– From ‘Clean Label’ to ‘Free From’ –

Organic Monitor Events: Sustainable Foods Summit Europe Paul M Hart – Market Manager Gluten Free

– Amsterdam 6 June 2014 –

– From ‘Clean Label‘ to ‘Free From’ –Organic Monitor Events: Sustainable Foods Summit Europe

Paul M Hart – Market Manager Gluten Free

– Amsterdam 6 June 2014 –

Clarifying Definitions …

Consumer Behaviour

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Someone Once Said …

“ Food First then Morality . ”

Bertolt Brecht (1898-1956)

German dramatist, poet. "What Keeps Mankind Alive?"

Act 2, sc. 6, The Threepenny Opera.

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USA Trends

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Mainstream Opinion

The Atlantic

‘The Cure for Obesity’

Fortune

‘How Whole Foods is

Taking Over America’

– Detroit store opens

Summit Explores Clean Label Potential Clean labels are becoming ubiquitous on food products: gluten-

free, non-GMO, dairy-free, additive-free, etc. Clean labels are becoming increasingly evident, however what is the future outlook? Are they a fad, trend or a permanent fixture in the food industry?

Assess the business potential of clean labels at the European edition of the Sustainable Foods Summit, hosted in Amsterdam on 5-6th June 2014. Click here to receive the conference programme.

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From: Hart, Paul To: dafne@organicmonitor.com Sent: Tuesday, April 08, 2014 3:11 PM

Subject: FW: Summit Explores Clean Label Developments (5-6 June, Amsterdam)

Hi Daphne,

For the opening para – previous slide - on this mail shot I would like to draw a distinction between:-

- ‘clean label’ – no chemicals, no E-numbers – ‘natural’

And - ‘free from’ (allergens):

While this latter might refer to meat-free; GMO free - in fact in the food ingredients industry it very much relates specifically to free-from allergens –which otherwise need to be declared on product labels …

Yours in ‘free from’, Paul Hart

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Drive for Clean Label?

Need to eat

something!

Images: Healy Groupwww.noglut.eu

Or NO-thing

much at all?

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Kitchen Cupboard

Retailer Policy – Driving Consumer Behaviour?

Store Cupboard Ingredients e.g. Sainsbury• http://www.asa.org.uk/Rulings/Adjudications/2012/4/J-Sainsbury-plc/SHP_ADJ_160335.aspx

• Xanthan now available in supermarkets

Multi-Nationals

Nestle – Ingredient declaration simplification ?

Producers

Ingredient Avoidance: Flowers Foods [Bakery] – via Regulatory

Results: = Push–back for alternatives

• Details come later!

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Marketing Communications:

The Solanic Experience …

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•13

Solanic Potato Proteins -

Unique Functionality & Clean Label Solutions

FIE Frankfurt, 17-19 November 2009

2007 ‒> 20111_Standaardontwerp

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Solanic – New Innovative Company

• With the task to create new Value from

potatoes

• By refining, developing and marketing

non-starch based ingredients from the

potato with a high added value

• Thereby opening up new applications

and/or markets

• And creating new sources of Value for its

CUSTOMERS

Solanic B.V.

New subsidiary uses breakthrough technology to extract

high-performance proteins for the food industry:

• Top Left: Original title + strap line:

• 2007 –> 2011

• Above: By refining, developing and

marketing non-starch based ingredients

from the potato with a high added value

… opening up new applications …

• Left: Original Masthead Image 2009

Nature’s vegetal answer to animal proteins

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– Natural Potato Proteins –Unique Functionality for Innovative Solutions

Bridge2Food November 2011

– Natural Potato Proteins –Unique Functionality for ‘Free From’ Solutions

Bridge2Food April 2012

Clean Label Performance• Strap line: High Performance Ingredients

Clean Label Proteins for both !

Gertjan Klijnstra & Paul Hart

Bridge 2 Food 17 – 19 April 2012, Amsterdam

WorkshopFrom Functionality to Application

Since Food Ingredients Europe 2013 – no strapline!

Pure Performance Proteins• Strap line: Clean Label Ingredients

Pure

Free From

Sustainable

Potato Proteins• Strap line: Not used – AVEBE Group

logo

Added Value: What’s in Potatoes?

Component % Potato

Starch 20.00

Coagulable protein 1.00

Basic proteins 0.40

Acid proteins 0.40

Peptides 0.26

Free amino acids 0.26

Amides 0.36

Total N-compounds 2.14

Fibres 0.80

Total sugars 0.54

Total organic acids 0.56

Potassium 0.36

Magnesium 0.02

Total ash 0.80

Phosphorous 0.04

Fats 0.08

Chlorogenic acid (CgA) 0.01

Phenolic compounds 0.03

Vitamin C 0.02

Chlorides 0.03

Nitrate 0.01

AVEBE: Co-operative of ~4,000 potato

farmer shareholders

• Produces ~4,000,000 MT potatoes

• Yields ~700,000 MT Native Potato Starch

• For food and industrial applications

Potatoes are ~20% starch:

