John Foss Managing Director

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1 John Foss Managing Director

2 What is Chia Chia is a high value crop due to nutritional benefits and functional applications

3 What is Chia? Chia (Salvia Hispanica) is an oil seed crop producing small oval shaped white or black seeds with a diameter of approx 1 mm. Compared to other cereal crops chia contains more protein, lipids and fibre, less carbohydrates and no gluten.

4 Global Chia Production MEXICO BOLIVIA AUSTRALIA

5

6 Kununurra is the ideal growing location Latitude Climate Day Length Water Established infrastructure Skilled farmers

7 Seedling Development

8 Plant Development

9 Flowering

10 Ripening

11 Harvest

12 Omega 3 Why Omega 3? 1. Anti inflammatory and anti thrombosis activity 2. Heart health prevention of coronary heart disease 3. Type II diabetes lowers blood glucose level Renewable oil seeds with high omega-3 ALA content EPA and DHA available from Algae Sustainable farming No heavy metal issues Good taste Good source of EPA /DHA Long chain Omega 3 for brain and eye development Not suitable for inclusion in all products Sustainability issues Hooper et al. BMJ, 2006

13 Global Health and Wellness Trend H&W is a highly dynamic category, shaped by the impact of new trends Basis for segmentation is the adoption curve Different trends are at different stages of adoption i.e. Gluten free (innov ) vs. wholegrain (mainstream) Different life styles & the role H&W plays From enthusiasm & self identity to reluctant to adopt Shapes their H&W being attitudes and the propositions that resonate with them From deep understanding to seeking magic bullets Innovate to engage early adopters and move along the adoption curve

14 A 5 Year Trend is Not a Diet Fad! Consumer awareness of Wholegrain is here to stay. The low carb diet has had the positive effect on the bread market educating consumers about good nutrition,!

15 Omega 3 Claims in Breakfast Cereal Global product launches of breakfast cereal with Omega 3 have experienced sustained strong growth over the past 5 years! Source Mintel GNPD

16 Plant Based Omega 3 Chia seed is the highest known plant based source of Omega 3. Due to specialised growing conditions we guarantee the Omega 3 ratio Harvard School of Public Health and others have redesigned the food pyramid to recommend plant oils at most meals The Heart Foundation recommends daily intake of 2g of plant Source Omega 3 every day, in addition to 1g of EPA/DHA. Healthy_Living/ Eating_and_Drinking/Fish/ Pages/default.aspx

17 Chia Seed Nutrition Chia Seed ~ Designed by Nature 20g Omega Omega 6 36g Dietary Fibre 20.4 Protein 7.6 un sat fat 9.5g Vitamins and Minerals Other Seed composition per 100g

18 Chia Meal and Chia Oil Chia Fibre and Protein Meal Chia Omega 3 Oil 100% 90% 80% Composition per 100g Chiatah Meal Omega 3 4.7g Carbohydrates 6.4 Vitamins and Minerals 9.5g Mono Unsaturated 9% Saturated 11% % per litre 70% 60% Protein 26.8g Omega 6 20% 50% 40% 30% 20% Dietry Fibre 47.4g Omega 3 60% 10% 0% Chia can be fractionated into functional ingredients, gluten free meal/flour and Omega 3 oil. Tests conducted by: Food Laboratories Australia Pty Ltd

19 Retail The Chia Company Brand

20

21

22 Chia is an Excellent Source of the Majority of Key Health and Wellness Attributes m

23 Retail - Canada

24 Retail USA

25 Nutritional Products 14 Nutritional bars on the market in USA

26 Wholefoods New York

27 Chia Granola

28 Chia Porridge

29 Chia In Tortilla Chips

30 Gluten Free Bread

31 Bread Innovation

32 Chia = Nutrition and Functional Benefits Nutritional + Functional Thickener Natural fibre + Plant based Omega 3 ALA + Protein + Antioxidants + Highly Viscous Gelatinous + Texture Ingredient provenance grown by Australian farmers that are passionate about bringing nutrition to the world

33 Chia Keeps Consumers Fuller for Longer Photo of a single seed after 20 hours hydration. The seed s separation from the glass demonstrates the envelope of gelled material surrounding the seed. Food Science Australia: Viscosity Analysis of Chia Flour

34 Market Segmentation Resellers Buy bulk Chia and on sell Processors Value add to Chia through retail packaging or processing into oil/meal flour Food Manufacturers Bread and bakery Cereal Dairy Meat Transactional Strategic Short term relationships order by order Negotiation on price Margin fragmentation Far away from the end customer No supply chain transparency Longer term profitability Supply contracts Flattened transparent supply chain Higher potential to deliver value Value in The Chia Company Brand

35 Passionate about bringing Chia to the World Expert Farmers, Knowledgeable, Passionate, Enthusiastic, Committed to Quality and the Environment

36

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