HOW NUTRITION CAN BE A

COMPETITIVE ASSET FOR FRESH DAIRY?

Agnès MARTIN, PhD Science & Nutrition Director Europe Dairy

Danone Nutricia Research

THE RAISING CONCERNS OF PUBLIC HEALTH NUTRITION PUT PRESSURE ON

DAIRY BUSINESS

HEALTH THROUGH FOOD IS A NECESSITY

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It is estimated that 1 in 9 people suffer from chronic hunger worldwide

Malnutrition causes 50% of children death.

2 billion people are considered to be overweight or even obese

1 out of 10 people will have diabetes by 2035

THE POLITICAL RESPONSE

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New public health policy & action plan (against obesity, childhood obesity, type 2 diabetes, CV diseases etc)

New nutritional recommendations: free/added sugars intakes (WHO)

New national dietary guidelines

National roadmaps of reformulations, based on industry commitments

New regulations

Tax on sugar level Restriction of marketing to children Front-of-pack labeling School policy, nutritional framework for public procurement for schools

2016 – New national strategy on Childhood obesity

from April 2018 – Taxation on sugary drinks: - no tax for total sugars < 5g/100ml - low tax for total sugars between 5 and 8g/100ml - high tax for total sugars > 8g/100ml Milk-based drinks must contain at least 75ml milk/100ml to be eligible for exemption

2016 – New Eatwell guide: dairy products represent only 8% (vs 12%) of energy intakes

2016 – New recommendation of free sugars intakes (Public Health England) < 5% daily energy intakes (SACN guidelines): - 23-24g/day for 7-10yo children (vs 48g/day current intake) - 27-33g/day for 19-64yo adults (vs 57g/day current intake)

2013 – Traffic lights voluntary labelling

- Green: < 5% total sugars - Orange: 5 to 22,5% total sugars

2017 - Sugar reformulation plan (target: -20% total sugars)

UK TRENDS IN NUTRITION POLICY & REGULATION

2007 – Ofcom regulation on marketing to children

- Only non HFSS food & drinks are eligible

Public health policy

Nutrition recommend

ations

Dietary guidelines

FOP labelling Marketing to children

Taxation School policy Reformulation roadmap

EU EU Childhood obesity plan

EFSA reco on added sugar

intake (2019?)

Consultation on FOP scheme

(nutrition profile) (2017)

WHO EU nutrition profile (2015) &

monitoring tool kit (2017)

EU School Milk Scheme (2016) EU report public procurement for schools / only fresh plain

dairy (2017)

EU annex on added sugars :

-10% @ 2020 vs 2015 (2015)

Belgium Yogurt < 7% added sugar (2016)

-8% added sugars @ 2020 vs 2012

(2016)

France New Plan National

Nutrition Santé

Total sugars < 100g/day

(2017)

2 dairy/day? (2017)

Voluntary synthetic logo

(2018 tbc)

Soft drinks tax (2012)

Subsidies school policy (only plain yogurt)

(2016)

NL Yogurt < 6% total sugar

(2016)

-8% added sugars @ 2020 vs 2015

(2015)

Spain Sugar tax on drinks (2018 tbc)

?-10% added sugars @ 2020 vs 2015

(2017?)

UK UK Childhood obesity plan

(2016)

Free sugars < 5% daily E

(2016)

Dairy <8%E (2016)

Voluntary traffic lights

(2013)

Ofcom regulation (2007)

Sugar tax on drinks

(2018)

School policy Dairy: < 5% added sugar

(2014)

-20% total sugar @ 2020 vs 2015

Yogurt: total sugars <11% (2017)

EU TRENDS IN NUTRITION POLICY & REGULATION

OTHER TRENDS

Ranking of food companies by investors on nutrition assets

DANONE’S NUTRITION

COMMITMENTS

• Local patterns as the cornerstone of our model

• A healthy diet starts with healthy products

• An enjoyable experience represents a key driver for a healthier diet

• With the best we can do, always

• Research is our best ally

• Not alone, but with partners and stakeholders

OUR MANIFESTO EXPRESSES OUR CONVICTIONS & COMMITMENTS

http://danone-danonecom-prod.s3.amazonaws.com/user_upload/danonetemplates_elementinv/Danone_Manifesto_ENG.pdf

THE ALIMENTATION TREE, THE SYMBOL OF OUR STRATEGY

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We want to contribute to develop healthier eating and drinking

habits…

….in the right way for the planet, so it is sustained and protected

The Nutrition Commitments are an enabler of our vision of

alimentation, to encourage healthier choices.

