1. Health Innovation; Future opportunities for the Food & Drink Industry Kenny Martin, INSIGHTS Analyst

2. Industry Growth Drivers PremiumProvenance Natural Health Reputation as a “Land of Food & Drink” Grow the Industry to £12.5 Bn by 2017

3. Health is a key driver of food purchase Source: Food Standards Agency/nVision Base: 3,219 respondents aged 15+, UK, 2009

4. Importance of Health Attributes to Product Choice 1 Clarity of nutritional information on pack 2 How natural you believe it is 3 Recognising all ingredients in a product 4 Removed ingredients 5 Added ingredients Extremely important Extremely or very important Base: all main shoppers, IGD ShopperTrack, October 2010

5. And has doubled in importance of why we eat over the past 15 years In Home / Lunchbox Consumption 12 m/e Nov 2010 Long Term Trend ENJOYMENT 39% PRACTICALITY 39% HEALTH 23% % Servings In Home Food Consumption Kantar WorldPanel Usage BSE, Foot & Mouth, Sudan 1, Child Obesity, Jamie Oliver, Bird Flu, Supersize me, Salt & sugar content, Functional Foods, 5 a day, Fruit for schools Organics/ premium, Taste the difference, Sharing, Caféculture, Eating out, Debit Credit, Treating Ready Meals, Light meals, Snacking, Budget, Microwave, Individual portions, Quick to cook 55% 34% 11% 19952010

6. Drivers of health trends “Natural” the #1 food claim on new products in 2010 Mintel 2010

7. Consumers seek a broad range of benefits from what they eat 52% of consumers claim to look after their health Source; Mintel 2010

8. 1. Weight Management 58% of new products are positioned to offer weight control Mintel 2010 30% of adults claiming to be trying to lose weight

9. A sense of Satiety Avoid between meal snacking “Helps you eat less” vs. “reduces body fat Oats cholesterol lowering properties

10. 2. Energy & Relaxation 31% of consumers are concerned about chemicals in food Natural caffeine from green tea extract 50% less calories than other leading energy drinks High levels of nitric oxide Regulation of blood pressure and enhanced stamina A concentrated convenient format

11. Energy & Relaxation

12. £ $

13. Energy & Relaxation

14. 3. Digestive Health Actimel is a delicious drinking yogurt, containing 10 billion exclusive L. Casei cultures in every bottle - a perfect way to start the day! Actimel is available in 10 delicious flavours and comes in a fat-free range that has less than 30 calories per bottle.10 delicious flavours “Helps digestion: Each bowl contains 18% of your daily fibre needs”

15. 3. Digestive Health - Fruit

16. 4. Bone and Movement

17. 5. Brain Health

18. Convenience and Ingredients 1 in 3 people claim to have no time to look after their health “Natural and additive-free have become part of the consumer’s health and wellness vocabulary, and we’re seeing growth in every category, from confectionery and soft drinks to meal centres.” Source: Mintel 2010

19. Fruit based snacks in growth

20. Ancient wellness ingredients Several ancient ingredients on their way to mainstream acceptance Healing Spices -Holy Basil & Turmeric -Functional ingredients boasting digestive & mental health benefits; teas and energy bars Hemp Seed -Omega and Amino acids -Health booster to nut bars and salad dressings Agave Nectar -Plant based sweetener; Mexican cuisine heritage -Lower glycemic index, sweeter alternative to sugar Source; Centre for Culinary Development

21. Final Thoughts Communicate and support the claimed benefit Consumers need to believe they are feeling the benefit Convenience TASTE

22. Thank You