From MSBN – Money Central
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090317&id=9703144
SPRINGDALE, Ark. (AP) - Tyson Foods Inc., the world's largest meat producer, and Freshpet said Tuesday that they have teamed up on new refrigerated fresh pet food offerings.
The companies said their strategic alliance stems from the current state of the $17 billion pet food industry, as owners' pet food safety concerns have increased — sparked by a 2007 incident where melamine was found in pet food exported from China. Owners' attachment to their pets have also made them want more pet food options for their companions, the companies explained.
"A growing number of people consider pets a part of the family and want to feed them high quality food that's closer to what they eat themselves. Tyson is capitalizing on this trend," Jeff Webster, group vice president of Tyson's renewable products unit, said in a statement.
By partnering with Tyson, Freshpet will have access to the food company's refrigerated distribution network, meat and poultry supply and knowledge base. As part of the agreement, Tyson will obtain a minority stake in Freshpet.
Freshpet began offering fresh refrigerated dog food and treats under the Freshpet and Deli Fresh brands three years ago. The products, which are meat-based and include vegetables and brown rice, are sold at U.S. and Canadian grocery and pet stores.
While the company currently makes its pet food and treats at a Quakertown, Pa., plant, it said it plans to broaden production efforts by using existing Tyson facilities.
Shares of Tyson Foods added a 22 cents, or 2.3 percent, to $9.64 in morning trading.
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