The document discusses the decline in nutritional quality of diets from pre-industrial to post-industrial times, highlighting the shift towards processed foods that are calorie-rich but nutrient-poor. It emphasizes the growing consumer interest in functional foods, particularly probiotics, as a response to dietary deficiencies and health issues. The market for probiotics is rapidly expanding, with increasing awareness among consumers and significant sales growth in probiotic foods and supplements.

1. The
of Food
History
Survival
Calories
Satiety
Taste
Functionality
Enhancement
Optimization
Nutrigenomics

2. Malnutrition
of Affluence
The more affluent we have become, the less nutritious our
diet…..
Man’s Diet Then And Now
Pre-Industrial:
 Calorie rich, nutrient dense
 Biodiversity in diet
 Significant exercise
Post-Industrial:
 Calorie rich, nutrient poor
 Lack of biodiversity in diet
 Limited exercise

3. The State of
Our Food
Food processing practices are depleting the quality and
diversity of phytonutrients.
 Studies are demonstrating a relationship between our (Western)
diet and chronic diseases.
 Post-industrial agricultural and food processing has removed
phytonutrients heretofore thought “inactive” or useless. These
compounds are routinely removed from plants through selective
breeding and modern processing.
 We used to eat from over 800 plant foods, now most Americans
eat only three vegetables, namely french fries, ketchup and
iceberg lettuce.
We have supplanted our food quantity concerns with
consequences in quality.

4. Processed
Foods
About 90% of the money that Americans now spend on
food goes to buy processed food.
Approximately 10,000 new processed-food products are
introduced every year in the United States.
Processed foods tend to contain lower levels of
antioxidants than fresh fruits and vegetables and whole
grain products.
Fast Food Nation; Dr. David R. Jacobs, University of Minnesota; American Council for Fitness & Nutrition.

5. Functional
Foods
Consumers are recognizing the deficiencies in their diet
and wish to take an active role in maintaining their
wellness and maximize performance.
Food technology and nutritional science allow us to
address these issues in a convenient and well-adopted
manner:
Functional Foods & Beverages

6. There are three general types of functional foods &
beverages with high marketability.
Types of
Functional Foods

7. Food Medicine
Nutritious
Enriched
Enhanced
Engineered
Wellness
Health
Spectrum of
Functional Beverages

8. Gut Health
Market
In the United States alone, around 70 million adults suffer
from digestive problems caused by poor consumption
habits, high usage of additives for processing of food, and a
high rate of antibiotic intake.
1 in 7 people suffers a chronic GI disorder.
76 million get food borne illnesses in the US annually & 40
million travelers get diarrhea.

9. Why
Probiotics
Probiotics represent one of the fastest growing sectors in
functional foods.
Global volume consumption
is more than 3X that of
omega-3, making probiotics
the most successful
functional ingredient in
packaged foods after
vitamins and minerals.

10. The Probiotic
Numbers
The global probiotic products market was estimated at
$27.9 billion in 2011, expected to reach $44.9 billion in
2018, growing at a CAGR of 6.8% from 2013 to 2018.
Sales of probiotic supplements alone, which account for
only about 6% of the supplement market, totaled nearly
$2.3 billion last year, outstripping soy products by about
$200 million.
In US, per capita spending on probiotic supplements is
expected to nearly double by 2016 and overtake Japan.
SPINS, 2011;Aggregated market data; Euromonitor, 2012.

11. Probiotic
Foods
The lion’s share of probiotic sales was in foods and
beverages. Sales of probiotic-containing foods grew 31.4%
since last year. MarketResearch.com forecast a 7.6%
annual growth rate through 2015.
SPINS, 2011.

12. Probiotic
Products
North America has tremendous growth potential because of
consumers’ natural predisposition to taking supplements
and consuming dairy products. Also probiotics are
increasingly being used for specific conditions such as
allergies, travelers’ diarrhea, etc.

13. Interest in
Probiotics
Consumer interest in probiotics as measured by Google
traffic 2004-2011; It has multiplied by 3.
The term “probiotics” grew in awareness 567% between
2002-2009 alone, recognized by 60% of Americans.
Natural Marketing Institute, HWTD, 2009.

14. Interest in
Probiotics
81% of Americans ranked probiotics as the most important
nutrient in a 2011 study released by IFIC.
57% of shoppers want to learn more about probiotics and
immune health.

15. Probiotic
Beverages
A look at a few good examples of probiotic beverages…

16.  Cultured probiotic “shot”
 Launched over 75 years ago in Japan
 US sales already exceed 52 million bottles/yr.
 6.5 billion CFU/serving
 Utilize proprietary Lactobacillus CaseiShirota
Yakult

17.  RTD fruit juice with probiotic
 Launched in 1994
 $50MM + annual sales
 Utilizes Probi LP299v probiotic
Danone acquired a 51% stake
ProViva

18. Probiotic drink “shot”
 Launched in 2006
 Based upon EU success of ProViva
Probi LP299v probiotic plus vitamins
 20 billion CFU/serving
GoodBelly

19.  Powdered stick pack
 Fruit flavors, 20 Kcal/serving
 2.5 billion CFU
 Utilizes B-longum BB536, acidophilus LA-14
 Also contains prebioticInulin
Pre

20. According to the 2007 National Health
Interview Survey,
“prebiotics/probiotics” ranked fifth
among natural products used for
children.
MojoMilk
 First probiotic powdered chocolate milk mix
 Convenient stick packs
 Delivers 10x more active cultures than most yogurt
 2 billion CFU/serving utilizing
Ganeden BC30
 60% less Kcal and 80% less
sugar than Nesquik®
 Immune & digestive claims

21.  Sparkling probiotic RTD
 4 billion CFU
 Utilizes Ganeden BC30, L.paracasei,
L. plantarum, L. rhamnosus
 20 Kcal/serving
Kevita

22. Four Keys
to Success
Functional
Foods Safe
Experiential
Intuitive
Validated
Must be endorsed,
believed, and adopted
by stakeholders.
Must provide taste,
perceptible experience,
convenience.
Must mitigate risk
through scientific
research.
Must be a recognizable,
understandable or simple
proposition.

23. Food vs.
Drug
Successful functional products provide a wellness benefit but
don’t masquerade as a therapeutic. Consumers don’t want to
eat from their medicine cabinets.
They rely on science for validation, not as a primary selling
point.
For “serious” health conditions, consumers have Rx options
that are more validated and reimbursed by insurance.
Consumers need drugs, but they want foods.

24. Consumers eat to enjoy, everything else is secondary
Deliver a lifestyle solution, not a medicine
Most successes:
Created new sub-categories
Built new brands, not line extensions
Provide convenience
Taste good
Observations
for Success

25. Peter Leighton
Abunda Functional Foods, Inc.
peter@abundafoods.com
(801) 550-6962
Contact