Functional Foods: Their Role & Opportunities

Institute of Food Technologists (IFT)

Functional Foods: Their Role & Opportunities

Presentation November 23, 2011

William FisherVice PresidentScience & Policy Initiatives

Outline§ Overview of IFT § What are functional foods?§ Why all the interest?§ History § It’s a BIG business!§ Trends § Latest research§ Regulatory landscape§ Future outlook § Concluding points

Since 1939, IFT has unlocked the potential of the food science community by creating a dynamic global forum where members from more than 100 countries can share, learn & grow.

INSTITUTE OF FOOD TECHNOLOGISTS

http://www.ift.org/

IFT’s Strategic FocusMission

– Advance the science of food

Long-Range Vision – Ensure a safe and abundant food supply contributing to

healthier people everywhere

Commitment– Strive to provide § An inclusive and welcoming community for all food science

and technology professionals; and § The knowledge and tools food science and technology

professionals need to enhance their professional capacity and competency

IFT’s Mission in Motion Publications

Meetings & Events

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Foods & food components that provide essential nutrients often beyond quantities necessary for normal maintenance, growth, and development and/or other biologically active components that impart health benefits or desirable physiological effects.

WHAT ARE FUNCTIONAL FOODS?

IFT Expert Report. Functional Foods: Opportunities and Challenges

Dietary Supplements§ Taken by month that contains a “dietary ingredient” intended to supplement the diet § “Dietary ingredients” include: vitamins, minerals, herbs and other botanicals, amino

acids, and substances such as enzymes, organ tissue, glandulars, and metabolites.§ Excludes conventional foods or a sole item of a meal or the diet.

Drugs§ Prescribed to a specific individual by a medical doctor to treat a specific disease because

of its active medicinal ingredient that usually has a specific target and an immediate effect

Nutraceutrials § Foods, or parts of food, that provide medical or health benefits, includes

dietary supplements and functional foods. Nutrients

§ Traditional vitamins, minerals, essential fatty acids for which recommended intakes have been established

§ And other components, such as phytonutrients or bioactives, present in foods for which a physical or physiological effect has been scientifically documented or for which a substantial body of evidence exists for a plausible mechanism but for which a recommended intake and function have not been definitively established.


Functional Food Categories & Examples

Conventional foods (whole foods) § Garlic, nuts, & tomatoes

Modified foods

Fortified

Enriched

Enhanced

§ Iodized salt

§ Folate-enriched breads

§ Energy bars, snacks, & yogurts formulated with bioactive components

Medical foods § Phenylketonuria (PKU) formulas, free of phenylalanine

Foods for special dietary use § Infant foods, weight-loss foods, gluten-free foods, & lactose-free foods

Position of the American Dietetic Association: Functional Foods. J Am Diet Assoc. 2009;109:735-746

Why All the Interest?

§ Rapid advances in science and technology e.g., biotechnology and nutrigenomics

§ Evidence linking diet to chronic disease risk

§ Desire to attain wellness through diet

§ Aging population

§ Healthcare costs

§ Changes in food laws e.g., label and product claims

IFT Expert Report. Functional Foods: Opportunities and Challenges Reinhardt Kapsak W. J Am Diet Assoc. 2011;111(6):805-810

IFIC 2011 Consumer Trending Survey§ Web survey of a representative sample of 1000 American adults

§ Working definition of functional food: food or food components that may provide benefit beyond basic nutrition

§ 87% of surveyed American consumers believe certain foods have health benefits

§ 90% of surveyed American consumers can name a food and its associated benefit.

§ Top ten “functional foods” named by surveyed consumers1) fruits/vegetables, 2) fish/fish oil, 3) dairy, 4) herbs/spices, 5) whole grains, 6) fiber, 7) meat and poultry, 8) tea/green tea, 9) nuts, and 10) vitamins/supplements

§ Pair food with heart health, overall health, weight management, cancer, & digestive health and by life stage-healthy growth and development and healthy aging

Historical Notes§ The concept of food as medicine has origins in ancient

India, traditional Chinese medicine, and other ancient civilizations.

