STRATAS FOODS REVIEW: PIE SHORTENING OPTIONS FOR NON PHO, LOWER SATURATED FATS, NON GMO, AND ORGANIC
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1 STRATAS FOODS REVIEW: PIE SHORTENING OPTIONS FOR NON PHO, LOWER SATURATED FATS, NON GMO, AND ORGANIC APRIL
2 Agenda Stratas Foods Overview Pie Dough options in a cleaner label world Non PHO struggles past, present and future Non PHO challenges for pie doughs New technologies and solutions Lower saturated fat options Non GMO options Organic options Q&A 2
3 Stratas Foods Who are Those Guys, Anyway? 50/50 joint venture between ADM and Associated British Foods (ABF/ACH Foods) Separate company / free standing The largest packaged shortening, margarine & oil company in North America Acquired Supreme Vegetable Oil Co / Admiration Foods in October 2016 to add mayonnaise, dressings and sauces Combines two year legacies from both sides of the spectrum into one sweet spot ADM s Legacy: The efficiencies and integration of large production efficiencies and expertise ACH (Humko) Legacy: Highly functional product line While Stratas Foods is independent, we collaborate with ADM for bulk/packaged fats bundled programs, and jointly leverage tech advances Founded 1902 Founded 1883
4 Who are those guys, anyway? Stratas Supply Chain Brampton, ON Fresno, CA Cresco, IA Quincy, IL Bradley, IL Henning, IL Decatur, IL Englewood, NJ Hillside, NJ OHL - Edwardsville, IL Nashville, TN Memphis, TN Dallas, TX Valdosta, GA Stratas Foods Manufacturing/Distribution Distribution Center Manufacturing Partner Corporate Headquarters / Support Center Houston, TX
5 Non PHO Struggles: Past, Present and Future Many in industry converted to non partially hydrogenated oils 12 years ago when trans fat was vilified and added to labels. Effective in mid June (2 months), PHO will no longer remain under GRAS status, while fully hydrogenated fats remain GRAS and a safe, zero trans product 98% of PHO was eliminated by fats/oils producers by Q PHO So what? Isn t it irrelevant since the transition is completed? It s relevant because both nutrition panels and functionality have been damaged 5
6 Non PHO Challenges Both nutrition panels and functionality have been damaged Nutrition panels: First it was trans Now it may be saturated fats again PHO all purpose shortening in pie dough was 34-36% Most pie manufacturers moved to palm shortening, which carries ~50% saturates = going the wrong direction Saturated fats may be the next target for nutritionists Functionality: non PHO is generally a poor performer compared to PHO Palm oils are not resilient and have very narrow plasticity and temperature working ranges Non PHO soy shortenings in the past were extremely soft and limited in application 6
7 Timeline of Nutritionist s Perspectives on Fats Meat Fat Bad! Tropical Oils Bad! Notice to Label Trans 2003 Petition to Outlaw PHO 2009 Meat Fat & Tropical Oils Good? 2014 Evolution of NA Fats and Oils Options 1984 PHO Fat Good! Margarine better than Butter 1994 Trans Fat Bad! Butter better than Margarine 2006 Trans Label Compliance 2013 PHO GRAS Revocation Proposed 2015 PHO GRAS Revocation Notice Trans consumption goes from less than 1.0 g / day to 4.6 g / day Trans consumption goes from 4.6 g / day to about 1.0 g / day Why can Nutritionists not make up their minds? Nutrition science is based on the scientific method to prove and disprove. As nutrition tools increase in precision and accuracy, findings variability decreases. Stratas Foods Confidential Do not share without Stratas' written permission 7
8 Non PHO Challenges Nutrition panels: The saturated fat story: News from today: Just one meal high in saturated fat won't hurt you right? Wrong! Say MCG researchers Mar 29, :09 PM EDT Presidential advisory, American Heart Association June 15, 2017 Evidence has accumulated during the past several years that strengthens longstanding AHA recommendations to replace saturated fat with polyunsaturated and monounsaturated fat to lower the incidence of CVD. Reduction in total dietary fat or a goal for total fat intake is not recommended. This shift from saturated to unsaturated fats should occur simultaneously in an overall healthful dietary pattern 8
9 New non PHO technologies & solutions The present and the future: Improved functionality of non PHO fats is currently a major industry focus New Stratas innovation Functional Crystallization offers significant improvements to conventional solutions Flex Palm: Making brittle, intolerant and inconsistent palm shortening perform with the plasticity and consistency of partially hydro shortenings Flex Soy: Major improvements to soy shortenings Improvement of physical firmness & plasticity of existing offerings New Apex version delivers full PHO type functionality by marrying the Flex crystallization technology with the stability of high oleic oils 9
10 New non PHO technologies & solutions Function Following Form Functional Crystallization Partial Hydro Soy/Cotton Flex Palm Typical Palm Figure I. Micrographs of shortening samples at 40 X magnification demonstrating light reflectance, refractance and transmission associated with crystal morphology.
