BUSINESS - Prescription Pet Foods Face Class Action Lawsuit

A California class action lawsuit alleges that pet food manufacturers Nestle Purina, Mars Petcare, and Hill’s Pet Nutrition, pet supply chain PetSmart, and veterinary chains Banfield Pet Hospital and BluePearl Vet conspired to falsely promote prescription pet food.

The veterinarian writes a prescription for the specialty food which is then filled at a supplier such as PetSmart.

The complaint argues here is no reason for each brand of pet food to require a prescription, as they “contain no drug or other ingredient not also common in non-prescription pet food.”

The prescription pet food sold by Mars, Purina, and Hill’s are not evaluated by the Food and Drug Administration and contain no drugs or other legally controlled substances, the plaintiffs state.

Therefore, according to the class action, selling the expensive pet food as requiring a prescription is unfair and deceptive under California consumer protection laws.

The suit includes veterinary clinics because they write the prescription, the manufacturers who make the food and PetSmart because they sell it.

According to the complaint, Mars owns 79 percent of Banfield Pet Hospital, and PetSmart owns the other 21 percent. Many Banfield clinics are inside PetSmart locations. In addition, Mars owns 100 percent of Blue Pearl Vet Hospital.

In the case filing, plaintiffs stated that they and others had overpaid for the prescription formulations and made purchases that they wouldn’t have if not for the prescription requirement.

“We are aware of the recent lawsuit in Northern California against Mars Petcare US, Banfield, Blue Pearl, PetSmart, Hills Pet Nutrition and Nestle Purina Petcare,” Courtney Suthoff, representing Mars Petcare’s Royal Canin for public relation agency FeishmanHillard, told Petfood Industry. “While we do not otherwise comment on pending litigation, we believe the allegations to be without merit and will defend ourselves accordingly.”

Nestle Purina Donated More Than $30 Million to Pet-Related Causes in 2015

Nestle Purina announced this week that in 2015 the company donated $31.5 million worth of pet food, pet supplies and monetary contributions to pet-related charities and other community organizations across the country.

The donations reached more than 120 pet welfare groups and the Urban Resource Institute, which operates four domestic violence shelters in the New York City area.

"At Purina we take our role as a responsible corporate citizen seriously and have always believed in supporting pet-related organizations in our hometown of St. Louis and in communities across the United States," said Kasey Bergh, director of Community Affairs, Nestlé Purina PetCare. "We believe that when pets and people are together, life is truly better, and we're very passionate about supporting charitable organizations that share our vision."

Purina donated money and pet supplies to the Urban Resource Institute to help URI build the first dog park – the Purina Pet Haven – in a Manhattan-based domestic violence shelter.

The new dog park opened in October at Urban Women's Retreat, a Tier I emergency shelter that is part of the URIPALS (People and Animals Living Safely) program. URIPALS is the only program in New York City, and one of few nationally, that allows survivors of domestic violence to live in the shelter with their pets.

Pet-welfare organizations used Purina donations for a variety of needs, including construction and repairs to pet shelters at organizations that are working to find forever homes for dogs and cats.

Lawsuit Claims Purina's Beneful Is Poisoning, Killing Dogs

A recent lawsuit filed against Nestle Purina PetCare Company is claiming that one of the company's most popular dog food brands contains toxins that are poisoning and even killing people's pets. 

The lawsuit, filed in California federal court last month by pet owner Frank Lucido, alleges that thousands of dogs have become ill or died as a result of eating Beneful dry kibble dog food. Lucido, whose three dogs all suffered symptoms synonymous with poisoning, is one of more than 3,000 complaints consumers have made online of dogs becoming ill and/or dying after eating the kibble. 

"There are no quality issues with Beneful," said Purina in a response statement. "We believe the lawsuit is baseless, and we intend to vigorously defend ourselves and our brand. Beneful had two previous class action lawsuits filed in recent years with similar baseless allegations, and both were dismissed by the courts." 

READ THIS NBC NEWS ARTICLE FOR MORE INFORMATION

Can people make their pets happy?

Researchers from Nestlé Purina Petcare are conducting some of the first studies of their kind into how external stimuli can generate joyful emotions in dogs. 

While scientific evidence demonstrates that owning a pet can help lower people's blood pressure, and reduce anxiety and depression, less is known about whether human contact has a similarly beneficial effect on animals' emotional wellbeing. 

