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1 1
2 Global Consumer Trends Driving Innovative Solutions 2
3 Agenda Introduction Healthy Living Clean Label Quality of Carbs Plant Power Summary Note: This presentation contains a summary of Tate & Lyle proprietary and other market research prepared exclusively for use by Tate & Lyle customers and prospective customers. No part of these materials may be reproduced without prior written permission of Tate & Lyle Disclaimer: The applicability of label claims, health claims and the regulatory and intellectual property status of our ingredients varies by jurisdiction. You should obtain your own advice regarding all legal and regulatory aspects of our ingredients and their usage in your own products to determine suitability for their particular purposes, claims, freedom to operate, labelling or specific applications in any particular jurisdiction. This product information is published for your consideration and independent verification. Tate & Lyle accepts no liability for its accuracy or completeness.
4 OUR PASSION Inspired by our purpose of improving lives for generations, we work with our customers to make food and beverage healthier and tastier. Through our expertise in key categories, we deliver sweetness, texture, stabilisation and fibre enrichment to products enjoyed by millions of people every day. 4
5 Healthy Living Consumers are seeking wellness from the inside out 5
6 Consumers are seeking solutions that complement their personal health needs Foods containing fibre can provide health benefits such as helping to maintain a healthy weight, supporting healthy cholesterol levels and promoting normal blood sugar levels after meals 1 Future of health & wellness product claims 3 Global retail value growth, forecasted CAGR % Beauty From Within +7.5% Energy Boosting +6.5% General Wellbeing +5.8% Brain Health and Memory +4.4% Immune System +3.8% Weight Management 67% of U.S. supplement users agree that it is better to get vitamins from a healthy diet than from a pill % Digestive Health +1.6% Cardiovascular Health Source: 1) Dietary fibre: Essential for a healthy diet; Mayo Clinic, 9/2015; 2) Mintel Vitamins, Minerals and Supplements US, September 2015; 3) Euromonitor Global Health & Wellness Positioning 6
7 Consumers seek to live healthier longer with proper nutrition Health needs throughout the stages of life Adolescents Young Adults Middle-Age Adults Seniors Gut health and laxation Satiety, sugar and calorie reduction and low glycaemic response (fibre rich diets may help impact obesity and related disease) Prebiotic fibres: Link between mother and child s health/microbiome 1 Increased calcium absorption during adolescent bone growth Increased calcium absorption and retention in the bone (help maintain bone health) Healthy cholesterol Emerging science: metabolic syndrome, immunity, brain health 1) National Center for Biotechnology Information, U.S. National Library of Medicine, The infant microbiome development: mom matters,
8 Growing awareness leads to growing demand for fibre not only for digestive health but for weight management Consumers Desire for More Fibre in their Diet 1 Reasons for Fibre Consumption 1 60% USA 48% APAC 44% EUR 50% Middle East 70% LATAM 52% Global Healthy metabolism Digestive health Healthy diet Regularity Full for longer Weight management Tastes great Fit body Lowers cholesterol Heart health 56% 49% 45% 40% 37% 33% 32% 30% 27% 25% Source: 1) Tate & Lyle Proprietary Research, Fibre AAU 2016, 11 countries, 8800 consumers 8
9 Consumers want fibre across many categories Purchase Intent - Top 10 Categories Impacted by Inclusion of Fibre 1 % Very/likely to buy 55% Cereal 49% Yogurt 45% Cookies 45% Soup 45% Crackers 45% Juice Drinks 44% Cakes 44% Bars 40% Ice Cream 39% Salty Snacks Source: 1)Tate & Lyle Proprietary Research, Global Consumer Ingredient Perception Research, November 2017, 9 countries, 3002 consumers 9
10 Food and beverage companies are responding to help consumers live healthier lives Global growth of product launches with ingredient fibre 1 5YCAGR North America +15% Latin America +33% Europe +16% Middle East Africa +10% Asia Pacific +18% Global growth of product launches with ingredient fibre 1 5YCAGR % Beverages +14% Dairy +32% Soups, Sauces, and Dressings +26% Bakery Source: Mintel GNPD
11 Clean Label Consumers are seeking simpler, healthier foods they can trust 11
12 Consumers are reading labels and are avoiding artificial and GMO ingredients Consumers are reading ingredient and nutrition labels Consumers are avoiding artificial ingredients Consumers are wary of GMOs Attitudes toward a healthy lifestyle 2 35% GMO Ingredients Are Unhealthy of US consumers think GMO ingredients are a characteristic of unhealthy food COOK UP OR INSTANT 72% GMO Transparency of US consumers state that food/drink packaging should indicate whether or not it contains any GMO ingredients 38% Avoiding GMO Ingredients of US consumers state that if they discovered a food had GMO ingredients, they would not eat it again 3 Source: 1) Tate & Lyle Proprietary Research, Global Consumer Ingredient Perception Research, November 2017, 9 countries, 9012 consumers, percentages are always or sometimes ; 2) Lightspeed/Mintel Base: 2,000 internet users aged 16+ in each country, 2017; 3) Mintel Free-from Food Trends US
