Welcome

BOULDER, COLO. — The Pet Sustainability Coalition (PSC) has been awarded a $75,000 grant from the World Pet Association’s (WPA) Good Works program. According to PSC, this funding will allow it to drive new sustainability initiatives in the pet industry, such as advancing eco-friendly packaging, promoting responsible ingredient sourcing and educating businesses on measurable environmental strategies.

Since PSC’s inception 11 years ago, it now has more than 200 members in 18 different countries. The organization’s mission is to create profitable, measurable changes that benefit people, pets and the planet. The WPA Good Works program, which has donated more than $15 million in the last 15 years, shares this same vision, according to PSC. 

“Investing in organizations that provide meaningful change is essential,” said Vic Mason, president of WPA. “This grant reflects our belief in the power of collaboration and innovation to create a more sustainable future, one that benefits the environment, industry and communities alike.”

The grant will be used to support data, research and education and help expand resources. PSC will use the grant to create the 2025 “Sustainability in the Pet Industry Report, which will provide data on consumer trends, retailer behaviors and key sustainability issues. On the educational side, PSC plans to organize webinars and cohort sessions on topics like greenhouse gas (GHG) reporting, sustainable packaging and ingredients, and anti-greenwashing. The grant will also support an expansion of PSC’s free toolkit, which provides resources like anti-greenwashing guidelines, the HowGood ingredient database and the packaging legislation tracker. 

“We are deeply honored to receive this 2025 grant from WPA, marking another milestone in our growing partnership,” said Jim Lamancusa, executive director of PSC. “As a non-profit organization, this support is vital to our mission of launching groundbreaking industry data, enhancing member education, and providing new and upgraded free resources accessible to everyone in the pet industry. WPA’s unwavering commitment makes these transformative initiatives possible, and we are profoundly grateful for their support.”

Read more news from associations and agencies in the pet food sector. 

ATLANTA — Following several months of regulatory uncertainty in the pet food industry, the American Feed Industry Association (AFIA) and Association of American Feed Control Officials (AAFCO) shared several critical updates at the 2025 Pet Food Conference, Jan. 28 in Atlanta. 

Leah Wilkinson, vice president of public policy and education at the AFIA, and Austin Therrell, executive director of the AAFCO, discussed several regulatory topics, including new policies for manufacturers to prevent animal diseases and a new ingredient pathway. 

HPAI raises the alarm

Wilkinson first took the stage, providing an update on the threat of highly pathogenic avian influenza (HPAI). Traditionally a wild bird disease, the virus has made the leap over the past couple years to mammals. According to Wilkinson, the disease has shown up in dairy cows, skunks, field mice, raccoons, dolphins, zoo animals (including polar bears, tigers and lions), foxes and the latest — domestic cats. The H5N1 strain of the virus poses particularly dangerous towards felines, with many who have contracted the virus experiencing severe illness and even death. Dogs are also able to contract the virus, however, they usually exhibit mild signs and low mortality compared to cats. 

Toward the end of 2024, the Oregon Department of Agriculture discovered a pet cat died from contracting the virus after consuming raw cat food that tested positive, leading to a recall. Later, the Los Angeles County Department of Public Health discovered several cats that had also tested positive for the virus after consuming raw pet food. 

Following this, the US Food & Drug Administration (FDA) is now requiring pet food manufacturers to reanalyze their food safety plans to include HPAI as a hazard. According to Wilkinson, this is the first time the FDA is invoking this part of the Food Safety Modernization Act (FSMA) regulations. 

“If you use uncooked or unpasteurized poultry or cattle products, you must reanalyze your food safety plan,” Wilkinson shared. “Specifically, the H5N1 strain should be considered a known or reasonably foreseeable hazard in your food safety plan.”

Though the FDA’s original announcement on this specifically mentioned manufacturers that use uncooked or unpasteurized ingredients derived from poultry or cattle, Wilkinson believes this extends far beyond to include all dog and cat food manufacturers and ingredient suppliers. 

According to Wilkinson, it has yet to be determined how soon this reanalysis needs to be done, but the current estimation is around 90 days for validation. 

“I would advise you to not wait, get working on this especially if you have multiple facilities, suppliers,” she said. “You don’t have to have it done tomorrow, but don’t wait and don’t delay. The FDA will come check during inspections… they’re going to look specifically for your reanalysis.”

