AFB International-Your Perfect companion

 PETS International (PI) had an interview with Jackie Levin, President, CEO of AFB. Due to the background of Jackie in the Human food sector the interview will focus on what she is experiencing as the main differences; the challenge of the pet food industry to move on and the trends which are going on already in the human food sector which might be taken over by the pet food sector;

The human food sector and the pet food sector are actually coming closer together in many aspects, however there are still big differences in regulation. With all of the issues surrounding BSE/Mad Cow disease and Avian Flu the worldwide pet food industry is struggling to keep up with the changes. Labeling requirements are more standardized in the human food sector although as the pet food industry works through all of the issues and new advancements I suspect labeling will also become more standardized.

More interesting to me, however, are the similarities between the two sectors. The quality and performance demands on pet food are increasing, rivaling the standards in the human sector. This is not only seen in the branded products but in the private label products as well.

Like the human sector, market segmentation is playing a greater role than ever before as "pet demographic" (i.e., age, size, breed) needs are creating a proliferation of new products.

Much like their human counterparts, pet food companies are trying to find those ingredients that improve the health and well being of companion animals both to improve the quality of life in later years as well as extend the life of the pet.

Food Safety has become much more important in pet food recognizing both the need to protect the consumers who prepare the food for their pet and the heightened issue with bio-terrorism.

Trends

The trends that will impact the pet food sector in the future start with the elevation of the status of pets in the home. With more "empty nesters" and generally smaller households, there is an increasing pet ownership. These demographic groups have "humanized" the pets, in many cases viewing the pet like a child.

The strong movement toward health-oriented pet products will continue with consumers being more receptive to pet products that look like their human counterparts-skin nourishment/conditioning, vitamins, minerals, and holistic health remedies.

And, the indulgence trends in the human sector are being copied with pets seeing more new treats, toys and accessories. The snacks and treats arena is seeing high growth, as customers are demanding more creative offerings.

PI: AFB is on the edge of a main turnaround process in the way that it will become in a further stage of professionalism. In this respect we would like to focus on : What does this mean for the range of the palatability of AFB? A wider range? All delivered and made by AFB? Or are there partnerships to be expected?

It is not so much the range of palatant products that is critical, but rather AFB's ability to deliver customized solutions to individual product challenges. Our science and technology capabilities enable us to work in a partnership capacity with the customer's product development and manufacturing processes to develop the best palatability solution.

Worldwide AFB is providing a range of liquid and dry palatants through our facilities In O'Fallon, Missouri, Ter Apelkanaal in the Netherlands, and our newest facility in Campinas, Brazil. Besides wet and dry pet food, we are developing flavor solutions for improving the quality of treats, biscuits, tablets, and toys. As we move towards our vision of improving the health and well-being of companion animals worldwide we will add other high value ingredients to our portfolio. While there are no supplier partnerships in the works currently, we would certainly consider the possibility as we build this portfolio.

PI: What does that mean for the branding of AFB? Will that become a global branding?

AFB is already a global manufacturer and marketer. A large percentage of our business is conducted outside of the United States in Europe , Asia, Central and South America. Until now we have been operating under two brands, Optimizor in Europe, and Applied Food Biotechnology in the rest of the world. We felt that it was time to update our image to reflect the new company that we have become – one that is ready to meet the customers ever growing demands for superior products and services.

I am very pleased to introduce in this issue of PETS International our new name, AFB International. We will continue to leverage the equity we have built with the name AFB while acknowledging the importance of our international business,,, and recognizing that "biotechnology", which is no longer a part of the company, is viewed negatively in other parts of the world. The Optimizor brand of products is still available on a global basis, and will continue to be customized to meet customer specific needs.

PI: What are the commercial ambitions in this respect (such as type of clients. Only in pet food or also in Human food?) What does that mean for the sales force? We guess that AFB will be experienced much more as a partner rather than to be a "normal supplier".

AFB has never been a "normal supplier." We have always worked in a partnership capacity with our customers and expect that to continue. We have no ambition to move into human food, rather we will stay focused on pets and their specific needs.

AFB has built an outstanding worldwide sales organization that is strongly supported by technical service managers who can assist customers in all aspects of palatability enhancement. Our scientific community has been built to address specific development challenges and deliver innovative solutions. Long-term discovery scientists, animal nutritionists, and finished product experts further support this unique team approach to ensure we give our customers a clear competitive advantage. Giving our customers access to this broader range of resources is clearly the nest step in our progression.

PI: What does this shift mean for the R&D?

The shift for R&D is rather subtle – al-though we have given the department a new name – it is now called Science and Technology. This represents a different mindset for the organization – we are now in the business of science discovery and creation of new technology for different applications. Ultimately we remain dedicated to raising the "pal bar" for our customers – this shift has given us new processes, tools, and resources to do this more effectively.

PI: What it means for the clients of AFB? How will they experience in a tangible way the positive effects for them?

Working closely with our customers we expect to help them continue to grow their brand sales and expand their market share through superior performance. In a market as large as pet food, even a small gain in market share can be very significant.

For more information:

www.afbinternational.com

PETS International Magazine ISSUE 4,2004