The Mary Wilcox, V.P. Business Development-Mfg & Research - PowerPoint PPT Presentation

Addressing the Protein Need in Product Formulation The Mary Wilcox, V.P. Business Development-Mfg & Research

foodnavigator.com 2015 15 Tr Tren ends: ds: Pack ck in in the e Protein tein restaurant-hospitality.com The Protein Trend is HOT and Growth is Expected to Grow drinkpreneur.com

Americans are actively seeking protein  62% of consumers try to get more protein in their diets  The top four benefit claims driving the growth of healthy snacks are calcium, protein, energy and fiber. Source: Food Service Director , “Consumer continue to seek health snack options”, September 2014 IRI , “State of the Snack Food Industry”, March 2015

Dairy Protein’s Nutritional Strengths Protein is part of a healthy diet Dairy contains essential amino acids 88% of consumers recognize that protein helps build muscle  Also helps with:  Exercise recovery  Appetite control  Weight management Source: New Nutrition Business , 12 Key Trends in Food, Nutrition and Health 2014

Protein is Mainstream  From 2010-2014, new product launches with a protein claim have grown at a 29% annual growth rate. Source: InnovaDatabase , “Key Trends in the Global F&B Industry,” April 2015

Intent To Purchase

Yogurt Protein Benefit-Intent to Purchase Results When compared directly, High in Protein was the clear winner Most st Likely y to Purchase hase Most st New & Different erent 55% 54% 33% 28% 17% 13% High in Protein Excellent Source of Control High in Protein Excellent Source of Control Protein Protein Like Best st Purcha chase se Most t Often 56% 55% 28% 29% 17% 16% High in Protein Excellent Source of Control High in Protein Excellent Source of Control Protein Protein Research funded by Dairy Management, Inc. & Leprino Foods

Milk Protein Benefit-Intent to Purchase Results Provides 8g of Protein per Serving was by more compelling claim when compared directly against Good Source of Protein and no claim. Most st Likely y to Purchase hase Most st New & Different erent 68% 58% 20% 23% 12% 19% Control Good Source of Provides 8g of Control Good Source of Provides 8g of Protein Protein per Serving Protein Protein per Serving Like Best st Purcha chase se Most t Often 58% 58% 24% 24% 19% 17% Control Good Source of Provides 8g of Control Good Source of Provides 8g of Protein Protein per Serving Protein Protein per Serving Research funded by Dairy Management, Inc. & Leprino Foods

Upside Potential for Dairy Protein • New science/technologies = New Channels • Neutral Flavor = Easy to Formulate • Increasing need to communicate benefits to consumers

Top 3 Opportunities for Dairy Sports Performance Healthy Weight for Wellness Aging Protein Innovation Guide 10 www.usdairy.com

Sports Performance Compe petiti itive e Spirit rit I love the high of crossing the finish line and achieving a personal best On Top Pushing hing Up Fired red Up • Elite athlete • Serious recreational • Sports/fitness enthusiast • Skew to young adults competitor • Skew to middle age • Competing professionally, • Trains aggressively • Fitness oriented and in nationally or internationally • Competes monthly shape • Not sponsored • Has a “day job” Protein Innovation Guide www.usdairy.com 11

Weight for Wellness Weight ht Mana nagem ement nt in W n Wellne lness ss Cont ntext People Concerned about Weight but Not Obese Body + M Mind nd + S Spiri rit Looking ng Good Feeling ng Good “Nurturing my whole s elf” “Look & feel good in my jeans” “Taking care of my health” • Positive sense of self from • Care about weight primarily • Strive to maintain a healthy being at a healthy weight for appearance weight for health: • Feeling good about choices • Skews toward younger o Blood pressure/cholesterol o Blood sugar and lifestyle demographic o Orthopedic issues • Enjoying life and getting the • Likely to engage in physical • Seek greater comfort and most out of it by being fit activity with eating well to fit mobility with less weight and toned into clothes Protein Innovation Guide 12 www.usdairy.com

Healthy Aging Forever er Youn ung Staying Youthful & Active As You Age Older r Boomers Young ng Boomers “Taking care of my family” “Enjoying the next chapter” • Skew toward 60s • Skew toward early 50s • Volunteering/giving back • Supporting kids at home • May still work or in second career • Still working • Noticing signs of aging • Pursuing travel/leisure activities • Experiencing health changes (sleep, joints, • Grandparenting • Health changes may alter lifestyle & priorities vision, weight) • Seeking food for health, taste, fun, & family • Possibly caring for ailing parents connections Aging g Well Defying Aging through Healthy Living Protein Innovation Guide 13 13 www.usdairy.com