The ingredient pathway 

Wilkinson then provided a brief update on the latest news on the animal food ingredient pathway. The issue first emerged last August, when the FDA announced it would not renew its Memorandum of Understanding (MOU) with AAFCO that outlines the regulatory process for new animal nutrition ingredients. Following expiration of the MOU in October, the FDA introduced its new Animal Food Ingredient Consultations (AFIC) and the AAFCO introduced its new process with Kansas State University Olathe (K-State Olathe). 

Prior to the expiration of the MOU, there were three ingredient approval pathways: the AAFCO-FDA process, the FDA generally recognized as safe (GRAS) notification, and the FDA food additive petition process. Now, with the new FDA and AAFCO processes, the industry has four different processes. 

According to Wilkinson, the FDA’s new AFIC process is currently open. 

“It is meant to essentially replace the old AAFCO ingredient pathway,” she said. “The data that is required for submission is very similar to what was required through AAFCO submission. It does add more transparency to the process. The FDA will have a public-facing website where they will post once you have made a submission through AFIC and started the consultation. Then once they have finished the consultation, they will post the final determination.”

A new piece to this, different from the GRAS and food additive petition, is a comment period. Through the AFIC process, the FDA will take comments for 60 days, accepting scientific data regarding the safety of the ingredients. 

Austin Therrell, executive director of AAFCO, presenting at the 2025 Pet Food Conference.

| Source: Sosland Publishing Co.

Moving to AAFCO’s new ingredient process, Therrell took a deep dive into the association’s current plans for the process with K-State Olathe. The process will begin with an AAFCO Investigator review, which is expected to take 30 days, followed by a review from a panel of subject-matter experts led by K-State Olathe, which is expected to take 60 to 90 days. The panel will then make a recommendation. The ingredient will then pass on to the association’s Ingredient Definitions Committee, then the board of directors, and finally to general membership approval. 

According to Therrell, this process is estimated to decrease ingredient review time by half. 

“With an ideal submission within this new process, we’re looking at a potential pathway to bring new, innovative ingredients to the market in about nine months versus 18,” he shared.

Through this process, there will be three tiers for submission, each costing a fee:

• Basic Scientific Reviews will be for the modification of an AAFCO definition that requires a scientific review from at most two subject-matter experts. These reviews will cost $10,000.
• Full Submission Package will allow for data for one to two animal species and a minimum of two subject-matter experts. These reviews will cost $25,000.
• Expanded Submission Package will include data for three or more animal species and a minimum of three subject-matter experts. These reviews will cost $35,000. 

Additionally, AAFCO plans to charge an additional $5,000 per subject-matter expert if additional ones are needed. 

“Essentially, this offers an ability to bring ingredients to the market with a lot more flexibility than what we had previously under some of the old regulatory pathways,” Therrell said. 

To help in creating this process, the association will be creating a Steering Committee of industry members. The committee will provide insight on new procedures to select subject-matter experts, figure out extra panel fees, provide guidance on how potential conflict of interest can be avoided and more. 

According to Therrell, AAFCO plans to have this new process up and running by the third quarter of this year. 

Additional AAFCO updates

In addition to the new ingredient approval process, Therrell also shared other updates from the association’s Mid-Year meeting held earlier this year. 

The biggest update from the meeting includes the approval of ingredients including dried mealworm meal and dried crickets for use in adult dog food, Black Soldier Fly Larvae (BSFL) oil for use in adult cat food, clam meal, shellfish and alligator. Additionally, the association updated the calcium/phosphorus ratios in the AAFCO Cat Food Nutrient Profile. 

The association also established the Technical Assistance Network (TAN), a new mechanism on AAFCO’s website to help industry members with regulatory interpretation. 

Lastly, Therrell provided an update on AAFCO’s position on the PURR Act 2025, which was reintroduced earlier this year, expressing concern about the legislation.  

“AAFCO will continue, as we go through this year, to speak out against this piece of legislation,” Therrell said. “We realize as an association that we are not perfect. When we look at the regulatory system across the United States, there are a lot of improvements that still need to be made… So, I say that knowing that there are issues that exist, but we don’t believe federal legislation is the way to address this issue. 

