1. © Copyright 2003 Frost & Sullivan. All Rights Reserved. 4566 Natural Food Colours A Strategic Review of the Australia and New Zealand Market June 2003 Ivan Fernandez Food and Beverage Group “The strongest ally of the natural food colour market remains the consumer. Despite the irrational basis of many assumptions, consumers are increasingly suspicious of synthetic colours.”

2. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Features of this Report On-the-ground coverage of Australia and New Zealand markets Proven methodology based on extensive primary research, supported by in-depth secondary research High strategic value of insights and recommendations presented Study of the key challenges and the significant drivers and restraints impacting this market Detailed product, price and consumer demand analysis Analyst insights on the competitive environment Specific strategic recommendations for corporate-level decision- making, marketing and R&D

3. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Market Drivers Consumer suspicion of synthetic colours prompts the switch to natural colours Growing consumer preference for natural products drives market growth Additional health benefits of some natural colours spurs demand History of safe consumption strengthens the case for natural food colours Increased product availability widens options for manufacturers and increases consumer familiarity

4. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Price premium restricts wider application In general, natural food colours suffer in comparison to synthetic food colours on performance deliverables Lack of wholehearted acceptance and use of natural food colours by food manufacturers Difficulty in bringing blue and green hues to the market Lack of clear distinction between natural and synthetic colours Market Restraints

5. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Existing Companies in the Market and Potential New Entrants Natural Food Colour manufacturers Food Product manufacturers (Beverages, Confectionery, Dairy products, Smallgoods, Savoury and Bakery products) Health Supplement manufacturers And … Investment Community Industry Information Services Industry Associations Distributors and Retailers

6. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Market Participants Natural Food Colour Manufacturers and Suppliers AquaCarotene Limited Cognis Australia Pty. Ltd. Chr. Hansen Deltagen Australia Pty Ltd DSM Food Specialties Formula Foods Corporation Ltd HJ Langdon & Co. Kancor Flavours and Extracts Limited LycoRed Natural Products Industries Ltd Nutrinova (Australasia) Pty Ltd Roche Vitamins Australia Pty Ltd Rhodia Foods Sensient Technologies Australia Pty Ltd. Swift and Company Limited

7. © Copyright 2003 Frost & Sullivan. All Rights Reserved.  Call +61 2 9252 9266  Fax +61 9252 8066  E-mail australia@frost.com  Visit www.frost.com For More Information