OUR GOODNESS PROMISE

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2 NOVEMBER 2016

3 OUR GOODNESS PROMISE To live the best life possible, everyone needs to eat and drink well. Add a little physical activity and you ve got the perfect blend! Lion Dairy & Drinks believes that our products can play an important part of a healthy, balanced diet, and have set out to make sure what we offer helps people to live better lives. Our Goodness Promise (formerly known as The Goodness Project) aims to celebrate the inherent goodness of our products, as well as bringing better balance to the Lion portfolio helping people to enjoy more natural goodness every day, across Australia and New Zealand. This guidebook outlines our beliefs and commitments to the way we develop, communicate and range our dairy, juice and adjacent non-alcohol drinks, taking an honest look at where our products are at and setting some exciting goals for the future!

4 GUIDING PRINCIPLES OUR GOODNESS PROMISE

5 Use scientifically-based nutrient criteria to define the Lion dairy, juice and adjacent non-alcohol drinks portfolio. Promote and advertise responsibly, with particular sensitivity to children and adolescents. Maintain the nutrient integrity of our dairy and juice products. Optimise the nutrient composition of our products, without compromising taste and safety. Provide choice to deliver to consumers needs and desires. Provide responsible pack and serving sizes to meet different eating and drinking occasions, and reduce the chance of excess energy intake. Ensure our nutrition and health messages are accurate and based on the latest body of scientific evidence. Invest in research into technology, innovation and consumers needs to optimise product development and communication. Invest in consumer education to help promote responsible product choice, as part of a balanced diet and lifestyle. Provide simple, clear and transparent product information to help consumers make more informed choices. Provide a workplace that encourages balanced choices and an active lifestyle.

6 At Lion we believe in everyone having access to more NATURAL GOODNESS EVERYDAY, because... One in 10 Australian and New Zealand children are not having breakfast, every morning. Over 80% of Australians, as well as 40% of adults and 25% of children in New Zealand, are not getting their recommended daily serves of fruit, from whole fruit* alone. 90% of Australian children and adults don t get their recommended daily intake of dairy and more than 60% of New Zealanders don t get enough calcium. Over 60% of adults and 25% of children in Australia and New Zealand are overweight or obese. 35% of energy intake for Australians is coming from discretionary or treat foods. * excludes fruit juice and dried fruit

7 That dairy and juice is a great way to start the day. A small glass of fruit juice (with no added sugar) can help Australian children and adults achieve their recommended daily intake of fruit. That all afternoon snacks should be a protein-packed milk or yoghurt, or a low GI juice not confectionery or soft drink. In a world where the only drinks at the checkout are milk, water or juice (with no added sugar). The best post workout protein boost you can get is plain or flavoured milk. The best food and drink come from the farm or orchard.

8 AT LION, WE COMMIT TO Offering choices that are better for you : Our first choice will be natural colours, flavours or sweeteners We will reduce added sugar and sodium (salt), as well as fat across our portfolio, and never add artificial trans-fats as an ingredient We will not use any artificial colours, flavours or sweeteners; added fructose; or coffee, caffeine and other energy ingredients in our children s products. Making it easy for all to make good choices: By putting healthier products at the front of store where they are easy to find By making sure that our nutrition and product information is easy to see and understand, and our products come in appropriate pack and serving sizes. Making Australian and New Zealand Made our first choice, which means: We will aim to deliver Australian and New Zealand Made fresh dairy products, from dairy farmers in Australia and New Zealand We will aim to source our fruit and vegetable juice from Australian growers.

9 We re proud to say We offer a balanced portfolio of products that make a significant contribution to the nutrition of Australian and New Zealanders Our milk, yoghurt and cheeses provide the goodness of calcium Our fruit juices (with no added sugar) are a good source of vitamin C.

10 OUR GOODNESS PROMISE NUTRIENT CRITERIA... Lion has produced specific nutrient criteria to guide the development of our products and communication, based upon local and international scientific and government standards, and the science for healthy eating. The nutrient criteria have also been independently reviewed and approved by scientific experts at the CSIRO and Deakin University. The nutrient criteria have been designed to optimise the nutrient integrity of our products, without compromising taste and safety. THE THREE CATEGORIES ARE: 1. BEST FOR YOU These products can be consumed every day because they have lower levels of fat, sugar, sodium and energy; the goodness of dairy or fruit; and may contain a beneficial ingredient like plant sterols.

