Market trends show consumer concern for 'Whole Foods' - But what's the distinction between 'Clean label' and 'Free From'? In fact the latter has a labeling imperative... The ingredient brand example of Solanic is considered through brand strap lines - through 'clean label; to the current focus on 'free from; . Market data for 'free from' tends is presented; from Datamonitor; Innova & Mintel. Food composition issues and label claims are contrasted for the major groups of foods constituents: Carbohydrates; Fats & Oils; Proteins + Sustainability, and Additives. Finally 'Natural' is also considered ... [defies a single definition].

1. – From ‘Clean Label’ to ‘Free From’ –
Organic Monitor Events: Sustainable Foods Summit Europe
Paul M Hart – Market Manager Gluten Free
– Amsterdam 6 June 2014 –

2. – From ‘Clean Label‘ to ‘Free From’ –
Organic Monitor Events: Sustainable Foods Summit Europe
Paul M Hart – Market Manager Gluten Free
– Amsterdam 6 June 2014 –

3. Clarifying Definitions …
Consumer Behaviour
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4. Someone Once Said …
“ Food First then Morality . ”
Bertolt Brecht (1898-1956)
German dramatist, poet. "What Keeps Mankind Alive?"
Act 2, sc. 6, The Threepenny Opera.
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5. USA Trends
5
Mainstream Opinion
The Atlantic
‘The Cure for Obesity’
Fortune
‘How Whole Foods is
Taking Over America’
– Detroit store opens

6. Summit Explores Clean Label Potential
Clean labels are becoming ubiquitous on food products: gluten-
free, non-GMO, dairy-free, additive-free, etc. Clean labels are
becoming increasingly evident, however what is the future
outlook? Are they a fad, trend or a permanent fixture in the
food industry?
Assess the business potential of clean labels at the European
edition of the Sustainable Foods Summit, hosted in
Amsterdam on 5-6th June 2014. Click here to receive the
conference programme.
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7. From: Hart, Paul To: dafne@organicmonitor.com Sent: Tuesday, April 08, 2014 3:11 PM
Subject: FW: Summit Explores Clean Label Developments (5-6 June, Amsterdam)
Hi Daphne,
For the opening para – previous slide - on this mail shot I would like to draw a
distinction between:-
- ‘clean label’ – no chemicals, no E-numbers – ‘natural’
And - ‘free from’ (allergens):
While this latter might refer to meat-free; GMO free - in fact in the food
ingredients industry it very much relates specifically to free-from allergens –
which otherwise need to be declared on product labels …
Yours in ‘free from’, Paul Hart
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8. 8
Drive for Clean Label?
Need to eat
something!
Images: Healy Group
www.noglut.eu
Or NO-thing
much at all?
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9. Kitchen Cupboard
Retailer Policy – Driving Consumer Behaviour?
Store Cupboard Ingredients e.g. Sainsbury
• http://www.asa.org.uk/Rulings/Adjudications/2012/4/J-Sainsbury-plc/SHP_ADJ_160335.aspx
• Xanthan now available in supermarkets
Multi-Nationals
Nestle – Ingredient declaration simplification ?
Producers
Ingredient Avoidance: Flowers Foods [Bakery] – via Regulatory
Results: = Push–back for alternatives
• Details come later!
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10. Marketing Communications:
The Solanic Experience …
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11. •13
Solanic Potato Proteins -
Unique Functionality & Clean Label Solutions
FIE Frankfurt, 17-19 November 2009
2007 ‒> 2011
1_Standaardontwerp
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Solanic – New Innovative Company
• With the task to create new Value from
potatoes
• By refining, developing and marketing
non-starch based ingredients from the
potato with a high added value
• Thereby opening up new applications
and/or markets
• And creating new sources of Value for its
CUSTOMERS
Solanic B.V.
New subsidiary uses breakthrough technology to extract
high-performance proteins for the food industry:
• Top Left: Original title + strap line:
• 2007 –> 2011
• Above: By refining, developing and
marketing non-starch based ingredients
from the potato with a high added value
… opening up new applications …
• Left: Original Masthead Image 2009
Nature’s vegetal answer to animal proteins

12. 12
– Natural Potato Proteins –
Unique Functionality for Innovative Solutions
Bridge2Food November 2011
– Natural Potato Proteins –
Unique Functionality for ‘Free From’ Solutions
Bridge2Food April 2012
Clean Label Performance
• Strap line: High Performance Ingredients
Clean Label Proteins for both !