13 Food and beverage companies are responding with clean label products Global growth of product launches with the Global growth of product launches with Clean Label* claims 1 following Clean Label claims 1 5YCAGR YCAGR North America +7% Latin America +17% Europe +10% Middle East Africa +9% Asia Pacific +8% +13% Non-GMO +3% +10% Organic +6% +6% No Artificial Sweeteners +6% All Natural Product No Artificial Preservatives No Artificial Flavors Global growth of product launches with Clean Label* claims 1 5YCAGR % Beverages OUR PRODUCTS SOURCE +7% Dairy +9% Soups, Sauces, and Dressings VISCOSITY Source: 1) Mintel GNPD ; *Clean Label includes one or more of the following attributes Organic, Natural, Non-GMO, No artificial sweeteners, No artificial flavours, No artificial preservatives +9% Bakery 13
14 Halal, Kosher and allergen free claims can be used to enhance the caliber of clean label products 79% increase in the number of global food and drink product launches with a halal certification between 2013 and 2017 The stringent criteria and oversight of Halal certification meets consumer transparency, safety, eco-ethical and health standards 1 While only 8% of launches globally, Kosher products possess an aura of purity, safety and health The detail of the Kosher labelling system appeals to consumers who cannot tolerate gluten, dairy or those who have certain allergies 2 1 in 7 product launches have a no/low/reduced allergen claim +12% increase in the number of global food and drink product launches with a low/no/reduced allergen claim between 2013 and Source: 1) Mintel, Tracing the key drivers for halal's global growth, January 2018; 2) Mintel, Religious diets bring new opportunities, January 2018; 3) Mintel GNPD, Global, CAGR
15 Quality of Carbs Consumers are seeking to balance their health and enjoyment 15
16 Sugar reduction is a balancing act Taste and Healthfulness Diabetes Has reached epidemic proportions 3,4 Sugar Tax & Government Regulations Are setting targets for sugar reduction and sugar taxes are being imposed 5 TASTE $ Price 64% of consumers say price has the greatest impact on buying food and beverages 2 Healthfulness 61% of consumers say healthfulness has the greatest impact on buying food and beverages 2 81% of consumers say that taste has the greatest impact on food & beverage purchases 2 Sweet Satisfaction Almost three-quarters of consumers find sweet snacking appealing 1 Source: 1) The Food Institute: Consumers are Eating More Often, Prefer Sweet Snacks; 2) International Food Information Council Foundation, 2018 Food & Health Survey, 2018; 3) US Center For Disease Control; 4) World Health Organization Projections Of Global Mortality And Burden Of Disease From 2002 to 2030 ;5) multiple sources 16
17 Food and beverage companies are responding by removing sugars and using fibre to preserve product experience +13% Products launched with low/no/reduced carb claims + fibre ingredient Growth in product launches with low/no/reduced sugar claims + fibre ingredient 1 5YCAGR % 31% Removing sugars and adding fibre improves the overall quality of the carbohydrate component within the finished product +10% Products launched with low/no/reduced sugar claims + fibre ingredient 23% 23% +7% Products launched with low/no/reduced glycaemic index claims + fibre ingredient Global, all food and beverage, CAGR Beverage Bakery Dairy Soups, sauces & dressings Source: 1) Mintel GNPD
18 Plant Power Consumers are seeking the natural benefits of plants 18
19 The preference for healthier eating is expanding beyond traditional plant-focused diets Attitudes towards diet % of consumers that agree France Germany Italy Spain Poland Source: 1) Mintel, Plant-based Diets, May
20 Food and beverage companies are responding with a surge in plant-based products Global growth of product launches with no animal products 1 5YCAGR North America +13% Europe +35% Asia Pacific +15% Latin America +65% Middle East Africa +14% Global growth of product launches with no animal products 1 5YCAGR % Beverages +22% Dairy Alternatives +22% Soups, Sauces, and Dressings +28% Bakery Source: 1) Mintel GNPD , food and beverage 20
21 Plant-based products need to meet consumers taste and texture expectations while providing health benefits 65% of U.S. consumers say taste is an important factor when buying plant-based protein Global growth of ingredients in product launches with no animal products 2 +34% Sweeteners 5YCAGR % Soluble Fibre +25% Starch of U.S. consumers say fibre is an important factor when buying plant-based protein Plant-based blends of ingredients enhance taste, functionality, stability and healthfulness Source: 1) Mintel, Plant-based Proteins, US, January 2018 Base: 1,876 internet users aged 18+ who eat plant-based proteins 2) Mintel GNPD , food and beverage 21