§ Advances in technology built evidence-base for connection between food and health § 18th century chemist Antoine Lavoiser designed laboratory

equipment to test his hypothesis that food was fuel.

§ Early experiments illustrated how fortifying products can enhance health benefits and reduce disease risks:

§ Vitamin B3 (niacin)-enriched flour & pellagra§ Vitamin B1 (thiamine)-enriched flour & beriberi § Iodized salt & goiter § Vitamin D-enriched milk & rickets § Vitamin C & scurvy

Functional Foods is BIG Business!§ Health-conscious consumers are driving the demand for the

development and promotion of products that– Promote wellness – Increase longevity – Prevent or manage chronic diseases

§ US sales of functional foods continue to increase, weathering economic downturn better than other food categories § Reached $37.4 billion in 2009 § Estimated to represent 35-50% of global sales

§ Asia-Pacific also has a large market § Brazil has strong market potential

Nutrition Business Journal. Feb 2010World Bank. Health Enhancing Foods. 2006

Functional Foods Business FocusKey categories

§ Energy § Cognitive, digestive, bone, joint & heart health § Weight management § Mood enhancement§ Skin & beauty

Key players (key brands)§ PepsiCo (Quaker, Gatorade)§ Coca-Cola (Vitamin Water, Odwalla)§ General Mills (Cheerios, Yoplait)§ Kellogg (Special K, Kashi)§ Kraft (Capri Sun, Balance Bar)§ Nestle (Nesquick, PowerBar)§ Danone (Activia, Essensis)§ Unilever (Slim-Fast, Blue Band)§ Yakult Honsha (Yakult 400, Jole)

Facilitating Market Growth

§ Simplified approval process to market and label health claims§ Increased awareness about food & chronic disease linkages § Gained acceptance about personalized medicine § Incentivized employees to develop better-for-you products § Incentivized customers to consume better-for-you products § Advanced food processing techniques§ Demonstrated premium pricing potential

Emerging Functional Food Technologies § Enhancing product taste & smell§ Optimizing texture § Stabilizing product ingredients § Improving body’s defenses § Maintaining food safety § Managing reasonable product costs

http://www.ift.org

Process for Bringing Functional Foods to Market


Identify relationship between food component and health benefit

Demonstrate efficacy and determine intake level necessary to achieve desired effect

Demonstrate safety at efficacious levels

Develop suitable food vehicle for bioactive component

Demonstrate scientific sufficiency of evidence for efficacy

Communicate benefits to customers

Conduct in-market confirmation of efficacy and safety

Market Entry Strategies (1) Acquisitions § Gilde acquired DSM Bakery Ingredients § PepsiAmericas acquired Ardea Beverage

(2) Joint Ventures § Coca-Cola & Nestle joined to create Enviga§ Danone & Yakult joined to enter into India’s probiotic dairy market § Novartis & Quaker Oats joined to produce functional foods

(3) Licenses & Partnerships§ Kraft Foods & Medisyn Technologies entered into a research & licensing

partnership to discover bioactive ingredients § General Mills & Curves partnered on extra fiber brand § Kellogg licensed Martek’s DHA omega-3 technology to create Live Bright

Brain Health Bars

Making it in the Marketplace§ Need to market a feel good benefit consumers immediately feel and

connect with product

§ Build consumer trust with a credible claim and marketed product

§ Know and target your niche

§ Integrate smart technology & social networks

§ Have the science to support the claim

Communicate a specific health message about a specific product to a niche audience

Better-For-You Foods: It's Just Good Business

The Hudson Institute examined Nielsen sales data from grocery stores, drug stores, and mass merchandisers; financial metrics, such as operating income, share price appreciation, and return to shareholders; and company reputation and favorability rankings and found food and beverage companies that have a higher percentage of product sales in the better-for-you product category demonstrate comparatively better sales growth, operating profits, returns to shareholders, and company reputation.