Thermal imaging is just one of a number of non-invasive techniques Nestlé Purina researchers are using to better understand what makes a dog experience a positive change in mood. 

"Thermal imaging has been widely used in animal welfare studies, to assess inflammation in racehorses, for example, or to see how certain conditions affect livestock's stress levels," said Tagen T.S. McGowan, Nestlé Purina Petcare behaviour scientist. "This is one of the first times it's being used to measure positive responses in pets." 

READ THE NEWS RELEASE 

Management puts Pethealth Inc up for Sale

Rumours about Pethealth Inc. being available for sale appear to be true. Industry speculation about North America's third largest provider of pet insurance began to surface earlier this summer.

The first evidence of this move came on August 19th when the Wall Street Journal published a Pethealth (TSX:PTZ) statement that had the regulatory approval of security authorities. It gave no indication of a specific purchaser or path to sale, however, it mentioned evidence of unusual market activity with respect to the common shares of Pethealth. 

Read WSJ article

On August 22, Industrial Alliance Securities analyst Fred Westra, reported his assessment of the value of Pethealth. While it is unclear if the Company can sell itself, Westra sees a much higher share value than current markets have priced.

Then, on Tuesday, August 26th, Pethealth confirmed that it was “reviewing strategic alternatives for the potential sale of the company”.  Westra says this is street code that means “available for the right price”.

Westra claims there is “tremendous value” in Pethealth. Westra tackled the value of the company by examining the value of three units; its insurance business, its microchip and database operations, and its online adoption service:

• Westra  compares Pethealth’s insurance business to peer Trupanion (NYSE:TRUP) and arrives at a value of between $60-$80million.
• Westra compares Pethealth's microchip and database business to U.K.-based Animalcare PLC (LON: ANCR) to assign a value of more than $35-million.
• Westra believes the company’s Petango brand and ecommerce business is worth about $20-million, based on transactions by Discovery Communications (NASDAQ:DISCA), by Nestle Purina, and by PetSmart (NASDAQ:PETM).

Pethealth competitors, many of whom are members of the North American Pet Health Industry Association (NAPHIA) declined to comment on this development or the implications it might have for industry. According to industry sources, Pethealth did not participate in this industry wide association of healthcare insurance providers.

Westra’s 'sum-of-the-parts' valuation has him arrive at a price of $3.34 for Pethealth, but he says he could see upside as a high as $4.00 per share. However, at the time of his report, Westra continued to value the company based on an assumption it will remain independent.

Westra believes Pethealth will post adjusted EBITDA of $5.8-million on revenue of $52.2-million in fiscal 2014, numbers he thinks will rise to adjusted EBITDA of $8.1-million on revenue of $59-million the following year.


Upon completing his report, Westra maintained a STRONG BUY recommendation and 12-18 month target price of $2.50, implying a return of 37%. 

Pet Food Wars: Purina sues Blue Buffalo for false advertising and disparagement

Netstlé Purina PetCare Company announced Tuesday it has filed a lawsuit in federal court against The Blue Buffalo Company Ltd. for false advertising, disparagement and unjust enrichment - including violations of the Federal Lanham Act. 

Blue Buffalo's promotion advertising and packaging state that its pet food products contain 'No Chicken/Poultry By-Product Meals'. In its complaint, Purina alleges that testing conducted by an independent laboratory revealed that several of Blue Buffalo's top selling pet food products contained significant percentages of poultry by-product meal. 

A copy of the complaint and exhibits can be found at a website Purina has created to highlight its concerns: www.petfoodhonesty.com

Founder and Chairman of Blue Buffalo, Bill Bishop, responded to the lawsuit by posting a letter to consumers in the Blue Buffalo website. 

"We categorically deny all of these false allegations, and will aggressively defend the integrity of our brand and our products," he says in the letter. Bishop goes on to assert that Blue Buffalo products do not use chicken/poultry by-product meal and "we will prove these and other matters in the court with good reliable evidence. . . It is an easy thing to make unsubstantiated claims, put them in a lawsuit and and then publish them all over the web. . . It is quite another thing to prove those allegations." 

READ THE PURINA NEWS RELEASE

Dr. David Goodnight to speak during Summit Session I: The Pet Healthcare Experience

The Urban Animal industry is changing. Consumers can now access everything from merchandise to health care in real-time, online. Pet health insurance and healthcare providers are attempting to maintain a focus for pet families by offering models catering to simplicity, cost effectiveness and quality. 