11 2. GOOD FOR YOU These products can be enjoyed every day in balance, because they contain energy, fat, sugar and sodium at levels higher than best for you products. 3. TREAT FOR YOU These products can be enjoyed every day in small amounts, keeping within a balanced diet, because they have higher levels of fat, sugar or sodium.

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13 PORTFOLIO AUDIT We ve audited the Lion Dairy & Drinks portfolio (dairy, juice and adjacent non-alcohol drinks) to learn where our products sit. Audit results in 2014 * : 26% BEST FOR YOU 30% TREAT FOR YOU 44% GOOD FOR YOU Our Goals by 2019: 30% BEST FOR YOU 50% GOOD FOR YOU 20% TREAT FOR YOU *Based on Lion Dairy and Drinks sales volume (2014). Audit excludes cream as we are limited by the definition in the Food Standards Code, which states cream must contain a minimum of 35% fat. Lion will continue to monitor its cream portfolio. Please refer to the Executive Summary for Lion s progress to date at

14 Lion Dairy & Drinks TARGETS and what we are doing to improve

15 Life is better when it is balanced, so we have set ourselves some targets to help us provide a portfolio to meet the health and nutrition needs of our consumers. Our intent is to give people options to help them to balance their diet, whilst still having a little fun and indulgent goodness!

16 Lion Dairy & Drinks TARGETS 80% of our product portfolio will meet the BEST and GOOD FOR YOU criteria by REDUCE ADDED SUGAR AND SODIUM, AS WELL AS FAT Reduce added SUGAR across the portfolio by 10% by 2019 Reduce added SODIUM in our cheese by 5% by 2019 Reduce FAT in our treat category by 10% by 2019 INNOVATE FOR BALANCE 80% of innovation projects will be in the best and good for you categories. MAKE SMALLER PACK SIZES AVAILABLE ACROSS THE BOARD DAIRY AND JUICE WILL REMAIN OUR NUTRIENT POWERHOUSES All of our best for you dairy products will remain a source of calcium All of our best for you juices will remain a good source of vitamin C. Smaller pack formats will be available in all categories by 2019.

17 LOOKING AFTER OUR CHILDREN All of our children s products: Will meet the best and good for you criteria by 2019 Will be free from artificial colours and flavours by 2018 Will be free of added fructose by 2018 Will remain free of artificial sweeteners Will not contain any coffee, caffeine or other energy ingredients. CAFFEINE SHOULD BE APPROPRIATE FOR THE AUDIENCE We will not use coffee, caffeine or other energy ingredients in products for primary school children We will not recommend or promote coffee products to primary school children We will not recommend or promote coffee products containing more than 80mg of caffeine per serving to high schools We will voluntarily label the caffeine content of all coffee products by 2018 We will not make flavoured dairy beverages containing more than 32mg of caffeine per 100mL or iced-coffee specific branded beverages with more than 200mg caffeine per serving, by NO ADDED ARTIFICIAL TRANS FATS We will continue to not add artificial trans-fats as an ingredient. EASIER TO UNDERSTAND NUTRITION AND PRODUCT INFORMATION Nutrition and product information will be enhanced by 2019, including the identification of natural versus added ingredients 100% of our retail portfolio will display the Health Star Rating front of pack labelling system by 2018.

18 POSITION STATEMENTS

19 The following pages outline our position on: THE NATURAL GOODNESS OF DAIRY AND FRUIT JUICE SUGARS SWEETENERS FAT AND ARTIFICIAL TRANS-FATS SALT COFFEE, CAFFEINE, OTHER ENERGY INGREDIENTS AND ENERGY DRINKS COLOURS & FLAVOURS PACK AND SERVING SIZE CONSUMER FRIENDLY PRODUCT INFORMATION CHILDREN S NUTRITION For further detail please contact nutrition@lionco.com

20 NATURAL GOODNESS We commit to providing a balanced portfolio of products that make a significant contribution to the nutrient intake of Australian and New Zealanders. Current research shows: More than 80% of Australians, as well as 40% of adults and 25% of children in New Zealand are not getting their recommended daily serves of fruit, from whole fruit* alone. 90% of Australian adults and children don t get their recommended daily intake of dairy, and more than 60% of New Zealanders don t get enough calcium. We ll ensure that dairy and fruit juice (with no added sugar) remain nutrient powerhouses to help Australians and New Zealanders achieve their dietary recommendations. We are committed to promoting the nutritious role dairy and fruit juice can play in a healthy balanced diet. We will maintain and enhance the nutrient density of our products, with our best for you dairy products being at least a source of calcium, and our best for you fruit juice products being at least a good source of vitamin C. We will label our products appropriately, and invest in education, to enable consumers to make informed choices about the nutrient quality of our products as part of a balanced diet and lifestyle. * excludes fruit juice and dried fruit

