FROM NATURE TO YOU. Tendencias e innovación: las ventajas únicas de extractos botánicos funcionales FoodTech Summit & Expo Septiembre 2017
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1 FROM NATURE TO YOU Tendencias e innovación: las ventajas únicas de extractos botánicos funcionales FoodTech Summit & Expo Septiembre 2017
2 PLAN 1. Market opportunities in beverages High potential in LATAM & Mexico "Naturally healthy": the common growth driver How each category catches the trend with botanicals 2. How to create the "perfect functional drink" Different ways to express functionality How to incorporate botanicals
3 BEVERAGE OPPORTUNITIES IN LATAM AND MEXICO
4 LATAM & MEXICO: AMONG THE MOST DYNAMIC MARKETS SOFT DRINKS MARKET SIZE IN MILLION $ ( Juice, Carbonate, Energy and Sport Drinks, Water) MEXICO LATAM % % Market Sizes (Brazil, Chile, Colombia, Mexico) Historic Total Value RSP $ mn Current Prices Fixed 2016 Exchange Rates WORLD Market Sizes Mexico Historic Total Value RSP $ mn Current Prices Fixed 2016 Exchange Rates % Market Sizes (World) Historic Total Value RSP $ mn Current Prices Fixed 2015 Exchange Rates
5 LATAM & MEXICO: AMONG THE MOST DYNAMIC MARKETS FUNCTIONAL DRINKS MARKET SIZE IN MILLION $ MEXICO: 9,6% of all soft drinks % LATAM: 8,7% of all soft drinks Market Sizes (Brazil, Chile, Colombia, Mexico) Historic Retail Value RSP $ mn Current Prices Fixed 2016 Exchange Rates WORLD: 11,3% of all soft drinks +52% % Market Sizes Mexico Historic Retail Value RSP $ mn Current Prices Fixed 2016 Exchange Rates High growth potential in Mexico & LATAM Market Sizes (World) Historic Retail Value RSP $ mn Current Prices Fixed 2015 Exchange Rates
6 WORLDWIDE TRENDS IN BEVERAGES L ow sugar Most cited claim on soft drink innovations in 2016 Source: Mintel Naturally healthy N atural ingredients #1 key attribute cited by consumers in 2016 Source: Global Consumer Trends Survey 2016 / Food & Beverage F unctional New drinks with health benefits: x3 from 2011 to 2016 Source: Mintel All beverage categories converging to create the "perfect drink"
7 CARBONATES: ADDRESSING HEALTH CONCERNS IN LATAM 44% of Brazilian consumers are concerned by the health impact of artificial sweeteners in. 28% think that CSDs contain too many artificial flavouring/preservatives 34% of CSD consumers in Brazil indicate that they would be interested in trying carbonated soft drink with functional benefits rising to 38% of women. Costa Rica Sep 2017 Range of Ginseng-based soft drinks Ginseng UP American Classics Peru May 2017 Rose lemonade Fentiman Source: Lightspeed/Mintel Brazil June 2014 Natural and Organic soft drink Wewi
8 JUICES: A NATURAL DYNAMIC Clean label : the center of innovation for global juice operators LATAM: juices with botanicals on the rise x2 between and (Number of new product launches) Claims in Juice drink innovations worldwide % of Launches, Feb 2012 Jan 2017 Colombia Aug 2016 Aloe vera drink with cranberry juice No additives Organic All-natural GMO free Argentina Aug 2016 Peach, Orange & Chia Vitality drink. Brazil Jul 2016 Detox juice mix with hibiscus
9 WATERS: ENHANCING THE BENEFITS Rise in healthy water launches: Combining flavour with health benefits Universal need for more energy and hydration: Opportunity for water with added vitamins, antioxidants, probiotics and caffeine to support well-being and performance. Growth opportunities in premium consumer segments: Premium products such as functional water with attractive benefits are likely to bring more value.
