William Fisher Vice President Science & Policy Initiatives

1. Institute of Food Technologists (IFT)
Functional Foods:
Their Role & Opportunities
Presentation November 23, 2011
William Fisher
Vice President
Science & Policy Initiatives

2. Outline
§ Overview of IFT
§ What are functional foods?
§ Why all the interest?
§ History
§ It’s a BIG business!
§ Trends
§ Latest research
§ Regulatory landscape
§ Future outlook
§ Concluding points

3. INSTITUTE OF
FOOD TECHNOLOGISTS
Since 1939, IFT has unlocked
the potential of the food
science community by creating
a dynamic global forum where
members from more than 100
countries can share, learn &
grow.
http://www.ift.org/

4. IFT’s Strategic Focus
Mission
– Advance the science of food
Long-Range Vision
– Ensure a safe and abundant food supply contributing to
healthier people everywhere
Commitment
– Strive to provide
§ An inclusive and welcoming community for all food science
and technology professionals; and
§ The knowledge and tools food science and technology
professionals need to enhance their professional capacity
and competency

5. IFT’s Mission in Motion
Publications
Meetings & Events
5

6. WHAT ARE FUNCTIONAL
FOODS?
Foods & food components that
provide essential nutrients often
beyond quantities necessary for
normal maintenance, growth,
and development and/or other
biologically active components
that impart health benefits or
desirable physiological effects.
IFT Expert Report. Functional Foods: Opportunities and Challenges

7. Dietary Supplements
§ Taken by month that contains a “dietary ingredient” intended to supplement the diet
§ “Dietary ingredients” include: vitamins, minerals, herbs and other botanicals, amino
acids, and substances such as enzymes, organ tissue, glandulars, and metabolites.
§ Excludes conventional foods or a sole item of a meal or the diet.
Drugs
§ Prescribed to a specific individual by a medical doctor to treat a specific disease because
of its active medicinal ingredient that usually has a specific target and an immediate
effect
Nutraceutrials
§ Foods, or parts of food, that provide medical or health benefits, includes
dietary supplements and functional foods.
Nutrients
§ Traditional vitamins, minerals, essential fatty acids for which recommended intakes have
been established
§ And other components, such as phytonutrients or bioactives, present in foods for which
a physical or physiological effect has been scientifically documented or for which a
substantial body of evidence exists for a plausible mechanism but for which a
recommended intake and function have not been definitively established.
IFT Expert Report. Functional Foods: Opportunities and Challenges

8. Functional Food Categories & Examples
Conventional foods (whole foods) § Garlic, nuts, & tomatoes
Modified foods
Fortified § Iodized salt
Enriched § Folate-enriched breads
Enhanced § Energy bars, snacks, & yogurts
formulated with bioactive
components
Medical foods § Phenylketonuria (PKU) formulas,
free of phenylalanine
Foods for special dietary use § Infant foods, weight-loss foods,
gluten-free foods, & lactose-free
foods
Position of the American Dietetic Association: Functional Foods.
J Am Diet Assoc. 2009;109:735-746

9. Why All the Interest?
§ Rapid advances in science and technology
e.g., biotechnology and nutrigenomics
§ Evidence linking diet to chronic disease risk
§ Desire to attain wellness through diet
§ Aging population
§ Healthcare costs
§ Changes in food laws
e.g., label and product claims
IFT Expert Report. Functional Foods: Opportunities and Challenges
Reinhardt Kapsak W. J Am Diet Assoc. 2011;111(6):805-810

10. IFIC 2011 Consumer Trending Survey
§ Web survey of a representative sample of 1000 American adults
§ Working definition of functional food: food or food components that may provide benefit
beyond basic nutrition
§ 87% of surveyed American consumers believe certain foods have health benefits
§ 90% of surveyed American consumers can name a food and its associated
benefit.
§ Top ten “functional foods” named by surveyed consumers
1) fruits/vegetables, 2) fish/fish oil, 3) dairy, 4) herbs/spices, 5) whole grains, 6) fiber, 7) meat
and poultry, 8) tea/green tea, 9) nuts, and 10) vitamins/supplements
§ Pair food with heart health, overall health, weight management, cancer, &
digestive health and by life stage-healthy growth and development and healthy
aging