11 Flex vs. Typical Palm Flex Palm Sets Sooner and Stays Stable Longer Max Force (gr rams) Min Functional Range Flex Palm Standard Palm Time (Days) Figure IV. Consistency data of Flex Palm vs Typical Palm measured at identical temperature and time intervals. 11
12 Application Review Pie Crust Dough Typical Finished Dough Flex Finished Dough Shortening lumps visible in finished dough More homogeneous distribution of shortening
13 Pie Crust comparison Conventional Palm uneven shape and browning Flex Palm Consistent shape and browning 13
14 The present and the future: Flex Soy Shortenings New non PHO technologies & solutions Non PHO soy shortenings frequently experience variability within the same pallet due to crystallization challenges caused by liquid oil migration. Often some cubes are soft or even liquidy. However, Stratas use of both Flex crystallization technology, and high oleic soy oil in certain formulas, has eliminated this challenge, delivering full PHO functionality without using partial hydrogenation 14
15 All-Purpose Shortening Soy shortening PHO shortening Conventional Palm shortening Depending on plant conditions, Flex soy shortenings can perform as well or better than palm shortenings in pie crusts
16 Low Saturated Fat Options PHO pie dough shortening contained 34-36% saturated fat Palm options that are common today contain ~50% saturated fats Stratas options for saturated fat reduction: Palm/soy (current workhorse in pie industry): 41.5% sats Canola/palm : 33% sats Flex soy shortenings: ~35% sats New soy shortening : 26% sats new non hydro, soy option Other considerations: Palm tends to have a stronger flavor and some sustainability concerns Soy tends to offer a cleaner flavor without sustainability concerns 16
17 Functionality considerations: Low Saturated Fat Options 100% palm produces acceptable pie crusts, but which crumble a bit easily Palm/soy: soy addition softens crumbly crusts of 100% palm and performs well overall on high speed sheeters or in presses workhorse in industry, but can still crack and may have soft bottom crust. Flex Soy: Another strong workhorse in industry softer when using conventional soy, and firmer for sheeting with high oleic blends New 25% saturated fat soy shortening: viable option for pressed but not for high speed sheeted dough Stratas texture analysis on pie doughs and crusts 17
18 Non GMO options GMO technology has not been commercialized for palm fruit trees, resulting in palm being considered as non GMO (PCR tests generally not run or needed) Current palm/soy and palm/canola shortenings contain GMO, but Stratas does produce non GMO soybean and canola oils, either of which should be commercially viable with certain volume minimums. A non GMO version of our new 26% saturated fat soy shortening is potentially feasible for press systems Stratas actively sells non GMO project Verified palm based shortenings and margarines. 18
19 Organic options Stratas has recently NOP certified its Fresno CA location for organic Stratas has developed an organic palm shortening that is available in truckload volumes Product is RSPO certified (sustainable) Product is Non GMO Project Verified Lead time for start up is roughly 2 months, but under contract lead time can be as short as 7 days to shipment from Fresno CA Stratas new organic palm shortening is Flex processed using proper domestic QA standards at a fully FSMA (BRC or SQF) accredited facility. 19
20 Q&A Thanks for your kind attention! Any questions? 20
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