Innovation Spotlight: Sugar reduction in dairy – a natural fit for stevia? PureCircle April 2017

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Reducing sugar without compromising taste

Presenting consumer perception and positioning sugar reduction on labels

Formulating with stevia in dairy – exploring taste and mouthfeel

Formulating to optimise positive synergies for tasting

Olivier Kutz, Sales Director EMEA Region, PureCircle

Edna Nyangale, Application Scientist, PureCircle

Agenda

PureCircle’s unique supply chain control: from seedling to sweetener

Ensuring quality through

vertical integration

TASTE

CONSISTENCY

SCALE

CAPACITY

TRACEABILITY

TESTING

Great products

Applications

Extraction & Purification

Harvesting

Plant Breeding & Agronomy Program 1

2

3

4

5

3

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Introduction

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Stevia is a plant native to South America

Between 20°and 25° lat. 12-13 hours sunlight,

temperatures between 15º / 30ºC (22º-25ºC optimal). Plant

growth slows above 35 ºC

Stevia is a member of the sunflower family. Seeds not very fertile (~5-15%),

vegetative propagation is more commonly used

Grows as a perennial small shrub, origin Paraguay,

discovered by Dr. Bertoni 1887

Chinese farms typically harvest once or twice a year, Equatorial farms in Columbia and Kenya can achieve 3 to 5

harvests per year.

Now grown in 5 continents as a sustainable and profitable crop.

China still leads the world in stevia leaf production.

Used as a sweet herb for hundreds of years, first used as a commercial sweetener 40 years ago in Japan

Stevia is a unique platform, bringing together the positive attributes of zero calorie, naturally sourced, ‘sweet taste’.

Sugar Stevia Artificial NNS Natural

origin Non-Caloric

Full flavour

From nature

Social

Less Calories

A Healthier Option

Everyday consumption

Safe for entire family

Source: PureCircle Insights Group

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Germany: Impressions of Stevia are largely positive, and similar to those of other natural sweeteners

Germany Sweetener Overall Impressions (among aware consumers)

15%

17%

17%

19%

22%

24%

26%

37%

40%

43%

51%

56%

57%

57%

81%

25%

31%

35%

28%

37%

40%

36%

41%

33%

33%

21%

23%

26%

26%

12%

53%

43%

36%

49%

31%

24%

29%

14%

17%

18%

26%

12%

6%

13%

4%

8%

10%

12%

4%

10%

12%

9%

8%

10%

6%

2%

9%

11%

4%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Aspartame

Cyclamate

Saccharin

Acesulfame Potassium or Acesulfame-K

Glucose-Fructose syrup

Glucose

Sucralose

Steviol Glycosides

Fructose

Fruit Juice Concentrate

Sugar

STEVIA

Agave Nectar

Brown Sugar

Honey

Positive Neutral Negative Don't Know

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It is stevia’s natural origin that is appealing to EU consumers.

5%

6%

13%

25%

26%

26%

84%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Ace-K

Cyclamat

Aspartame

Saccharin

Thaumatin

Sucralose

Stevia

. Top Two Box “Natural” Ingredient Impressions

Among Aware Consumers

Source: PureCircle Insights Group – EU

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73% 72% 69%

58% 58%

52% 49%

43%

61% 60%

55%

42%

38%

33% 31%

24%

32% 33%

38% 38% 41%

43% 46%

44%

22% 24% 23%

19% 18% 17%

13% 12% 13% 15%

13% 13% 12% 10% 9% 10%

0% 2% 2%

17% 21%

23% 25% 24%

2009 2010 2011 2012 2013 2014 2015 2016

Europe, High Intensity Sweetener as % of all HIS launches, Food & Beverage

Acesulfame Potassium

Aspartame

Sucralose

Saccharins

Cyclamates

Stevia

Stevia New-Product Launches Increase While Aspartame and Ace-K Launches Decrease, Indicating Sugar Substitutes in Food and Beverage is Shifting

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• Near 25% of new products sweetened with a high intensity sweetener use stevia • Stevia and Aspartame are now equally introduced in NPD in Europe

Source: Mintel GNDP

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60%

55% 55%

50% 52%

45%

41%

32%

41%

36% 36% 34%

36%

30% 27%

12%

22%

14% 14%

22% 25%

21%

29%

45%

40%

48%

53%

36%

28%

44%

28%

23% 24% 27%

31%

27%

19%

23%

19% 17%

0% 1% 3%

22% 22% 19%

26% 27%

2009 2010 2011 2012 2013 2014 2015 2016

Germany, High Intensity Sweetener as % of all HIS launches, Food & Beverage

Acesulfame Potassium

Aspartame

Sucralose

Saccharins

Cyclamates

Stevia

Germany: High Intensity Sweetener launches

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• Stevia has overtaken Aspartame in Germany • Stevia is nearing 30% of launches, and is now 3rd sweetener of choice

Source: Mintel GNDP

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0

50

100

150

200

250

300

2012 2013 2014 2015 2016 2017

Stevia launches – Dairy, Global

0

50

100

150

200

250

300

2012 2013 2014 2015 2016 2017

Stevia Adoption – Europe?

