Dogged pursuit.

Byline: Edward Russo The Register-Guard

Every summer, Martin Starr's Belgian Shepherd mix, Destiny, would chew off her fur in places, leaving ugly patches of raw skin.

Starr could do little except apply a medicine that gave the 10-year-old dog temporary relief. Destiny also was increasingly hobbled by arthritis.

Willing to try anything, the Eugene resident four years ago dramatically changed Destiny's diet. He replaced her dry kibble with a new kind of food - uncooked meat, vegetables and fruits, - made by a new company, Steve's Real Food For Pets, owned by his then-neighbor, Steve Brown.

Abruptly, Destiny's skin irritations stopped, and she was less bothered by arthritis, Starr said. He thinks the raw food helped his dog.

"I'm not saying my experience has been scientifically proven, but I made these connections by looking at how she is different," Starr said. In spite of recently suffering a stroke, Destiny "is in great shape for an old, large dog of 14."

Starr is among a growing number of pet owners nationwide who are chucking their grain-based dry foods and buying much more expensive meals made of high-grade raw meats, vegetables and fruits.

The trend has helped Steve's Real Food grow from a Eugene start-up firm in 1999 to one that hopes to push $2 million in sales this year.

Yet natural-food diets for pets are not without controversy.

Proponents of these diets clash with veterinarians and animal nutritionists who say high-quality dry pet food is good enough to keep animals healthy and happy.

At the forefront of the debate is Steve's Real Food and its founder, Brown.

Brown says the normal, historic diet of dogs and cats contained little if any grains.

"High-quality kibble is fine. It will keep your dog alive for a minium amount of money," he said.

"But if you want to improve the odds of your dog living a long, healthy life, the dog needs fresh foods. And the more fresh foods the better."

Creating a dog snack

Brown, a Connecticut native and dog breeder, lived in the San Francisco Bay area and Madison, Wis., where he developed Charlee Bear Treats, natural dog snacks that are now sold across the country. Brown is no longer involved with the treat firm.

After moving to Eugene in 1998, Brown used his home kitchen to create high-quality dog food made of beef, chicken, turkey, vegetables and fruit.

He chose cuts of meat that humans would consider eating, then tinkered with the recipe until he was sure dogs would like the taste.

Brown found six local investors who contributed a total of $30,000, then found a Portland company to make the food. The vegetables and fruits are finely chopped and mixed with meat.

Bonemeal and nutrients are added and then formed in 3/4 -inch cubes and flash frozen. The food is kept frozen at retail outlets. Pet owners thaw it at meal time.

In spring 1999, Brown and his life and business partner, Chris Gelalich, called on veterinarians and pet stores. They started selling their product through 10 outlets, including Pacifica Veterinary Services in Eugene and specialty pet stores and vet clinics in Portland and Vancouver, Wash.

"Doors opened to me because I (had) developed Charlee Bear Treats," Brown said.

Cash infusion

The following year, Brown received about $550,000 from the Portland Venture Group investment firm, which now owns more than half of the company.

The cash infusion helped Brown expand its sales from $500,000 in 2000 to $1.4 million in 2002, Brown said. The firm finally started making a profit this year, he said.

Brown hired nutritionists at a "major university" that he declined to name to create a line of cat food that is made of chicken, salmon, broccoli, and beef and chicken liver and other ingredients. The cat food comes frozen or freeze-dried.

"It's hard to get cats started on frozen food," Brown said.

Cat food, which the firm began selling in 2000, represent about 6 percent of Steve's revenue.

With 630 retail outlets in 40 states carrying his product, Brown said his firm is the largest pet food maker of its kind in the country.

"We are feeding about 20,000 dogs a month now," Brown said.

The firm's business is just a drop in the water dish of the overall pet food market.

The nation has about 61 million dogs and 77 million cats. Pet food sales are about $12 billion a year. Brand such as Ralston Purina, Friskies, Alpo, Iams and Science Diet dominate the market.