21 NATURAL GOODNESS... UNDERSTANDING DAIRY AND JUICE GOODNESS The evidence suggests the health of Australians and New Zealanders could benefit from including dairy and fruit juice (with no added sugar), as part of a balanced diet, as well as decreasing the intake of discretionary (or treat ) foods. Dairy The most recent National Nutrition Survey (2011/2012) found that Australians consume on average only 1.5 serves of dairy products a day well below the recommended intake of around 3 serves a day (depending on the age and gender of the consumer). There is also evidence that many people are not meeting their recommended daily intake of calcium. In Australia, 73% of females and 51% of males (aged 2 years), and in New Zealand more than 60% of children and adults, do not meet their recommended intakes of calcium each day. Dairy provides a unique package of more than 8 essential nutrients, including high quality protein that contains all of the essential amino acids needed by the body. Milk in particular, is the number one source of calcium in the Australian and New Zealand diet. It is also the largest source of vitamin B12, riboflavin (vitamin B2), phosphorus and potassium in the Australian diet, as well as providing iodine, magnesium, zinc, and niacin (vitamin B3). The Australian Dietary Guidelines state that consumption of milk, cheese and yoghurt is associated with reduced risk of heart disease, high blood pressure, type 2 diabetes, metabolic syndrome and colorectal cancer. Dairy foods are also associated with healthy weight management and can play a positive role in sport and exercise performance. Fruit juice (with no added sugar) The Australian Dietary Guidelines reference a 125mL glass of fruit juice (with no added sugar) can count towards an occasional serve of fruit. The New Zealand Food and Nutrition Guidelines for Children and Young People say a 250mL glass of fruit juice (with no added sugar) can contribute to one fruit serve. On average, we need two serves of fruit a day. The 2015 CSIRO re-analysis of the 2011/12 National Nutrition Survey found that more than 80% of Australians are not getting their recommended serves of fruit from whole fruit alone*. More than 40% of adults and 25% of children in New Zealand are also not getting their recommended daily serves of fruit, from whole fruit alone*. When fruit juice is counted towards a serve of fruit, the percentage of Australians reaching their daily fruit serve target doubles (compared to fruit alone), and in some instances increase by up to five times. The CSIRO re-analysis also found that consumers of fruit juice (with no added sugar) have a better diet quality than non-consumers. Fruit juice (with no added sugar) provides valuable nutrients, contributing about 60% of daily vitamin C intakes, and significant amounts of folate (16%), and potassium (14%), to the diet of juice consumers. Fruit juice (with no added sugar) contributed only 1% of dietary energy and 3.5% sugar, among all Australians. In comparison, discretionary (treat) foods contribute 35% to total energy. * excludes fruit juice and dried fruit COMMITMENTS --We will maintain the nutrient density of dairy and fruit juice (with no added sugar), so they continue to make a significant contribution to the diet of Australians and New Zealanders. --We will communicate with consumers about the nutrient benefits of dairy and fruit juice (with no added sugar), as part of a balanced diet.

22 SUGARS We commit to providing a balanced portfolio of products that minimises added sugars, while maintaining their nutrient integrity. Our commitment to limit added sugars is based on advice from leading health authorities, such as the World Health Organisation, the Australian Dietary Guidelines and the New Zealand Food and Nutrition Guidelines. The current scientific evidence supports the inclusion of the natural sugars found in milk (lactose) and fruit (fructose, glucose and sucrose), as part of a healthy balanced diet. The evidence for the harmful effects of fructose, particularly when found naturally in whole foods, is not scientifically substantiated we will continue to monitor and evaluate the science. We re committed to offering products naturally sweetened with sugars or lower sugar alternatives, and will not add fructose to our children s products. We will educate consumers on the role of sugar as part of a balanced diet, through our product labels and education resources.

23 SUGARS... UNDERSTANDING SUGARS Sugars are increasingly criticised in the media, by public health organisations and health professionals, most commonly for providing excess calories in non-nutrient dense foods. Sugars are a form of carbohydrate, providing energy for your muscles, brain and nervous system to function. Sugars can be naturally present in some foods or may be added to others. Milk and fruit both contain sugars which are naturally present, such as lactose (milk) and fructose (fruit). Gram for gram, all sugars provide the same amount of energy (kilojoules/calories), but the effect they have on blood glucose (sugar) levels in the body varies and can be measured using the glycaemic index (GI). For example, low GI sugars such as lactose and fructose provide a gradual release of sugar into the blood, whereas a high GI sugar like glucose provides a rapid, high blood sugar response.

