Keeping a pulse on the latest dairy trends in sugar reduction, sustainability and clean & simple labeling

1. 1Confidential
Keeping a pulse on the latest dairy trends in sugar reduction,
sustainability and clean & simple labeling

2. Indonesia is ranked 4th in Asia Pacific and has the largest
market in ASEAN
• 2018 sales in Indonesia –
3,289 RSP value USD
million
• CAGR – 10.7% (2018 -23)
3,289.5
1,066.3
1,790.6
426.8
3,167.8
3,248.1
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
Indonesia Malaysia Philippines Singapore Thailand Vietnam
ASEAN: Dairy, RSPValue USD Million (2018)
Source: Euromonitor

3. Drivers for growth in dairy products
Large population
Economies development
Thriving dairy industry
Foodservice expansion
Youthful demographics
Consumers changing
lifestyle/ purchase
decision
Source: AG web

4. ASEAN: Sugar has a bad reputation
• Cause for rising obesity and diabetes
population
• Childhood obesity - In Indonesia, 12%
of children under five years of age –
2.89 million of them – are overweight1
Source: 1. Unicef 2016

5. Government measures to reduce sugar
Source: Asia Nikkei 2019, Malay Mail
April 2017 (Brunei)
• $4 brunei dollar per 10 litre
(4000 IDR/ litre)
Sept 2017 (Thailand)
• 14% of retail price plus additional tax depending
on sugar content
Jan 2018 (Philippines)
• 6-12 pesos per litre
(1600 IDR/ litre)
*NEW* July 2019 (Malaysia)
• 0.4 ringgit per litre
(1300 IDR/ litre)
Considering - Indonesia, Singapore,Vietnam,
Myanmar

6. 4 main plant-based eating drivers
Health &
wellness
Muscle
maintenance
Satiety
Energy boosting
Weight
management
Lifestyle and
health-
conscious
consumers
Dietary
choices
Vegetarian
Vegan
Allergen-free
Flexitarian
Reducitarian
‘Free-from’
‘Clean eating’
Natural
GMO-free
Ethical and
environment
al concerns
Planet wellness
Sustainability
Production/farm
ethics
Animal welfare
Reduction of
chemicals
Protein
brings new
values
Novel proteins
have a ready
audience.
Plant based
protein reduces
‘evil’
components in
formulations.
Plant based
protein provides
permissibility in
guilty foods
Consumers wants good natural food and feel good about what they eat.

7. There is a huge market for dairy alternative drinks
DAD is estimated to double from 2018 to 2022. China leads the market with Thailand and Indonesia joining the bandwagon.
Consumers are demanding for DAD and manufacturers are complying.
Indonesia

8. Soy is the most common ingredient
• Long standing tradition of consuming soy
milk
• Rise of other ingredients
• Soy has become a saturated market

9. Clean, simple,“natural” and authentic
products is the biggest mega trend
9
*
**
79%
*Ingredion Proprietary Research, Global Clean Label Consumer Study,April 2017.
**Ingredion Proprietary global manufacturer research, December 2015

10. Consumers wants food that are free-from
unwanted ingredients
• Consumers are aware of the close relationship between
their diet and health.
• “You are what you eat”
• Key words such as “Natural”,“No additive”,“No
preservatives”,“Non-GMO” are what consumers are looking
out for in products as well as menu.
• Driven by
– Health conscious consumers
– Rising middle class income
– Government intervention to eat healthier

11. Defining “Clean Label”
Clean label industry definition by Ingredion published in
International Food Ingredients, No. 3, 2010:
✓ Simple ingredients that consumers understand
✓ Free from chemical additives
✓ Minimally processed or processed using
traditional techniques
Adapted definition to reflect changes in consumer views and
the additional items they now associate with clean label:
✓ Only made with ingredients that are recognized
and accepted by consumers
✓ Free of ingredients that are artificial-sounding or
misleading
✓ Contain no genetically modified ingredients (non-
GM)
✓ Having an ingredient listing that is consistent with
the consumer’s understanding of on-pack claims
28%
of consumers
always check
the labels
Source: Ingredion Proprietary Research, Global Clean Label
Consumer Study,April 2017.Total Base Global n=7878
71%
of consumers
usually or
always
check the labels

12. Confidential
Clean Label Penetration in Indonesia
Clean Label
New Product
Launches
CAGR 2014-2018
-22%
New Product
Launches
CAGR 2014-2018
38%
Source: Innova Database. Clean Label Positioning:Natural, Organic, No Additives, No Preservatives, GMO Free