• But just 1 – 1.5% protein

Factory expansion planned (2015+)

• Max. potential volume is 35,000 MT

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Very Low Allergenicity: ‘Free From’

Food Positive skin irritation (%)

Positive reactionafter test meal (%)

Peanuts 26 12

Eggs 19 10

Milk 17 7

Soy 10 2

Wheat 5 0

Peas 5 0

Fish 4 0

Tomatoes 3 0

Chocolate 2 0

Oranges 1 0

Rice 1 0

Strawberry 1 0

Potatoes 0 0

Source: Survey 2001 Europe

The Solanic Advantage

Functional commodity proteins like

egg, lupin, milk, soy, wheat (gluten)

are allergens

Lower allergenic proteins e.g. pea,

rice, maize – tend to be less

functional than potato protein

Free From Pay Off:

The only high-functional + low-

allergenic proteins on the market

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Sustainability

Potato at least 2x more sustainable than whey – and 3x more than egg white

The ReCiPe end score combines a large number of environmental impact indicators in

one harmonized average end score

(Source: BMA, www.blonkmilieuadvies.nl)

•Egg-Free Sponge

Cake*

•Egg-Free Sauces

& Dressings*

Market Focus

Nutrition

Meat

Dairy

Solanic

Key USPs – Centre

Bakery

SOLATHIN

*Key Theme: Egg-Free

Egg-Free Sauces

& Dressings*

Hi Protein Snacks & Bars

Gluten-Free Bakery*

Vegan Burger*

Vegan Confectionery*

RTD & Sport Gels

Egg-Free Sponge Cake*

Vegetal Shakes

Egg-Free Sauces

& Dressings*

Non-Allergen

Wine Fining

Clean Label Sorbet

All-Vegetal Lollipop Chew

Non-Dairy Ice Cream

Milk/Soy-Free Sausage

Dietary Supplement

Pure & Kosher Fermentation

Vegan Cheese

SOLANICTM : Introducing the new …

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SOLANICTM

Introducing the new …

100% Vegetal Non-Dairy

Protein

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Market Research Data

Datamonitor

Innova

Mintel

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www.innovadatabase.com

Free-from Claim Reaching More Consumers

• Products with ‘Free From’ claims are flourishing. Where NPD was mainly targeted towards

those with allergies or intolerance, innovative manufacturers see the potential

in a larger group of consumers that can be tapped into using the ‘health’ angle.

mintel.com23

.................................................................................................................................................

UK: MARKET GROWTH WILL SLOW, BUT STILL STRONG

UK retail sales of free-from foods, 2008-17

+61%

+46%

Gluten free 47%

Dairy/ lactose free

46%

Other

7%

Let’s Look at food

Composition

Carbohydrates

Fats

Proteins

Additives

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Nutrition Labelling:

On-Pack consumer label

Nutrition Declaration

• Carbohydrate: C, H, O

• Bread, rice, tapioca

• Fat: C, H, O

• Butter; olive oil; lard

• Protein: C, H, O & N

• Eggs, meat; lentils

All are Polymers: Of Carbon; plus Hydrogen & Oxygen

– but Protein carries Nitrogen [& Sulphur]

N.B. The body can’t store protein !!!

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Let’s Look at

Carbohydrates

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Carbohydrates

Highly Processed grains:

• Implicated in obesity; ‘Metabolic syndrome’

• Paleo diet! - excludes grains & legumes

Cereals: Wheat -> Gluten sensitivity [Chorleywood Process?]

• Coeliac diagnosis ~1:100 > wheat intolerant > family > celebrity fad

• Only food with health driver imperative

High Fructose Corn Syrup

Sugar: No added / sugar free

GM Concern: Maize starch

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Market Definition – Product Range

Baked Goods Cereal Staples Other Products

Bagels Breakfast Cereals Apple Juice ?!?

Biscuits Extrusions Beer

Bread

Cakes

Crackers

Coatings

Cookies

Pastry Noodles Dressings

Pizza Pasta Gravy

Pretzels Snacks Sauces

Tortilla - Wraps Tortilla - Hard Sausages

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Nederlandse Coeliakie Vereniging want to approach

large companies …

Wheat starch in soups, meat, candy is a ‘no go’ for

coeliacs: potato starch is a low cost alternative.

“ You can’t bake a gluten-free loaf in the morning

and enjoy if for lunch…!!!”

Let’s Look at

Fats & Oils

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Fats & Oils*

Trans fats removal: Noughties EU reformulation

US FDA Consultation: current

• Effectively bans [partial] hydrogenation …

• … Reduces cheap options for harder fats

• Hydrogenation seen as chemical

N.b. Territorial sensitivity: Be producer discussion

Versus UK retailer push-back

Allergenicity: ?!? Soy

• GM IP supply chain; phyto-oestrogens

* Chemically similar: oils are liquid at room temperature …

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Fats & Oils*

Saturated fats and health: Vs unsaturates

• Alternative views!

