Great tasting lactose-free dairy, with reduced sugar and improved texture

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1 Great tasting lactose-free dairy, with reduced sugar and improved texture Katarzyna McCall Global Marketing Manager Dairy Health & Nutrition Barcelona,

2 Who are we?

We are A global supplier of bioscience based ingredients to the food, health, pharmaceutical and agricultural industries We mainly produce cultures and dairy

3 We are A global supplier of bioscience based ingredients to the food, health, pharmaceutical and agricultural industries We mainly produce cultures and dairy enzymes, probiotics and natural colors Our leading market positions stem from innovative products, long-term customer relationships and intellectual property 3

4 x x Chr. Hansen globally Customers in approx. 140 countries Production facilities on five continents 3000 employees Subsidiaries and representative offices in more than 30 countries 4

5 Our strategy: Nature s no. 1 Passionate about improving food and health Meet demand for tasty, healthy, natural, safe and affordable food and nutrition.through natural means 6

6 Food Cultures & Enzymes We develop and produce cultures, enzymes and probiotics Our ingredients determine taste, appearance, nutritional value and health benefits We are the global market leader in dairy ingredients 7

7 How do we see the food trends?

8 Food trends are evolving

9 Easy to get confused what is healthy Effect estimates reported in the literature by food or ingredient Protects against cancer Causes cancer Tomatoes Egg Corn Coffee Milk Relative risk

10 The future value equation Tasty Safe Real food Healthy $ Authentic Convenient

11 Key insight 3: The dilemmas - Affordable solutions to solve the dilemmas will be key Tasty vs Healthy Convenient vs Healthy Tasty vs Convenient Tasty vs Safe Convenient vs Safe Authentic vs Safe 12

12 Old Food World New Food World Processed is acceptable Fresh or safe Hidden and canned Snacks are treats Processed is undesirable Fresh and safe Visible Snacks are healthy

13 Lactose-free category

14 Intolerance in over 50% of global population! Lactose maldigestion Source: Euromonitor International and New Nutrition Business, 14 Trends in Dairy Nutrition

15 Lactose free cow milk and alternative milk is growing Source: Euromonitor International

nutritional value and unprocessed quality

binging old fashioned milk back in style

16 But alternatives do not create a clean label Cows milk beats alternatives on nutritional value and unprocessed quality Consumers are looking for unprocessed food binging old fashioned milk back in style Copyright: GotMilk.com Source: GotMilk.com

Current solutions for lactose free dairy may compromise on a clean authentic taste 1 2 3 Taste is a major issue

17 Current solutions for lactose free dairy may compromise on a clean authentic taste Taste is a major issue (39% have issues with taste) Perceived value it s seen as expensive Unsure about the benefits Source: USDairy.com

18 Solving the flavor challenge in lactose free milk products Chr. Hansen introduces the new NOLA Fit enzyme solution that easily removes lactose from milk and secures the authentic taste of dairy products

19 High purity of the NOLA Fit lactase means low side activities therefore premium flavor profile of milk Premium flavor* Sweetness 60 Purity table - typical performance Protease Specified <10 U/ml Astringent Cooked Arylsulfatase BDL** <0.03 A410/ml Glucoamylase BDL <4 U/ml Lipase BDL <0.07 LFU/ml Cellulase BDL <3 U/ml Invertase BDL <0.01 U/ml Off-Flavor Bitter UHT plain UHT with standard lactase UHT with NOLA Fit * Even after 60 days when overdosed 5 times ** BDL=below the detection limit

20 Lactose-free yogurt

21 Authentic tasting dairy products free from lactose % Relative activity 100 NOLA FIT Yeast lactase 80 Sweetness Purity table - typical performance Protease Specified <10 U/ml Glucoamylase BDL* <4 U/ml Astringent Cooked ,5 3 3,5 4 4,5 5 5,5 6 6,5 7 7,5 8 ph Arylsulfatase BDL <0.03 A410/ml -10 Lipase BDL <0.07 LFU/ml Cellulase BDL <3 U/ml Invertase BDL <0.01 U/ml 0 High activity across a broad ph range perfect for fermented milk Off-Flavor Bitter High purity secures the premium flavor profile UHT plain UHT with standard lactase UHT with NOLA Fit High sweetness formation if applied with the complementary culture** * BDL=below the detection limit ** Combinations with some cultures will work better than with the others.