11. Historical Notes
§ The concept of food as medicine has origins in ancient
India, traditional Chinese medicine, and other ancient
civilizations.
§ Advances in technology built evidence-base for
connection between food and health
§ 18th century chemist Antoine Lavoiser designed laboratory
equipment to test his hypothesis that food was fuel.
§ Early experiments illustrated how fortifying products can
enhance health benefits and reduce disease risks:
§ Vitamin B3 (niacin)-enriched flour & pellagra
§ Vitamin B1 (thiamine)-enriched flour & beriberi
§ Iodized salt & goiter
§ Vitamin D-enriched milk & rickets
§ Vitamin C & scurvy

12. Functional Foods is BIG Business!
§ Health-conscious consumers are driving the demand for the
development and promotion of products that
– Promote wellness
– Increase longevity
– Prevent or manage chronic diseases
§ US sales of functional foods continue to increase, weathering
economic downturn better than other food categories
§ Reached $37.4 billion in 2009
§ Estimated to represent 35-50% of global sales
§ Asia-Pacific also has a large market
§ Brazil has strong market potential
Nutrition Business Journal. Feb 2010
World Bank. Health Enhancing Foods. 2006

13. Functional Foods Business Focus
Key categories
§ Energy
§ Cognitive, digestive, bone, joint & heart health
§ Weight management
§ Mood enhancement
§ Skin & beauty
Key players (key brands)
§ PepsiCo (Quaker, Gatorade)
§ Coca-Cola (Vitamin Water, Odwalla)
§ General Mills (Cheerios, Yoplait)
§ Kellogg (Special K, Kashi)
§ Kraft (Capri Sun, Balance Bar)
§ Nestle (Nesquick, PowerBar)
§ Danone (Activia, Essensis)
§ Unilever (Slim-Fast, Blue Band)
§ Yakult Honsha (Yakult 400, Jole)

14. Facilitating Market Growth
§ Simplified approval process to market and label health claims
§ Increased awareness about food & chronic disease linkages
§ Gained acceptance about personalized medicine
§ Incentivized employees to develop better-for-you products
§ Incentivized customers to consume better-for-you products
§ Advanced food processing techniques
§ Demonstrated premium pricing potential

15. Emerging Functional Food Technologies
§ Enhancing product taste & smell
§ Optimizing texture
§ Stabilizing product ingredients
§ Improving body’s defenses
§ Maintaining food safety
§ Managing reasonable product costs
http://www.ift.org

16. Process for Bringing Functional Foods to Market
Identify relationship between food component and health benefit
Demonstrate efficacy and determine intake level necessary to
achieve desired effect
Demonstrate safety at efficacious levels
Develop suitable food vehicle for bioactive component
Demonstrate scientific sufficiency of evidence for efficacy
Communicate benefits to customers
Conduct in-market confirmation of efficacy and safety
IFT Expert Report. Functional Foods: Opportunities and Challenges

17. Market Entry Strategies
(1) Acquisitions
§ Gilde acquired DSM Bakery Ingredients
§ PepsiAmericas acquired Ardea Beverage
(2) Joint Ventures
§ Coca-Cola & Nestle joined to create Enviga
§ Danone & Yakult joined to enter into India’s probiotic dairy market
§ Novartis & Quaker Oats joined to produce functional foods
(3) Licenses & Partnerships
§ Kraft Foods & Medisyn Technologies entered into a research & licensing
partnership to discover bioactive ingredients
§ General Mills & Curves partnered on extra fiber brand
§ Kellogg licensed Martek’s DHA omega-3 technology to create Live Bright
Brain Health Bars

18. Making it in the Marketplace
§ Need to market a feel good benefit consumers immediately feel and
connect with product
§ Build consumer trust with a credible claim and marketed product
§ Know and target your niche
§ Integrate smart technology & social networks
§ Have the science to support the claim
Communicate a specific health message
about a specific product to a niche audience

19. Better-For-You Foods: It's Just Good Business
The Hudson Institute examined Nielsen sales data from grocery
stores, drug stores, and mass merchandisers; financial metrics,
such as operating income, share price appreciation, and return
to shareholders; and company reputation and favorability
rankings and found food and beverage companies that have a
higher percentage of product sales in the better-for-you product
category demonstrate comparatively better sales growth,
operating profits, returns to shareholders, and company
reputation.
www.hudson.org