DANONE, FOCUSING ON HEALTHY CATEGORIES

Most of our products for the general population are belonging to food categories recommended

for daily consumption in dietary guidelines

THE DANONE NUTRITION COMMITMENTS

Full version AVAILABLE ON DANONE.COM

For each commitment, we share:

6 COMMITMENTS

Healthier food choices

Responsible practices

Public health challenges

DEVELOP PRODUCTS THAT ENCOURAGE HEALTHIER CHOICES

1. Continuously improve the nutritional quality of our products By 2020, 100% of our products will reach our nutritional targets, which are based on our publicly available standards. This will help us optimize the nutrient density of our products to meet the needs of our consumers. In Africa, given the specificities of eating practices and product ranges available in the region, Danone aims to reach the Danone nutritional Targets by 2025, achieving intermediary targets in 2020.

THE DANONE NUTRITIONAL TARGETS 2020

Principles • Specific populations • Frequency of consumption

(daily vs occasional) • Maximum threshold for

energy & nutrients to limit (saturates, sugar)

• Minimun threshold for nutrients to encourage (protein, calcium)

• Minimal overal nutritional quality/100g (Rayner score )

THE DANONE NUTRITION TARGETS: dairy example

THE DANONE NUTRITION TARGETS: dairy example

THE DANONE NUTRITION TARGETS: dairy example

Projections at 2020 Scope: Danone sugared dairy products (weigthed by volumes)

o Compliance: 100%

o Sugar reduction (vs 2015)

• Total sugar: -5 to -6% (-4% to -10%*)

• Added sugar: -9 to -10% (- 8% to -14%*)

*depending of country baseline and product portfolio composition

DEVELOP PRODUCTS THAT ENCOURAGE HEALTHIER CHOICES

2. Design healthier alternatives relevant for consumers

By 2020, top Danone brands will contribute to providing healthier alternatives in consumer diets.

NUTRICHOICES

WHY

•Reach an ‘healthier alternative’ positioning

WHAT

•Analyze local consumption dynamics & identify real alternatives

HOW

•Using a scientific & robust method (collaboration with Dairy LS - Biometrics & external expert)

Outputs alternatives, association

Probability &Potential substitution nutritional balance

Source of data: Food & drinks diaries (≥4 days, quantified,

full diet)

Statistical analysis of daily consumption, per moment, per individual

OUTPUTS EXAMPLE

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DAIRY

APPROACH:

Public health & dietary context: calcium deficiencies, sugar moderation,

convenience of snacking

NutriChoices to identify snack alternatives: hot beverages sugared & non-

sugared, pastries & cakes, crackers, cookies, flavoured & regular milk

Nutritional comparison of alternatives

ACTIVATION:

design yoghurt snack as credible, healthier alternative

position & communicate as a healthier choice

launch “Month of the Healthy Snack” activation

scientific outreach:

• Congress presentations (FENS, SLAN) + article (2017)

• Part of LATAM expert workshop & CESNI/IDCS book on diet methods

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1

3

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…

…

RAYNER SCORE

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PROPOSE RELEVANT LOCAL APPROACHES TO PUBLIC HEALTH CHALLENGES

3. Further reinforce our expertise on the understanding of local nutrition practices and public health contexts

By 2020, in Danone’s top businesses, we will have implemented and published outcomes of research programs supported by local experts to understand eating and drinking habits and food cultures.

