Formulating Clean Label Foods: Opportunities and Challenges

1. Formulating Clean Label Foods: Opportunities and Challenges Leaslie Carr, Marketing Manager, Wholesome US/Canada Ingredient Solutions Yadunandan L. Dar, Ph.D., Senior Manager, Applications & Texture Research Theme Leader

2. Outline • Clean label defined • Market overview • Challenges encountered when formulating clean label • Functional native starches • Example case studies • Summary and recommendations

3. Clean Label Market

4. “Clean Label” defined: • Free from chemical additives • Simple ingredient listing that consumers understand • Foods processed using traditional techniques or that are minimally processed

5. MarketInnova: Top 10 Trends—#1, Pure Is the New Natural • 17% of total global new product launches were positioned as natural, additive-/preservative-free, or both • More and more products recently launched use words like simpleand pure as descriptors

6. MarketMintel: 2012 North American CPG Trend Predictions Natural now appears at all price points, making it available for everyone. Delicious yogurt made with just 7 to 9 simple, natural ingredients (depending on flavor) that are easy to recognize and understand. In Dannon Pure, creamy milk and swirls of fruity flavor are blended together for a smooth taste that will delight both kids and parents. And savvy moms will love its great low price!

7. MarketSize • U.S. retail sales of natural and organic foods and beverages estimated at over $47 billion in 2011 • The retail market for natural and organic foods and beverages will grow at an average yearly rate of 13% or more Source: Packaged Facts: Natural and Organic Foods and Beverages in the U.S., 3rd Edition, July 2011

8. Market:Clean Label Positioning in NAM On average, 30% of all new products launched had a clean label positioning over the past 5 years. Clean Label Claims Natural No additives/preservatives Organic Source: Innova, NPL, NAM, Jun 2012

9. MarketConsumer Trends • To the majority of shoppers, natural is first about what is NOT in the product • Shoppers want ingredients they recognize on the label • Most shoppers feel that a product being natural makes it healthier and safer Source: Health Focus International Natural Report, 2011

10. Cleaning Up Labels:Challenges and Opportunities

11. Example Market Product: Seafood Soup Ingredients Clam broth, potatoes, clams, soybean oil, water, modified food starch, onions. Contains less than 1% of: soy protein concentrate, sugar, salt, cream, butter, sodium phosphate,potassium chloride, artificial color,DATEM, lobster powder, natural flavor, shrimp, crab powder, parsley (dried), celery (dried), fish powder, tuna extract, spice, yeast extract, corn protein (hydrolyzed), whey.

12. Example Market Product: Sweet Cake-Type Dessert Ingredients Enriched wheat flour [flour, reduced iron, B vitamins (niacin, thiamine mononitrate (B1), riboflavin (B2), folic acid)], corn syrup, sugar, high fructose corn syrup, water, partially hydrogenated vegetable and/or animal shortening (soybean, cottonseed and/or canola oil, beef fat), whole eggs, dextrose. Contains 2% or less of: modified corn starch, glucose, leavenings (sodium acid pyrophosphate, baking soda, monocalcium phosphate), sweet dairy whey, soy protein isolate, calcium and sodium caseinate, salt, mono and diglycerides, polysorbate 60, soy lecithin, soy flour, cornstarch, cellulose gum, sodium stearoyl lactylate, natural and artificial flavors, sorbic acid (to retain freshness), yellow 5, red 40.

13. Example Market Product: Tartar Sauce Ingredients Soybean oil, distilled vinegar, cucumbers, corn syrup, egg yolks, salt, spice, dried onion, xanthan gum, potassium sorbate and sodium benzoate (preservatives), guar gum, dried red bell peppers, natural flavors, alum, turmeric and polysorbate 80. Calcium disodium EDTA added to protect flavor.

14. Key Challenges in Cleaning Up Ingredient Labels e.g., hydroxypropyl cellulose, propylene glycol alginate, xanthan gum, modified starch, bleached flour e.g., mono- or diglycerides, DATEM, polysorbate 80, hydrogenated vegetable oil e.g., artificial flavors, yellow 5, red 40, sorbic acid, calcium disodium EDTA e.g., sodium benzoate, potassium sorbate Texturizing SystemReplacement Fat or EmulsifierReplacement Flavor/FlavorEnhancers/Stabilizers or Color Replacement PreservativeReplacement

15. Options for Clean Label Formulations

16. Difficult to meet Works in many situations Works in most/all situations

17. Properties of Native Starches • Narrow peak viscosity range • Very limited process tolerance • Undesirable texture

18. Functional Native StarchesDefined Starches that possess the functionality of traditional modified starches and can be labeled according to their base description: (e.g., “corn/maize starch” or “tapioca starch”) Traditional modified starch vs. functional native starch