www.hudson.org

Overcoming Consumer Perceived Barriers

§ Expense § Taste § Availability § Convenience § Knowledge of foods/desired

health benefits § Confusion over conflicting

information

§ Confidence in the science§ Knowledge of how much to

consume § Uncertainty in how to

prepare foods § Lack of desire to try new

foods § Time it takes to learn about

these foods

Top Food Trends

(1) Demographically Directed (2) Still Cooking (3) Appeal of Americana (4) Foodie Focused (5) Get Real (6) New Nutrients (7) Specialty Treats(8) Three Squares (9) Prescriptively Eating (10) Home Rituals

Sloan E. Top 10 Food Trends. Food Tech. April 2011

Elizabeth Sloan, Ph.D.President, Sloan Trends, Inc.

Contributing Editor, Food Technology Magazine

(1) Demographically Directed

Sloan E. Top 10 Food Trends. Food Tech. April 2011Sloan E. Bridging Generational Food Divides. Food Tech. July 2010

(2) Still Cooking


(3) Appeal of Americana


(4) Foodie Focused


(5) Get Real


(6) New Nutrients


(7) Specialty Treats


(8) Three Squares


(9) Prescriptively Eating


(10) Home Rituals


Top Functional Food Trends

(1) Retro Health(2) Naturally Functional(3) Functional Fill-ins (4) Prime Timers (5) Chemical Warfare (6) Ailing Adolescents (7) Meddling in Medications (8) Daily Dynamics (9) Get the Lowdown (10)Finally Foodservice

Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

Elizabeth Sloan, Ph.D.President, Sloan Trends, Inc.

Contributing Editor, Food Technology Magazine

(1) Retro Health


(2) Naturally Functional

Most viable functional food strategy—blending foods naturally high in nutrients and phytochemicals


(3) Functional Fill-Ins

§ Healthy snacks continue to outpace indulgent snacks§ Grain is a sought after attribute of a healthy snack § Popular snacks include:

§ Trail mixes§ Dry fruit snacks § Sensible salty snacks

§ Healthier candies such as sugar and gluten free popular too§ Portion size and other weight control products growing § Healthful restaurant snack options has untapped potential


(4) Prime Timers

§ Use of functional foods declines with age

§ Older adults least likely to believe in phytochemicals and to use fortified foods

§ Heaviest users of dietary supplements

§ Yet, most likely to be looking for foods to prevent or control chronic diseases and help with cognitive functions

§ Boomers seeking portion-controlled, high-satiety products


6) Ailing Adolescents


7) Meddling in Medications


8) Daily Dynamics


9) Get the Lowdown


10) Finally Foodservice


What’s the Latest Research?

§ Elucidate chronic disease prevention mechanisms § Flavonoids§ Fruit extracts § Omega 3

§ Research and development § Probiotics in beverages and baked goods§ Fibers in beverages and dairy products § Healthy oils in dairy products

§ Evaluate safety at efficacious levels§ Multidisciplinary research

US National Institutes of Health Perspective

Opportunities § Need to identify the true site of action, e.g. establish

biomarkers § Nutrigenomics§ Establish optimal doses

Challenges § Bioactive compounds may vary by type and variety of food § Cooking changes the bioavailability of certain compounds § Bioactive compounds are complex & synergistically § Human tissues react differently

Milner J. US Health & Human Services. National Cancer Institute. http://www.nutrientdataconf.org/PastConf/NDBC31/1-2_Milner.pdf

The Regulatory LandscapeGenerally, functional foods are regulated as a combination of substances, distinctly different from the drug approval process.