24 SUGARS... Added sugars The World Health Organisation (WHO), the Australian Dietary Guidelines and the New Zealand Food and Nutrition Guidelines all recommend limiting added sugars. The WHO specifically recommends less than 10% of an adult or child s total daily energy intake should come from free sugars sugars added to foods, plus sugars naturally present in honey and fruit juices. Their ultimate goal is for free sugars to be below 5% of total energy intake. In Australia and New Zealand, added sugars are most commonly consumed in the form of sucrose (or table sugar ) which has a medium GI=65. Australian adults and children consume on average 60g of free sugars per day (10.9% of energy intake) with 52 grams from added sugars (9.5% of energy intake). Adults in New Zealand are similar, with 9-10% of their energy intake from added sugars. Fructose Evidence suggesting that fructose may harm health mainly comes from the United States, where high fructose corn syrup is the main sugar used in sugar-sweetened beverages and processed foods. Fructose is metabolised differently in the body to other sugars. While other sugars are metabolised by all the cells in the body, fructose is broken down mainly in the liver. Because of this it is has been proposed that instead of being used as an energy source all fructose is immediately converted to fat, triggering insulin resistance. Insulin resistance is believed to be one of the risk factors for type 2 diabetes, obesity, cardiovascular disease and some cancers. However, the majority of this evidence is based on studies with animals or humans consuming very high amounts of added fructose up to 60% of energy in animals, or over 100g a day in humans. Roughly a third to a half of all fructose consumed is converted to glucose and used by the body as energy, and only 1 3% of ingested fructose is converted to blood fats in humans.

25 SUGARS... Small to moderate amounts (<50g per day) of added fructose may assist with the management of body weight, blood glucose and blood pressure. However, larger amounts ( 50g per day) of added fructose may raise blood fats, and very large amounts ( 100g per day) of added fructose will contribute to weight gain due to the extra kilojoules. In Australia, people rarely consume pure fructose. Total fructose consumption has been in decline since the 1970s and is currently about 10% of energy (~56g for men and 45g for women, each day). The added fructose mainly comes from sucrose or table sugar (which is 50% glucose and 50% fructose). In New Zealand, total fructose consumption is about 4% of energy (~23g for men and 19g for women, each day). It is important to note, because fructose from whole fruit is accompanied by other sugars, as well as fibre and a range of other nutrients (including vitamin C and other antioxidants), it is thought to behave differently in the body to added fructose. Note: the fructose in fruit juice is typically not accompanied by dietary fibre but fruit juice contains other beneficial nutrients. Sugar-sweetened beverages There is evidence that sugar-sweetened beverages, such as soft drinks, increase the risk of weight gain in children and adults, as was concluded by the evidence reviews for the Australian Dietary Guidelines and WHO. COMMITMENTS --We will reduce added sugars across our product portfolio by 10%, by We will not add fructose to our children s products, by We will educate consumers on the natural sugars found in our fruit juice and dairy products, as part of a balanced diet.

26 SWEETENERS We commit to providing a balanced portfolio of products to meet people s different health and wellness needs. We will invest in research and innovation to provide natural sugar alternatives as the first choice, and will not use artificial sweeteners in our products for children under 12. Current scientific evidence shows that permitted sweeteners are safe. Our recommendations however, reflect consumer and public health concerns we will continue to monitor and evaluate the science.

27 SWEETENERS... UNDERSTANDING SWEETENERS Food Standards Australia New Zealand (FSANZ) has reviewed a wide range of sweeteners for their safety and application, and approved them for use in Australia and New Zealand. Health benefits There is insufficient scientific evidence to determine if sweeteners benefit body weight or blood sugar levels. However, we do know if sweeteners replace added sugar, it can reduce the overall amount of energy in a product. This can assist weight loss and maintenance, as long as consumers do not compensate for the amount of energy reduced. A number of sweeteners are also associated with a decreased risk in dental cavities or tooth erosion. Sa fety Recent reviews by health bodies, including FSANZ, the European Food Safety Authority, and the US Food and Drug Administration, found approved natural and artificial sweeteners safe at their respective Acceptable Daily Intake levels. Sugar alcohol sweeteners (e.g. xylitol, sorbitol), are recommended at the minimum levels only, due to their gastrointestinal side effects. More information on the levels that are permitted in Australia and New Zealand can be found in the Australian New Zealand Food Standards Code. Limited scientific evidence is available on children and sweeteners. Most Australian school canteen criteria do not allow artificially sweetened products. Likewise, a number of public health bodies do not recommend artificial sweeteners due to the lack of evidence on the safety for children. There s also concern that artificially sweetened beverages may replace more nutritious drinks, like juice and milk. These conflicting public health messages are causing consumers to question the safety of artificial sweeteners. Natural alternatives There are a number of natural sweeteners available on the market. It is important however, that these ingredients are carefully considered because natural is not legally defined in Australia or New Zealand. COMMITMENTS --We will continue to manufacture products for children under 12 years that are free of artificial sweeteners.

