Innovation Spotlight:

Transcription

1 Innovation Spotlight: Sugar reduction in dairy a natural fit for stevia?.. PureCircle April 2017

2 Agenda Reducing sugar without compromising taste Presenting consumer perception and positioning sugar reduction on labels Formulating with stevia in dairy exploring taste and mouthfeel Formulating to optimise positive synergies for tasting Olivier Kutz, Sales Director EMEA Region, PureCircle Edna Nyangale, Application Scientist, PureCircle

3 PureCircle s unique supply chain control: from seedling to sweetener Plant Breeding & Agronomy Program Harvesting Extraction & Purification Applications Great products Ensuring quality through vertical integration TASTE CONSISTENCY SCALE CAPACITY TRACEABILITY TESTING 3

4 Introduction 4

5 Stevia is a plant native to South America Grows as a perennial small shrub, origin Paraguay, discovered by Dr. Bertoni 1887 Used as a sweet herb for hundreds of years, first used as a commercial sweetener 40 years ago in Japan Now grown in 5 continents as a sustainable and profitable crop. China still leads the world in stevia leaf production. Between 20 and 25 lat hours sunlight, temperatures between 15º / 30ºC (22º-25ºC optimal). Plant growth slows above 35 ºC Stevia is a member of the sunflower family. Seeds not very fertile (~5-15%), vegetative propagation is more commonly used Chinese farms typically harvest once or twice a year, Equatorial farms in Columbia and Kenya can achieve 3 to 5 harvests per year.

6 Stevia is a unique platform, bringing together the positive attributes of zero calorie, naturally sourced, sweet taste. Sugar Stevia Artificial NNS Natural origin Non- Caloric Full flavour From nature Social Less Calories A Healthier Option Everyday consumption Safe for entire family Source: PureCircle Insights Group

7 Germany: Impressions of Stevia are largely positive, and similar to those of other natural sweeteners Germany Sweetener Overall Impressions (among aware consumers) Positive Neutral Negative Don't Know Honey 81% 12% 4% 3% Brown Sugar 57% 26% 13% 4% Agave Nectar 57% 26% 6% 11% STEVIA 56% 23% 12% 9% Sugar 51% 21% 26% 2% Fruit Juice Concentrate 43% 33% 18% 6% Fructose 40% 33% 17% 10% Steviol Glycosides 37% 41% 14% 8% Sucralose 26% 36% 29% 9% Glucose 24% 40% 24% 12% Glucose-Fructose syrup 22% 37% 31% 10% Acesulfame Potassium or Acesulfame-K 19% 28% 49% 4% Saccharin 17% 35% 36% 12% Cyclamate 17% 31% 43% 10% Aspartame 15% 25% 53% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 7

8 It is stevia s natural origin that is appealing to EU consumers.. Top Two Box Natural Ingredient Impressions Among Aware Consumers Stevia 84% Sucralose Thaumatin Saccharin 26% 26% 25% Aspartame 13% Cyclamat Ace-K 6% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: PureCircle Insights Group EU

9 Stevia New-Product Launches Increase While Aspartame and Ace-K Launches Decrease, Indicating Sugar Substitutes in Food and Beverage is Shifting Near 25% of new products sweetened with a high intensity sweetener use stevia Stevia and Aspartame are now equally introduced in NPD in Europe Europe, High Intensity Sweetener as % of all HIS launches, Food & Beverage 73% 72% 69% 61% 60% 58% 58% 55% Acesulfame Potassium 52% 49% Aspartame 46% 42% 43% 43% 44% Sucralose 41% 38% 38% 38% Saccharins 32% 33% 33% Cyclamates 31% Stevia 24% 24% 22% 23% 23% 25% 24% 21% 19% 17% 18% 17% 15% 13% 13% 13% 12% 13% 12% 10% 9% 10% 0% 2% 2% Source: Mintel GNDP

10 Germany: High Intensity Sweetener launches Stevia has overtaken Aspartame in Germany Stevia is nearing 30% of launches, and is now 3 rd sweetener of choice Germany, High Intensity Sweetener as % of all HIS launches, Food & Beverage 60% 41% 40% 24% 22% 55% 55% 53% 48% 36% 36% 31% 27% 14% 14% 50% 52% 36% 34% 36% 27% 28% 25% 22% 22% 22% 19% 45% 44% 30% 23% 21% 19% Acesulfame Potassium Aspartame Sucralose Saccharins 45% 41% Cyclamates Stevia 32% 29% 27% 28% 26% 27% 23% 19% 17% 12% 0% 1% 3% Source: Mintel GNDP