Dr. David Goodnight, a long-time urban animal advocate conceived of and designed a Planned Wellness model for Nestle Purina which other organizations are now emulating. Partners in Wellness is a turnkey software solution for veterinarians to create and offer customizable wellness programs to their clients without the administrative constraints associated with billing and the tracking of service delivery. 

Will the choices in healthcare afforded by these new programs satisfy clients who visit a veterinarian less frequently and can access everything, anytime, anywhere online? Will urban animals continue to have a role with low income/special needs households or will they become objects for an elite group that can afford higher healthcare costs? 

During the 2013 Summit for Urban Animal Strategies Facts & Evidence Session I: The Pet Healthcare Experience, Goodnight will explore these uncertainties and help guide industry leaders to success and understanding. 

Goodnight brings more than 35 years experience in several areas of the Urban Animal industry including Health & Wellness, insurance, consulting and research.

2013 Summit for Urban Animal Strategies

16-19 October

Lake Louise, Alberta

REGISTER NOW

Where in the world is Dr. David Goodnight?

David B. Goodnight, DVM, MBA, completed his activities for Nestle Purina PetCare during the second quarter of 2013. With 35 years of experience in animal healthcare and a unique ability to think about the future, no-one expected Goodnight to be idle long.In early July, Brakke Consulting, Inc., Dallas, Texas, announced Goodnight had rejoined one of the industry's most seasoned management team as a senior consultant.A Dallas native, Goodnight received his DVM degree from Texas A and M University in 1977 and his MBA from Southern Methodist University in 1988. Some will recall that Goodnight’s first stint with Brakke was from 1997 to 1999, following 19 years of veterinary practice. During that time, Goodnight established the Practice Management Group, and conceived/executed the 1998 Brakke Management and Behavior Study, a landmark survey on the financial business practices of companion animal veterinarians sponsored by Bayer Animal Health. Goodnight then joined Veterinary Pet Insurance as Executive Vice President of Business Development, managing sales, customer service and marketing.Goodnight returned to Brakke in 2004 for 18 months before joining Nestle Purina PetCare Co. to launch a new pet insurance company. PurinaCare Pet Health Insurance was launched in 2008 and was later sold to other interests. The most important development of Goodnight's involvement is the Partners in Wellness program which he conceived in 2011 and launched in 2012. Partners in Wellness, is a patent-pending, turnkey software solution that veterinarians can use to create and offer customized wellness programs for their clients.Earlier today, UK based insurance software provider Aquarium Software Ltd, announced an expansion into the North American market with the formation of Aquarium Software, Inc. and the retention of David Goodnight to spearhead market entry.  Building on Aquarium’s recent deployment with Pets Plus Us in Canada, David will be responsible for establishing and assisting with the staffing of Aquarium’s North American office based in Kerrville, TX. In addition Good night will assist with business development, oversee and manage North American customer relations. In a phone call early this morning Goodnight advised he expects the initial focus will be on the pet insurance industry where Aquarium Software has unique operating and cost advantages.

Contact Goodnight on LinkedIn

Nestle ad first to pitch at canine customers

Nestle, one of the world’s biggest makers of pet food, said on September 30 the launch of the first television commercial designed especially for dogs, using a high-frequency tone to grab their attention.

“Dogs’ hearing is twice as sharp as humans. They can pick up frequencies which are beyond our range and they are better at differentiating sounds,” said Georg Sanders, a nutrition expert at Nestle Purina PetCare in Germany.

“The television commercial aims to reach both the pet and the owner, supporting the special one-to-one relationship between them,” said Xavier Perez, Brand Manager of Beneful for Europe.

Read more in the Calgary Herald Article.

Triad Creates New Petometer Mobile App for Purina

Triad Retail Media announced today that it has collaborated with Nestle Purina PetCare Company to create the "Petometer," a free mobile app that lets pet owners create a profile for their furry friends to track the date, time, distance and pace of walks. Users can retrieve the history of their walks, set reminders of when to take their dog out again and easily access a list of recommended exercises for their dog.
Now available on iPhone and Android app stores as well as the Purina showcase on Walmart.com, Purina's Petometer app allows pet owners to upload photos of their dog and share the routes and details of the walk with friends on Facebook. The app also has a calendar function to keep track of scheduled walks, vet visits, grooming appointments and other activities for pets.