10 WATER: LATAM PRODUCT EXAMPLES Mexico Jul 2017 Naturalia Cranberry Water with Green Tea High in antioxidants to obtain energy Mexico Dec 2016 Ice Orange Mango Flavored Sparkling Water with Green Tea Puerto Rico Jan 2017 Mellow Mood Sparkling water with lemon balm, valerian, passionflower and chamomile
11 ENERGY DRINKS: BUILDING A "BETTER FOR YOU" IMAGE Increasing demand for healthier and safer products. Pressure from drink categories perceived as healthier such as water, which are encroaching on the energy space (e.g. water) Organic certification can provide a reassuring health halo to appeal to the general consumer Traditional botanical ingredients (such as guarana or chia seeds) can help catch the attention of the consumers by leveraging health and wellness attributes,
12 ENERGY DRINKS: LATAM PRODUCT EXAMPLES Mexico Aug 2016 Organic Energy Fortified with an Organic caffeine mix (Green Tea, Guarana, Green Coffee Extract) Mexico Feb 2016 Vive 100% Green Tea & guarana extracts for daily energy Mexico Jan 2016 DrinkPlus Power Maxmize healthy energy & mental health with acerola, guarana, ginseng and yerba mate extract
13 CONVERGING TOWARD THE IDEAL BEVERAGE Waters Naturally healthy Sports & energy drinks Juices & juice drinks Trend-leading functional drink Health benefits Linked to a holistic health approach Based on natural ingredients such as botanicals Maintaining low levels sugars RTD teas & coffees
14 CREATING THE PERFECT FUNCTIONAL DRINKS WITH BOTANICALS
15 EXPRESSING NATURAL FUNCTIONALITY FORTIFICATION FUNCTIONALITY WITH PURPOSE Claimed, science-based benefits Bringing nutrients of interest INTUITIVE FUNCTIONALITY Benefits well-known by consumers No need for claims
16 INTUITIVE FUNCTIONALITY INTUITIVE FUNCTIONALITY FORTIFICATION FUNCTIONALITY WITH PURPOSE Brazil Jul 2016 Blissimo Spremuta Detox Mix of juice with pomegranate, cranberry and hibiscus. Colombia Aug 2016 Aloe vera drink with cranberry juice UK Oct 2016 Innocent Energise Smoothie - wirh a dash of guarana infusion
17 FORTIFICATION FORTIFICATION FUNCTIONALITY WITH PURPOSE Mexico Aug 2016 Organic Energy Fortified with an Organic caffeine mix (Green Tea, Guarana, Green Coffee Extract) INTUITIVE FUNCTIONALITY Mexico Jan 2016 DrinkPlus Power Orange and Passion Fruit Fortified with vitamin C from acerola 15% daily value Brazil Jan 2017 LifeTea - Mate tea with rice protein
18 FUNCTIONALITY WITH PURPOSE INTUITIVE FUNCTIONALITY FORTIFICATION FUNCTIONALITY WITH PURPOSE Brazil Latco Alimentos Time 4 Tea Low-Calorie Green Tea Lychee with Collagen contains Verisol collagen hydrolyzate that provides several benefits for the body including benefits for skin, bones, hair and muscles. The high satiety product helps one to lose weight, and prevents ageing. Mexico Jul 2017 Naturalia Cranberry Water with Green Tea. Cranberry is high in antioxidants which increase the degradation of fatty acids at the cellular level to obtain energy.
19 CREATING THE PERFECT FUNCTIONAL BEVERAGE WITH BOTANICALS: WHAT TO CONSIDER
20 WHAT IS RESPONSIBLE BOTANICAL SOURCING? Sourcing 1. Unendengered species 2. Respect human rights 3. No child labour 4. No banned chemicals 5. No immoral transactions 6. Traceability from origin 7. Clean & secure processing
21 EXTRACTS: DIFFERENT LEVELS OF CHARACTERIZATION Extraction FOOD & BEVERAGE RAW MATERIAL 0 NATURAL FLAVOR EXTRACT BOTANICAL (OR FRUIT OR VEGETABLE) EXTRACT STANDARDIZED BOTANICAL EXTRACT STANDARDIZED & SUBSTANTIATED BOTANICAL EXTRACT FOOD SUPPLEMENTS UNIQUE INNOVATIVE NATURAL INGREDIENT WITH OWN CLINICAL STUDIES 5 Lemonbalm (leaf) Lemonbalm flavoring extract Lemonbalm ratio extract Lemonbalm 2% rosmarinic acid Substantiated Lemonbalm extract with rosmarinic acid content INTUITIVE FUNCTIONALITY FUNCTIONALITY WITH PURPOSE
22 INVOLVING DIFFERENT TEST METHODS Analysis Ratio-based extract Standardized, substantiated extract Intuitively functional / flavoring extract Organoleptic properties Impact on taste, odor, color Solubility in beverages NTU measurements of turbidity Extraction ratio measurement "100mg of final product are equivalent to X mg of raw material«advanced analytical methods using in-house capabilities HPLC, UV, Mass spectrometry, Folin-Ciocalteu
23 BOTANICAL IDENTIFICATION: AN MUST-HAVE Example: HPLC profiles of Panax ginseng extracts Analysis Panax ginseng root extracts Dominant ginsenosides: Rb1, Rb2, Rc Most supported by research for their functionality Peak heights decreasing on chromatogram Panax ginseng whole plant extracts Dominant ginsenosides: Re Peak heights increasing on chromatogram
24 APPLYING INTO BEVERAGE FORMULATION Formulation Example with chamomile extracts Flavoring extract 4:1 Ratio extract Standardized 1.2% extract Main benefit = Taste Balance of herbaceous taste and honey note, typical of chamomile Light yellow color Moderate cloudiness Main benefit = 100g of extract made from 400g of chamomile flower Floral taste but less fresh, less typical of chamomile Yellow/orange color Cloudy Main benefit = 1.2% of apigenins promoting relaxation Herbal/hay taste with some chamomile note Yellow/green color Cloudy with some sedimentation
25 INFUSED WATER - DISPENSER INGREDIENTS REFERENCE DOSAGES (%) Water Elderflower LE WS FULL S White grape 150B DA NN Sugar 1.50 Pomegranate 150A Vegebrite black carrot NN CO Citric acid 0.01 Key points - Natural sweetener - Flower trendy flavor - No flavor (just fruit) - No color
26 Thank you! FROM NATURE TO YOU
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