1. 1 Pulses: Opportunities and Challenges Richard Black, PhD VP, Global R&D Nutrition Sciences, PepsiCo, Inc. Little Beans, Big Opportunities: Realizing the Potential of Pulses to Meet Today’s Global Health Challenges The Sackler Institute for Nutrition Sciences New York Academy of Sciences 19 November 2015

2. 2 Disclaimer: I work for PepsiCo The views and opinions expressed here are my own and do not necessarily reflect the policies or positions of PepsiCo

3. 3 Three key points: Talking about the food Consumer drivers Supply chain realities

4. 4 Talking about the Food Taste concerns are a significant barrier to changing behavior 4 Natural Marketing Institute, Health Landscapes : Motivations, Perceptions & Behaviors, July 2009. Percent of consumers indicating the importance of each reason for choosing certain foods during a meal occasion Point allocation across several measures including time, ease and cost

5. 5 5 Talking about the Food Even the healthiest consumers enjoy indulgent categories Note: Penetration defined as % of households in NMI segment making in-category purchase over 12 months ending Nov 2009 Source: Nielsen panel data, 11/23/08 – 11/21/09 ‘H&W-focused’ consumers ‘Indulgent’ consumers Cookies: Penetration (percent of HHs)Cookies: Usage (pounds per HH) ‘H&W-focused’ consumers ‘Indulgent’ consumers

6. 6 Talking about the Food Sodium Reduction and Taste: Low Sodium Crackers “Hint of Salt” communication maintains taste appeal 6

7. 7 Consumer drivers tensions and behaviors around Healthy choices There are a number of critical tensions and trade-offs involved with consumer decisions relating to “healthier” choices Want Will Craving Hunger Indulgent Healthy Diet Lifestyle Old me (Stuck state) New me (Behavioral promotion) Bad calories - count Good calories – make them count Unsatisfied Satisfied Enjoyment Sensibility Food controls me In control of food Freedom to choose Shouldn’t/ prohibited Joanna Castellano, Q:Quest Inc., with TNS

8. 8 Supply Chain Realities Tremendous variety of pulses, often regionally or seasonally unique, with different texture, flavour, colour, and water content (to name just a few considerations), all of which affect the success of your recipe. For a typical snack food, production speeds are well in excess of 800 pounds of product per line per hour. A typical demand could be over 3,000 tonnes of pulses per production line, where the input ingredients are incredibly consistent month to month, year to year. Assurances are needed vis-à-vis agricultural practices. Input costs must be competitive with other commercially grown crops.

9. 9 Thank you Leave the taste to us. How do we educate/inform people about the nutritional value of pulses, without “force feeding” the information? How do we balance the Will and the Want? Public-Private Partnerships. How do we ensure the pulse supply meets the needs of the Food Industry? Public-Private Partnerships. Pulses represent great opportunity, but like anything worthwhile, it won’t be easy.