New Developments in Novel and Functional Foods

Lisbeth Munksgaard

Senior Manager

Danisco A/S

New Developments in Novel and Functional Foods

Lisbeth Munksgaard

Senior Manager

Danisco A/S

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Lisbeth Munksgaard cv

2007 Senior Manager, External Scientific Affairs, Danisco A/S

2003 Director for Centre for Advanced Food Studies

1999 Danish Feed Administration, Head of Section

1990 National Food Administration, Deputy Head of Department

1979 Dairy Scientist, Project Leader

1978 MSc in Food Science

Member of the ETP-Food for Life Board since 2005

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Content

Danisco A/S

Food for Life Research Strategy

Trends within the Functional Food Market

Regulatory Issues

Concluding Remarks

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1. Danisco – Key Facts

Business: Leading supplier of ingredients and sustainable bio-based solutions

Products: Emulsifiers, Stabilisers, Enzymes, Cultures, Protectants, Sweeteners, Sugar

Industries: Food & Feed, Grain Processing, Cleaning & Textiles, Pharma, Plastics etc.

Turnover: EUR 2.7 billion/DKK 20.3 billion (in 2006/2007)

Employees: 9.700 (July 2007)

Presence: 46 countries

GRINDAMYL™

FloraFit™

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Danisco - A truly global presence

� Sales office

� Innovation centre

� Production plant

CroatiaZagreb �

Czech RepublicSmirice ��

EstoniaTallinn �

HungaryBudapest �

LatviaRiga �

LithuaniaKedainiai �Panevézys �

Vilnius �

PolandOlsztyn ��

Poznan �Warszawa �

RomaniaBucharest �

RussiaMoscow �

Serbia and MontenegroBeograd �

Slovak RepublicBratislava �

UkraineKiev �

EgyptCairo �

South AfricaJohannesburg �Cape Town �

GermanyAnklam �

Frankfurt �Königslutter �Niebüll ���

IcelandReykjavik �

ItalyGranarolo dell'Emilia�Milan �

NetherlandsLeiden ��

Zaandam �

NorwayBryne �

Oslo �

PortugalFaro �

SpainBarcelona ��

Madrid �Valencia �

SwedenArlöv ��

Köpingebro �

Örtofta �

SwitzerlandKreuzlingen ��

UKBeaminster �Lincoln �Marlborough ��

Oxfordshire �

Redhill ��

Stockport �Tullibody �

Wellingborough �

AustraliaSydney ���

ChinaAnyang �Beijing �Guangzhou �Kunshan ���

Shanghai ��

Wuxi �Zhangjiagang �

IndiaHaryana ���

JapanOsaka �Tokyo ��

KoreaSeoul �

MalysiaKuala Lumpur �Penang ���

New ZealandAuckland ���

SingaporeSingapore ���

ThailandBangkok �

AustriaLenzing �

Probsdorf �Vienna �

BelgiumBrugge �

Louvain-La-Neuve �

DenmarkBrabrand ��

Copenhagen ��

Grindsted ��

Haderslev �

Holeby ��

Nakskov ��

Nykøbing �

Tønder �

FinlandHanko �

Jämsänkoski �Jokioinen �

Kantvik ���

Kotka �

Naantali �Säkylä �

Vaasa �

FranceCompiègne �

Dangé Saint Romain ���

Epernon �

Landerneau �

Melle ��

Paris �Roncq �

Sassenage �

Vinay �

CanadaScarborough ���

USAArdsley, NY ��

Bakersfield, CA �Beloit, WI �Cedar Rapids, IA ��

Elmsford, NJ �Fairfield, NJ �Madison, WI ���

New Century Kansas, KS ���

Palo Alto, CA ��

Pine Brook, NJ �Rochester, NY ��

St. Joseph, MI �St. Louis, MO �Terre Haute, IN �Thomson, IL �

ArgentinaArroyito �

Buenos Aires �

BrazilPirapozinho �

São Paolo ��

ChilePargua �

Santiago �

ColombiaBogota ��

GuatemalaGuatemala City �

MexicoApatzingán �

Guadalajara �México City ���

Tecoman ��

Tlalnepantla �Veracruz �

PeruLima �

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Danisco inside ..

