African Dairy Conference

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1 African Dairy Conference August August 23, 23, Tasty Safe Healthy Real food Authentic Convenient -- Douglas Marriott Technical Sales Manager Chr. Hansen Ltd

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

2 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 and production processes, long-term customer relationships and intellectual property 2

4 ced Redu r suga Free from NOLA Fit enzyme solutions L tose c a l ow New solutions facilitate lactose free and sugarreduced dairy products

5 Our study have identified five global consumer value drivers that are shaping the new food world The future value equation Value Tasty Safe Healthy Real food Authenti Convenie c nt $ 5 In the pursuit of real and better food people look for foods that offer a more satisfactory taste, more perceived health & wellness benefits, higher convenience, lower safety risk, and that feel more authentic. Foods higher on these parameters are deemed worth paying a premium for. for money People demand value for money, and price will remain an important constraint.

6 Facts about lactose intolerance Lactose is present in cow s milk, goat s milk and sheep s milk in similar quantities. Lactose intolerance is connected to abdominal pain, bloating, eczema, gas, nausea and diarrhoea. Lactose intolerance makes it hard to enjoy the goodness of dairy. Source:

dairy being healthier It often takes only one lactose intolerant

4% Many self diagnosed consumers believe they are lactose

7 What are the drivers? Lactose intolerance yes but also the perception of lactose free dairy being healthier It often takes only one lactose intolerant person in a family to move an entire household Brazil 85% Sweden 4% Many self diagnosed consumers believe they are lactose intolerant and are using online tools for diagnosis Lactose-Free Foods Market Forecast Visiongain

8 Continuous growth in global lactose-free food market Global retail sales of free from lactose by product, Euromonitor International 8

9 Expand the use of lactase sugar reduction Increasing the sugar scare

10 NOLA Fit new generation of lactase NOLA Fit is a standardize liquid; an enzyme that hydrolyses lactose (disaccharide) into two monosaccharides: glucose and galactose This process makes dairy sweeter and digestible for wider range of consumers Glucose Lactose Lactase Galactose

11 Make a difference with NOLA Fit the new generation of lactase NOLA Fit lactase: 1) Easily removes lactose from milk and secures authentic taste of dairy products for: Lactose Free/Reduced Milk products (esp. for UHT, ESL and sterile application) Lactose Free/Reduced Fermented Milk products 2) Increases sweetness / allows to reduce added sugar in dairy products NOLA Fit - what is so different? 1. High activity across broader ph range It unlocks the growing need for lactose free yogurt. Because NOLA Fit works also in low ph values, it can be added together with the lower dose culture at a 2. High purity arylsulfatase and invertase free and very low in protease It is so pure that it yields a much cleaner taste in a lactose free milk (including application for UHT and ESL) and it also supports the sweetness enhancement sterile

12 Authentic tasting dairy products free from lactose Sweetness Purity table - typical performance NOLA FIT 80 Protease U/ml 0 60 Astringent Glucoamylase BDL* % Relative activity Specified < ph High activity across a broad ph range perfect for fermented milk <4 U/ml Cooked -100 <0.03 A410/ml Arylsulfatase BDL Lipase BDL <0.07 LFU/ml Cellulase BDL <3 U/ml Invertase BDL <0.01 U/ml Off-Flavor Bitter UHT plain High purity secures the UHT with standard lactase UHTflavor with NOLA profile Fit premium High sweetness formation if applied with the complementary culture * BDL=below the detection limit

flavor Lactose free Fermented Milk USP: Efficient (lower dose) way to reach lactose free level

13 Where to use NOLA Fit? Three concepts NOLA Fit Lactose free MILK especially UHT/ESL or if the taste is an issue USP: Premium flavor Lactose free Fermented Milk USP: Efficient (lower dose) way to reach lactose free level LactoSens Rapid, simple and HPLC validated - test if you have gone lactose free Sweetness in fermented and flavored milk USP: High sweetness formation when applied with the complementary culture

14 NOLA Fit enzyme solutions Lactose free milk

packaging *The benefit of NOLA Fit is most pronounced in the sterile application where the enzyme stays active in the

16 MILK: choice of process Batch Lactase MILK MILK Pasteurization Pasteurization/UHT Holding tank Homogenization and Cooling Pasteurization/UHT Aseptic mixing and packaging Sterile* Sterile Lactase Homogenization and Cooling Aseptic packaging *The benefit of NOLA Fit is most pronounced in the sterile application where the enzyme stays active in the end product and any potential side activities may cause off flavors. Therefore this process was selected for the concept demo samples.

18 NOLA Fit enzyme solutions Lactose free fermented milk

19 Product launches across several categories and segments across the globe Kefir (Valio, Finland) UHT milk (Danone, Brazil) Flavored sour milk (TINE, Norway) Milk for seniors easy to digest (Yili, China) Greek yogurt (Lowicz, Poland) Low fat yoghurt (Schwarzwaldmilch, Germany) Quark Drink (Arla Ingman, Finland) Cheese (Liddells, Australia)

21 NOLA Fit enzyme solutions Sugar reduction in fermented milk

22 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

23 Sugar is the new dietary demon Sugar and calories exposed on the labels Yogurts packed with sugar Source: NY times May 21, 2016, Nøglehulsmærket DK 2016, C InRFood

com NOLA Fit enzyme breaks lactose down to glucose and galactose.

24 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... 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 % Protein % Fat % Carbs.: KJ/Kcal NOLA Fit +6.5% sugar Reference +8.0% sugar

Meaningful reduction of sugar securing authentic yogurt taste Perfect fit between natural cultures and enzymes Use NOLA Fit to enhance the sweet taste and reduce calories & added sugar Mildness of

25 Meaningful reduction of sugar securing authentic yogurt taste Perfect fit between natural cultures and enzymes Use NOLA Fit to enhance the sweet taste and reduce calories & added sugar Mildness of selected cultures enhances the sweetness perception and allows to reduce added sugar even by g per 100 g yogurt* Retain the same high textural and sensorial profile * Confirmed by sensory analysis

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

LactoSens principle: Lactose-specific enzyme

amount The sensor with immobilized enzyme

ONLY lactose binds to the immobilized enzyme.

The enzyme oxidizes lactose and generates

27 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

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

29 Solve the consumer dilemma: how to get lactose free yet tasty yogurt Chr. Hansen introduces the new NOLA Fit enzyme solution that easily removes lactose from milk and secures the authentic taste of fermented milk products 29

30 IS YOUR YOGURT LACTOSE FREE?

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

Great tasting lactose-free dairy, with reduced sugar and improved texture Katarzyna McCall Global Marketing Manager Dairy Health & Nutrition Barcelona, 8-9.06.2017 Who are we? We are A global supplier