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Dairy still in growth phase

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Tata Industries Milko Flavored Milk

Israel

General MIlls Yoplait Source Greek

Canada

Danone Activia Fat Free Yogurt

Canada

Lala Foods Lala Greek Yogurts

USA

Stonyfield Farm Stonyfield OP Organic

Protein Smoothie USA

Arla Foods Arla Protein

Low Fat Soft Cheese UK

Dannon Oikos Triple Zero

Greek Yogurt USA

Nestlé Nestlé Yoghurt Griego

Greek Yogurt Mexico

Woolworth’s Woolworth’s Yoghurt

South Africa

Danone Amo Mi Ser Yogurt

Argentina

Mintel 2015

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BIG BRAND EXAMPLES CATEGORY INNOVATION

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Stevia Adoption – further penetration

After early adoption by major F&B manufacturers, penetration of big brands continues & in more diverse categories.

Traditional dairy segmentation

0% fat Low fat Full fat

>> differentiator is in the fat content ; calories from sweet are not mentioned.

Total calorie count is a positioning option for Dairy

>> differentiator is in the total calorie count ; sugar or fat content is not highlighted = clear upfront understanding of promise vs. delivery = no negative perception on “reduced”, = no consumer confusion on fat vs. sugar content (and sugar is not highlighted)

Source: The Grocer, Jan 2015

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Back of pack labelling preference – if you do one thing, do this!

47.%

22.%

11.%

10.%

10.%

Sweetener: Steviolglycosides (stevia leaf

extract)

Sweetener: Steviolglycosides (stevia extract)

Sweetener: E (960)

Sweetener: Steviolglycosides (extract from

stevia rebaudiana)

Sweetener: Steviolglycosides

PureCircle Proprietary Survey, Total Respondents 1000, June 2015

3%

5%

6%

31%

54%

Sweetener: Steviol glycosides

Sweetener: E (960)

Sweetener: Steviol glycosides(extract from stevia rebaudiana)

Sweetener: Steviol glycosides(stevia extract)

Sweetener: Steviol glycosides(stevia leaf extract)

France UK

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The Technical Bit….

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Steviol glycosides Sweetening power relative to sucrose

R1 (C-19) R2 (C-13)

Stevioside 150–300 b -Glc b-Glc-b-Glc(2-1)

Rebaudioside A 200-400 b-Glc b-Glc-b-Glc(2-1)

- b-Glc(3-1)

Rebaudioside B 300-350a H b-Glc-b-Glc(2-1)

-b-Glc(3-1)

Rebaudioside C 50-120 b-Glc b-Glc-a-Rha(2-1)

- b-Glc(3-1)

Rebaudioside D 200–300 b-Glc-b-Glc(2-1) b-Glc-b-Glc(2-1)

- b-Glc(3-1)

Rebaudioside E 250–300 b-Glc-b-Glc(2-1) b-Glc-b-Glc(2-1)

Rebaudioside F Na b-Glc b-Glc-b-Xyl(2-1)

- b-Glc(3-1)

Rubusoside 110 b-Glc b-Glc

Steviolmonoside Na H b -Glc

Steviolbioside 100-125 H b-Glc-b-Glc(2-1)

Dulcoside A 50–120 b-Glc b-Glc-a-Rha(2-1)

Major glycosides in the Stevia plant

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Technical Challenges

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Stevia Regulatory- (EU) No 1131/2011

Categories Limit

(Steviol Eq) Restrictions

01.4 Flavoured fermented milk products

100 only energy-reduced products or with no added sugar

03. Edible ices 200 only energy-reduced products or with no added sugar

14.1.4 Flavoured drinks 80 only energy-reduced products or with no added sugar

• Energy reduction = sugar and fat reduction.

30% Energy Reduction or NAS

Max 100ppm

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There is complexity when formulating with stevia

Multiple factors to consider including level of calorie/sugar reduction, matrix/application, and flavor specificity of stevia glycosides – with different products playing a different role in most closely replicating desired sweetness perception.

Benefits of Sigma-D

• Clean sweetness profile, with reduced sweetness linger and licorice aftertaste that performs well in most dairy systems

• Demonstrates parity to sugar and preference to Reb A on key attributes.

• Great for mid calorie sugar reductions.

• Synergy with fructose, sugar and several polyols.

• Heat & Process stable.

Dairy Category Solution: Sigma-D

Dairy Applications – Flavored Yogurt No Sugar Added

Sigma-D is parity to sugar on key attributes and outperforms Reb A

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1

2

3

4

5

6

7

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Sweet Intensity Licorice Bitterness Bitter Aftertaste Overall Liking

A

B B

* *

*

C

A

B

A

B

A

*

* *

Flavored Yogurt: Full Sugar vs. No Sugar Added Reb A vs. No Sugar Added Sigma-D

*= 80% CI, lowercase= 90% CI, uppercase = 95% CI

Full Sugar (Control- 6.5g)

Reb A97

Sigma-D

Our Tools

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Application and Technical Services

Predictive Modeling/ Experimental Design

Temporal Profiles

Determine optimal glycoside combinations to optimize formulas

Glycoside performance over time

Aft

ert

aste

Time

Application development drives application specific advances

We can help with:

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Marketing, positioning

Formulation, taste and mouthfeel

We work better in partnership

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Taste is Everything Samples Available During the

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