28 FAT AND ARTIFICIAL TRANS-FATS We commit to providing a balanced portfolio of products with fat levels appropriate for consumers of different life-stages. Our fat and trans-fats targets are based on advice from leading international and national authorities, such as the World Health Organisation. They aim to help people achieve no more than 35% of their total daily energy from fat and no more than 1% from trans-fats. We will monitor the science on saturated fat in dairy, as a growing body of evidence suggests that not all types of saturated fats have a negative health effect and that the saturated fat in dairy may even have a beneficial effect. We will also not add artificial trans-fats as an ingredient to any of our products.

29 FATS... UNDERSTANDING FATS Total fats Fat is an important part of a healthy diet, providing essential fatty acids and fat soluble vitamins. Dietary Guidelines from the World Health Organisation (WHO), Australian National Health and Medical Research Council (NHMRC) and New Zealand Health Ministry (NZHM) recommend restricting total fat intake to between 20-35% of a person s daily energy intake. However, there appears to be a shift in focus from restricting total fat, to the importance of the type of fat. For example, emerging evidence is showing a neutral or beneficial association between dairy fat and chronic disease (except cancer, where the evidence is varied). Saturated fats Due to the assumption that all saturated fats are associated with cardiovascular disease, the WHO, NHMRC and NZHM recommend an intake of less than 10% of a person s daily energy intake. The Australian and New Zealand Dietary Guidelines also recommend people from the age of two years, choose mostly reduced-fat dairy. A growing body of scientific evidence, however, shows no link (or possibly a beneficial link) between the fat in dairy and the overall risk of cardiovascular disease. Conversely, artificial trans-fats are produced during food processing and are not naturally present in foods. The WHO and the Australian Heart Foundation therefore recommend avoiding their use. A number of regions (including Denmark and some states within America) are also taking regulatory action to remove artificial trans-fats from their food supply. COMMITMENTS --We will reduce total fat in our treat products by 10%, by We will continue to not add artificial trans-fats as an ingredient to our products. Our position on fats will not address saturated fat individually as the proportion of saturated fat to total fat in dairy remains constant (i.e. reducing total fat will reduce saturated fat). Tra ns -fats Due to an increased risk of cardiovascular disease, public health bodies recommend limiting daily intake of trans-fats to less than 1% of a person s daily energy intake or as low as possible. Currently, mean intake of trans-fats in Australia and New Zealand are % of total daily energy intake. Trace amounts of ruminant (meaning, sheep or cow) trans-fats are found naturally in dairy. The WHO acknowledges that ruminant trans-fats can t be removed entirely from the diet, but due to the low intake in most populations, they aren t considered a significant risk factor for cardiovascular disease. This is supported by a 2014 scientific literature review (meta-analysis) that found there was no relationship between low intakes of ruminant trans-fats and cardiovascular risk factors.

30 SALT We commit to providing a balanced portfolio of products with minimal added sodium (salt) content, while maintaining the nutrient integrity and safety of the product. Our commitment to limiting added sodium is based on advice from leading health authorities, such as the World Health Organisation, the Australian Dietary Guidelines and the New Zealand Food and Nutrition Guidelines. We will offer lower sodium cheeses, and will take into consideration any sodium recommendations produced by the Healthy Food Partnership, relevant to our cheese categories. We will explore ways to reduce sodium, while maintaining the safety and taste of our products.