“When consumers find out that this bill wants to take authority away from state regulators and hand it over the FDA to retroactively try and enforce, I think consumers will find that to be very off putting,” he detailed. “Consumers want oversight, and they want transparency, and that’s what we strive to do.

“When we look at the regulatory system, we have to balance it out by not being overly burdensome while supporting innovation, the ability to bring new ingredients into the marketplace, and clear guidance to make marketing claims,” Therrell added. “We want to promote that within the industry and there’s a smart, efficient way to do that with state regulation.”

Read more of our coverage from the 2025 Pet Food Conference. 

ATLANTA — Marketing trends, brewed proteins, shifting regulatory policies and impacts of animal diseases — the pet food industry gathered to learn about these topics and others during the American Feed Industry Association’s (AFIA) Pet Food Conference on Jan. 29. Held in conjunction with the International Production & Processing Expo (IPPE) in Atlanta, the conference brought together 500 professionals — a new record, according to the AFIA.

“It is exciting to see the continued growth of the AFIA Pet Food Conference, reflecting the industry’s commitment to growth and innovation,” said Louise Calderwood, director of regulatory affairs at the AFIA. “This year’s conference delivered valuable insights on everything from novel ingredients used in pet food and the latest consumer trends in pet food, to addressing critical regulatory updates. 

“Staying up to date with these changes is essential for the industry, and we appreciate the engagement from our record-breaking audience and look forward to continuing these conversations in the years ahead,” she added.

Hear some highlights from the Pet Food Conference by Pet Food Processing Editor Kimberlie Clyma below. 

Michael Johnson, principal of consumer strategy at BSM Partners, took the stage to kick-off the event with a dive into consumers and marketing trends. According to Johnson, consumers are looking for better affordability, greater transparency and ethics, more innovation, and “more truth and less marketing,” meaning that to stay competitive in the industry, pet food brands must commit to more honest advertising and better product education, focus more on health benefits, and embrace sustainability.

Johnson also spoke about the problematic term of “pet parent.” When considering their audience, Johnson urged pet food companies to steer away from “pet parent” and get more specific, as pet parents range the gamut of demographics. 

“In the industry, we call these people blanket ‘pet parents,’ which is the lamest, laziest piece of marketing,” he explained. “… If you are not innovating to a specific consumer, you’re missing the target, and you may be wasting a whole lot of money. So, know your consumer and know what your consumer actually values.”

Among the many trends Johnson covered, sustainability and innovation are a top priority for consumers. In fact, many are expressing more interest in alternative proteins as a means to advance sustainability. Of these many alternative proteins are those developed through precision fermentation. Rich Kelleman, chief executive officer of Bond Pet Foods, discussed the use of this technology and its application in pet nutrition. 

“What we do for [these dogs] matters, because what they do for us matters,” she said.

After a quick break, three students shared their latest research. Sydney Banton of the University of Guelph discussed the impacts of high-protein, low-carb diets on heart health in dogs. Hilary Carrera of Auburn University shared her research on pet owners’ sensory perceptions of jerky pet treats made with swine pluck, which includes pig heart, trachea, esophagus and lungs. And Elizabeth Geary of the University of Illinois Urbana-Champaign dived into her research on the impacts of various processing methods on amino acid digestibility and energy content of dog foods.

Lara Moody, executive director of the Institute for Feed Education and Research (IFEEDER) then provided a peek into IFEEDER’s Pet Food Consumption Report. The report covers 602 pet food ingredients, representing 9.28 million tons and $13.2 billion in value. The full report is expected to be released sometime this month. 

With significant changes happening in the regulation of pet food, Leah Wilkinson, vice president of public policy and education at the AFIA, and Austin Therrell, executive director of Association of American Feed Control Officials (AAFCO), provided critical updates on the regulation of animal food ingredients. 

Wilkinson also shared updates on highly pathogenic avian influenza, highlighting the need for pet food manufacturers to reanalyze their food safety plans to consider the virus as a new hazard. 

AAFCO Executive Director Austin Therrell presenting at the AFIA 2025 Pet Food Conference.

| Source: Sosland Publishing Co.

In addition to sharing details on AAFCO’s new animal food ingredient regulatory pathway with Kansas State University Olathe, Therrell also shared several updates from AAFCO’s mid-year meeting held mid-January, including newly approved alternative protein ingredients. 