20. Overcoming Consumer Perceived Barriers
§ Expense § Confidence in the science
§ Taste § Knowledge of how much to
§ Availability consume
§ Convenience § Uncertainty in how to
prepare foods
§ Knowledge of foods/desired
health benefits § Lack of desire to try new
foods
§ Confusion over conflicting
information § Time it takes to learn about
these foods

21. Top Food Trends
(1) Demographically Directed
(2) Still Cooking
(3) Appeal of Americana
(4) Foodie Focused
(5) Get Real
(6) New Nutrients
(7) Specialty Treats
(8) Three Squares
(9) Prescriptively Eating Elizabeth Sloan, Ph.D.
(10) Home Rituals President, Sloan Trends, Inc.
Contributing Editor, Food Technology Magazine
Sloan E. Top 10 Food Trends. Food Tech. April 2011

22. (1) Demographically Directed
Sloan E. Top 10 Food Trends. Food Tech. April 2011
Sloan E. Bridging Generational Food Divides. Food Tech. July 2010

23. (2) Still Cooking
Sloan E. Top 10 Food Trends. Food Tech. April 2011

24. (3) Appeal of Americana
Sloan E. Top 10 Food Trends. Food Tech. April 2011

25. (4) Foodie Focused
Sloan E. Top 10 Food Trends. Food Tech. April 2011

26. (5) Get Real
Sloan E. Top 10 Food Trends. Food Tech. April 2011

27. (6) New Nutrients
Sloan E. Top 10 Food Trends. Food Tech. April 2011

28. (7) Specialty Treats
Sloan E. Top 10 Food Trends. Food Tech. April 2011

29. (8) Three Squares
Sloan E. Top 10 Food Trends. Food Tech. April 2011

30. (9) Prescriptively Eating
Sloan E. Top 10 Food Trends. Food Tech. April 2011

31. (10) Home Rituals
Sloan E. Top 10 Food Trends. Food Tech. April 2011

32. Top Functional Food Trends
(1) Retro Health
(2) Naturally Functional
(3) Functional Fill-ins
(4) Prime Timers
(5) Chemical Warfare
(6) Ailing Adolescents
(7) Meddling in Medications
(8) Daily Dynamics
(9) Get the Lowdown
(10)Finally Foodservice Elizabeth Sloan, Ph.D.
President, Sloan Trends, Inc.
Contributing Editor, Food Technology Magazine
Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

33. (1) Retro Health
Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

34. (2) Naturally Functional
Most viable functional food strategy—blending foods naturally
high in nutrients and phytochemicals
Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

35. (3) Functional Fill-Ins
§ Healthy snacks continue to outpace indulgent snacks
§ Grain is a sought after attribute of a healthy snack
§ Popular snacks include:
§ Trail mixes
§ Dry fruit snacks
§ Sensible salty snacks
§ Healthier candies such as sugar and gluten free popular too
§ Portion size and other weight control products growing
§ Healthful restaurant snack options has untapped potential
Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

36. (4) Prime Timers
§ Use of functional foods declines with age
§ Older adults least likely to believe in phytochemicals and to use
fortified foods
§ Heaviest users of dietary supplements
§ Yet, most likely to be looking for foods to
prevent or control chronic diseases
and help with cognitive functions
§ Boomers seeking portion-controlled,
high-satiety products
Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

37. 6) Ailing Adolescents
Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

38. 7) Meddling in Medications
Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

39. 8) Daily Dynamics
Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

40. 9) Get the Lowdown
Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

41. 10) Finally Foodservice
Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010

42. What’s the Latest Research?
§ Elucidate chronic disease prevention mechanisms
§ Flavonoids
§ Fruit extracts
§ Omega 3
§ Research and development
§ Probiotics in beverages and baked goods
§ Fibers in beverages and dairy products
§ Healthy oils in dairy products
§ Evaluate safety at efficacious levels
§ Multidisciplinary research

43. US National Institutes of Health Perspective
Opportunities
§ Need to identify the true site of action, e.g. establish
biomarkers
§ Nutrigenomics
§ Establish optimal doses
Challenges
§ Bioactive compounds may vary by type and variety of food
§ Cooking changes the bioavailability of certain compounds
§ Bioactive compounds are complex & synergistically
§ Human tissues react differently
Milner J. US Health & Human Services. National Cancer Institute.
http://www.nutrientdataconf.org/PastConf/NDBC31/1-2_Milner.pdf

