© 2015 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

New technologies emerging to

shape food & drink innovation

Breakthrough Innovation Seminar

London – April 2015

2

OVERVIEW

� Examining new product launches that have pushed the

boundaries.

� Looking at the push to restore nutrition back into processed

foods more naturally, using new and ‘old’ processing techniques.

� What the future promises, 3D printing, insect protein and more.

3

Examining new product launches

that have pushed the boundaries

4

‘Air-based’, breathable foods

Delivering powdered blends of nutrients by simply drawing air through the lips, tiny particles of food

and nutrients travel through the air to you mouth where they are swallowed.

Le Whif Whiffable Chocolate

Powder (UK)

Aerolife ‘inhalers’ delivers essential nutrients for a

range of different occasions (US)

5

Demand for energy encourages innovation outside traditional categories

Energy drinks take inspiration from vaping

US start-up has launched a caffeine-infused

vapour stick that could help move energy into

a new segment: e-cigarettes

Rush Energy Vapour has launched caffeine-

infused vapour sticks that promise to provide

consumers with the same boost as energy

drinks, but without the calories or sugar

Sticks contain 11mg of caffeine (80mg in 1 can

of Red Bull), 1 stick lasts ~600 puffs and

claims to work faster than energy drinks as

caffeine's absorbed straight into bloodstream.

6

Molecular gastronomy goes mainstream

• Molecular gastronomy seeks to investigate and explain the chemical reasons behind the transformation

of ingredients, as well as the social, artistic and technical components of culinary and gastronomic

phenomena.

• Some 14% of UK consumers buying prepared meals think it is worth spending more on restaurant-style

ready meals. Chef-inspired products can help manufacturers position themselves as premium brands.

7

Molecular gastronomy goes mainstream

‘Bite-sized morsel with a bit of bite’, consists

of hot, spicy beef ragu atop a tasty, soft

polenta and sweetcorn muffin. They can be

finished with a drizzle of sour cream, fresh

coriander and grated lime zest.

Giving everyday chef’s the opportunity to

participate in the Molecular Gastronomy

revolution with minimal effort. Flavour pearls

contain passion fruit juice encapsulated in a

thin alginate shell that bursts in your mouth

releasing unique flavour and texture.

Source: Mintel GNPD

Heston from Waitrose Mini Chilli con

Carne Muffins (UK)

Christine Le Tennier’s Flavour Pearls

(France)

8

Molecular gastronomy goes mainstream: at home kits

9

The rise of “vinegar-style” softdrinks

In US, 18-34 year-old men consuming Kombucha jumped

from 8% in 2013 to 48% in 2014!

Ciara’s Raw Peach Bellini

Kombucha (US)

Pok Pok Som Tamarind

Flavored Full Strength

Drinking Vinegar (US)

10

Getting sour…drinking vinegars, shrubs, and switchels

Apple Cider Vinegar base,

claims to be just 20 calories

per serving. Apple cider

vinegar, probiotics, vitamin C,

kale and lemon claim to help

invigorate the body.

Switchel — which combines

apple cider vinegar, ginger and

maple syrup or molasses — is

a drink with a long, but mostly

forgotten history as a thirst-

quencher.

KeVita Tonics Kale Lemon

Tonic with Apple Cider

Vinegar (US)

Up Mountain Switchel

American Heritage

Beverage (US)

Source: Mintel GNPD

Schweppes Zero Muscat &

Lemon Fruit Vinegar Drink

(Japan)

Schweppes fruit vinegar drink

contains 10-15ml of vinegar

per bottle, it contains no fruit

juice, and is low in calories.

11

Reducing food waste through innovation

� Aside from consumers efforts, another approach to reducing food waste is to focus on reducing the waste

or by-products generated during food processing.

� Gradually, more materials that were once discarded as waste are being repurposed and utilized in a

variety of applications.

Kona Red Hawaiian Superfruit

Antioxidant Juice (Canada)

Ovivo Organic Olive Leaf Infusion

with Calendula (UK)

12

Restoring nutrition back into

processed foods more naturally

13

Restoring nutrition in processed foods

A chocolate milkshake that

contains a full serving of

vegetables in every box.

Vegetables include carrots,

sweet potatoes, and broccoli.

Nutrient rich whole grain cereal

that uses a blend of oats,

quinoa, rye, and bran to

provide 5.9g of dietary fiber per

40g serving.

Made with sprouted whole

grains,, the sprouting claims to

increase the bioavailability of

nutrients and aid digestion.