Ending the conference, Grace Danao, Ph.D., research associate professor at the Food Processing Center at the University of Nebraska Lincoln, and Julia Guazzelli Pezzali, Ph.D., assistant professor and director of the Pet Food Program at Kansas State University, shared how their respective universities support the pet food industries. From preparing future industry leaders to enter the workforce to the various facilities and processing capabilities each university offers, the industry continues to benefit from these partnerships with academia.

Stay tuned for more coverage from the 2025 Pet Food Conference. 

GLENDALE, WIS. — Machinery manufacturer Ampco Pumps Company reorganized its Ampco Applied Products (AAP) division, creating two sales territories and three new roles as part of a strategic shift focusing on innovation and growth.

AAP, which consists of Ampco’s blending, homogenizer and product unloading equipment lines, will now approach sales with a western region supported by Joe Schulteis and a western region supported by Gowtham Sundar. Additionally, Ampco named Michael Boyd the manager for AAP solutions.

The company said reorganizing its AAP division will allow it to better serve customers, with the new sales roles complementing the work of Ampco regional sales managers. The supplier said its plan will provide increased knowledge and support for its AAP systems.

Boyd’s new managerial responsibilities include new product development, addressing application challenges and creating new growth opportunities in European markets. During his career in mechanical engineering, Boyd has amassed 25-plus years of experience working on mixing and blending solutions. Ampco called him “uniquely qualified” to lead the AAP division.

Schulteis enters his new role after spending eight years with Ampco in engineering roles. The company said his work during that time focused on mixing and blending applications. Schulteis now will work with customers in all states west of and including Minnesota, Wisconsin, Illinois, Missouri, Arkansas and Louisiana, as well as Canadian provinces west of and including Manitoba.

Sundar worked the previous seven years as an applications engineer at Ampco, working with pumps and applied products. The company said his eastern region includes all states east of and including Michigan, Indiana, Kentucky, Tennessee and Mississippi, and all Canadian provinces east of Ontario.

ATLANTA — The American Feed Industry Association (AFIA) announced that Eric Altom, Ph.D., is the winner of the 2025 Friend of Pet Food Award. Charles Starkey, Ph.D., vice president of scientific and regulatory affairs at the North American Renderers Association (NARA), and Jessica Starkey, Ph.D., associate professor in the Department of Poultry Science at Auburn University, presented Altom with the award during the AFIA Pet Food Conference, held in conjunction with the International Production and Processing Expo (IPPE) in Atlanta.

Currently the director of innovation for companion animals and technical nutritionist at Balchem Animal Nutrition and Health, Altom has made significant contributions to the pet food industry throughout his career of more than 25 years. In addition to focusing on advancing research in pet nutrition and product development, Altom is also widely recognized for his commitment to mentorship. According to AFIA, he has dedicated his time and professional expertise to guiding students and young professionals, offering support with any professional needs they may have.

Altom is also actively involved in many industry events and initiatives, including the Pet Food Alliance, AFIA Pet Food Conference, Auburn University’s Imaginarium Workshops, Kansas State University’s Kibblecon and more.

“Dr. Altom’s impact on the pet food industry goes beyond his professional achievements,” said Louise Calderwood, AFIA’s director of regulatory affairs. “His active engagement in organizations that advance the industry as a whole and dedication to mentoring the next generation of leaders is exceptional. His efforts to support and inspire future industry professionals reflect his commitment to ensuring the long-term success of our field.”

Prior to his professional career, Altom earned a bachelor’s degree in animal science from Tennessee Technological University, a master’s degree in nutrition from Clemson University and a doctorate in animal science-nutrition from Auburn University. Altom also received AFIA’s Member of the Year award in 2022.

Originally established in 2019, the AFIA Friend of Pet Food Award recognizes individuals who have made significant contributions in supporting the growth of the pet food industry. Since its inception, nine people have earned this award, including Angele Thompson, who won the award last year.

Stay up to date on the latest pet food processing industry headlines on our News page. 

MCLEAN, VA. — The Food Production Solutions Association (FPSA) announced the appointment of Chris Lyons as its new president and chief executive officer. Lyons’ addition to the FPSA leadership team is part of the association’s membership evolution to include more food producers alongside original equipment manufacturers (OEMs) and industry associates.