13. Gertjan Klijnstra & Paul Hart
Bridge 2 Food 17 – 19 April 2012, Amsterdam
Workshop
From Functionality to Application
Since Food Ingredients Europe 2013 – no strapline!
Pure Performance Proteins
• Strap line: Clean Label Ingredients
Pure
Free From
Sustainable
Potato Proteins
• Strap line: Not used – AVEBE Group
logo

14. Added Value: What’s in Potatoes?
Component % Potato
Starch 20.00
Coagulable protein 1.00
Basic proteins 0.40
Acid proteins 0.40
Peptides 0.26
Free amino acids 0.26
Amides 0.36
Total N-compounds 2.14
Fibres 0.80
Total sugars 0.54
Total organic acids 0.56
Potassium 0.36
Magnesium 0.02
Total ash 0.80
Phosphorous 0.04
Fats 0.08
Chlorogenic acid (CgA) 0.01
Phenolic compounds 0.03
Vitamin C 0.02
Chlorides 0.03
Nitrate 0.01
AVEBE: Co-operative of ~4,000 potato
farmer shareholders
• Produces ~4,000,000 MT potatoes
• Yields ~700,000 MT Native Potato Starch
• For food and industrial applications
Potatoes are ~20% starch:
• But just 1 – 1.5% protein
Factory expansion planned (2015+)
• Max. potential volume is 35,000 MT
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15. Very Low Allergenicity: ‘Free From’
Food Positive skin
irritation (%)
Positive reaction
after test meal (%)
Peanuts 26 12
Eggs 19 10
Milk 17 7
Soy 10 2
Wheat 5 0
Peas 5 0
Fish 4 0
Tomatoes 3 0
Chocolate 2 0
Oranges 1 0
Rice 1 0
Strawberry 1 0
Potatoes 0 0
Source: Survey 2001 Europe
The Solanic Advantage
Functional commodity proteins like
egg, lupin, milk, soy, wheat (gluten)
are allergens
Lower allergenic proteins e.g. pea,
rice, maize – tend to be less
functional than potato protein
Free From Pay Off:
The only high-functional + low-
allergenic proteins on the market
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16. 16
Sustainability
Potato at least 2x more sustainable than whey – and 3x more than egg white
The ReCiPe end score combines a large number of environmental impact indicators in
one harmonized average end score
(Source: BMA, www.blonkmilieuadvies.nl)

17. •Egg-Free Sponge
Cake*
•Egg-Free Sauces
& Dressings*
Market Focus
Nutrition
Meat
Dairy
Solanic
Key USPs – Centre
Bakery
SOLATHIN
*Key Theme: Egg-Free
Egg-Free Sauces
& Dressings*
Hi Protein Snacks & Bars
Gluten-Free Bakery*
Vegan Burger*
Vegan Confectionery*
RTD & Sport Gels
Egg-Free Sponge Cake*
Vegetal Shakes
Egg-Free Sauces
& Dressings*
Non-Allergen
Wine Fining
Clean Label Sorbet
All-Vegetal Lollipop Chew
Non-Dairy Ice Cream
Milk/Soy-Free Sausage
Dietary Supplement
Pure & Kosher
Fermentation
Vegan Cheese

18. SOLANICTM : Introducing the new …
18

19. SOLANICTM
Introducing the new …
100% Vegetal Non-Dairy
Protein
19

20. Market Research Data
Datamonitor
Innova
Mintel
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21. www.innovadatabase.com
Free-from Claim Reaching More Consumers
• Products with ‘Free From’ claims are flourishing. Where NPD was mainly targeted towards
those with allergies or intolerance, innovative manufacturers see the potential
in a larger group of consumers that can be tapped into using the ‘health’ angle.