19. Functional Native StarchesFeatures and Benefits • Temperature tolerance • pH tolerance • Shear tolerance • Smooth, short texture • Non-pasty mouthfeel • Simple label • Easy to use Traditional modified starch Functional native starch

20. Process Tolerance 6% solids in pH 3.0 buffer

21. Textural Appeal Native corn starchGelled Native waxy maize Cohesive Traditional modified starch Industry standard Functional native starch DESIRABLE

22. Applications for Functional Native Starches • Baby foods • Bakery fillings, creams and cooking creams • Cultured dairy • Chilled ready meals, soups and sauces • Frozen ready meals or meal solutions • Fruit preparations • Processed meat • Soups, sauces and dressings

23. Example Case Studies

24. Case Study 1:Salad Dressing

25. Case Study 1: Objective • To develop a clean label version of a pourable creamy salad dressing formulation • Challenges for clean label dressings and sauces: • Textural stability (viscosity) over shelf life • Microbial stability over shelf life • Sensory (flavor, texture)

26. Clean Label Ranch Dressing–Key Formulation Challenges • Formulation challenge #1: texturizer (starch-based) • Ingredient typically used: modified corn starch (instant) • Function: • Provides thick, heavy-bodied texture • Maintains viscosity over required shelf life • Prevents syneresis/separation • Alternative: NOVATION®5300 functional native starch (instant) • Formulation challenge #2: antioxidant/chelating agent • Ingredient typically used: ethylene diamine tetraacetic acid (EDTA) • Function: • Prevents oxidation/rancidity (off color, flavor) • Alternatives(antioxidants): rosemary & green tea extract

27. Clean Label Ranch Dressing–Key Formulation Challenges • Formulation challenge #3: preservative • Ingredient typically used: potassium sorbate • Function: • Prevents bacteria, yeast, mold growth • Alternative: cultured dextrose • Formulation challenge #4: flavor enhancer • Ingredient typically used: monosodium glutamate • Function: • Enhances ranch flavor, salt perception • Alternative: natural flavor enhancer

28. Salad Dressing Formulation Control Clean Label INGREDIENTS: soybean oil, water, buttermilk, vinegar, egg yolks, sugar, salt, modified food starch, xanthan gum, garlic powder, pepper, MSG, onion powder, potassium sorbate, EDTA. INGREDIENTS: soybean oil, water, buttermilk, vinegar, egg yolks, sugar, salt, corn starch, xanthan gum, natural flavor enhancer, cultured dextrose, garlic powder, pepper, rosemary extract, onion powder.

29. Salad Dressing Formulation Ingredient Listing Clean Label INGREDIENTS: soybean oil, water, buttermilk, vinegar, egg yolks, sugar, salt, corn starch, xanthan gum, natural flavor enhancer, cultured dextrose, garlic powder, pepper, rosemary extract, onion powder. Control INGREDIENTS: soybean oil, water, buttermilk, vinegar, egg yolks, sugar, salt, modified food starch, xanthan gum, garlic powder, pepper, MSG, onion powder, potassium sorbate, EDTA.

30. Comparison of Control vs. Clean Label Samples • Attributes tested: • Texture • Flavor • Color • Texture stability (6 months) • Flavor stability (6 months) • Color stability (6 months) • Microbial stability (6 months) • All attributes were similar or identical for control and clean label

31. Analysis: Microscopy Control Functional Native Starch

32. Descriptive Sensory Analysis of TextureControl vs. Clean Label Salad Dressing âComparable Texture

33. Case Study 1: Conclusions • NOVATION 5300 functional native starchcan be used to provide texture and stability comparable to modified food starch • Rosemary and green tea extracts can be used to replace the functionality of EDTAin the current formulation • Cultured dextrose–based product can be used to replacethe functionality of potassium sorbate in this formulation • The natural flavor enhancer used is effective in mimickingthe flavor enhancement role of MSG âThe combination of ingredients above can be used to produce a clean label pourable creamy salad dressing

34. Case Study 2:Greek Yogurt

35. Wholesome Greek Yogurt, Made on a Conventional Stirred Yogurt Production Line Objective: • Develop a clean label yogurt produced on a conventional yogurt line with the texture, eating experience and nutritional profile of a strained Greek-style yogurt

36. Greek Yogurt—Key Challenges • Formulation challenge #1: texturizer • Ingredient typically used: modified starch or hydrocolloids • Function: • Prevents syneresis/separation • Provides desired texture • Maintains viscosity over required shelf life • Alternative: NOVATION® Indulge 3320 • Formulation challenge #2: fruit preparation texturizer • Ingredient typically used: modified starch, hydrocolloids • Function: • Provides desired texture • Maintains viscosity over required shelf life • Prevents syneresis/separation • Alternative:NOVATION®Prima 300 functional native starch