22 Multiple interactions between the culture and NOLA Fit What needs to be considered? What can be affected? Culture Milk base Initial %lactose Temp. Dose %protein Addition of WPC* %fat (?) Dose required Time of fermentation/ acidification activity Post acidification Texture: viscosity and mouthfeel *WPC whey protein powder

Multiple interactions between the culture and NOLA Fit What needs to be considered? What can be affected? Culture Milk base Initial %lactose Temp.

23 Multiple interactions between the culture and NOLA Fit What needs to be considered? What can be affected? Culture Milk base Initial %lactose Temp. Dose %protein Addition of WPC* %fat (?) Dose required Time of fermentation/ acidification activity Post acidification Texture: viscosity and mouthfeel *WPC whey protein powder

24 and also low in sugar?

25 Yogurt has a firm position in peoples' lives Perceived as an essential and healthy category around the globe Note: Copyright: Chobani Source: Chr. Hansen Study - Red Associates 2015

26 Health halo of yogurt is under pressure Most yogurts have high added sugar Sucrose is unhealthy WHO Strong recommendation reduce free sugars <10% of energy intake Type of products, in which sugar content, makes the US consumers concerned Base: 2,000 internet users aged 18+ Juice Carbonated soft drinks Ice cream Yogurt 35% 33% 41% 40% Cookies 32% Source: Guideline: Sugars intake for adults and children. Geneva: WHO Source: Mintel, Sugar trends May 2015

27 How to navigate the sugar jungle? Increasing sugar scare That sugar - film

28 Expand the use of lactase sugar reduction Lactase allows to reduce added sugar while maintaining delicious taste of dairy products

New natural strategy for reducing sugar in yogurt - without losing sweetness Milk contains the natural sugar lactose Lactose is not as sweet as other sugar molecules.

29 New natural strategy for reducing sugar in yogurt - without losing sweetness Milk contains the natural sugar lactose Lactose is not as sweet as other sugar molecules... Fructose Sucrose Glucose Galactose Lactose Sweetness index Source: NOLA Fit enzyme breaks lactose down to glucose and galactose... Lactose Lactase Glucose Galactose Yogurt with NOLA Fit has a higher sweetness Composition of 100g yogurt made with the NOLA Fit complementary culture NOLA Fit +6.5% sugar Reference +8% sugar % Protein % Fat % Carbs.: Kcal

30 NOLA Fit can improve texture with some cultures, e.g. Acidifix 1.0 Shear stress (Pa) Max. F (g) Viscosity (mpa*s) Shear stress at 300 (s -1 ) Viscosity at 300 (s -1 ) Acidifix 1.0 Acidifix BLU/L Acidifix 1.0 Acidifix+1200 BLU/L No added sugar Added sugar 160 No added sugar Added sugar Gel Firmness Acidifix 1.0 Acidifix BLU/L No added sugar Added sugar Synergistic effect with some cultures Improved shear stress & viscosity in the samples with NOLA Fit compared to reference with no enzyme added Slightly improved gel firmness for the samples with NOLA Fit

31 now we can measure lactose in minutes

32 LactoSens Rapid Test Fast and quantitative test for lactose in low lactose and lactose free milk and dairy products --

LactoSens principle: Lactose-specific enzyme generates a

immobilized enzyme and liquid with a mix of sugars.

33 LactoSens principle: Lactose-specific enzyme generates a current depending on lactose amount The sensor with immobilized enzyme and liquid with a mix of sugars. ONLY lactose binds to the immobilized enzyme. Glucose and galactose do not interfere. The enzyme oxidizes lactose and generates electrons that are picked up and measured by the biochip and the reader

34 LactoSens testing may increase production throughput and secure brand value FAST o Instant results less than 3 minutes complete assay time Fast product release & delivery Optimization of production capacity ACCURATE o Very low quantitation limit % o High accuracy % recovery o Excellent precision 5% standard deviation In house quality control Strong and protected brand SIMPLE o Easy sample preparation simple dilution Very little training required o Simple handling

35 Thank you for your attention Visit us for tasting C23

African Dairy Conference

African Dairy Conference August August 23, 23, 2018 2018 Tasty Safe Healthy Real food Authentic Convenient -- Douglas Marriott Technical Sales Manager Chr. Hansen Ltd We are A global supplier of bioscience