22. mintel.com23
.................................................................................................................................................
UK: MARKET GROWTH WILL SLOW, BUT STILL STRONG
UK retail sales of free-from foods, 2008-17
+61%
+46%
Gluten
free 47%
Dairy/
lactose free
46%
Other
7%

23. Let’s Look at food
Composition
Carbohydrates
Fats
Proteins
Additives
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24. Nutrition Labelling:
On-Pack consumer label
Nutrition Declaration
• Carbohydrate: C, H, O
• Bread, rice, tapioca
• Fat: C, H, O
• Butter; olive oil; lard
• Protein: C, H, O & N
• Eggs, meat; lentils
All are Polymers: Of Carbon; plus Hydrogen & Oxygen
– but Protein carries Nitrogen [& Sulphur]
N.B. The body can’t store protein !!!
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25. Let’s Look at
Carbohydrates
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26. Carbohydrates
Highly Processed grains:
• Implicated in obesity; ‘Metabolic syndrome’
• Paleo diet! - excludes grains & legumes
Cereals: Wheat -> Gluten sensitivity [Chorleywood Process?]
• Coeliac diagnosis ~1:100 > wheat intolerant > family > celebrity fad
• Only food with health driver imperative
High Fructose Corn Syrup
Sugar: No added / sugar free
GM Concern: Maize starch
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27. Market Definition – Product Range
Baked Goods Cereal Staples Other Products
Bagels Breakfast Cereals Apple Juice ?!?
Biscuits Extrusions Beer
Bread
Cakes
Crackers
Coatings
Cookies
Pastry Noodles Dressings
Pizza Pasta Gravy
Pretzels Snacks Sauces
Tortilla - Wraps Tortilla - Hard Sausages
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Nederlandse Coeliakie Vereniging want to approach
large companies …
Wheat starch in soups, meat, candy is a ‘no go’ for
coeliacs: potato starch is a low cost alternative.
“ You can’t bake a gluten-free loaf in the morning
and enjoy if for lunch…!!!”

28. Let’s Look at
Fats & Oils
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29. Fats & Oils*
Trans fats removal: Noughties EU reformulation
US FDA Consultation: current
• Effectively bans [partial] hydrogenation …
• … Reduces cheap options for harder fats
• Hydrogenation seen as chemical
N.b. Territorial sensitivity: Be producer discussion
Versus UK retailer push-back
Allergenicity: ?!? Soy
• GM IP supply chain; phyto-oestrogens
* Chemically similar: oils are liquid at room temperature …
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30. Fats & Oils*
Saturated fats and health: Vs unsaturates
• Alternative views!
• Image right: Mars May 2014:
EU food labelling:
Required from Dec. 2014
• Ingredient declaration to state
species origin of fats and oils
• = Further pressure on ubiquitous
Palm Oil
• Sustainability: Land use; RSPO
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31. Let’s Look at
Proteins
32