• Image right: Mars May 2014:

EU food labelling:

Required from Dec. 2014

• Ingredient declaration to state

species origin of fats and oils

• = Further pressure on ubiquitous

Palm Oil

• Sustainability: Land use; RSPO

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Let’s Look at

Proteins

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Proteins

‘Free From’: Main cause of

allergenicity e.g. Dairy; Eggs; Soy

Protein Intake on trend:

• Post Atkins; Dukan: have to eat something; carbs and fat ‘bad’

Sustainability: 1970’s pioneers: saw strategic limitation …

• E.g. Quorn myco-protein: RHM & ICI

Availability of ‘free from’ proteins

• Regulatory

• Heavy metals e.g. rice protein

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Food Futures: Sustainability

Is The Age of Cheap Food is Over?

Population of India to exceed China by 2020

• Middle Class of 200 - 400 million [SustEIN, 2012]

• Desire for ‘Western’ dairy products

• Chicken consumption doubled in last 10 years:

3.42 MMT - USDA forecast

• Moving from export to importing soy meal[Baize, 2013; Illus. right 1975]

But where does feed protein come from?

Soy Harvested Area: Argentina up 40% 20 m ha; Brazil 35% 29 m ha

Impact on S. America infrastructure

• Ukraine exporting to China

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mintel.com35

.................................................................................................................................................

ENVIRONMENTAL BENEFITS COME INTO PLAY

For non-dairy alternatives there is a case

Meat & dairy production is

unsustainable to feed a growing

world population reaching 9bn

by 2050. The world grain output

will need to rise by 50%, and

meat production will need to

double to meet the demand (UN)

“The problem is that instead of

feeding crops to people, we’re

feeding most of them to

livestock. And so we’re caught

in an inefficient protein-delivery

system.”

(Bill Gates)

0%

2%

4%

6%

8%

10%

12%

14%

20092010201120122013

Usage of the “Environmentally Friendly Product” claim, global (% of

launches)

Dairyalternatives

Dairyproducts

Right Here Right Now!

After Greek Yoghurt:

What’s next?

Introducing:

Egg-white only McMuffin

• Result = Price Volatility

http://www.seriouseats.com/2013/05/reality-check-the-egg-white-delight-mcmuffin.html [Photographs: J. Kenji Lopez-Alt]

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Let’s Look at

Additives

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Drive for Clean Label ?

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DATEM = E472eMono- and Diacetyl

Tartaric acid esters of

Mono- and

Diglycerides of fatty

acids

Image: Healy Group

Additive Groupings

Acids / Acidity Regulator

citric acid

Anti-caking agents

Antifoaming agents

Antioxidants

vitamin C

Bulking agents

Colours

Emulsifiers

Flavours & Enhancers

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Flour treatment agents

Glazing agents

Humectants

glycerol

Preservatives

benzoate / sorbate

Stabilisers / Thickeners

pectin

Sweeteners

stevia E960

Salt: No E-number

Process Aids!

Bakery Ingredients: Cf. Gluten-Free

Wheat flour; Water, Yeast, Salt,

Vinegar, Vegetable oil, Soya Flour,

Emulsifier E472e, Preservative: Ca

Propionate; Ascorbic Acid Vitamin C

Water,

Tapioca Starch,

Potato Starch,

Rice Flour,

Rape seed Oil, Maize Starch; Yeast,

Humectant (Vegetable Glycerine),

Stabiliser (HPMC); Dried Egg White,

Psyllium Husk Powder, Cellulose,

Sugar, Dextrose, Salt, Flavouring,

Preservative (Calcium Propionate)

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Additives: Key Groups

Texturants: Thickeners, Stabilisers, hydro-colloids

• Carrageenan; pectin; xanthan

Colours: Increasingly naturally derived

• e.g. Plant extracts; Vs chemical derivatives

Flavours: Ditto

• Gluten Free: ‘Natural’ derivation

e.g. Quinoa Sour: Corn Starch; Cornflour; Teff Flour, Quinoa Flakes

Emulsifiers: E-number; chemical; removal

• ‘Natural’ sources instead of E471 Mono- & Di-Glycerides; E472e

DATEM

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AdditivesIssues:

Consumers: Unfamiliar names: What are they in there for?

Producers

• E-numbers; less desirable on pack

• Reduce ‘chemicals’; Increasing ‘Natural’

Multi-Nationals

• Extensive Questionnaires scrutinise ingredient suppliers

• e.g. Process: Traditional Smoking [Carcinogens] – seen as OK

Vs Ion Exchange – UK not ‘kitchen technology’ so not ‘natural’

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Natural? Don’t mention it!

Adds a further dimension

Definitions: Vary

• Need for suppliers to meet

producer / retailer demands

Solanic has benign isolation method

• Depends on pH

Native rather than ‘Natural’• Biological conformation (shape ) remains

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Thank you !

Any Questions? Paul M Hart

+44 7850 035922

Paul.hart@solanic.eu

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