Diapositiva 1

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Pulevas strategy for the future
Tetra Pak Vision, Vienna, June 21
Arjan Geerlings, Puleva Biotech
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Topics

• Puleva - Dairy
• Functional Foods
• Omega-3 enriched dairy
• Conclusions

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1. Puleva - Dairy
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Spanish Dairy Market - Share
M1
M2
MDD
M4
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SPAIN FOOD MARKET MILK (NIELSEN) volume
Calcium has had enormous success, but now cardio
benefits (through omega 3) is the next most
important segment in the market, and growing fast.
24,2
16,8
9
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SPAIN FOOD MARKET MILK (NIELSEN) value
Calcium enriched especialties account for more
than 30 of total value
30,1
31,7
13,4
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Fuente Panel de Detallistas Nielsen

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Spanish Dairy Market
1.15
0,95
0,60-0.75
Classical Calcium enriched
Specialties
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MILK MARKET SPAIN (NIELSEN) PRODUCT MIX. M.A.T.
AM06
PULEVA is committed to being leader of the
functional dairy food in our markets. We have
invested in new concepts to develop these markets
to reach a completely different mix from our
competitors.
Fuente Panel de Detallistas ACNielsen
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2. Functional Foods
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Food Function
Food
No pills
It might be a conventional food or a modified food
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Aspects of Functional Foods

• A food might be considered functional if
• a negative component is removed
• a good component is enriched or added
• a negative component is replaced by a similar
  more healthy one
• stability or bioavailability of healthy
  component is improved

The functional food is proven to be healthy by
science and the recommended daily intake be
established by a scientific panel There should
not be a safety limit that can be easily
reached The nutritional status of the functional
food should be at least as good as the
conventional food The functional food should
contain only natural ingredients The composition
of the functional food and the health claims made
should comply with the law
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Why go functional?
Pressure on food companies

• Consumers
• Quality, convenience, variety, health, trust,
  security

• Distributors
• Categories, margins, own brands

• Competitors
• Initiative, market share, focus on core business

New products

• Providers
• Technology, RD, Ideas, Innovation

• Share holders
• Return on investment, growth, benefits

• Management
• Economics, MKT, sales, production, prices, RD

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Why go functional?
USA market of functional foods
FUENTE Nutrition Bussiness Journal 2000.
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Why go functional?
Increase in sales and benefits Maintain
leadership Increase market share Develop
products that consumers need and demand (market
research) RD investments Clinical trials,
contacts with health/legal authorities Intellectu
al property (patents) ? competition Communication
(scientific and to consumer)
Companies ?Innovation
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Why go functional?
What do you want a food product to be?
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Consumer

• Increased knowledge about health and nutrition
• Demands health
• Fast and convenient solutions
• Preventive solutions
• Natural and safe products (known brands)
• High-quality products (known brands)

What?

• Understandable message
• Trust in brand
• Benefits, no characteristics
• Pleasure

How?
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Research Strategy
Physiological function
Marker
Screening
Preclinical studies
Ingredient production
Development final food
Clinical studies
Functional food
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3. Omega-3 enriched dairy
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Puleva Omega3
Name Puleva Omega 3 Format Tetra Brik Slim 1L,
UHT Short description milk product enriched in
Omega 3 (DHA and EPA from fish oil, 2g/L), oleic
acid from olive oil, vitamin E, B6 and folic
acid.
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Cardiovascular disease in the world
First cause of death in the world 16.700.000 per
year
1 out of 5 persons suffer from a cardiovascular
disease
OMS. Informe sobre la salud en el mundo. 2004
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Effects of Omega-3 fatty acids EPA and DHA

• Lowers triglycerides
• Inhibits growth of arterial plaque
• Prevents thrombosis
• Increases arterial dilatation
• Reduces blood pressure
• Prevents arritmias and improves heart function

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Nutritional recommendations for CVD

• Regular fish consumption to provide about 200-500
  mg of EPA and DHA per week.
• Replacement of saturated fat by monounsaturated
  fat (oleic acid).
• Increase in the consumption of fruits and
  vegetables in order to achieve proper antioxidant
  and folate status.

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n-3 fatty acids and cardiovascular disease
1. All adults eat fatty fish at least twice a week
2. For patients with documented CHD 1 g EPA
DHA (combined) per day from oily fish or
supplements
3. For patients with hypertriglyceridemia
an EPA DHA supplement 2 to 4 g of EPADHA
per day may lower TG 20-40
Kris-Etherton et al., 2003 Arterios Thromb Vasc
Biol 23 151
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Recommendations on dietary polyunsaturate intake
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FDA Announces Qualified Health Claims for Omega-3
Fatty Acids
September 8, 2004
EPA and DHA omega-3 fatty acids are contained in
oily fish, such as salmon, lake trout, tuna and
herring. These fatty acids are not essential to
the diet however, scientific evidence indicates
that these fatty acids may be beneficial in
reducing CHD This new qualified health claim for
omega-3 fatty acids should help consumers as they
work to improve their health by identifying foods
that contain these important compounds. FDA is
announcing a qualified health claim for EPA and
DHA omega-3 fatty acids. While this research is
not conclusive, the FDA intends to exercise its
enforcement discretion with respect to the
following qualified health claim "Supportive
but not conclusive research shows that
consumption of EPA and DHA omega-3 fatty acids
may reduce the risk of coronary heart disease.
One serving of name of food provides x grams
of EPA and DHA omega-3 fatty acids. See
nutrition information for total fat, saturated
fat and cholesterol content.
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OMEGA-3 Ingredients-Market Volume
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OMEGA-3 Ingredients-Applications
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Omega3 enriched milk
Milk
Vitamins E, B-6, folic acid
Skimmed milk
Oil blend