United States: Simplified health claim approval process§ Enacted the Nutrition Labeling and Education Act (1997) and

subsequent legislation

Europe: Increasingly difficult to make health claims

Japan: Permits health claims

Various Functional Food Definitions United States Food and Drug Administration (FDA)

Not officially recognized as a regulatory category.

Health CanadaSimilar in appearance to or, may be, a conventional food, is consumed as part of a

usual diet, and is demonstrated to have physiological benefits and/or reduce the risk of chronic disease beyond basic nutritional functions.

European Commission Concerted Action on Functional Food Science in Europe

If it is satisfactorily demonstrated to affect beneficially one or more target function in the body, beyond adequate nutritional effects, in a way that is relevant to either an improved state of health and well-being and/or reduction of risk of disease.

Japanese Ministry of Health and Welfare Only country that recognizes functional foods as a distinct category, which they define

as foods providing a specific health benefit.

Position of the American Dietetic Association: Functional Foods. J Am Diet Assoc. 2009;109:735-746

Authorized Claims in United States

(1) Nutrition content claims (e.g., no trans-fat)

(2) Structure/function claims (e.g., calcium builds strong bones)

(3) Health claims (e.g., diet low in saturated fat may reduce CVD)

§ Most controversial § Describe a relationship between a food substance

and a disease or other health related condition § FDA review of evidence, summarized in petitions § Only authorized if significant scientific agreement

exists among experts qualified to evaluate the totality of the publicly available evidence

Example U.S. Authorized Health Claims

Scientific evidence suggests, but does not prove that eating 1.5 ounces per day of most nuts, such as almonds, hazelnuts, some pine nuts, peanuts, pecans, pistachios, and walnuts, as part of a diet low in saturated fat and cholesterol, may reduce the risk of heart disease.

Authorized Health Claims in the United States

Heart disease benefit (petitioner)

§ Barley soluable fiber (National Barley Foods Council)§ Oatrim (The Quaker Oats Company & Rhodia, Inc.)§ Plant sterol esters (Lipton Tea Company & McNeil Consumer

Healthcare)§ Psyllium seed husk soluble fiber (Kellogg Company)§ Soy protein (Protein Technologies International, Inc.)§ Whole oat soluble fiber (Quaker Oats Company)

Nutrition Labeling and Education Act (NLEA), 1997-2006Position of the American Dietetic Association: Functional Foods. J Am Diet Assoc. 2009;109:735-746IFT Expert Report. Functional Foods: Opportunities and Challenges

Example Authorized Health Claims in Brazil

§ Beta-glucan helps reduce absorption of cholesterol § Bifidobacter animallis helps with intestinal function § Dietary fiber helps with intestinal function § Lactulose helps with intestinal function § Lutein helps protect against cellular damage from free radicals § Plant sterols helps reduce the absorption of cholesterol § Quitson helps reduce the absorption of fats and cholesterol§ Soy protein helps reduce cholesterol

World Bank. Health Enhancing Foods. 2006

Future Outlook

§ Consumer interest in health benefits of food is strong§ Particularly increasing knowledge and purchasing of functional foods

§ Research, regulation, and consumer outreach is facilitating market growth, but gaps remain

§ Understanding the research, regulation, and consumer insights can help target product development and consumer messaging

Brazil & Functional Foods

§ Consumer base is small but has significant growth potential

§ Food industry must improve its research and development capacity § Laboratory capacity is a barrier § Ability to purchase expensive ingredients can be a hurdle § Significant dependence on imported materials for processing § Process equipment is can quickly adoptable for innovation § Strengths: agricultural production sector, large land area and favorable climate and food

processing is the second-largest sector in the economy

§ Regulatory constrains § Demand food companies maintain food database to ensure compliance

§ Supportive government efforts § Nutrition labelling § Nutrition education in school and communities § Strict research requirements for authorized health claims

World Bank. Health Enhancing Foods. 2006

Functional Foods: Their Role & Opportunities

Will FisherVice President, Science & Policy Initiatives [email protected]