Product Research Milk ilk, , whey, , Applica licati tions ons valu lue e added Flu luid id Milk ilk Food Safety ty Milk ilk & Techni hnical cal ingre in redient nts Revit italiz alizat ation ion Powder owders and Cheese Suppor ort and co- pro products ucts 14

National Dairy Foods Center Program • Universit ity of • Cornel ell l Wiscons onsin n Universit ity Madis ison on Wester ern n Dairy Center er Midwes est t Dair iry Food Northeas heast t Dairy Research h Center er Wiscons onsin in Center er Foods ds Research h for Dairy Resear earch Calif ifor ornia nia Dair iry • Utah Center er • Universit ity of Minnes nesota State e Research h Center er • South h Dakot ota a State Universit ity • Iowa State Universit ity • Califo lifornia nia Polytech echnic nic State e Universit ity Southeas heast t Dairy Foods ds Research h Center er Affiliate ted Univers ersiti ties es: • North h Carolin lina a State Universit ity Midwest est Dairy y Cente ter • Mississip ippi i State Univer ersit ity - Kansa sas s State te University ty - Univers ersit ity of Miss ssou ouri - Univers ersit ity of Nebrask ska Weste tern Dairy y Cente ter - Brigh gham Young Univers ersit ity - Oregon egon State ate Unive vers rsity ty - Weber State te University ty - Univers ersit ity of Iowa wa - Univers ersit ity of Wash shing ington ton 15

How Do We Address Industry Needs: Midwest Dairy Foods Research Center

Step 1: Listen to Industry Identify Barriers or Opportunities

Millen lennia nials ls : Consumer sumers s betwe ween en the ages of 18-37. 27% 7% of th f the po popu pula lation tion (81.2 million consumers) *3 Distin tinct ct Charact racteristics ristics of Mill llenni ennials: als: 1. Racially and Ethnically dive iverse 2. Fiercely indep epend endent ent 3. Millennials feel power owerful ful *Source: The Millennials: Americans Born 1977-1994 18

Making More Conscious Choices • Millenn lennia ials ls are re tr trying ng to to avoid additi tives es • Less s swayed d by tr traditi tional onal health th cl claims ims • Pay more re at attent tention ion to to soci cial al ca callou outs ts, , pro roduct/p ct/poin oint t of ori rigin in narr rrati tives es “I look at ingredient lists. And, really for most foods these should be pretty simple. But, instead of 2-3 ingredients Hartman Group, 2014 there’s usually a list of things you can’t read. I try to avoid foods like that.” – Christie, 31

Milk Has Many Functions • Viscosity • Water Binding • Thickening • Gelation • Foaming • Emulsification • Heat Stability 20

Different rent St Stru ructure ctures/T s/Textur xtures es Dissociated / non- miceller casein (e.g. sodium caseinate) Acid / salt pH Casein micelles CO2 treatment High pressure/ Very high temp Bio-compatible microgel particles Non-micellar /dissociated casein Dissociated casein Biomacromolecules , 2007 , 8 (4), pp 1300 – 1305

Cleaner Label Yogurt

Research Outcomes • Improvement in texture without added starch or gelatin • Simple, minimally processed solution • Applicable to many other food systems Grade A Nonfat Milk, Cultures and Sugar

IFT 2015 IFT IF En Ensure re Boost t Snack Natur ure' e's s Chai ai Abbott bott Nestl tle pack Pudding ding Pudding ding Pudding ding Pouches hes Serve size 1 cup 4oz 5oz 1 cup 1 Pouch (100g) (113g) (141g) (90g) (85g) Calorie 150 170 240 110 100 Protein (g) 12g 4 7 <1g 3 Total Fat (g) 1.5 5 9 2.5 2.5 Total 24 30 33 20 16 Carbohydrate(g) Dietary Fiber (g) 3 3 0 2 1 Sodium (mg) 38 120 140 115 35 Calcium %DV 35 10 25 30 8

Applica ication tion Lab ab: : • Screening of dairy ingredients in various applications such as process cheese, beverage • Optimization of formulations and processing conditions • Understand the impact of ingredients and process on textural and rheological properties melting, heat stability

Let Let Us Us Kn Know w If f We May y Be Be Of Of Assis ssistanc tance Cheryl Bell cbell@midwestdairy.com Cindy Sorensen csorensen@midwestdairy.com Mary Wilcox mwilcox@midwestdairy.com