.. every 4th loaf of bread

.. every 2nd ice cream

.. every 2nd cheese

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Danisco’s commitment to innovation

897 employees (FTEs) (July 2007)

Research & development 579 (65%)

Application & customer service 318 (35%)

4.3% of annual turnover is invested in innovation

(5.6% in ingredients)

Total: DKK 874 million (€117 million) in 2006/07

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2. ETP Food for LifeHuge global issues in Nutrition

4bn people affected by malnutrition deserve the chance to develop physically & mentally

to get more out of life.

50% of world’s population have blood cholesterol that’s too high.

30% of world’s population have blood pressure that’s too high.

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Obesity – BMI >30

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The Basis of ETP Food for Life

The agro-food sector is the largest

manufacturing sector in Europe with a turnover of 836b € and a positive tradebalance of 5.2b € (2005), but its share of food & drink exports in the world is reducing!

���� need for more “Added value”

The ageing population and

changes in lifestyle and dietary patterns

have increased the incidence of life style diseases

���� need for “Food & health / Add

life to years”

Consumer concerns over food safetyand environmental issues

���� need for “Food you can trust”

and “Sustainable food production”

Pop

ula

tion

nu

mb

ers

Healthy Unhealthy

Target populationfor pharma industries

Target population for food industries & public healthcare

A vision for improving population health:

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ETP ife: Key Challenges of the Strategic Research Agenda

1. Ensuring that the healthy choice is the easy choice for consumers,

2. Delivering a healthier diet,

3. Delivering quality food products,

4. Assuring safe foods that consumers can trust,

5. Achieving sustainable food production,

6. Managing the food chain,

Optimising communication, training and technology transfer.

-

FoodQuality &

Manu-facturing

Food &Health

Food Safety

SustainableFood Production

Food &Consumer

Communication,Training &

Technology Transfer

Food Chain Management

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METABOLIC FUNCTIONS

INTESTINAL andIMMUNE FUNCTIONS

BRAIN FUNCTIONSINFANT

ELDERLY

life-stage

ETP Food for Life: Food and Health Delivering a healthier diet

Understanding consumer behaviour and effective communication in relation to health and nutrition.

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ETP Food for Life

The European private food sector aims at taking a leading position in the food for health marked, but based on sound science

Economic resources for the science base needs priority from public and private sources

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Vitamins

Herbal/BotanicalExtracts

PUFA/speciality

lipids

Phyto-chemicals

Prebiotics Others

• Vit. C• B1, B2, B6, B12• Folic acid• Niacin• Biotin• Panthothenic

acid• Vit. A• Vit. E• Vit. K• Vit. D

• β-Carotene(Provitamin A)

• DHA/EPA• ARA• GLA• CLA• Structured

lipids• Pinolenic

acid

• Phytosterols• Isoflavones• Lignans• Polyphenols

(from berries, olive, tea, tomato, apple,grape, cocoa)

• Tocotrienols• Isothiocyanates

• FOS• Inulin• GOS• Poly-

dextrose• Other oligo-

saccharides(XOS, SOS)

• CoQ10• Glucosamin• Chondroitin• Lipoic acid• Inositol• Creatine• Carnitine• Taurin• SAMe• Choline• Betaine• …

