Marketing the Benefit of HPP to Consumers

Panel Discussion

What is the best way to educate consumers about HPP?

We encourage your participation!

Webcast slides & recording available later this week.

High Pressure Processing (HPP) is a USDA/FDA approved process that uses water and pressure to inactivate pathogens and spoilage organisms in a variety of foods and beverages.

HPP has been used widely by leading food and beverage manufacturers and retailers to enhance food safety practices.

While HPP technology is in the early stages of adoption, the HPP market has increased 16.4% over the past five years and is expected to increase 22.2% to $640M by 2022F

Baskets containing

product in final

packaging are loaded

into HPP chamber

Water is pumped

into the HPP chamber

to build

isostatic pressure

Product is held at an

isostatic pressure up to

87,000 psi to inactivate

microbial activity

HPP product comes out

of the vessel and is

ready for distribution

1

2 3

4

Key Advantages of HPP

Enhances

Food Safety

(1-6) log

reduction of

pathogens

Extends

Shelf Life

2-10x longer

Enables Clean

Labels

No preservatives

or chemicals

Reduces Food

Waste

Improves

end channel

profitability

Maintains Taste,

Texture and

Nutritional Value

Non-thermal

processing

method

Protects Brand

Reputation

Helps prevent

product

recalls

HPP significantly reduces harmful bacteria like E. coli and listeria Consumers are increasingly aware of the disadvantages of unnatural

foods with preservatives and artificial ingredients

74% of shoppers are concerned about contamination by bacteria or germs(1)

HPP decreases the need for preservatives Retailers and food service operators can reduce the amount of food

waste through extended shelf life

31%of food that is produced in America goes to

waste (133 billion pounds annually)(3)

~$160Bin annual lost retail sales in the U.S. is

directly due to food waste(3)

1.2BTons of food produced for global

consumption is lost or wasted(3)

96% of retailers say they are

more likely to purchase a

product with longer shelf life(2)

94% of food producers say

they could expand distribution

range if their product had a

longer shelf life(2) Non-HPPProduct

HPPProduct

“Removing artificial colors and flavors in all products

by 2018”

“Removing artificial colors and flavors from all CPG

brands”

“Removing artificial preservatives from several

menu items”

“Eliminating all artificial colors, flavors and

preservatives by 2017”

(1) L.E.K. Market Study, June 2018.

(2) 2017 Universal Pure HPP Survey.

(3) Food & Agricultural Organization of the United Nations. USDA ERS, 2014.

“Removing artificial preservatives from cheese

by March 2017”

“Removing flavors and colors from artificial

sources”

Food Safety1

Better-for-You and Clean Label2

Extended Shelf Life3

Food Sustainability & Waste Reduction4

2-10x longer

Consumers continue to prefer clean, fresh and

locally sourced food and beverages

Most consumers purchase private label goods

frequently or occasionally

35% of overall and 45% of millennial respondents frequently

purchase prepared meals or on-the-go food while grocery

shopping(1)

Select On-the-Go HPP Categories

Cold Press Juices Prepared Meals Salsa / Dips

10-15 10-15 10-15

55-65 50-55 45-50

25-30 30-35 35-40

2012 2016 2021F

Fresh /Refrigerated

Shelf-Stable

Frozen

Average Shelf Space(1)

(% of square footage per store)

A 5% increase in private label penetration

would result in $69B in market growth(1)

The next wave of conversion is in premium

offerings and “fresh-to-go” on the perimeter

of the store

Online penetration is expected to grow

rapidly as retailers expand their web

presence

Multi-Billion Dollar Growth Opportunity

Conversion of More Premium Products

Increased Penetration in E-Commerce

(1) L.E.K. Market Study, June 2018.

Flight from Center Aisles5

Consumer Expectations6

Convenience and On-the-Go7

Increased Private Label Penetration8

“… Shoppers are [starting to do] something else as well: They’re avoiding middle aisles entirely…”

“… We understand that increasing numbers of consumers are seeking authentic, genuine food experiences, and we know that they are skeptical of the ability of large, long-established food companies to deliver them …”- CEO, Campbell’s

“… In food, change is happening at a pace we’ve probably never seen before. The [willingness of people to adopt new food trends] is at its highest level, probably, ever …”- CEO, Nestle USA

SmoothiesProtein Snacks