44. The Regulatory Landscape
Generally, functional foods are regulated as a combination of
substances, distinctly different from the drug approval process.
United States: Simplified health claim approval process
§ Enacted the Nutrition Labeling and Education Act (1997) and
subsequent legislation
Europe: Increasingly difficult to make health claims
Japan: Permits health claims

45. Various Functional Food Definitions
United States Food and Drug Administration (FDA)
Not officially recognized as a regulatory category.
Health Canada
Similar in appearance to or, may be, a conventional food, is consumed as part of a
usual diet, and is demonstrated to have physiological benefits and/or reduce the risk of chronic
disease beyond basic nutritional functions.
European Commission Concerted Action on Functional Food
Science in Europe
If it is satisfactorily demonstrated to affect beneficially one or more target function in
the body, beyond adequate nutritional effects, in a way that is relevant to either an improved
state of health and well-being and/or reduction of risk of disease.
Japanese Ministry of Health and Welfare
Only country that recognizes functional foods as a distinct category, which they define
as foods providing a specific health benefit.
Position of the American Dietetic Association: Functional Foods.
J Am Diet Assoc. 2009;109:735-746

46. Authorized Claims in United States
(1) Nutrition content claims (e.g., no trans-fat)
(2) Structure/function claims (e.g., calcium builds
strong bones)
(3) Health claims (e.g., diet low in saturated fat
may reduce CVD)
§ Most controversial
§ Describe a relationship between a food substance
and a disease or other health related condition
§ FDA review of evidence, summarized in petitions
§ Only authorized if significant scientific agreement
exists among experts qualified to evaluate the
totality of the publicly available evidence

47. Example U.S. Authorized Health Claims
Scientific evidence suggests,
but does not prove that eating
1.5 ounces per day of most
nuts, such as almonds,
hazelnuts, some pine nuts,
peanuts, pecans, pistachios,
and walnuts, as part of a diet
low in saturated fat and
cholesterol, may reduce the
risk of heart disease.

48. Authorized Health Claims in the United States
Heart disease benefit (petitioner)
§ Barley soluable fiber (National Barley Foods Council)
§ Oatrim (The Quaker Oats Company & Rhodia, Inc.)
§ Plant sterol esters (Lipton Tea Company & McNeil Consumer
Healthcare)
§ Psyllium seed husk soluble fiber (Kellogg Company)
§ Soy protein (Protein Technologies International, Inc.)
§ Whole oat soluble fiber (Quaker Oats Company)
Nutrition Labeling and Education Act (NLEA), 1997-2006
Position of the American Dietetic Association: Functional Foods.
J Am Diet Assoc. 2009;109:735-746
IFT Expert Report. Functional Foods: Opportunities and Challenges

49. Example Authorized Health Claims in Brazil
§ Beta-glucan helps reduce absorption of cholesterol
§ Bifidobacter animallis helps with intestinal function
§ Dietary fiber helps with intestinal function
§ Lactulose helps with intestinal function
§ Lutein helps protect against cellular damage from free radicals
§ Plant sterols helps reduce the absorption of cholesterol
§ Quitson helps reduce the absorption of fats and cholesterol
§ Soy protein helps reduce cholesterol
World Bank. Health Enhancing Foods. 2006

50. Future Outlook
§ Consumer interest in health benefits of food is strong
§ Particularly increasing knowledge and purchasing of functional foods
§ Research, regulation, and consumer outreach is facilitating
market growth, but gaps remain
§ Understanding the research, regulation, and consumer
insights can help target product development and consumer
messaging

51. Brazil & Functional Foods
§ Consumer base is small but has significant growth potential
§ Food industry must improve its research and development capacity
§ Laboratory capacity is a barrier
§ Ability to purchase expensive ingredients can be a hurdle
§ Significant dependence on imported materials for processing
§ Process equipment is can quickly adoptable for innovation
§ Strengths: agricultural production sector, large land area and favorable climate and food
processing is the second-largest sector in the economy
§ Regulatory constrains
§ Demand food companies maintain food database to ensure compliance
§ Supportive government efforts
§ Nutrition labelling
§ Nutrition education in school and communities
§ Strict research requirements for authorized health claims
World Bank. Health Enhancing Foods. 2006

52. Functional Foods:
Their Role & Opportunities
Will Fisher
Vice President, Science & Policy Initiatives
wfisher@ift.org
202-330-4977