31 SALT... UNDERSTANDING SODIUM (SALT) Salt is a mineral found naturally in many foods and beverages and is made up of two essential elements, sodium and chloride. Salt can also be added to foods to enhance flavour and act as a preservative. Around 75% of the sodium in our diet comes from processed foods. The body needs sodium for a variety of essential functions, such as maintaining water balance, blood pressure, and muscle and nerve function. However, almost one in three adults in Australia and one in six adults in New Zealand have high blood pressure, and there s increasing concern about the effect of a high dietary salt intake on blood pressure and cardiovascular risk. There s also concern that children are consuming the same amount of sodium as adults. Adults in Australia and New Zealand should consume no more than 2,300mg of sodium per day. This equates to 1½ teaspoons, or 6 grams of salt. The World Health Organisation suggests that to prevent chronic disease adults should consume less than 1,600mg of sodium, or 1 teaspoon (4g) of salt, per day. In Australia, the Food Health Dialogue established sodium reformulation targets for a number of food and beverage products, including cheese. In 2013, Lion supported these targets for our relevant cheese categories. This work is now being managed within the Government and Industry Healthy Food Partnership, and we will have regard for any relevant sodium recommendations produced. COMMITMENTS --We will reduce added sodium across our cheese by 5%, by 2019 without affecting taste or safety.

32 COFFEE, CAFFEINE, OTHER ENERGY INGREDIENTS AND ENERGY DRINKS We commit to providing a balanced portfolio of products that enables people to consume coffee, caffeine and other energy ingredients responsibly. Our commitments are based on scientific opinion from local and international authorities, and we will continue to monitor and evaluate the science. We will abide by the school canteen criteria for coffee, caffeine and other energy ingredients, in addition to not using these ingredients in products for children under the age of 12. We will commit to not producing dairy beverages with more than 32mg of caffeine per 100mL, or iced-coffee specific branded beverages with more than 200mg caffeine per serving. We will also voluntarily label the caffeine content of all coffee products. We will only use energy ingredients in appropriate adult products. We will not manufacture, sell and/or distribute empty calorie energy drinks.

33 CAFFEINE... UNDERSTANDING COFFEE, CAFFEINE, ENERGY INGREDIENTS AND ENERGY DRINKS Caffeine occurs naturally in foods such as coffee, tea, cocoa and guarana, and can also be added to food and beverages, such as cola-type soft drinks and energy drinks. The main dietary sources of caffeine for adults in Australia and New Zealand are tea and coffee. For Australian children the main sources are chocolate (2-3yrs), soft drinks (4-13yrs) and coffee (14-18yrs) and for children in New Zealand the major contributors are tea, soft drink, biscuits and coffee. Caffeine has a long history as a safe mild stimulant. Acting on the brain and nervous system, it increases the speed of messages to and from the brain, making the user feel more alert and awake. Currently, there s no upper limit for caffeine intake in Australia or New Zealand. Individual sensitivity to caffeine varies. In 2015, the European Food Safety Authority Scientific Opinion on the Safety of Caffeine, provided advice on a safe daily intake level for caffeine from all sources for the general population and any specific subgroups: --A single dose of up to 200mg caffeine is safe for adults, and unlikely to cause changes in blood pressure, hydration, exercise or alcohol intoxication --A habitual daily caffeine intake of up to 400mg is also considered safe for adults except for pregnant women. --Habitual, daily caffeine intakes of up to 200mg per day by pregnant women are considered safe. The same is true for lactating women. --For children and adolescents there is insufficient evidence with the authors concluding that 3mg/kg body weight/ day is safe for this age group. Community concerns about caffeinated and energy products, in particular their effects on children, continues. In Australia, there is clear regulation around the use of caffeine in energy drinks and cola-type beverages. Energy drinks may contain a maximum of 32mg of caffeine per 100mL, and cola beverages a maximum of 14.5mg of caffeine per 100mL. Clear labelling requirements are associated with both. There are however, no specific regulations in the Food Standards Code in regards to the caffeine content of coffeecontaining dairy beverages for adults. COMMITMENTS --We will not use coffee, caffeine or other energy ingredients in children s specific products (under the age of 12 years). --We will abide by the national and state canteen criteria for coffee, coffee style products and energy ingredients/drinks. A) If not specified, we won t recommend or promote coffee products to children under the age of 12 (primary school). B) If not specified, we won t recommend or promote coffee products with more than 80mg caffeine per serving to adolescents years old (high school). --We will voluntarily label the caffeine content of all coffee products by 2018, with additional labelling requirements for higher caffeine levels. --We won t produce dairy beverages containing more than 32mg of caffeine per 100mL (equivalent concentration to a cup of instant coffee) or iced-coffee specific branded beverages with more than 200mg caffeine per serving by We will follow the Australian Food and Grocery Councils Guiding Principles for Serving Size refer to the Pack and Serving Size Position for further detail mg/single serving is safe when consumed less than two hours prior to physical exercise.