37. Descriptive Sensory Analysis of Texture Using existing process, ingredient innovation enables development of clean label products with optimized taste and texture

38. Wholesome Greek Yogurt Formulation INGREDIENTS: cultured skim milk, milk protein concentrate, maltodextrin, tapioca starch

39. Fruit Filling Formulation • Concentration 40–42° Brix • Stability tested: • Ambient • Refrigerated • Freeze/thaw *Starch level for modified starch is 4.5%, for functional native starch will be 5%

40. 15 15 12 12 9 15 9 Score Score 6 12 6 3 9 3 Score 0 6 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 0 1 2 3 4 5 6 7 8 9 10 11 12 13 3 14 15 16 17 18 Number of Cycles 0 Number of Weeks 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Number of Weeks Score 15 15 12 12 15 9 9 12 6 Score 14 15 16 17 18 6 9 3 Score 3 Number of Weeks 6 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 3 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 0 Number of Cycles 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Number of Weeks Fruit Filling Stability Evaluation MFS Functional Native Ambient Refrigerated Freeze/thaw • Scores below 9 are acceptable; 0 is best • Stability tested for 18 weeks (ambient or refrigerated) or 18 cycles (freeze/thaw) • NOVATION Prima 300 functional native starch showed stability, texture and flavor comparable to modified food starch

41. Case Study 2: Conclusions • NOVATION Indulge 3320 starch can be used to provide texture and stability comparable to modified food starch • Formulated Greek-style yogurts made with clean label starches have the texture and eating experience of commercial benchmark • NOVATION Prima 300 functional native starch is an effective and functional texturizer for natural fruit preparations • Functional native starches offer ambient, refrigerated and freeze/thaw stability comparable to modified food starches • Functional native starches maintain desirable texture and flavor

42. Case Study 3:Blueberry Muffins

43. Case Study 3: Objective • Develop clean label blueberry muffin dry-mix formulation with texture and eating experience of an existing packaged dry mix

44. Blueberry Muffin—Key Formulation Challenges • Formulation challenge #1: flour • Ingredient typically used: bleached flour • Function: base texture • Alternative: unbleached flour • Formulation challenge #2: fat • Ingredient typically used: shortening powder (partially hydrogenated soybean oil) • Function: source of fat—texture, flavor, nutrition • Alternative: palm oil powder • Formulation challenge #3: leavening • Ingredient typically used: sodium aluminum phosphate • Function: provide leavened air-cell structure • Alternative: baking soda and monocalcium phosphate • Formulation challenge #4: texturizer • Ingredient typically used: INSTANT PURE-FLO® F (modified corn starch) • Function: provide leavened air-cell structure • Alternative: NOVATION® 4600 (corn starch) • Formulation challenge #5: flavor • Ingredient typically used: natural and artificial blueberry flavors • Function: provide pleasant flavor • Alternative: natural blueberry flavor

45. Formulation • Muffins are prepared by mixing dry mix with milk, vegetable oil, eggs and blueberries • The same amount of milk, vegetable oil, eggs and blueberries and the same baking condition are used for both formulas

46. Ingredient Statement and Nutritional Panel Control Clean Label Ingredients: enriched flour bleached (wheat flour, niacin, iron, thiamin mononitrate, riboflavin, folic acid), sugar, corn syrup, partially hydrogenated soybean oil, modified corn starch, nonfat milk, leavening (baking soda, monocalcium phosphate, sodium aluminum phosphate), salt, mono- and diglycerides, natural and artificial flavor, xanthan gum. Ingredients: wheat flour, sugar, corn syrup, palm oil, corn starch, leavening (baking soda, monocalcium phosphate), salt, natural flavor, xanthan gum.

47. Comparable Texture and Flavor • Similar crust and crumb color, shape, symmetry, openness of crumb, hardness and adhesiveness to palate • Control muffin has higher mouth coating (1 point higher) and baked flavor note (1 point higher) • Clean label muffin has higher cohesiveness (2 points higher), moisture absorption (1 point higher), sweetness (1 point higher) and blueberry flavor note (1 point higher) Each attribute is evaluated on 15-point scale. Control Clean Label

48. Summary and Recommendations • NOVATION functional native starches are an effective and easy-to-use ingredient option in developing clean label formulations • Many additional ingredient options are available today to develop clean label or “all-natural” formulations • Food formulating know-how as well as the ability to evaluate texture, flavor and stability are important tools to ensure success • In-depth understanding of the mechanisms of instability and the function of formulation options can provide valuable insight and success

49. www.cleanlabelinsights.com • Clean label consumer trends and insights • Clean label case studies and applications advice • Clean label events and news • Critical regulatory facts and updates • Formulation expertise • Pioneering clean label starch ingredients

50. Q&A