Brown's claims that raw foods are better for dogs and cats than grain-based dry food puts him at odds with large pet food companies and some veterinarians and animal nutrition experts.

Many veterinarians sell dry pet foods at their clinics.

"The majority of us in the scientific-based community think cereal-based foods are just fine," said George Fahey, a professor of animal sciences and nutrition at the University of Illinois-Urbana-Champaign.

Many conventional pet foods are complete and balanced, with the nutrients that animals need, he said.

Some people try to make their own raw pet food, Fahey said, but if they use only raw meat they will deprive their pets of vitamins and minerals.

Also, raw meat must be handled carefully or it will spoil and cause bacteria contamination. Eugene veterinarian Patricia Shea said raw meat can be contaminated with parasites and protozoa that can sicken or kill pets. "It's foolish for anybody, human or animal, to eat uncooked or undercooked meat," said Shea.

Chris Gelalich, Steve's Real Food national sales manger, said his firm requires its manufacturers to prepare the food in refrigerated rooms of 40 degrees, to prevent spoilage. Meat, which the manufacturers receive frozen, is kept frozen during processing and then flash frozen to kill parasites or other harmful organisms, he said. "It's not good to make a raw food diet out of the home," he added.

Some veterinarians, including Roberta Boyden in Eugeue, promote raw food for pets. Steve's Real Food is nutritionally balanced, she said, and because it is frozen, poses less threat of spoilage.

Raw-food diets aren't a cure-all, Boyden said.

But she knows of pets that became healthier after switching from conventional pet foods.

Her own golden retriever mix looks better and has more energy when he eats raw food that Boyden makes or buys.

"When he is on a raw food, I see a difference in stamina, muscle tone and coat," she said.

A premium price

Steve's Real Food may not be affordable for every pet owner. The suggested retail price for the dog food is $2.30 to $2.90 a pound, and more than $3 a pound for the cat food.

That compares to less than $1 a pound for commercial grade dry pet food to as much as $1.80 a pound for premium dry pet food, said Rich Powell, owner of All American Pet Supplies & Grooming in north Eugene.

Brown said the prospects for his company are bright, but he recently ran into problems with the Portland company that had been manufacturing the food.

Brown said his firm's sales growth in other states prompted him to consider using more than one manufacturer to lower freight costs.

But the original manufacturer - whom Brown declined to name - wanted an exclusive production agreement, Brown said.

Brown balked and took his business to another Portland food maker and one in California. The switch stopped Brown's retail shipments for five weeks, eating into profits.

Meanwhile, to help with the growth, Brown has hired Gary Burcell, a former chief financial officer of a large private-label pet food maker in Utah, to be the first chief executive of Steve's Real Food.

Brown, 54, said the hiring will give him more time to develop new products and boost marketing.

"My job is to make Steve's Real Food into a household brand name."

Edward Russo can be reached by e-mail at [e-mail] or by phone at 338-2359.

STEVE'S REAL FOOD FOR PETS

Business: Making uncooked frozen dog and cat food

Office: 1848 Pearl St., Eugene

Employees: Six, including founder Steve Brown

Founded: 1999

2002 sales: $1.4 million

Web site: www.stevesrealfood.com

CAPTION(S):

Steve Brown of Eugene, with his dogs BeeBop (left) and Daisey, is the founder of Steve's Real Food. The company has grown from a start-up firm in 1999 to one that hopes to push $2 million in sales this year. Steve's Real Food for dogs is made with vegetables and fruits that are finely chopped and mixed with meat. Bonemeal and nutrients are added and then formed in 3/4 -inch cubes and flash frozen. Pet owners thaw it at meal time. "The majority of us in the scientific-based community think cereal-based foods are just fine." - GEORGE FAHEY, ANIMAL SCIENCES PROFESSOR, UNIVERSITY OF ILLINOIS-URBANA-CHAMPAIGN