1. Canola Council 2005 Halifax Kevin Flanagan Director of Research & Development McCain Foods (Canada) Limited

2. Canola and Potatoes A Partnership of Innovation and Consumer Benefit Past Present and the Future

3. Canola and Potatoes, Carleton County NB

4. Canola and Potatoes A brief history

6. McCain Foods Canadian Company founded, and headquartered in Florenceville, NB 1957 McCain has 57 production facilities on 6 continents, supported by over 20,000 employees Undisputed World leader in potato processing with >33% global French Fry Market Supported by over 100 Agronomists and potato specialists working with local growers around the world

7. McCain Foods Diversified Frozen Food manufacturer with recent factory additions, China and India McCain Foods offers a complete line of French Fries and Processed Potato products as well as green vegetables, pizza products, desserts, juices beverages, prepared meals, Chinese Food Specialties and Appetizers

8. McCain Foods Canada McCain Canada employs over 4,000 employees in Canada in 15 processing facilities. Major French Fry operations in Alberta, Manitoba, New Brunswick and PEI

9. McCain (Canada) = Product Diversity

10. Perspectives French Fries can be prepared in a variety of oils – both par fry and finish fry. In the past Beef was preferred Flavour and Price were the main drivers Delivery, availability, market conditions had an equal effect on frying oil choices Oil Stability impacts the flavour of French Fries

11. Perspectives - 1970’s Virtually all available frying oils were used –Beef, Palm, Soy, Cottonseed, then Canola Cholesterol Fears saw the decrease in the use of animal fats Hydrogenated vegetable oils used for stability and consistency and rather bland flavour.

12. Perspectives – 1980’s 80’s saw shipments of partially hydrogenated canola oils out east Trans Fat discussed as an issue with hydrogenated oils Cholesterol Free claims hugely successful with retail French fries Saturated Fat a significant consumer issue

13. Perspectives – 1990’s Trans Fat becoming a more compelling issue Hydrogenated Canola used extensively in Canadian French Fry Factories Experimental hybrid Canola oils and Sunflower oils used for par frying French Fries

14. The Last 5 years Nutritional Labeling : Health Canada requires Saturates + Trans as a combined declaration, USA follows with Trans Facts McCain USA launches Retail Fries prepared with Canola Oil McCain Canada launches Retail Superfries in 100% Non Hydrogenated Canola Oil

15. The World’s Largest Processor of French Fried Potatoes Changing to Non-Hydrogenated Canola Oil

16. Launch in 2003 First Mention of the actual oil First mention of oil type

18. Products Made with Canola Oil {non-hydrogenated} Superfries changed January 2003 Regular fries changed February 2003 Low Fat Fries changed April 2003

19. Why Canola Oil ? Lowest Saturated Fat Content No Cholesterol ( Obvious to you but not to the consumer ). (Non-Hydrogenated) Canola Oil is low in Trans Fat Healthy Perception, based on saturated fat content

20. Nutrition Facts New panel is mandatory for all retail packaged foods by December 12, 2005 Saturate + Trans Fat are a combined as a % Daily Value McCain Superfries seen to the left

21. Canola Oil and Potatoes Current Status of the Compelling Consumer Benefit

22. The Voice of the Consumer McCain has a North American Position –Retail Premium Branded French Fries prepared in 100% Non Hydrogenated Canola Oil Have we succeeded ? Does the Consumer Understand the Message ? What should we do next ?

23. What’s the Consumer Saying What are you aware regarding current health and nutrition issues ? What oil is Healthy ? What is important- non hydrogenated oil or 0 grams of trans fat ? What will stimulate Consumer Purchase ?

24. What is consumer awareness ? 1.Sugar leads the issues with 93 % 2.Cholesterol second with 90 % 3.Calories Third with 88 % 4.Saturated Fat fourth at 84 % 5.Sodium fifth with 79 % 6.Total Fat sixth with 78 % 7.Trans Fat seventh with 74 %

25. What is Very / Somewhat concerning ? 1.Saturated Fat 49 % 2.Cholesterol 49 % 3.Trans Fat close third at 48 % 4.Total Fat 47 % 5.Sugar 44 % 6.Hydrogenated Oil 36 % 7.Non Hydrogenated Oil 28 %

26. What is Important? 1.Cholesterol 58 % 2.Trans Fat 57 % 3.Total Fat 57 % 4.Saturated Fat 56% 5.Hydrogenated Oil 49%

27. What Is Very / Somewhat Healthy ? 1.Olive Oil Wins at 85 % 2.Canola comes in Second with 68 % 3.Sunflower a close third at 66 % 4.Soybean follows with 64 % 5.Vegetable Oil, 53 % 6.Palm Oil….16 % { % of respondents }

28. What About Omega 3 Fatty Acids ? Only 28 % of respondents were Extremely or very concerned about Omega 3’s But 35 % said they were either not really, or not at all concerned about Omega 3’s

29. What should we do with Canola ? 61 % or respondents said “Low in Trans Fat” has an impact { extremely or very important}on their product selection. And only 15 % said not very or not at all important Consumers don’t want Trans Fat They do not understand why.

30. Canola Oil and Potatoes Moving Forward

31. Canola or Olive Olive Oil has a better consumer image and is more likely to be seen in Higher Income Households – data from Canada, Australia and the USA Olive Oil is perceived as Healthier Why is this ?

32. Canola or Olive Oil What’s the difference ? Lets Check the Facts !

33. Fatty Acids

35. Facts for Fryers Mono-unsaturated fats are more stable than poly-unsaturated fats Linolenic is a liability for flavour Solid Fat Content has an impact on the perception of fried foods - Texture and appearance

36. What should Canola Oil Be ? For Consumers Nutritionally Equal to or better than Olive oil In the consumer’s mind, a preference. Made in Canada ! “O Grams of Trans Fat For Food Processors Higher in Mono- unsaturates Lower in Linolenic Selection of Saturated Fat contents Lowest Trans Fat

37. What’s the Competition Doing? > 70 % of the sunflower crop is mid to hi oleic Soy is moving quickly to segment oil offerings including High- Oleic and low Linolenic Palm and palm olein remains a stable low trans solution

38. McCain Research & Development Potato Process Technology Centre opened 2002 Full Pilot Plant Facility and Research Labs Florenceville, NB

39. Greetings from Carleton County NB – Canola Country too