32. Proteins
‘Free From’: Main cause of
allergenicity e.g. Dairy; Eggs; Soy
Protein Intake on trend:
• Post Atkins; Dukan: have to eat something; carbs and fat ‘bad’
Sustainability: 1970’s pioneers: saw strategic limitation …
• E.g. Quorn myco-protein: RHM & ICI
Availability of ‘free from’ proteins
• Regulatory
• Heavy metals e.g. rice protein
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33. Food Futures: Sustainability
Is The Age of Cheap Food is Over?
Population of India to exceed China by 2020
• Middle Class of 200 - 400 million [SustEIN, 2012]
• Desire for ‘Western’ dairy products
• Chicken consumption doubled in last 10 years:
3.42 MMT - USDA forecast
• Moving from export to importing soy meal
[Baize, 2013; Illus. right 1975]
But where does feed protein come from?
Soy Harvested Area: Argentina up 40% 20 m ha; Brazil 35% 29 m ha
Impact on S. America infrastructure
• Ukraine exporting to China
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34. mintel.com35
.................................................................................................................................................
ENVIRONMENTAL BENEFITS COME INTO PLAY
For non-dairy alternatives there is a case
Meat & dairy production is
unsustainable to feed a growing
world population reaching 9bn
by 2050. The world grain output
will need to rise by 50%, and
meat production will need to
double to meet the demand (UN)
“The problem is that instead of
feeding crops to people, we’re
feeding most of them to
livestock. And so we’re caught
in an inefficient protein-delivery
system.”
(Bill Gates)
0%
2%
4%
6%
8%
10%
12%
14%
20092010201120122013
Usage of the “Environmentally
Friendly Product” claim, global (% of
launches)
Dairy
alternatives
Dairy
products

35. Right Here Right Now!
After Greek Yoghurt:
What’s next?
Introducing:
Egg-white only McMuffin
• Result = Price Volatility
http://www.seriouseats.com/2013/05/reality-check-the-egg-white-delight-mcmuffin.html [Photographs: J. Kenji Lopez-Alt]
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36. Let’s Look at
Additives
37

37. Drive for Clean Label ?
38
DATEM = E472e
Mono- and Diacetyl
Tartaric acid esters of
Mono- and
Diglycerides of fatty
acids
Image: Healy Group

38. Additive Groupings
Acids / Acidity Regulator
citric acid
Anti-caking agents
Antifoaming agents
Antioxidants
vitamin C
Bulking agents
Colours
Emulsifiers
Flavours & Enhancers
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Flour treatment agents
Glazing agents
Humectants
glycerol
Preservatives
benzoate / sorbate
Stabilisers / Thickeners
pectin
Sweeteners
stevia E960
Salt: No E-number
Process Aids!

39. Bakery Ingredients: Cf. Gluten-Free
Wheat flour; Water, Yeast, Salt,
Vinegar, Vegetable oil, Soya Flour,
Emulsifier E472e, Preservative: Ca
Propionate; Ascorbic Acid Vitamin C
Water,
Tapioca Starch,
Potato Starch,
Rice Flour,
Rape seed Oil, Maize Starch; Yeast,
Humectant (Vegetable Glycerine),
Stabiliser (HPMC); Dried Egg White,
Psyllium Husk Powder, Cellulose,
Sugar, Dextrose, Salt, Flavouring,
Preservative (Calcium Propionate)
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40. Additives: Key Groups
Texturants: Thickeners, Stabilisers, hydro-colloids
• Carrageenan; pectin; xanthan
Colours: Increasingly naturally derived
• e.g. Plant extracts; Vs chemical derivatives
Flavours: Ditto
• Gluten Free: ‘Natural’ derivation
e.g. Quinoa Sour: Corn Starch; Cornflour; Teff Flour, Quinoa Flakes
Emulsifiers: E-number; chemical; removal
• ‘Natural’ sources instead of E471 Mono- & Di-Glycerides; E472e
DATEM
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41. Additives
Issues:
Consumers: Unfamiliar names: What are they in there for?
Producers
• E-numbers; less desirable on pack
• Reduce ‘chemicals’; Increasing ‘Natural’
Multi-Nationals
• Extensive Questionnaires scrutinise ingredient suppliers
• e.g. Process: Traditional Smoking [Carcinogens] – seen as OK
Vs Ion Exchange – UK not ‘kitchen technology’ so not ‘natural’
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42. Natural? Don’t mention it!
Adds a further dimension
Definitions: Vary
• Need for suppliers to meet
producer / retailer demands
Solanic has benign isolation method
• Depends on pH
Native rather than ‘Natural’
• Biological conformation (shape ) remains
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43. Thank you !
Any Questions?
Paul M Hart
+44 7850 035922
Paul.hart@solanic.eu
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