• Fish oil (rich in n-3 PUFA) eupoly-EPA
• Olive oil (rich in oleic acid)
• Sunflower oil high in oleic acid

1.9 g fat /100 ml
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Omega3 enriched milk
PUFA 2.3
LC-PUFA 0.3
LC-PUFA 3.5
PUFA 19.5
SAT 23.7
Mono 27
SAT 70
Mono 56.8
Puleva Omega-3
Cows Milk
Human Milk
LC-PUFA 2
PUFA 13.5
SAT 41
Mono 39
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Clinical trial 1
Assessment of the effect of a nutritional
intervention through a functional dairy product
on risk factors for cardiovascular disease in
healthy volunteers
Baro et al, Clin Nutr (2003) 22(2)
185-182 Carrero et al, Nutrition (2004) 20(6)
521-527
San Cecilio University Hospital, Granada and
Puleva Biotech
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EXPERIMENTAL DESIGN

30
healthy volunteers per age group
Group 1 young Age 25-45 years (33.1
7.2) Group 2 middle aged Age 45-65 years
(51.3 5.3)
0
-
4
4
8
weeks
-
n-3 enriched milk
(500 ml/day)
semi
skimmed milk
Volunteers
15
men
and
15
women in each age group


Age
25
-
45
years
(
medium
33.1 7.2) and 45-65 years.

No
Lipid-lowering medication
.

No
changes
in
their
normal
diet
,
except
...

They did not take fish during the period of the
study
Design of study based on Visioli et al. 2000
Pharmacol. Res. 41(5)

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Bioavailability of EPA and DHA
Daily intake of nutrients from 500 ml of
semi-skimmed and enriched product
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Summary Omega3 consumption healthy volunteers
25-45 y
45-65 y
Total Cholesterol
6
9
13
16
LDL Cholesterol
6
11
HDLCholesterol
Not significant
Triglycerides
No effect
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98
92
Plasma folic acid
12
Homocysteine
17
9
VCAM-1
6
Plasma oxidability and TAC
No effect
No effect
LDL oxidability and oxLDL
Vit E
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Publications
25-45 y
45-65 y
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Clinical trial 2
Dietary supplementation with selected nutrients
decreases cardiovascular risk in the secondary
prevention of myocardial infarction.
Carrero et al, Clin Nutr (2004) 23(4)
786-787 Carrero et al, Atherosclerosis (2004)
5(1) 94
Cardiac Rehabilitation Unit, San Cecilio
University Hospital, Granada and Puleva Biotech
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Clinical trial 3
Effects of a combination of nutrients
supplemented in milk in the nutritional
management of peripheral vascular disease (PVD)
patients.
Carrero et al 2005, J Nutr 135(6)1393-9
Angiology Dept., San Cecilio University
Hospital and Puleva Biotech
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STUDY DESIGN
PATIENT DESCRIPTION Sex male PVD (Fontaine stage
II) Mediterranean lifestyle. Treatment Platelet
antiaggregant and hemorrheological agent.
Semi-skimmed milk 1.9 g fat/100 mL Omega3 dairy
product 1.9 g fat/100 mL
months
Control group (500 ml/day semi-skimmed milk)
n30
Supplemented group (500 ml/day fortified dairy
product) n30
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CLINICAL OUTCOMES
Walking distance
plt 0.01 vs. 0
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Other studies

• High Cholesterol volunteers
• (Inst de l Grasa, CSIC, Hosp. Virgen del Rocío,
  Sevilla)
• Metabolic Syndrome
• (Hospital Reina Sofía, Córdoba)
• 300 volunteers
• (Different centers, Granada)

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Puleva Omega3 Strategy
Puleva Omega3 is targeted to 2 different types of
consumers

• 1. Prevention-driven consumer
• Person with some kind of CVD who gets the advice
  from his doctor to take omega3. This person
  possibly is already taking supplements.
• This consumer looks for a CVD health claim.
• 2. Wellness-driven consumer
• Person who wants to maintain and increase his
  wellness by doing exercise, and taking an
  equilibrated healthy diet.
• This consumer looks for the health claim but
  also for a positive message.

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Marketing Tools
1. TV spots and magazine advertisement promoting
cholesterol health claim, and positive message of
well-being
2. Omega3 Institute. This is an organization of
scientists, doctors, and other health-care
workers. It promotes omega3 consumption by
organizing seminars and congresses, financing
research grants, publish books and articles,
inform health-care workers about Omega3 benefits,
etc.
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Dilemma Omega-3 is not only for cholesterol
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4. Conclusions and Future
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Conclusions
The market of functional foods is increasing and
is an opportunity for many companies to grow. To
have success one needs to take into account

• Consumer needs
• Price
• Taste and stability
• The law
• Scientifically demonstrated and accepted by
  health professionals
• Marketing

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Strategy for the Future
Infant Formulas New developments DHA and
functional probiotics Ready to eat/drink infant
formulas Existing products New clinical trials
to support health claims according to new EU
legislation Novel products under sub-brands New
healthy products from actual research Cardiovas
cular health Bone health Intestinal Health
Obesity-Diabetes
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Novel Ingredients
Cardiovascular health cholesterol-lowering
increased bioavailable Omega3 blood-pressure
lowering peptides Bone health new plant
extracts, like soy isoflavones other
bone-related diseases, like artrithis Intestinal
Health novel functional probiotics intestinal
inflammation Obesity-Diabetes child-hood
obesity satiety and weight management
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Thank you
ageerlings_at_pulevabiotech.es