53 countries or zones covered for the collection of dietary & nutritional recommendations & intakes)

NUTRIPLANET TOOL

WHY

•Be community relevant by changing perspectives on the positioning of our category and innovation

WHAT

• Understand alimentation dimensions + eaters’ real-life practices and the reasons behind

HOW

•By working with credible experts & scientific methodologies from food socio-anthropology

FOODSTYLES

With a precise analysis of interactions between:

A 360°ETHNO-SOCIOLOGICAL APPROACH OF A CATEGORY

Sources of data:

OUTPUTS EXAMPLE BUILDING SOLUTIONS IN AFRICA FOR AFRICA

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ELN – Cameroon & Ivory Coast Understand Mums’ food practices and representations (knowledges &

beliefs) regarding their infant feeding

100 interviews/country, 8 months

• Anemia culturally known but no direct link established btw diet and anemia • Existence of current “traditional” treatments built around the color of blood • Middle-class women are worrying by showing precarity (-> purchase in grocery stores not pharmacies)

Education of HCP

Credibility & reputation: 3 publi. in progress

Education tools specially designed for the "mum/spouse/woman”

Product Renovation: - Iron fortification - Turn pack into red color - Price reduction - Distribution extended to

grocery stores

PROPOSE RELEVANT LOCAL APPROACHES TO PUBLIC HEALTH CHALLENGES

4. Contribute to address local public health challenges on which Danone can have a most favourable impact through partnerships

By 2020, in the top 15 countries where Danone operates, we will have contributed to a local public health cause, with relevant actions and programs.

High rate of obesity in children due to bad eating habits

Promote healthier eating habits in children

Eat Like a Champ

6-week program encouraging children to eat more "healthier" foods and fewer "less healthy" foods

Reach to date > 200 000 school children aged 9-10 years

2000 children at baseline, +6 weeks and +12 weeks.

Children consume 3.2% fewer “less healthy” foods and 2.6% more “healthier” foods : These changes equate to children eating two

extra portions of fruit and vegetables and one less chocolate bar a week.

Greater impact in children from low income families.

Local Public Health Challenge

The cause the CBU fights for

Concrete action

Impact measurement

Contents developed with British Nutrition Foundation

Done by Dr. Michael Nelson of PHN Supported by the Children's Food Trust

Eat like a champ program (UK)

ENSURE RESPONSIBLE PRACTICES

5. Develop even more responsible marketing practices, especially to children

By 2020, each country in which Danone operates will have disclosed and embedded a local comprehensive policy on responsible marketing practices. This will include our commitment regarding breast milk substitutes1 .

1Danone Policy for the marketing of breast-milk substitutes

EU PLEDGE REINFORCEMENT

ENSURE RESPONSIBLE PRACTICES

6. Provide the most appropriate product labelling to encourage healthier practices

By 2020, 100% of Danone products will display comprehensive nutritional information to guide consumers, in particular regarding the portion guidance.

• We have voluntarily implemented GDAs

• We are committed to support any

voluntary initiatives which aim to better inform consumers on the global nutrition quality of products: – Interpretative system – Scientifically grounded – Impactful on consumers

NUTRITIONAL INFORMATION ON FRONT-OF-PACK

DAIRY ARE MORE THAN NUTRITION

HEALTH BENEFITS OF DAIRY

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5122229/pdf/FNR-60-32527.pdf

2016

CARDIOVASCULAR HEALTH & DAIRY

http://advances.nutrition.org/content/7/6/1026.full.pdf

2016

YOGURT & HEALTH BENEFITS

• Lactose digestion

• Lower risk of Type 2 diabetes, whatever plain or sugared yogurt (epidemiological studies)

• Better weight maintenance (observational studies)

• Bone development & maintenance (protein , calcium)

• Cardio vascular health: positive results to be confirmed

• Metabolic syndrom: mixed results to be confirmed

• Cancer (colorectal, breast, prostate): inconsistent results

• Allergy & atopic diseases: no evidence Yogurt: roles in nutrition and impacts on health CRC Press, 2017

2017

CONCLUSIONS

NUTRITION: A KEY ASSEST FOR FRESH DAIRY

• Nutritional consistency vs frequency of consumption

– Daily consumption: the best of dairy nutrition

– Occasional consumption: pleasure first with limited « negatives »

• Healthier alternative positioning

• Transparency on overall nutritional quality

• Health benefits of products designed for daily consumption

THANK YOU!