13. Clean LabelTrend Conclusion
• Clean label trend is no longer restricted to western countries.
• Clean label is a global mega trend and consumers will continue to focus on and become increasingly aware of
what goes into their food and this will continue to impact food industry.
• As for on-pack claims, food manufacturers have to ensure that the claims made on the packaging must be
aligned with the ingredients incorporated.
• As food manufacturers reformulate or develop products to meet consumers’ demand for clean label products,
it is important for them to understand consumers’ perception about clean label.
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14. Confidential
Innovative solutions
for sugar reduction
and protein
enhancement in dairy
applications

15. Dairy applications
Healthier drinking yoghurt
Wholesome yoghurt
Nutritious dual protein milk
15

16. Challenges in creating a healthier drinking yoghurt and stirred
yoghurt with reduced-sugar
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“I like seeing
plant protein
on the label”
“Pulses offer balanced
nutrition”
“Plant protein
is healthy”
Are these ingredients
approved in my
countries?What are the
available
ingredients that
are considered
clean?
Do I need to
change my
processing
conditions?
Will the stability be
compromised?How can
I preserve my
product’s great
taste?

17. Healthier drinking yoghurt with reduced-
sugar
Taste similar to full sugar recipe
– Choice of sweeteners used that provides sweetness with
texture build back
– Enable calories reduction
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Time
Sweetnessresponse
Concentration
Concentration Response
Sweetnessintensity
Time Intensity

18. Healthier drinking yoghurt with reduced-
sugar
Taste similar to full sugar recipe
– Choice of sweeteners used that provides sweetness with
texture build back
– Enable calories reduction
18

19. What is Isomaltooligosaccharide (IMO)?
• IMO contains mixture of carbohydrates but smaller than
polysaccharide; Isomaltose, Panose, Isomaltotriose and branched
oligosaccharides
• pH & heat stabilities
• Sweetness depends on composition
• Ideal for textural build back with some sweetness in reduced-
sugar recipes
• Isomaltooligosaccharide labeling
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Isomaltotriose
Isomaltose Panose
Isomaltotetraose Isomaltopentaose

20. Wholesome yoghurt with reduced-sugar
• Choice of texturiser and sweetener used that appeal to
wholesome image of yoghurt
• Starch is a texturiser that supports and provides stability in
yoghurt
20
Protein
Fat

21. Comparison of texture
21
Native
tapioca starch:
cohesive
Traditional
modified starch:
industry standard
Functional native
starch/flour
DESIRABLE
Native
corn starch:
gelled
Native
waxy maize:
slimy

22. A high in protein beverage that contains sustainable protein
source with clean flavour
Pulses are the dried seeds of plants in the legume family; peas,
beans, lentils, chickpeas
Nutritious dual protein milk
22
High in protein
Rich in minerals
(iron, zinc,
phosphorus)
High in dietary fiber
Source of B
vitamins, folic acid
and potassium

23. Confidential
Pulse ingredients are sustainable
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Pulses use less
non-renewable
energy relative
to other crops
GALLONS OF WATER
TO PRODUCE
ONE POUND
Pulses produce
their own fertilizer
by fixing nitrogen
in the soil
1,85743
BEEF
PULSES
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Winter
wheat
Spring wheat Flax Peas
Source: Hoekstra and Chapagain, Globalization ofWater, U. of Twente,Waterfootprint.org, National Geographic, April 2010

24. Confidential
Benchmarking VITESSENCE™ Pulse 1803 pea protein
isolate:
Pea is comparable to soy in functionality
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Dairy (Whey) Soy Pea
Declared Allergen YES YES NO
GMO NO YES NO
Solubility   
Gelling   
Water-holding   
Oil-holding   
Emulsification   

25. Confidential
VITESSENCE™ Pulse 1803 pea protein isolate:
An overview
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Nutrition Taste Functionality Sustainability
• Can enable “excellent
source of protein”
claims
• Not a major allergen
• Gluten-free, non-dairy
• Clean flavor profile &
lighter color compared
to other commercial
pea isolates
• Smooth, pleasant
mouthfeel
• Mild buttery, nut-like
notes
• Neutral beany identity
• Excellent sustainability
profile
• No solvents
• Non-GMO
Nutrition Taste Functionality Sustainability
• Can enable “excellent
source of protein” claims
• Not a major allergen
• Gluten-free, non-dairy
• Clean flavor profile &
lighter color compared
to other commercial
pea isolates
• Smooth, pleasant
mouthfeel
• Mild buttery, nut-like
notes
• Neutral beany identity
• Excellent sustainability
profile
• No solvents
• Non-GMO
• High solubility over the
full pH range of food
and beverage
applications
• Offers good emulsion
stability, water-holding
and oil-holding capacity
similar to other pea
protein isolates

26. 26Confidential
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Visit us at https://www.insideidealabs.com/apac/dairy/index.html