“Chris brings the perfect blend of association management experience and strategic vision that FPSA needs as we embrace this next chapter of growth,” said Brian Perkins, chairman of the FPSA board and president of Provisur Technologies Inc. “His track record of strengthening organizations and building collaborative environments aligns perfectly with our mission to create a sustainable future for the food industry.”

Lyons brings years of private, government, and non-profit leadership experience to his new role including tenure as CEO of the Society for Technical Communication and chief operating officer of the Academy of Managed Care Pharmacy.

FPSA announced a rebrand and name change last March, during its Executive Exchange & Conference. The rebranding gave the organization the opportunity to welcome several new membership categories, including food producers, to encourage cross-sector collaboration.

“I am honored to join FPSA at this transformative moment,” Lyons said. “The association’s expanded mission to create a collaborative environment that brings together manufacturers, suppliers, and food producers presents an exciting opportunity. Together, we will focus on delivering meaningful education, industry engagement, philanthropy, and advocacy that drives innovation and sustainability in the food industry.”

Earlier in his career, Lyons was part of IBM’s Global Services Public Sector Strategic Consulting Practice, where he held various leadership roles focused on business development and client relationships. He holds a Masters of Business Administration from the Massachusetts Institute of Technology’s Sloan School of Business and a Bachelor of Arts in Economics from the University of Maryland.

Read more about personnel changes throughout the industry.

BRUSSELS — The Global Alliance of Pet Food Associations (GAPHA) announced that the World Organization for Animal Health (WOAH) recently updated the Terrestrial Animal Health Code at its 91st General Assembly to recognize dry, extruded pet food and heat-treated meat products (including pet food) in hermetically sealed containers as a safe commodity with respect to Foot and Mouth Disease (FMD), Rift Valley Fever virus (RVF) and African Swine Fever (ASF). This recognition assures countries that dry, extruded pet food can safely be traded regardless of disease outbreak status of the producing country or the country of origin of the raw materials.

“This recognition of extruded, dry and retorted wet pet food as a safe commodity with respect to African Swine Fever, Foot and Mouth Disease, and Rift Valley Fever is a major milestone in assuring that this pet food can continue to be safely traded regardless of the disease outbreak status of a producing country,” said Loretta Hunter, president of GAPFA.

This recognition is the result of a scientific evaluation and review of data which showed the processing of extruded dry pet food as safe with respect to ASF, RVF and FMD. Previously, WOAH had recognized heat-treated meat products in hermetically sealed containers with a F0 value of 3 or above as a safe commodity as well. With these updates to the Terrestrial Code, both extruded dry and heat-treated wet pet food that meet the specified conditions are not considered a biosecurity risk for trade.

The WOAH Terrestrial Code is a set of guidelines and standards aimed at ensuring the health and welfare of terrestrial animals, meaning animals that live primarily on land. The code provides a framework for countries to develop and implement effective animal health policies and practices, as well as facilitate safe international trade in animals and animal products, ensuring that health risks are minimized.

ASF, RVF and FMD have now joined Highly Pathogenic Avian Influenza (HPAI) as diseases that both dry, extruded and heat-treated pet food are deemed safe commodities, regardless of producing country disease status. This means that even if an exporting country has cases of infection with any of those diseases, pet food meeting the standards in the Terrestrial Code can be traded safely.

Read more about pet food safety on our Operations page.

WASHINGTON — The Pet Food Institute (PFI) announced its support for the reintroduction of the Pet Food Uniform Regulatory Reform Act (PURR Act) that would “modernize” and “streamline” the way pet food is regulated.

Under the proposed bill  ̶  H.R.597   ̶  the US Food and Drug Administration (FDA) would have regulatory authority over the labeling and ingredient review process for dog and cat food and treats, replacing the current state-by-state approach used for ingredient and label approval. According to PFI, the current approval process is “outdated and inconsistent.” 

“Dog and cat owners not only want to ensure the same high-quality pet foods they trust to nourish their beloved dogs and cats but expect the products to reflect the latest in nutritional science and ingredient innovation,” said Dana Brooks, president and chief executive officer of PFI. “To continue delivering on that commitment, we are supporting federal legislation that would replace the current inefficient patchwork approach between states and the federal government with consistent national standards that are predictable, clearly defined, and encourage innovation and speed to market.” 

