Business Bites: ‘Darwin’s’ dog food flagged by FDA for salmonella, listeria

Several pet food products have received FDA warnings due to contamination with salmonella and listeria; Danone offers to purchase Lifeway Foods for a significant premium despite ongoing internal disputes at Lifeway; Kraft Heinz is venturing beyond sauces by launching A.1. Steakhouse Butter; and more.

Scott Miller, Staff writer

September 30, 2024

4 Min Read

At a Glance

  • Despite FDA warnings, Lystn and Arrow Reliance have yet to initiate comprehensive recalls.
  • Danone proposes to buy Lifeway Foods for $283 million, aiming to dominate the gut health market.
  • Kraft Heinz introduces A.1. Steakhouse Butter to create $2 billion in incremental net sales by 2027.

If you ask me, naming a pet food line “Darwin’s Natural Selections” was courting catastrophe from the start. And look at what happened: Multiple U.S. Food and Drug Administration (FDA) warnings reveal that this and other lines of pet food products have been contaminated with a particularly nasty pair of pathogens. But if you fed your domesticated dog a food named after the theory that only the fittest survive, you may have been a little overconfident. My dog eats literally anything he finds on the ground.

Also, yogurt giant Danone wants to buy kefir maker Lifeway Foods, where, despite record profits, a family squabble is upsetting shareholders. And Kraft Heinz, makers of A.1. Steak Sauce, is hitting the dairy section with A.1. Steakhouse Butter, presumably because consumers demanded that bagels and toast should taste like steak.

All that and more in this week’s Business Bites.

Salmonella, listeria found in multiple pet food products

FDA has issued warnings for several pet food products from Lystn LLC and Arrow Reliance Inc. due to contamination with salmonella and Listeria monocytogenes. The contaminated products include certain lots of Answers Pet Food and Darwin’s Natural Selections, the latter being one of the most ill-advised names in humanity’s long history of naming things. These items are sold in various package sizes online and in stores nationwide; for lot numbers, check out the FDA advisories for Lystn and Arrow Reliance. Neither company has initiated a comprehensive recall, so FDA has advised consumers to remain vigilant and check product lot information regularly.

Related:Business Bites: Rocket fuel in everyday foods launches renewed safety concerns

People love their pets, so even if you’re making food for animals, not people, be aware that FDA is watching. And issuing sternly worded warnings.

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Danone bids to buy Lifeway Foods at a hefty premium

Who knew kefir was so costly? French yogurt giant Danone has entered a bid to acquire the remaining shares (it owns 23.4% already) of U.S.-based kefir maker Lifeway Foods. The offer is approximately $283 million, or $25 per share — a 59% premium over the three-month average stock price. If this deal comes to pass, it could further boost Danone’s success in the growing gut health market.

Lifeway, known for its kefir and probiotic products, reported a record $160 million in sales in 2023, a 13% increase from the previous year. That said, the company is also embroiled in a family dispute that has reportedly affected executive decision-making and strategic direction, and some shareholders have suggested a sale might be best for the company. Lifeway is currently reviewing Danone’s offer.

Related:Business Bites: Plant-based beverages linked to deaths in Canada

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Kraft Heinz makes steak sauce for the dairy aisle

A.1. Steak Sauce, everyone’s favorite cure for tough, overcooked cuts of meat, is apparently coming to the refrigerated section of a grocery store near you. Kraft Heinz is introducing A.1. Steakhouse Butter, the brand's first undertaking outside the sauce realm in more than five years, which blends A.1.'s distinctive flavor with, you guessed it, butter. Kraft Heinz purportedly hopes this new product will bolster its strategy to generate $2 billion in incremental net sales by 2027. The release also tracks with the company’s approach to expanding well-established brands into new categories, as it did earlier this year with Crystal Light, and adjusting to meet changing consumer habits, as more people cook at home due to rising prices.

Meatable awarded Innovation Credit worth millions

The Dutch cultivated meat company Meatable has been awarded an Innovation Credit worth EUR 7.6 million, or approximately $8.5 million, by the Netherlands Enterprise Agency to advance the cellular cultivation of meat that mirrors the taste, appearance and nutritional benefits of traditional meat. This funding, aimed at innovative projects with high technological risks and strong market potential, will allow Meatable to enhance productivity and reduce costs as it prepares for commercial launch. The grant complements Meatable's recent acquisition of EUR 30 million in Series B funding and reinforces its strategy to scale production in partnership with the meat industry. It remains to be seen how that partnership will work, considering that the traditional meat industry has come under fire for its campaign against cultivated meat.

Jungbunzlauer invests in Canadian xanthan gum manufacturing

Swiss ingredient manufacturer Jungbunzlauer, a word that makes me incredibly happy I don’t have to read this column out loud, is set to invest $200 million in an Ontario facility that will produce xanthan gum, a versatile thickening and stabilizing agent used in many food products. This initiative, supported by a $4.8 million grant from the Invest Ontario Fund, will expand the company’s North American footprint, boost local employment and advance sustainability efforts. Slated to begin in the first half of 2026, this project should create 50 jobs and contribute $20 million annually to the local economy.

The expansion will feature advanced environmental technologies related to natural fermentation, electrical evaporation and hot water recovery systems to minimize carbon footprint and enhance efficiency. It will also recycle wastewater and source locally grown corn to leverage the agricultural assets of the Niagara region.

About the Author

Scott Miller

Staff writer, SupplySide Food & Beverage Journal

Scott Miller brings two decades of experience as a writer, editor, and communications specialist to SupplySide Food & Beverage Journal. He’s done a little of everything, from walking a beat as a freelance journalist to taking the Big Red Pen to massive technical volumes. He even ran a professional brewing industry website for several years, leveling up content delivery during an era when everyone had a blog.

Since starting at SupplySide Food & Beverage Journal, he’s written pieces on the price of greenwashing (and how to avoid it), debunked studies that served little to no purpose (other than upsetting the public) and explained the benefits of caffeine alternatives, along with various other stories on trends and events.

Scott is particularly interested in how science, technology and industry are converging to answer tomorrow’s big questions about food insecurity, climate change and more.

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