Recent innovations are looking at ways to fortify processed foods more naturally

Use and processing of

fruit and vegetablesFibre and wholegrain

innovation

Old processing techniques

are new again

Sneakz Organic Chocolate

Veggie Milkshake (USA)Kellogg's Special K

Nourish Cereal (Australia)

Simply Sprouted Way Better

Tortillas (Hong Kong)

14

Vegetables getting the attention they deserve

Being more nutrient dense and lower in sugar than fruit, recent innovation efforts have seen a

greater emphasis on vegetable snacks

Vegetables are starting to appear in a surprising array of categories from cereals to yoghurts

Cereal bits that are filled with

real fruit, orange and

vegetables, carrots.

Yogurt contains butternut

squash and ginger and other

savoury and sweet spices.

Sprout Rise Orange Fruit

and Carrot Crunch Bites

(US)

Blue Hill Know Thy Farmer

Butternut Squash Yogurt

(US)

15

Rise and fall of fruit juice, from health food to ‘junk’ food

Technology will focus on keeping more of the nutrition in juice

� PepsiCo filed a patent in 2014 for a method that would add back some of the nutritional components of

fruit and vegetables currently lost in the juice extraction process.

16

Health is driving innovations in juice products

MySmoothie Fibre

Smoothie (Switzerland)

Juice drink contains banana,

pineapple, lemon, added

chicory fibre and coconut milk.

Multi 12 Daily's

Morning Juice (Germany)

Multivitamin & multi-fruit drink

contains 50% fruit and carrot, along

with added fibre inulin.

Yazoo Mango & Pineapple

Yoghurt Smoothie (UK)

Yoghurt fruit smoothie is a

blend of low fat yoghurt,

mango, pineapple and oats.

Opportunities for blending fruit with dairy

and grain based smoothiesJuice drinks adding fibre back

17

Cold pressed/high pressure processing breathes life into the juice market

Cold pressed delivers on no

additives/preservative claim

Cold pressed wins on flavour

and nutrition angle

Cold pressed adds a premium

element to products

0.3%

0.5%

1%

2.3%

% of global juice drink introductions that

include HPP or cold pressed references

in the description, 2010 - 14

0.3%

2010

2011

2012

2013

2014

18

Cold pressed juices embrace artisan, ‘home made’ attributes

As the cold-pressed juice movement emphasises juice production techniques,

the juice category is feeling more craft or artisan.

Project Fresh No. 12 Organic Juice (US)

Rolled out in 2014, the labelling describes it as “organic, cold-pressed,

craft juice” made with micro milled and high pressure technology.

19

Fibre & wholegrain innovation

Activia Danone

Yogurt (Spain)

Yogurt with wholegrain

muesli.

Nutri-Dynamics Slim Pasta

(Netherlands)

Low calorie spaghetti is made

from Konjac, which is free from

fat, sugar and gluten, and is

rich in fiber.

Lu Belvita Breakfast Biscuits

(France)

30% less sugar than average

breakfast biscuit and a range

of fibres including

polydextrose.

New formats to

deliver fibre

Functional fibres

fill in for fat

Fibre fills in

for sugar

20

Refined grains preferred over their healthier whole grain cousin

� Refined grains are more widely consumed than their healthier wholegrain counterpart, meaning a lot of

consumers miss out on the full range of health benefits cereal grains offer.

� High level of interest in switching to healthier whole-wheat bread products BUT consumers are often put

off by healthier, wholegrain breads because of their darker colour and stronger, sometimes bitter flavour.

21

Wheat aleurone offers ‘natural’ nutrition without sacrificing taste

Nature’s Fresh Simply Fibre

White Toast Bread (NZ)

White bread fortified with wheat

fibre, contains more fibre than 2

slices of multigrain bread while

retaining its soft and fluffy texture.

Purina Pro Plan Lamb

Flavour Dog Food (Japan)

Dog food featuring wheat

aleurone designed to optimise

dog’s digestive system and

reduce odour of waste.

Kraft Easy Mac Wholemeal

Pasta (Australia)

Great-tasting meal high in

fibre, is high in whole grains.