The bipartisan legislation, called the PURR Act of 2025, was introduced on Jan. 21 by Representatives Steve Womack (R-Ark.), Derek Schmidt (R-Kan.), Josh Harder (D-Calif.), David Valadao (R-Calif.) and Adrian Smith (R-Neb.). It was first introduced by Representative Jake LaTurner (R-Kan.) in February 2024 as the PURR Act of 2024 with 18 total co-sponsors.

“With nearly 66% of US households owning a pet, it’s important that the owners receive the best quality food to keep their pet healthy,” Womack said. “Unfortunately, pet food manufacturers are forced to deal with a nearly 100-year-old, costly and confusing dual regulatory system, making it difficult for them to invest in new and improved products. My legislation would cut red tape and streamline the system by granting sole authority to the FDA to regulate the labeling and marketing of pet food. By removing the current state-by-state regulatory patchwork and modernizing the system, pet food makers can provide nutritious food for our beloved pets.”

According to PFI, the proposed legislation would allow centralized federal regulatory oversight by the FDA and eliminate “inconsistent” state interpretations and decisions impacting ingredient and pet food label approvals. In order to improve consumers’ access to safe products, the legislation calls for clearly defined performance measures for the FDA, including new ingredient review and approval timelines, overseen by the US Congress.

“Outdated, overbearing and unnecessarily complicated regulations have stifled production and ingenuity across all American industries, including pet food,” Schmidt said. “The archaic regulations currently in place have meant pet food producers in Kansas and across the country spend more time worrying about meeting mismatched guidelines and less time innovating new products; fortunately, the PURR Act provides a solution. 

“By instituting uniform, streamlined pet food standards, we’ll be empowering businesses to succeed while ensuring that American pet owners have access to quality and nutritious food for their pets,” he added. “I’m proud to introduce this bipartisan legislation with my colleagues and look forward to helping move it through Congress and voting for it on the House floor.”

Under the new legislation, State Departments of Agriculture and other state officials would still participate in quality inspections and product registrations, but label reviews would be entirely under the FDA’s domain. According to PFI, the law would result in a modernized pet food regulatory framework more like how human foods are regulated. “As someone who’s fostered multiple dogs with my wife Pam, I know how important it is to trust the food we’re putting in their bowls,” Harder said. “This bill ensures that no matter where you’re buying pet food, it meets the same high standard for nutrition and quality. It’s good for our pets and good for businesses trying to navigate outdated red tape.”

The reintroduction of the PURR Act follows significant regulatory changes in the animal feed and pet food market. The Association of American Feed Control Officials (AAFCO) recently approved a new regulatory pathway for animal food ingredients, following the expiration of its partnership with the FDA in October. Meanwhile, the FDA released its new interim process for Animal Food Ingredient Consultations, which offers a different path from AAFCO.

For more regulatory news affecting the pet food market, visit our Regulatory page.

NEW YORK — Leaders of top performers in the consumer products (CP) industry are shifting focus this year to innovation investment, portfolio changes, enhancing consumer demand and finding efficiencies.

Deloitte Consultancy surveyed 250 global CP executives from food and beverage and other industries for its 2025 Consumer Products Outlook, which described the survey respondents as senior decision-makers at companies with more than $500 million in revenue – and most above $5 billion.

Top performers, or 100 of the top CP companies whose performance metrics Deloitte analyzed, stood out in three priority areas: product portfolio and mix, demand generation, and transformative efficiency.

“In 2025, companies will likely be addressing product portfolio and mix to entice the consumer, as well as investing in a broader set of demand-generation capabilities,” according to the report. “Businesses are also expected to create transformative efficiency to produce savings that help fund those investments.”

The findings reflect recent developments in the broader economic environment, said Ed Johnson, principal, retail and consumer products, Deloitte Consulting. He said as inflation and changing consumer preferences impacted the CP industry, they sparked varying responses, including reduced marketing spend, increased prices and challenges to innovation.

“I think, in the last three years, the emphasis was on catching up with inflation and the need to show other cost improvements to offset the fact that inflation couldn’t be fully passed on,” Johnson said.