22 LET S MAKE FOOD EXTRAORDINARY Whatever challenges you are facing, wherever you are in the world, we can help you craft innovative solutions that bring healthier, tastier foods and beverages to your consumers. Disclaimer: The applicability of label claims, health claims and the regulatory and intellectual property status of our ingredients varies by jurisdiction. You should obtain your own advice regarding all legal and regulatory aspects of our ingredients and their usage in your own products to determine suitability for their particular purposes, claims, freedom to operate, labelling or specific applications in any particular jurisdiction. This product information is published for your consideration and independent verification. Tate & Lyle accepts no liability for its accuracy or completeness. 22
23 Tate & Lyle supports the health benefit claims that your consumers seek From supporting a healthy gut microbiome with prebiotic fibres, to promoting bone health through calcium absorption, or reducing calories to assist with weight management, we have ingredients that provide health benefits throughout the course of life. Source of/high in Fibre Prebiotic Gut Health/ Laxation Bone Health/ Calcium Absorption Healthy Cholesterol Sugar Reduction Calorie Reduction Weight Management Fibres Oat Protein Sweeteners Specialty Starches Stabilisers and Functional Systems Disclaimer: The applicability of label claims, health claims and the regulatory and intellectual property status of our ingredients varies by jurisdiction. You should obtain your own advice regarding all legal and regulatory aspects of our ingredients and their usage in your own products to determine suitability for their particular purposes, claims, freedom to operate, labelling or specific applications in any particular jurisdiction. This product information is published for your consideration and independent verification. Tate & Lyle accepts no liability for its accuracy or completeness. 23
24 Tate & Lyle supports your clean label formulations Tate & Lyle offers an extensive portfolio of ingredients and solutions to ensure your needs are met, no matter how you define clean label. No Artificial Non-GMO Organic Natural Sweeteners Flavours Preservatives Halal Kosher E-Number Free Allergen Free*** *** Dairy, Egg, Wheat, Soy Specialty Starches Fibres Oat Protein Sweeteners Stabilisers and Functional Systems Many of Tate & Lyle s ingredients have received U.S. Non-GMO Project Verified certification Disclaimer: The applicability of label claims, health claims and the regulatory and intellectual property status of our ingredients varies by jurisdiction. You should obtain your own advice regarding all legal and regulatory aspects of our ingredients and their usage in your own products to determine suitability for their particular purposes, claims, freedom to operate, labelling or specific applications in any particular jurisdiction. This product information is published for your consideration and independent verification. Tate & Lyle accepts no liability for its accuracy or completeness. 24
25 Tate & Lyle helps you satisfy consumer taste and texture expectations with low/no sugar formulations while maintaining product quality and integrity Fibres Sweeteners Specialty Starches Stabilisers and Functional Systems Sugar Reduction Calorie Reduction Low Glycaemic Response Disclaimer: The applicability of label claims, health claims and the regulatory and intellectual property status of our ingredients varies by jurisdiction. You should obtain your own advice regarding all legal and regulatory aspects of our ingredients and their usage in your own products to determine suitability for their particular purposes, claims, freedom to operate, labelling or specific applications in any particular jurisdiction. This product information is published for your consideration and independent verification. Tate & Lyle accepts no liability for its accuracy or completeness. 25
26 Tate & Lyle helps you formulate for your plant-based portfolio needs All ingredients Tate & Lyle makes come from a plant source Sugar Cane Maize Tapioca Locust Bean Gum Stevia Disclaimer: The applicability of label claims, health claims and the regulatory and intellectual property status of our ingredients varies by jurisdiction. You should obtain your own advice regarding all legal and regulatory aspects of our ingredients and their usage in your own products to determine suitability for their particular purposes, claims, freedom to operate, labelling or specific applications in any particular jurisdiction. This product information is published for your consideration and independent verification. Tate & Lyle accepts no liability for its accuracy or completeness. Oat Potato Monk Fruit 26
27 LET S MAKE FOOD EXTRAORDINARY QUESTIONS? Produced by Tate & Lyle Global Market Research Beth Nieman Hacker, Director Natalya Bright, Manager For more information please contact us at: Beth.NiemanHacker@tateandlyle.com Natalya.Bright@tateandlyle.com Disclaimer: The applicability of label claims, health claims and the regulatory and intellectual property status of our ingredients varies by jurisdiction. You should obtain your own advice regarding all legal and regulatory aspects of our ingredients and their usage in your own products to determine suitability for their particular purposes, claims, freedom to operate, labelling or specific applications in any particular jurisdiction. This product information is published for your consideration and independent verification. Tate & Lyle accepts no liability for its accuracy or completeness. 27
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