‘HealthBread’ project in Europe produced aleurone-rich fraction and a wholegrain concentrate with

a light colour and mild taste

22

Focus on wholesome ancient grains, ancient grains become

the new superfoods

Ancient Grain

% increase in product launches

with ancient grain, by type of

grain, global, 2013 – 14

Chia 140

Quinoa 104

Kamut 78

Buckwheat 76

Sorghum 65

Amaranth 61

Spelt 54

Millet 54

Oats 48

Bulgar 42

Higgidy Veggie Rolls

(UK)

‘Chia seeds were a

staple food of the

Aztecs who thought

they were more

valuable than gold’

Coco Keeno Beanies (US)

‘with ancient quinoa grain

which contains essential

amino acids like lysine and

significant levels of calcium,

phosphorus and iron’

23

Old processing techniques are new again

Sprouting grains haved moved from virtually unknown to trendy

Sprouting is an ancient technique still popular in Asia, but as science has uncovered the nutritional benefits of

sprouted rice, these products have been introduced in Western markets.

Rude Health Sprouted

Whole Wheat Flour

(UK)

24

Old processing techniques are new again

Lifeway Mango Frozen Kefir

(UK)

KeVita Master Brew

Kombucha Ginger

Kombucha (US)

Coffer threatens to

revolutionise fizzy coffee

(UK)

� Fermentation, one of the oldest forms of food preservation, is enjoying renewed interest, products such

as kimchi, kefir, and kombucha are making a come back.

� The positive health benefits of these products is a big draw, along with their ‘sour’ tastes.

25

What the future promises:

3D printing, insect protein and the rest

26

Making ends meat: What the future promises for 3D printing, insect protein

and more

Positioned as a meat company,

Beyond Meat gained the

attention Bill Gates

In-vitro meat patty cultured

from cow stem cells by Dutch

researcher

Entomophagy, the norm in

parts of the world. Progressive

companies are trying to make

the practice universal.

Soylent

3D Printed Foods

27

Brands react to 3D printers

3D Systems announced a

multi-year joint venture

development agreement with

The Hershey Company

Pasta manufacturer Barilla is

working with TNO, on creating

cartridges of dough customers

could insert into a 3D printer to

create own designs

3D printed foods return

normalcy to seniors

28

Insect protein? No, thanks…

Source: According to the United Nations Food and Agriculture Organization (FAO),

people eat insects as part of their traditional diet, according to

the United Nations Food and Agriculture Organization.2 billion

Consumers in the UK, US, and Germany are not interested in

trying insect protein.3 in 4

Of Chinese consumers have not eaten but would be

interested in trying.52%

29

Is there a market for insect-based salty snacks? Spotlight on Six Foods

The US based Six Foods are now taking pre-orders for its Chirps range made with beans, rice and cricket

flour. The cricket flour features slow-roasted milled crickets that provide a “subtle and nutty taste”.

According to the company, the gluten-free chips contains 7g of protein per serving and half the fat of potato

chips. They are also high in calcium and iron. The snack will feature in three flavours: Aged Cheddar, Sea

Salt, and Hickory Barbecue.

Source: http://www.sixfoods.com

30

Algae protein…it’s vegan and gluten-free but will consumers try it?

• Vegan, gluten-free product that contains all essential amino acids, fiber, healthy lipids, and

micronutrients. Can be used to replace or reduce dairy fats, oils, and egg yolks.

• Stable, even in low pH systems, as the cell wall in the whole algal protein limits the interaction of

the protein with other ingredients.

Base: Internet users aged 16+ (2,002 in Germany, 2,000 in US, and 1,500 in UK) and 3,000 internet users aged 20-49 in China

Source: GMI Lightspeed/ QQ Survey/Mintel

31

Algae products already on the market

A blend of canola oil, peanut oil, and

DHA algal oil that provides 200ppm

of DHA and 9g of monounsaturated

fatty acid per 15ml serving. (Hong

Kong)

Strawberry flavored fruit snacks with

32mg of DHA omega-3 from algal oil

to support brain health (US)

Alara Wholefoods, Of the Earth Oat-

based Cereal contains blue algae

spirulina which gives the cereal it’s

dark green colour and a high protein

content (UK).

Algae oil or ingredients making an algal oil derived claim are often used to enrich food and drink products

with omega-3 s

32

SUMMARY – INNOVATION FOCUS

Health and wellness has been thrust into the spotlight and will

become even more of a focus for innovation efforts going

forward.

HEALTH &

WELLNESS

Consumers will continue to be curious about how their food is

made and will pay greater attention to what they are putting

in their bodies.

THE CURIOUS

CONSUMERS

The push for ‘real’, wholesome food will continue to fuel

interest in traditional and natural processing techniques and

ingredients.

REVERTING BACK

TO ‘REAL’ FOOD

© 2015 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel. mintel.com

Laura Jones

Global Food Science Analyst

ljones@mintel.com

Thanks, get in touch