The actions led to a decrease in marketing and pressure on price.

“It was in the news every day how high inflation was, so it created a bit of an excuse,” he added.

Johnson called innovation “an age-old problem” for consumer packaged goods (CPG) companies and one made more difficult as consumer preferences increasingly diverge. He said a recent National Retail Federation presentation focused on the rapid rise of billion-dollar brands in the 1980s and 1990s but how lately there’s been no such increase.

“It’s gotten harder and harder to have brands that resonate with the haves and the have-nots,” Johnson said. “Because of prices and socioeconomic, political and religious beliefs, all these things have made the US consumer more diverse, which has made it harder and harder to make a box of cereal grow to be a billion-dollar product.”

When CP companies do innovate in 2025, they plan to focus on truly novel products rather than minor enhancements or changes to existing ones, Deloitte found. Johnson said many of his clients are working from concept to something ready to be discussed with retailers in the next quarter or so.

“A lot of their innovation pipeline is focused on truly new products rather than on the next flavor of soda,” he said.

Artificial intelligence (AI) tools can unlock valuable analytics for CP companies looking to innovate, Johnson said.

“With AI, (companies) can use consumer preference data to test products with digital twins and test the rate of sale, and that’s really powerful,” he said. “The second thing companies can do with AI that was never previously possible was simulate the manufacturing of the product itself.

“So in the same way the first large language models were looking at chemicals and pharmaceuticals to test how a medicine can be used, CPGs can test for taste and shelf stability and whether a baked good will rise. That’s really new in the last year. It’s not easy and it’s not cheap, but it’s easier and much cheaper than before.”

Deloitte found 62% of surveyed food and beverage executives planned to use precision analytics to identify new brands and growth opportunities this year, and it expects such tools will be used more profitably to derisk innovation investments.

On the mergers and acquisitions front, the report said there could be increasing activity in 2025 after a couple years of decreased levels. Johnson said lowering interest rates and costs of acquisition will be key, although the impetus behind acquiring or divesting companies seems to be shifting away from “bolt-on” acquisitions and those designed to facilitate entry into a high-growth category or market.

Instead, the outlook found companies are looking for strong brands to drive growth and M&A deals to accelerate digital transformation.

“I think (this trend) is more now around creating more focus in their portfolios and eventually filling unmet needs, whether brands or price points or attributes around consumer desires in a category, other than trying to acquire those capabilities,” Johnson said.

When it comes to efficiency and business simplification, 96% of executives surveyed told Deloitte they plan to prioritize improving productivity in 2025, and 82% said their company would be investing more in this area.

Cost-reduction remains on the CP agenda, the report said, with 64% of executives indicating their company will focus more in 2025 on lowering costs than in previous years. However, it pointed out there are risks to this approach.

“In this instance, companies should be careful of short-termism — cutting so much today that they sacrifice future performance,” the outlook said.

Johnson described Deloitte as optimistic about the outlook for the CP industry and particularly the growth companies can achieve if they take advantage of what’s been put in front of them. In his view, the advantages include the explosion in data and the ability to market in a different way to smaller pockets of consumers, and to make better decisions on which market campaigns to run, which products to innovate and how to get the best out of their employees.

“We think this will be a good year for the sector,” he said.

ATLANTA — Packers Sanitation Services Inc. (PSSI) announced a new brand name and identity, with the food safety solution and sanitation provider rebranding as Fortrex.

The new name is meant to better represent the company’s identity as the first line of defense against harmful contaminants in the food supply. The “X” in Fortrex’s new logo was designed to indicate the elimination of contaminants.

“At Fortrex, we are the first line of defense for our customers, driven by consumer safety, customer service and compliance,” said Tim Mulhere, chief executive officer of Fortrex. “Our refreshed identity is more than just a new look — it’s a bold step forward for our company that better reflects our evolution, our unwavering commitment to our customers, employees and our core values. With Fortrex, our customers can expect a renewed focus on service excellence with an increased dedication to innovation.”

Fortrex is a primary partner for large and small processing plants across North America. The company noted that Safe Foods, a division of PSSI Food Safety Solutions, will continue under the Fortrex brand.

The rebranding follows the company’s relocation of its headquarters to Atlanta, where Fortrex is able to travel to existing customers with greater efficiency.