Global Expansion of High Pressure Processing (HPP): Market Drivers and ChallengesNali PrchalSeptember 26, 2017Las Vegas, NV USA

AGENDA

HPP Overview

Current HPP Market

Global Forecast

Growth Drivers

Current and New Applications

Challenges

High Pressure Processing• High hydrostatic pressure generated by compression of water

• Non-thermal technology destroys pathogens and spoilage bacteria without affecting fresh attributes of food

• Natural process eliminates need for chemical food preservatives

How HPP Works

VesselConveyor To Pack Off

Frame/yokeProduct in baskets

Water Storage Tank

Intensifier PumpsPre-fill Pump

Vessel pressurizes food to 87k psi, 6000 barBaskets move into vesselVessel moves to frameVessel fills with waterVessel drains waterVessel moves out of frameFood moves out of vesselBaskets loaded on conveyor

Global HPP Food Market Today

US$12 billion

NorthAmerica

59%

Europe24% Asia

10%

Australia4%

South America

2%

Africa1%

US$12 billion

2017 2018 2019 2020 2021 2022 20230

5

10

15

20

25

30

Year

$ B

illio

nSeven Year Global HPP Food Market Growth

Forecast

2x

Current HPP Market Segmentation

Meat & Poultry28%

Fruit & Vegetable Dips, etc.

20%Juices &

Beverages18%

Sauces & Dressings

3%

Dairy1%

Other HPP Food16%

Seafood & Fish14%

HPP Market Drivers

Food Safety

Product Quality

Extension of Existing Applications

New Applications

Food Safety

• Increased stringency in food safety standards» Accepted by FDA, USDA, Health Canada, EU, others

• Meets USDA FSIS Alternative 1 goal• Meets FDA 5 log pathogen reduction juice HACCP goal• Approved process for “Natural” and “Organic” products

Food Safety: Validation

1. No one-size-fits-all solution2. Proper protocol is important

• Unique to HPP3. It’s easy to be misinformed

Cold Pressure Council• Guidelines for proper HPP use • 3rd party verification • Cold Pressure Verified logo for on-package use

» Exclusive use for members

Product Quality

• High quality convenience» Generally healthy or natural state, portable, long-lasting, easy

• Nutrition» Nutrient quality intact

• Clean Label» Removal of chemical preservatives» Labeling as raw

Extension of Existing Applications

Meat and Poultry

Other HPP Foods

Juices & Beverages

Sauces & Dressings

Fruit & Vegetable Dips, etc.

DairySeafood

and shellfish

New Applications: Baby Food

New Applications: Drinkable Soups

New Applications: Ready Meals

New Applications: Dairy Foods

New Applications: Ready-to-Cook Meats

New Applications: Pet Foods

Challenges• Need for refrigeration

» Pasteurization vs sterilization

• Packaging» Shelf life limited by packaging quality» Engineering challenges» Materials can be expensive, but ultimately prevent more costly

waste

• Cost» Increased capacity and efficiency

» Batch process no longer inhibits throughput

Thank you for your time!

nali.prchal@avure.com