Triad Retail Media created the mobile application as a part of Purina's
ongoing efforts to engage and build stronger relationships with consumers in new ways, across a variety of digital mediums. In addition to the mobile app, Triad and Purina have developed a Web video series titled "Real Pet Stories" currently running on the Purina showcase on Walmart.com - which chronicles the adoption process of a variety of pets in the Tampa, Florida area. All of the campaigns are designed to drive greater awareness of the Purina brand and its dedication to the health and wellness of pets.

"We continue to look for innovative ways to engage and interact with consumers to create stronger brand loyalty, and this campaign with Purina is a great example of how to effectively do that," said Greg Murtagh, CEO of Triad Retail Media. "Mobile devices and applications have become a much more influential medium in the path to purchase and it's critical that retailers and brands have a strategy to capitalize on this trend. By designing an educational and entertaining mobile experience for consumers, Triad has helped Purina find a creative way to capture the attention of pet owners and simultaneously relay their brand promise of helping create active and healthy lifestyles for pets."

About Nestle Purina:
Nestle Purina PetCare, a global leader in the pet care industry, promotes responsible pet care, humane education, community involvement and the positive bond between people and their pets. Part of Swiss-based Nestle' S.A., the world's largest food company, Nestle Purina PetCare's North American headquarters is located at Checkerboard Square in St. Louis, Mo.

About Triad Retail Media:
Founded in 2004, Triad Retail Media (www.triadretail.com) is the market leader in creating, managing and operating digital retail media programs for highly trafficked retail websites. Triad's unique approach to retail advertising provides upside for retailers, brand advertisers and shoppers. Contextual and relevant advertising provides a much richer online shopping experience while giving brands the opportunity to engage shoppers while they're making purchase decisions.

This custom advertising approach goes far beyond the banner and standard ad networks.  Triad Retail Media's leading retail clients include Walmart, eBay,
Toys"R"Us, CVS, Sam's Club, Dell and many other notable retailers. The
company was recently named one of the fastest-growing private companies
in the U.S. by Inc. magazine. Headquartered in Tampa, Florida, Triad
employs more than 265 people in six offices nationwide.

Westminster Names Purina as Official Pet Food Sponsor

Nestle Purina PetCare Company and the Westminster Kennel Club today announced a multi-year agreement making Purina the "official pet food sponsor" of the Annual Westminster Kennel Club All Breed Dog Show.

"Purina is proud to be the official pet food sponsor of the Westminster Kennel Club Dog Show," said Steven L. Crimmins, Chief Marketing Officer for Nestle Purina PetCare, North America. "Westminster is the ultimate destination for top dogs and their aspiring owners and handlers, and Purina is excited to be part of this prestigious event and to be the Westminster Kennel Club's partner."

Candy Caciolo, Purina Portfolio Director of Specialty, Breeder and Pet Acquisition, added: "Westminster represents the finest in the sport of purebred dogs. The opportunity to sponsor this show fits perfectly with Purina's long-standing commitment to the dog fancy. Many Westminster champions ? including the last five Best in Show winners ? have been fed Purina(R) Pro Plan(R) brand dog food, so it's fitting for Purina to partner with this distinguished kennel club."

Westminster Kennel Club President Peter R. Van Brunt said, "We are happy to welcome Purina to the Westminster family. This new and exciting partnership will further enhance our position as America's Dog Show and strengthen our ties with the purebred dog community."

The 136th Annual Westminster Kennel Club All Breed Dog Show will be held February 13-14, 2012, at Madison Square Garden and televised live on USA Network.

Purina last year unveiled the Purina Event Center, a $15 million 84,000-square-foot indoor dog show facility at Gray Summit, Mo, where six Westminster Best in Show winners, along with their owners and handlers, participated in the Grand Opening.

Nestle Purina PetCare, a global leader in the pet care industry, promotes responsible pet care, humane education, community involvement and the positive bond between people and their pets. The North American headquarters for Nestle Purina is located at Checkerboard Square in St. Louis, Missouri. Nestle Purina is part of Swiss-based Nestle, the world's leading nutrition, health and wellness Company.

Established in 1877, The Westminster Kennel Club is America's oldest organization dedicated to the sport of purebred dogs.