34 COLOURS & FLAVOURS We commit to providing a balanced portfolio of products to meet people s health and wellness needs. Current scientific evidence supports the safety of permitted colours and flavours. Our commitments, however, reflect current consumer and public health concerns we will continue to monitor and evaluate the science. We will invest in research and innovation to provide natural alternatives as the first choice. We will not use artificial colours or flavours in our products for children under the age of 12.

35 COLOURS & FLAVOURS... UNDERSTANDING COLOURS & FLAVOURS Food Standards Australia New Zealand (FSANZ) has reviewed a number of colours and flavours for their safety and application, and approved them for use in Australia and New Zealand. Colours Artificial food colours (AFCs), in particular, are under increased scrutiny for their effect on children s behaviour. In 2007, a contentious study linked six AFCs (commonly referred to as the Southampton Six) with hyperactivity in children. This study was reviewed by a number of government bodies, including FSANZ, the New Zealand Ministry of Primary Industries, the US Food and Drug Administration and the European Food Safety Authority. They all concluded that due to the study s limitations, its results were not relevant to the general population. This is consistent with a 2012 scientific literature review (meta-analysis), which reported the evidence on AFCs is weak but too substantial to dismiss. It is also asserted that AFCs as part of a balanced diet don t pose a safety concern for children but some additives can cause behavioural changes and, if so, children should avoid them. There s limited studies on the safety of colours in adults. Public health and government bodies state that for most adults, food containing AFCs are safe as part of a healthy, varied diet. However, there are some extremely rare cases where sensitive individuals may react to AFCs and should avoid eating them. Flavours There are minimal studies on flavours and their safety in both children and adults. Consumer & public health concern Consumers are concerned about food additives and as a result are looking for products that are natural or with clean labels. Food industry is responding to these concerns, with a number of manufacturers committing to the removal of artificial colours and flavours from their portfolio. Major retailers are also moving towards ranging products with no artificial flavours and colours. Public health bodies, including the Food Intolerance Network, Centre for Science in the Public Interest and the UK Food Standards Agency, support removing artificial colours, and in Europe all foods containing additives from the 2007 study (as above) must carry a warning statement. Natural alternatives There are a number of natural colours and flavours available on the market. It is important however, that these ingredients are carefully considered because natural is not legally defined in Australia or New Zealand. COMMITMENTS --We will commit to not using artificial colours or flavours in products targeting children under the age of 12 years, by For adults, our first choice will be natural colours or flavours.

36 PACK AND SERVING SIZE We commit to providing a balanced portfolio of products with responsible pack and serving sizes to meet people s energy and nutrition needs and different eating occasions, without encouraging overconsumption. These recommendations are based on advice from leading international and national authorities, such as the Australian Dietary Guidelines and the New Zealand Food and Nutrition Guidelines, to help achieve and maintain a healthy weight. We commit to making smaller pack sizes available across our portfolio. We will continue to follow the Australian Food and Grocery Councils Guiding Principles for Serving Size, whereby a 600mL beverage or less is a single serving, and greater than 600mL is a bulk pack. We will have regard for any pack and serving size recommendations or portion guidance from the Healthy Food Partnership.

37 PACK AND SERVING SIZE... UNDERSTANDING PACK AND SERVING SIZE With the rising rates of obesity, and increasing levels of scientific evidence linking portion size and body weight, the Australian Dietary Guidelines and the New Zealand Food and Nutrition Guidelines have made recommendations to achieve and maintain a healthy weight. These dietary and lifestyle modifications include portion size. Appropriate portion sizes are important for energy balance but people often don t know how much energy they need in a day, what constitutes an appropriate portion size, or how to read a food label. As a result, many people are unaware that they re over-consuming energy or kilojoules/calories. School canteen criteria have led the way in portion control, recommending maximum pack sizes for products, including flavoured milk and juices. The food industry has a responsibility to offer consumers a range of individual pack sizes that help to balance nutrient and energy density, along with communication on what is a serving size. This needs to be accompanied by education on the amount of energy a person should consume, with how much the body burns or uses. The Government and Industry Healthy Food Partnership is actively considering pack and serving size, along with portion guidance to help consumers better manage their dietary intake. COMMITMENTS --We will ensure all of our best for you products do not exceed 10% of an adult s average daily energy intake (based on 8700kJ), per serving. --We will ensure our products come in appropriate pack and serving sizes with smaller pack sizes available across the portfolio, by We will improve the communication on what is an individual pack and serving size, to better help inform and educate consumers.