11 Stevia Adoption Europe? 300 Stevia launches Dairy, Global

12 Dairy still in growth phase Danone Amo Mi Ser Yogurt Argentina Tata Industries Milko Flavored Milk Israel General MIlls Yoplait Source Greek Canada Danone Activia Fat Free Yogurt Canada Lala Foods Lala Greek Yogurts USA Arla Foods Arla Protein Low Fat Soft Cheese UK Stonyfield Farm Stonyfield OP Organic Protein Smoothie USA Dannon Oikos Triple Zero Greek Yogurt USA Nestlé Nestlé Yoghurt Griego Greek Yogurt Mexico Woolworth s Woolworth s Yoghurt South Africa 12 Mintel 2015

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14 Stevia Adoption further penetration After early adoption by major F&B manufacturers, penetration of big brands continues & in more diverse categories. BIG BRAND EXAMPLES CATEGORY INNOVATION 14

15 Traditional dairy segmentation 0% fat Low fat Full fat >> differentiator is in the fat content ; calories from sweet are not mentioned.

16 Total calorie count is a positioning option for Dairy Source: The Grocer, Jan 2015 >> differentiator is in the total calorie count ; sugar or fat content is not highlighted = clear upfront understanding of promise vs. delivery = no negative perception on reduced, = no consumer confusion on fat vs. sugar content (and sugar is not highlighted)

17 Back of pack labelling preference if you do one thing, do this! UK France Sweetener: Steviol glycosides (stevia leaf extract) 47.% Sweetener: Steviol glycosides (stevia leaf extract) 54% Sweetener: Steviol glycosides (stevia extract) 22.% Sweetener: Steviol glycosides (stevia extract) 31% Sweetener: E (960) 11.% Sweetener: Steviol glycosides (extract from stevia rebaudiana) 6% Sweetener: Steviol glycosides (extract from stevia rebaudiana) 10.% Sweetener: E (960) 5% Sweetener: Steviol glycosides 10.% Sweetener: Steviol glycosides 3% PureCircle Proprietary Survey, Total Respondents 1000, June 2015

18 The Technical Bit. 18

19 Major glycosides in the Stevia plant Steviol glycosides Sweetening power relative to sucrose R1 (C-19) R2 (C-13) Stevioside b -Glc b-glc-b-glc(2-1) Rebaudioside A b-glc Rebaudioside B a H Rebaudioside C b-glc Rebaudioside D b-glc-b-glc(2-1) b-glc-b-glc(2-1) - b-glc(3-1) b-glc-b-glc(2-1) -b-glc(3-1) b-glc-a-rha(2-1) - b-glc(3-1) b-glc-b-glc(2-1) - b-glc(3-1) Rebaudioside E b-glc-b-glc(2-1) b-glc-b-glc(2-1) Rebaudioside F Na b-glc b-glc-b-xyl(2-1) - b-glc(3-1) Rubusoside 110 b-glc b-glc Steviolmonoside Na H b -Glc Steviolbioside H b-glc-b-glc(2-1) Dulcoside A b-glc b-glc-a-rha(2-1)

20 Technical Challenges

21 Stevia Regulatory- (EU) No 1131/ Categories Limit (Steviol Eq) Restrictions 01.4 Flavoured fermented milk products 100 only energy-reduced products or with no added sugar 03. Edible ices 200 only energy-reduced products or with no added sugar Energy reduction = sugar and fat reduction Flavoured drinks 80 only energy-reduced products or with no added sugar Max 100ppm 30% Energy Reduction or NAS 21

22 There is complexity when formulating with stevia Multiple factors to consider including level of calorie/sugar reduction, matrix/application, and flavor specificity of stevia glycosides with different products playing a different role in most closely replicating desired sweetness perception.

23 Dairy Category Solution: Sigma-D Benefits of Sigma-D Clean sweetness profile, with reduced sweetness linger and licorice aftertaste that performs well in most dairy systems Demonstrates parity to sugar and preference to Reb A on key attributes. Dairy Applications Flavored Yogurt No Sugar Added Sigma-D is parity to sugar on key attributes and outperforms Reb A A Flavored Yogurt: Full Sugar vs. No Sugar Added Reb A vs. No Sugar Added Sigma-D B B Full Sugar (Control- 6.5g) Reb A97 Sigma-D A B A Great for mid calorie sugar reductions. Synergy with fructose, sugar and several polyols. Heat & Process stable * A * * B * * C * Sweet Intensity Licorice Bitterness Bitter Aftertaste Overall Liking *= 80% CI, lowercase= 90% CI, uppercase = 95% CI

24 Aftertaste Our Tools Application and Technical Services Application development drives application specific advances Predictive Modeling/ Experimental Design Determine optimal glycoside combinations to optimize formulas Temporal Profiles Glycoside performance over time Time 24

25 We can help with: Marketing, positioning Formulation, taste and mouthfeel We work better in partnership 25

26 Taste is Everything Samples Available During the Break