Menu Foods Could Lose Proctor & Gamble

Analysts say that they expect that Proctor & Gamble will decide to not renew their contract with Menu Foods to manufacture their Iams loaf product (their cuts and gravy contract has already ended) at the end of the year. This will definitely mean bad news for Menu Foods since Proctor & Gamble accounted for an estimated 21% of Menu Foods’ business in 2006.

Amidst all of this and being the name behind the largest pet food recall in history, Menu Foods Income Funds lenders still believe in their company.

More analysis on Menu Foods after the jump.


From stockhouse.ca:

In fact, the pet food manufacturers credit agreements negotiated on May 15, 2007 suggest its lenders factored in the possibility that it could lose Proctor & Gamble altogether, according to Cormark Securities analyst Aleem Israel.

Mr. Israel has a 12 month price target of $1.60 for Menu Foods units and a reduce rating. However, three or four years out, he sees much more value. High takeover speculation and other deals in the consumer staples sector suggest a takeout in the $3.45 to $5.20 per unit range, he added.

(Thanks Offy)

15 Responses to “Menu Foods Could Lose Proctor & Gamble”

  1. Captn' Carl says:

    Aw, Gee Whiz! That’s too bad. I guess the big boys at Poor Proctor and Gamble don’t like taking the blame. How Sad!

  2. Pukanuba says:

    If only everyone else would pull out & use other companies, maybe even ones that are kept clean & have some ethics…….MF would go out of business.

    I can only dream.

    Don’t know what percentage Natura Products are but we know as soon as they buy or build their own plant, they will be pulling out of Menu & doing their own canned product. Then & only then would I consider buying it or recommending it to anyone else.

    We already know one company pulled out that was 11% of their business so this latest news brings it up to 32%….then add to that whatever Natura is……geez, with a little luck, maybe we’ll get up to 50%. Just a few more & they may have to close.

    I can only dream.

  3. mittens says:

    if their CEO walked into a thousand homes with a machine gun and mowed down people and their pets as a company policy they’d still say….” we believe in our company…”

    this level of delusion usually indicates severe mental illness and detachment from reality.

    companies act like this because they function with impunity- without restraint or regulation or consequences for their flagrant offences. they’re allowed to monitor themselves and face little or no punishment no matter how willful or damaging their practices are.thwy think th’re invulnrable and the fda has done and acted in such a way to ensure that they would appear to be so.

    unfortunately for them we cannot be forced to buy their toxic sludge. but i bet if they could get the police to round us up for complaining about their jive ass company they would.

  4. Anonymous says:

    MORE:
    http://news.bbc.co.uk/2/hi/business/6251678.stm The FDA said it had found that Chinese seafood tested between October 2006 and May 2007 was repeatedly contaminated with antimicrobial agents.

    Some of the substances included nitrofuran, malachite green and fluoroquinolone, which, according to the FDA, may help build up a resistance to antibiotics when used in food animals.

    “We’re taking this strong step because of current and continuing evidence that certain Chinese aquaculture products imported into the US contain illegal substances that are not permitted in seafood sold in the US,” the FDA said.

    “We will accept entries of these products from Chinese firms that demonstrate compliance with our requirements and safety standards,” it added.

  5. Anonymous says:

    This is just a BS PR move by P&G - means absolutely nothing. You can be sure “Menu” is already reorganizing under a different name. The big boys will keep playing games with animals (and our) lives — because they can.

  6. Cathy says:

    Anon, why do you feel it’s a BS move by P&G? Don’t forget, it was Iams that forced them to do the recall. Menu has already lost Nutro.

  7. Pukanuba says:

    I just love that our beloved (gag) FDA knew as far back as Oct that the seafood coming into this country was loaded with toxins & garbage……I think it’s so kind of them to finally do their job eight months later & stop the seafood from entering this country & finally let us know there is a problem. Gee, wonder why they didn’t wait until this coming Oct??????

    And now, as long as the Chinese company says the food is safe, our beloved FDA will take their word for it & allow us to ingest these toxin-filled products. I think they are just a bunch of blubbering idiots.

    I’m just waiting for people to start dropping dead from all this crap we’ve been eating. Then it’ll be a year beyond that for the FDA to take action.

  8. Katie says:

    Cathy,

    I wouldn’t be so quick to defend Iam’s. How many calls did they get, when did they get them, over what span of time and how long did they wait before pushing Menu? How many people called and complained to Iam’s about sick animals when the recall was finally made - and Iam’s said: no problem with our foods still on the shelves….. and who is Iam’s going to have make their foods now… and why weren’t they testing the products long before? and how come when no one had the ability to test for melamine - Iam’s knew it was melamine?? I believe that was a P&G plant in Canada that was sold to Menu Foods Income and they “contracted” to continue having product made by them. If Menu goes under - I wonder who will buy that plant. I wonder if the PFI has someone in place to take over the plant. Lots of money to be made on cans and pouches - I don’t believe the PFI, P&G or all the other pet food companies can not be producing product and takes time to retool a manufacturing plant and/or production line. I am not so willing to trust right now - they need to rebuild pet parents trust and faith in their product. And glossy ads don’t do it.

    Katie

  9. Ruth says:

    To Cathy: Sorry I don’t feel all warm and fuzzy towards IAM’s. They still have not really addressed the issue of the dry food making pets sick or have died eating their product other than just saying its safe.

    My pet died after eating the dry dog food. And they just offered me a coupon. What good is a coupon when my pet is dead. And I guess the rep. just didn’t understand me, I was speaking directly on the phone. Just so to be clear it wasn’t a email or mail mixup that a coupon was offered or sent. And my pet wasn’t just some genetic defect dog either.

    They can just keep denying it. I don’t trust any big pet food company at this point even if anyone of them try to make amends. They will still continue to sell crappy loaded pet food.

  10. John says:

    This company isn’t that large. It wouldn’t be too difficult for a large group of pet owners to buy a large enough chunk of the stock to make the directors take notice and start voting as a bloc to reform the company…

  11. Trudy Jackson says:

    I will never trust the PFI but I will never buy from P&G either. All their stuff is full of chemicals.

  12. Steve says:

    Consumer Staples? What is Menu going to do try to recover it’s pouch market share with pouched beef and gravy for people?

    Get lost already freaks enough already.

  13. pam says:

    have you noticed the great sales on purina and iams pet foods recently?

  14. Captn'Carl says:

    Pam is right. Too bad they’re not GOING OUT OF BUSINESS SALES!

  15. metaman says:

    1) Katie, have you noticed the shelves don’t have wet food on them? No company makes product and then doesn’t put it on the shelf to sell, that’s a waste of money. Said another way, they *have* stopped producing wet food until they find a new supplier; it’s a fact.

    2) Not that it matters much, but according to their company website, Procter is spelled with an “e” not an “o”.


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