7th USA Open Innovation Conf April 17, 2013 Tate Lyle SODA-LO(TM) Go2Market Plan_FINAL
1. 7th Annual Open Innovation Conference
SODA-LO™ Salt Microspheres
How to develop a Global Go2Market plan to successfully
commercialize technology investments
April 17, 2013
Frank Truong
Tate & Lyle Innovation and Commercial Development
Global Strategy & Business Development Manager
M (217) 521-7958, frank.truong@tateandlyle.com
Commercial and Food Innovation Centre
Hoffman Estates, IL (USA)
2. Agenda
Introduction to Tate & Lyle and SODA-LO™ Salt Microspheres salt
reduction technology
Understanding global and local country trends to determine
customer and consumer unmet needs
Developing joint commercial and technical business plan with
global and local teams to ensure commercialization support
Obtaining the support of potential investment partners by sharing
Global Go2Market plan for feedback
2
3. 3
Tate & Lyle’s strategy and operating model
Speciality Food
Ingredients
Bulk
Ingredients
Global
business
units
Global
growth
unit
Innovation and Commercial Development
Customers
Operating ModelStrategy
What:
Our vision is to become the leading global
provider of speciality food ingredients and
solutions
How:
A disciplined focus on growing our
Speciality Food Ingredients business
through:
– Deeper customer understanding,
continuous innovation and agility
– Stronger positions in high growth
markets
Driving our Bulk Ingredients business
for sustained cash generation to fuel
this growth
4. Our Open Innovation (OI) team discovers SODA-LO™
OI team
sources ideas
Selecting the
best fit for us
Ideas turn into
opportunities
through our
new product
pipeline
4
5. Sources: (1) CDC/Department of Health & Human Services USA, Vital Signs, February 2012.
(2) Technomic, The Healthy Eating Consumer Trend Report, 2010. (3) Technomic, May 2011. (4) World Health Statistics, World Health Organization, 2012
About 90% of Americans
aged 2 years or older eat
too much sodium.1
9 in 10
44% of the sodium we eat comes
from only 10 types of foods. 1
44% 10
FOODS
46%of consumers said that
availability of low-sodium foods is
important to their choice of restaurant.3
BUT consumers perceive lower salt to
mean less taste.
LOWER
SODIUM
More than 4out of 5consumers say that food described as
low-sodium and low-salt is ‘healthier.’2
Excessive sodium intake has been linked
to increased risk of hypertension, heart
attack and stroke.4
HEALTH
RISK
5
Why is salt reduction important to consumer health?
6. Standard
salt
crystals
~500µm
SODA-LOTM
~ 10-20µm
Smaller (microparticulate) salt crystals
increase surface area and enhance saltiness
flavour at a lower salt content
However, small particle size promotes
clumping and ‘stickiness’
Micronized Salt
Our technology produces a fine, free-flowing
powder with stable shelf life; avoids use of flow
agent additives
Enables reduction of salt and sodium by 25-50%
in various food applications while maintaining salt
taste and functionality
SODA-LOTM
Manufacturing process, particle size and use in food subject to pending patent application
Traditional Salt
Crystals typically ~500µm
SODA-LO™ Salt Microspheres…technology overview
6
7. Call on global team support in understanding trends and
determining unmet customer and consumer needs
7
Reduced
sodium
new product
launch
segmentation
(1)
Global and local
government
initiatives to
reduce salt intake
Local country
hypertension rate
/ salt intake per
capita
Reduced sodium
packaging claim
vs.
silent
reformulation
Regulatory /
ingredient
labeling options /
taste profile
Salt reduction
technology
segmentation /
cost in use
Consumer dietary
behavior /
channel
segmentation
(1) Mintel GNPD tracks reduced sodium new product launches only and not silent reformulation launches
8. Analyse and evaluate relevant market and industry data
Source: Mintel GNPD new product launches
Global Reduced Sodium New Product Launches by Country
8
9. Develop a Go2Market Plan with global stakeholders support
9
Voice of
Market
Competitors
Customers
CEO /
EXCO
Approval OI, BD, IP,
Commercial
/ NPD
Sales /
Marketing
Product
Mgmt.
Technical
Service /
Applications
Regulatory
Nutrition
Quality /
Mnfg
Finance /
Supply
Chain
Regional
BUs and
GMs
10. Obtain the support and consideration of an
investment partner
• Assessing preliminary views and assumptions on
“size of prize” and data analysis methodologies
• Tate & Lyle’s requirement for a global Go2Market
plan
Investment partner’s
views on addressable
market
• Global evaluation of addressable market with
collaborative input
• Understanding of resources required to successfully
commercialize globally
Developing “Bottom Up”
Global Go2Market plan
Review and agreement of Global Go2Market plan
criteria and details
Sign off by investment partner’s board / Tate & Lyle
EXCO for “win-win” partnership
Semi-annual review of business plan
Go2Market plan review
– “Sign Off” with
partner and Tate & Lyle
10
12. Summary
Entering into adjacent categories for a global organization takes
time to develop required expertise given other priorities to deliver
growth on existing core businesses
The amount of global resources and time required to successfully
commercialise new technology investments can be significant…is
the global organization set up for success?
Important to manage potential investment partner’s expectations
and define criteria required to successfully commercialise…this will
impact the final business plan both organizations will commit to
12