• Gingko• Gingseng• Kava Kava• Saw Palmetto• Horse

Chestnut• Echinacea• St. John’s Wort• Hoodia gordonii

Probiotics

• Lactobacilli• Bifidobacteria• Other cultures

Fibres

• Inulin• Poly-

dextrose• Beta-glucan• Resistant starch• Gums such as

guar gum• Pectins• Resistant

maltodextrin• Psyllium• Insoluble

fibres

Carotenoids

• β-Carotene• Lycopene• Lutein• Zeaxanthin• Astaxanthin

Minerals

• Calcium• Magnesium• Zinc• Iron• Sodium• Potassium• Selenium• Chromium• …

Amino acids,peptidesproteins

• Arg, Glu, Lys• Leu, Ile, Val• Lactoferrin• Immuno-

globulins• Bioactive

peptides• Digestive

enzymes

Polyols

• Xylitol• Lactitol• Isomalt• Maltitol• Erythritol

Not part of food chain

3. TrendsHealth promoting ingredient categories

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3. TrendsFuture health promoting ingredients

Some of the most relevant health promoting ingredients of today and their health benefits for humans have been described more than 30, 50 or even 100 years ago.

Hence, in the near future, there will only be a limited number of really new health promoting ingredients.

Instead, the near future will see:• A much better understanding of the benefits of some of today’s key

health promoting ingredients, and

• Identification of new health benefits for existing health promoting ingredients.

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• Probiotic dairy products

• Bread with n-3-PUFA• Cholesterol-lowering

margarine

• Multi-vitamin tablets• Single entity tablets• Condition-specific

supplements

Increased health effect

Markets

Market Segments

Products

“Better for you” food(improved

profile)

Foods with specific health benefits/claims

OTCPharma-ceuticals

Traditionalfood

(inc. inherent goodness)

Specialnutrition

(e.g. infant, clinical)

Type of Claims

TrendsThe market for health promoting ingredients

• Low fat spreads

• Low sugar bars

• High fibre yoghurt

Functional Food &Beverages

DietarySupplements

Food &Beverages

Nutrition claims

Health claims

Health & nutrition has crossed over from being "just a trend" to being the defining force of future food and beverage strategies.

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TrendsConsumer market drivers for healthy foods

Market sizes for Health & Nutritionfood* 2007 at retail value

Rising incomes Rising incomes and trend foreternal youtheternal youth -> increase demand for health and wellness products.

Increasing awareness of deterioration in personal deterioration in personal

healthhealth, led by busy lifestyles and insufficient exercise. E.g. chronic diseases account for 60% of global deaths.

Increasing incidence of self medicationself medicationand personal personal

responsibilityresponsibility for healthcare.

Obese population turn to better for better for

you productsyou products for weight loss without compromising on taste.

More information from media and authorities have made consumers more educatedmore educated but also often more confusedmore confused around health & nutrition.

Major brands are rere--positioningpositioning towards a more healthy image (e.g. McDonalds)

Claims showing Claims showing

"what is in it for me""what is in it for me"are increasingly important.

*Better for you, functional foods, allergy, herbal, natural, organic, slimming, dietary supplements

• € 344 bn (4.1% CAGR)

• 20% of total food market (€ 1691 bn, 2.7% CAGR)

Source: Euromonitor

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10 key trends for 2008- with the most impact on food industries world wide

1. Digestive health

2. Fruit and super fruit

3. Naturally healthy

4. Beauty foods

5. Weight management

6. Mood foods

7. Premiumisation of food

8. Healthy snacking

9. Kids' nutrition

10.Antioxidants as the new probiotics?

Source: Julian Mellentin, New Nutrition Business

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Examples of products on the market:

Yakult by Yakult Honsha, Japan – probiotic dairy drink (the world's biggest digestive health brand)

Activia and Actimel by Danone – a spoonableyoghurt (the second biggest digestive health brand)

ProViva – a probiotic fruit juice (using a vegetable source bacteria)

Pre-biotics – a new direction of digestive health (added fibres / wholegrain, stimulating the growth and activity of friendly bacteria in the colon).