38 CONSUMER FRIENDLY PRODUCT INFORMATION We commit to providing a balanced portfolio of products with easy to use and understand nutrition product information to help consumers make more informed choices. We commit to advertising responsibly, with particular sensitivity to children and adolescents abiding by the Australian Food and Grocery Councils Responsible Marketing to Children s Initiative. We will base our nutrition and health messages on the latest scientific evidence, and continue to research the best ways to educate our consumers on balancing their diet and lifestyle through the products they consume.

39 PRODUCT INFORMATION... UNDERSTANDING PRODUCT INFORMATION Product labels provide information to help consumers with their food and beverage choices, outlining what s in a product and how to store it safely. This information is regulated in Australia and New Zealand by Food Standards Australia New Zealand (FSANZ). Consumer laws also ensure product labels don t mislead, deceive or misinform the consumer. According to a 2011 systematic review on labelling, the prevalence of self-reported label use is generally high, however there is mixed evidence on the ease of interpreting labels. Personal characteristics associated with a higher understanding of labels included frequent use, youth, higher education, motivation and higher income. Barriers to using and understanding food labels included lack of motivation, lack of time, a sense of mistrust and confusion by elements such as what is a serving, as well as added and inherent nutrients. Research shows that consumers pay most attention to nutrients they wish to avoid, for example sugars, fat and energy (kilojoules or calories). The use of colours, listing servings in household terms and labelling added nutrients may also assist consumers with the interpretation of nutrition information. information, either on or beyond the product label. Lion Dairy & Drinks has invested in consumer research to understand how to improve the nutrition information we provide to consumers. These findings will inform our approach to both on pack and off-pack communication. Voluntary front of pack labelling, such as the government Health Star Rating (HSR), is an example of the food industry working collaboratively with government and health organisations to help people make more informed, healthier product choices. Lion Dairy & Drinks is proud to be adopting the HSR system across our portfolio, by The new food labelling system is similar to energy ratings used on white goods and aims to give consumers at-a-glance nutrition information by indicating the overall healthiness of a product within its food or beverage category, e.g. yoghurt with yoghurt; milk with milk. COMMITMENTS --100% of our retail portfolio will display the Health Star Rating front of pack labelling system by Nutrition and product information will be enhanced by 2019, including the identification of natural versus added ingredients. Locally and internationally, government, consumer groups and industry have implemented a variety of schemes to improve the availability and comprehension of product

40 CHILDHOOD NUTRITION (6 MONTHS to 12 YEARS) We commit to providing a balanced portfolio of products to help with children s healthy growth and development. Our commitments are based on advice from leading international and national authorities, such as the World Health Organisation, the Australian Dietary Guidelines, the New Zealand Food and Nutrition Guidelines and Australian and New Zealand national and state-based school canteen guidelines. We will maintain the nutrient integrity of children s products, providing appropriate levels of energy, fat, sugar and salt. We won t use any artificial colours, flavours or sweeteners; added fructose; or coffee, caffeine or other energy ingredients in our products for children under 12 years. We commit to advertising responsibly to children, following the Australian Food and Grocery Councils Responsible Children s Marketing Initiative.

41 CHILDHOOD NUTRITION... UNDERSTANDING CHILDREN S NUTRITION Childhood is a time of rapid growth and development, and optimal nutrition is essential. Children need fat and carbohydrate for energy, protein for muscle growth and repair, calcium and vitamin D for growing bones and teeth, iron for proper blood cell formation and zinc for optimal physical development. Australians and New Zealanders are currently eating an excess of energy-dense and relatively nutrient-poor foods, posing greater risk of lifestyle related disease. There s growing awareness that a balanced diet can help reduce the risk of serious health problems later in life. As a result, nutrition criteria tailored to children, such as School Canteen policies and criteria, have become more stringent. It is widely accepted that food companies can and should play an important role in promoting a healthy diet and lifestyle to children, including initiatives like the Australian Food and Grocery Councils Responsible Children s Marketing Initiative. COMMITMENTS All of our children s products will: --Meet the Best and Good for you criteria by 2019: We will reduce added sugar across the portfolio by 10% We will reduce added sodium in our cheese by 5% We will reduce fat in our treat category by 10% --Be free from artificial colours or flavours, by Remain free of artificial sweeteners. --Be free of added fructose, by Provide pack and serving sizes for the different stages of childhood to promote responsible consumption, by We will not use coffee, caffeine or other energy ingredients in products for children under the age of 12 (primary schools), by the end of 2015 (excluding chocolate and tea, but not tea-extract).

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43 OUR GOODNESS PROMISE

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