A perspective from Givaudan, SFS Amsterdam 2017

Natural flavours and sustainability

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Strawberry

Confidential information of Givaudan

#1 flavour in yoghurt

Strawberry

Most preferred flavour of kids

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Choose from the following options

What option would you prefer in your product?

Flavouring? Natural Flavouring? Natural Strawberry Flavouring?

Crushed strawberries?

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“ If all Germany’s strawberry yoghurt used natural strawberry flavour this would require 49,000 football pitches of strawberry cultivation!”

Source: Givaudan

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Choose from the following options

What option would you prefer in your product?

Flavouring? Natural Flavouring? Natural Strawberry Flavouring?

Crushed strawberries?

Still the same choice?

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As Naturalness is one of the most important demand drivers for consumers how can we give them products they trust from recognised natural sources sustainably?

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Source: Euromonitor

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For consumers, natural means ‘as intended by nature’

• Natural is associated with healthy, fresh and organic

• The less processed or complex the product, the more natural it is

Decoding natural

• Market fresh

• Traditional process

• Fruits and vegetables

• Mother earth

• Bio/Eco labels

• Provided by animals

• Homemade dishes

Spontaneous associations with natural:

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Perceptions are mainly linked to composition and formulation

1. Composition (81%)

• Presence of natural components• It contains pieces of fruits/vegetables

2. Formulation (50%)

• It contains no artificial flavouring• It contains no colouring

3. Preservation (35%)

• No preservatives• Recently harvested ingredients

4. Cultivation (28%)

• It has no or limited usage of pesticides• Organic

5. Transportation (7%)

• Ingredients from local producer

• Produced in my country / region

7%

28%

81%

50%

35%

Vanilla

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"Vanilla shortage could lead to ice-cream price rise, makers warn" The Guardian

"Vanilla prices soar on global shortage: here are the other nine most expensive spices in the world" The Telegraph

"Vanille-Preise schnellen in die Höhe" Die Welt

"Rohstoff Vanille - So teuer wie delikat" Neue Zürcher Zeitung

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Increasing media coverage on the issue

Givaudan Naturals

Rich history… deep presence

NaturalGivaudan is also the largest global purchaser of Natural Vanillin

HistoryGivaudan has been an active partner in vanilla

PresenceToday, Givaudan is one of the largest buyers of vanilla beans in the world and certified organic vanilla buyer globally

100years

TasteEssentials® Vanilla

TasteEssentials® Vanilla natural options

Givaudan’s approach to solving the challenge

Customized extractsliquid, powder, concentrates

Origin specific vanilla Bourbon/Madagascar, Tahitian

Clean label solutionsOrganic, Fair Trade

Natural extendersExtract, Vanillin

Natural vanilla flavoursKosher, Halal, GMO-free, Organic

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Going beyond beans…a full vanilla portfolio

Agricultural Practices

Food Security

Education Hygiene & Health

Alternative Revenues

• Beekeeping

• Animal breeding

• Vanilla harvesting and curing practices

• Improved rice farming practices (SRI)

• Construction & renovation of schools

• School material developed andsupplied

• Construction of lavatories in several villages

• Construction of health centresand water wells

TasteEssentials® Vanilla

An example of our “Communities at Source” programme

Current Madagascar Program Pillars

32 villagesorganic farmers

and their familieschildren3,000 4,000

2016 Scope

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Sustainable innovation through natural processes

Creating natural flavours that are developed with a deep understanding of natural ingredients, their environment and how to use them sustainably

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Natural processes

Ingredients from plantsCertain plants contain ingredients that can be used as natural flavour

Natural conversionsPrecursor ingredients can be converted into desirable flavour ingredients by mimicking the tools that nature has developed for itself

FermentationMicro-organisms convert raw materials into desirable natural flavour ingredients

Kitchen processesLooking at what cooks do at home and restaurants, combined with scientific insights

Isolation methodsUsing new technologies to fractionate extracts from natural sources

Ingredients from plants

Vanilla extract

Natural conversions

Roasted coffee

Fermentation

Soy sauce

An extract from the traditionally fermented pods of the vanilla orchid

Roasting green coffee beans generates the coffee aroma through a complex set of natural conversions

A condiment made from the fermented paste of boiled soybeans, roasted grain, brine and food-grade molds of the Aspergillus family

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Examples of natural processes

The science behind traditional knowledge

New fields of naturals researchPioneering new ways to bring you more from nature in the future

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Innovation areasApproaches

New agricultural materialsSide-stream valuation

Extension technologies

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New agricultural processes

Using natural waste materials to create high added value and sustainable flavour ingredients

Finding new alternative natural sources to develop current and new flavour ingredients

Extending current natural materials with new natural components and processes

Strategic partnership with ingredient and process suppliers to increase supply efficiency and ensure sustainable solutions

Working together to bring you the best solutions from natureGivaudan- your natural partner

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Confidential business and proprietary information of Givaudan, may not be copied or distributed to anyone without the express written permission of GivaudanConfidential business and proprietary information of Givaudan, may not be copied or distributed to anyone without the express written permission of GivaudanConfidential business and proprietary information of Givaudan, may not be copied or distributed to anyone without the express written permission of GivaudanConfidential business and proprietary information of Givaudan, may not be copied or distributed to anyone without the express written permission of GivaudanConfidential business and proprietary information of Givaudan, may not be copied or distributed to anyone without the express written permission of Givaudan

Thank you

Sustainable Foods Summit, Amsterdam, June 2017