Pre-biotics primarily promoted in cereals (Kellog's, Weetabix with pre-biotic inulin, Nestlé with whole grain as a natural pre-biotic)

Still low consumer awareness of prebioticsin the US

Products with intrinsic fibre have an increasingly strong position

Trends: 1. Digestive HealthA wellness issue and the biggest opportunity

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Tremds: 5. Weight ManagementMore about maintaining than losing

Satiety (e.g. "Profeel" milk by ValioDairy with calcium and added fibre)

Blocking absorption of fat and sugar

Increasing metabolism

Calorie burning / reducing body fat (e.g. "Enviga" - green tea and caffeine beverage from Nestlé and Coke)

Low or reduced fat / calorie / sugar

Various types of weight

management products:

Sound science around satiety

Easy fit with psychology of food

E.g. (UK) Danone's yoghurt products, "Shape Lasting Satisfaction", based on a combination of fibre (guar gum) and whey protein

Most effective NPD will be:

Satiety

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Trends: 8. Healthy SnackingFor the "me" generation

Market drivers:

The boundaries between health, convenience and indulgence are breaking down

Traditional meal occasions and family meals are diminishing, on-the-go food, longer working hours, single parent families etc.

Demand for indulgent snack without guilt and without compromising on taste or convenience

Factors for success:

Excellent taste

Extreme convenience

Single-serve (high growth in bars and single-serve beverages)

No limits on innovation in packaging, ingredients or product forms

Any material that can be dried, extruded, frozen, shaped, poured, pureed to deliver a good-tasting healthy food snack

212121

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Trends: 8. Healthy snackingFor the "me" generation

Product examples:

"Flat Earth" by PepsiCo (Frito-Lay) – a range of fruit and vegetable chips

Roasted Vegetable Ritz crackers by Kraft

"Up-and-Go" by Sanitarium – a breakfast cereal drink

"Innocent" smoothies

Knorr Vie by Unilever (2 portions of the recommended 5-a-day)

Fruit2Day by Hero (2 portions of the recommended 5-a-day)

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10 key trends for 2008- where can Danisco help?

1. Digestive health

2. Fruit and super fruit

3. Naturally healthy

4. Beauty foods

5. Weight management

6. Mood foods

7. Premiumisation of food

8. Healthy snacking

9. Kids' nutrition

10.Antioxidants as the new probiotics?

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Targeted

Lifetime

Risk reduction Prevention Treatment

Build-microflora-immunity

Acute (drug)-specific-advanced

Prevent-biomarkers of complications

-e.g., cholesterol, hypertension

Balance-protect-maintain

Healthier foodsFunctional foodsFood SupplementsSpecial nutritionClinical nutritionNutraceuticals

(Cosmeceuticals)

NEW PARADIGM- population of actives- multiple effects- low efficacy- LT additive

HUMAN CLINICAL- single compound- single effects- high efficacy- ST intervention

+ GENOMICS (ind.var.) - GENOMICS (one size..)

’The clinicaldogma’

4. Regulatory IssuesHealthy Bioactives in the Food—Drug Interphase

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Regulation

Harmonisation of Health Claims Regulation is welcomed

Food safety is a technical issue which all stakeholders would support to be met

Food ingredients for health do not have strong clinical effects like drugs, but long term health promoting effects. Valid biomarkers should be identified for testing the benefits of functional ingredients rather than clinical trials

Regulation should be based on sound science

Regulation may need a “health check” for being prepared for innovations and for balancing risks and benefits

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RegulationExample Grindsted® Soft N Safe

Grindsted®Soft N Safe is a plasticizer based on vegetable oil, and can be used to replace critical substances in plastics like phthalates.

It has an exceptional safety profile, with a NOAEL of 5000 mg/ kg bw.

The substance cannot comply with the OML of 60 mg/kg, but the migration of the substance is of no safety concern.

The current legislation on plastics is an obstacle to the use of a safe and sustainable alternative to other plasticizers.

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5. Concluding Remarks

Public and private funding dedicated for research within food for health area is essential for sound science based regulation

Functional food is food and not drugs. Valid biomarkers should be identified for testing the benefits of functional ingredients rather than clinical trials

Future regulations of the area should balance risks and benefits in order to avoid built-in barriers for new beneficial products

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Thank you for your attention

Thanks to

Caroline Herody

Lisa Jensen

Oliver Hasselwander

Signe Ørberg