a plan to control those hazards. Registrar Corp also offers an FDA Compliance Monitor, which food facilities may use to monitor their foreign suppliers for FDA inspections, warning letters, import alerts and import refusals. The monitor is updated consistently, allowing importers to take prompt corrective action.

Kaleb’s Organics treats earn Non-GMO Project Verification

Kaleb’s Organics’ all-natural, organic, made-in-the-USA dog treats have earned the Non-GMO Project Verification. Obtaining this verification emphasizes the brands promise to create the highest quality treats for animal companions. The Non-GMO Project offers North America’s only independent verification for products made according to rigorous best practices for GMO (genetically modified organisms) avoidance.
GMOs (genetically modified organisms) are organisms whose genetic material has been artificially manipulated through genetic engineering, which critics say creates unstable combinations of genes that do not occur naturally and can contribute to allergies. Contrary to industry claims, GMOs have never been properly tested for human or pet safety, according to opponents of GMOs.
Kaleb’s Organics full line of dog treats are Non-GMO Project verified, meaning that these items have met the consensus-based standard that includes GMO risk assessment, traceability, segregation and testing at critical control points to verify that ingredients are not genetically modified.
“Consumers are becoming more health conscious in their pets’ diets, and want to know what’s in their food. Research shows there are many concerns regarding GMOs and we feel it’s important to avoid these ingredients at all costs,” said Deborah Viney of Kaleb's Organics. “Kaleb’s Organics is committed to providing safe, healthy and high-quality dog treats. We’re so proud to have met the Non-GMO Project’s thorough guidelines and have obtained their verification stamp of approval.”

Two bidders expected to make offers to buy Petco

Two groups of private equity-led bidders are expected to each bid more than US$4 billion for Petco Holdings, according to reports.
One of the groups is with KKR & Co. and Hellman & Friedman, and the other is with CVC Capital Partners and the Canada Pension Plan Investment Board. Reports say Apollo Global Management by itself is also among the bidders. Binding offers are due November 25, 2015.
In August 2015, Petco filed for an initial public offering of stock that could value it at US$5 billion to US$6 billion, including debt. And, in early October, the company said it would go public again after nine years of private ownership. But now, Petco’s private equity owners are expected to sell the company instead of following through on the IPO.
In late 2014, Petco rival PetSmart Inc. was bought by a private equity consortium led by BC Partners Ltd. for US$8.7 billion.
In September 2015, PetSmart said it was exploring the possibility of acquiring Petco. But, in October 2015, merger talks between the two companies were reported to have stalled because of disagreements over antitrust risks. The two companies also explored a merger possibility in 2014, but PetSmart ruled out a deal with Petco in favor of the buyout by BC Partners.

#tbt: Paleo Diet enters pet food realm

In 2010, Hounds & Gatos, which calls itself “the original Paleolithic pet food company,” was formed.
The company’s founder and CEO Will Post told Petfood Industry in 2013: 'Our society is ill and overweight. I believe we need to go back to our ancestral roots where we were created to eat meats, fruits and vegetables. Hollywood has really bragged about their Paleo Diets so why not our pets?' Post's mission is to feed pets quality ingredients, reverting back to what (the company claims) dogs and cats would eat in the wild, such as chicken, salmon, rabbit, lamb, venison, turkey, tripe, beef, trout and pork.
This month, PetSmart recognized the popularity of the Paleo Diet by launching a specialty shop section dedicated to the pinnacle natural pet lifestyle brand, Only Natural Pet, a Paleo-inspired brand that is well-suited for dogs and cats and their ancestral wolf and wildcats roots.
According to proponents of a Paleo-inspired diet for dogs, the digestion of dogs and cats today is on par with their wild counterparts, where meat-eating is the foundation for good nutrition and health with the optimal food composition following the “prey model” of 50% protein, 40% fat and 10% carbohydrates.

Nestle Purina to present National Dog Show once again

Nestle Purina will keep its sponsorship of the National Dog Show, which airs on NBC on Thanksgiving in the time frame between the Macy’s Thanksgiving Parade and the NFL broadcast. The National Dog Show, hosted by the Kennel Club of Philadelphia, is viewed by more than 20 million people, making the company’s multimillion-dollar commitment worthwhile.
Purina claims the majority of the championship-winning dogs are fed Purina ProPlan.
In the lead-up to Thanksgiving, Purina has launched a social media campaign where dog owners can tell the world why they are thankful for their dog.
For every original post submitted on Facebook, Twitter or Instagram through November 29 that includes @Purina and the hashtag, #dogthanking, Purina will donate one dollar to the AKC Canine Health Foundation – up to $75,000 – to help further pet health research. Submitted videos, photos and posts may be shown during the National Dog Show.
Olympic figure skater Johnny Weir kicked off the campaign by thanking his dog Tema: “Tema is my little prince, and always there wagging his tail when I get home. He brings so much joy to my life, and I am so thankful for his companionship,” Weir said of his Japanese Chin. He and fellow Olympian, Tara Lipinski, will be on special assignment to lend their distinctive presence for the first time to The National Dog Show Presented by Purina.
“Watching the National Dog Show is a treasured Thanksgiving Day tradition for Tema and me, and I’m thrilled to have an opportunity to be a part of it this year,” Weir said. “Purina and I share the belief that when pets and people are together, life is truly better, and we think a great way to demonstrate this during the Thanksgiving season is to share why we’re all thankful for our furry friends.”
TV personality John O’Hurley and expert analyst David Frei, the voice of the Westminster Kennel Club Dog Show on USA network, will host the show as more than 180 breeds vie for “Best in Show” honors in the tradition-rich Kennel Club of Philadelphia competition.