Nu tek salt ASB National Conference 20 May 2015

NuTek Salt Product PresentationAustralian Society of Baking

20th May 2015

Confidential & Privileged - NuTek Food Science 2015 2

Index

1. NuTek Company History 3 - 5

2. Global Sodium Overconsumption Driving Government Action 6 - 13

3. Nutritional Balance 14 - 20

4. NuTek Salt Technology & Product Efficacy 21 - 25

5. The Global Bakery Industry 26 - 31

6. Market Presence of Potassium Chloride 32 - 37

DISCLAIMER AND REPRESENTATIONS

This presentation and the information in it is provided by Nu-Tek Food Science LLC (Nu-Tek) as a courtesy to our customers and includes relevant excerpts from statements of authoritative bodies, professional and scientific societies, and systematic scientific reviews. To the best of Nu-Tek’s knowledge, the excerpts in question are accurate. However, Nu-Tek has provided selected excerpts and customers should review each of the referenced studies, statements and/or reviews in their entirety. Nu-Tek also can make no representations regarding the authoritativeness or reliability of the studies in question. Nu-Tek also does not represent that it has compiled a comprehensive list of every relevant study or statement. The appropriateness of a claim made with respect to a specific product is dependent on a number of factors, including, but not limited to, sodium, potassium, total fat, saturated fat, cholesterol and level of other nutrients in the product. Each customer is solely responsible for determining the nature and content of any claims that may or should appropriately appear on its own products. Each customer is also solely responsible for compliance with all applicable federal, state, and local requirements. The information included in the documents does not, and is not intended to, constitute legal advice. Nu-Tek recommends consulting legal counsel prior to using any of the information set forth in this presentation.

Slide No.

3Confidential & Privileged - NuTek Food Science 2015

1Nu-Tek Salt Company History


OUR HISTORY & GROWTH • 2006: Company Founded & R&D Work Initiated

• 2011: Initial Patents Issue – Production Network Established – Product Launched

• 2012: Global Distribution Network Established

• Primary Focus on Global CPG Companies

• 2014: Production Facility Expansion & QSR Market Engagement• Expanded Focus to Select Global QSR Companies

• Currently “In Market” with 9 of the Top 20 Global Food Companies

• New Products Pending Market Launch with 16 of the Top 20

• In Initial Product Testing with 3 of the Remaining 4

THE NUTEK MISSION“To help create great-tasting and affordable foods that enhance global health and wellness.”


Australia & New Zealand Partnership

… because most people greatly under-consume this necessary nutrient.

NuTek Salt is Proud to Announce the Appointment of Scalzo Foods as our

Australian & New Zealand Distribution Partners


2Global Overconsumption of Sodium Salt Driving Government Action


Argentina

South Africa

South Korea

SingaporeJapan

ChinaBrazil

Taiwan

Eurozone

India

Canada UKUSA

Malaysia

New Zealand

Australia

Mexico0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

Sodium Consumption Levels by CountryOverconsumption is a Global Concern

Recommended Daily Max ConsumptionWorld Health Organization (WHO): 2,000 mg / Day U.S. Food & Drug Administration (FDA): 2,300 mg / Day U.K. National Health Service: 2,400 mg / Day

Active REGULATIONS

Aver

age

Dai

ly C

onsu

mpti

on (m

illig

ram

s)

SOURCE: “Global, regional and national sodium intakes in 1990 and 2010: a systematic analysis of 24 h urinary sodium excretion and dietary surveys worldwide” (2014). BMJ Open.

White Line Represents Recommended Daily Minimum Sodium Consumption (500-600mg/day)

Daily Sodium Consumption Levels by Country/Region


Global Health Organizations Agree Current Sodium Consumption Levels & Associated Healthcare Costs are Unsustainable

“A person with either elevated sodium levels [or] low potassium levels could be at risk of raised blood pressure which increases the risk of heart disease and stroke.”

SOURCE: ‘WHO issues new guidance on dietary salt and potassium’, World Health Organization Website, January 2013

“The leading CVD (cardiovascular disease) risk factor is High Blood Pressure”SOURCE: World Heart Federation Website, 2014

“More people die annually from CVDs than from any other source.” SOURCE: World Health Organization Website, 2014

$863.4 Billion USD in Annual Costs Attributable to CVDs(Includes costs of health care services, medications & missed work days)

SOURCE: ‘The Global Economic Burden of Non-Communicable Diseases,’ The World Economic Forum & The Harvard School of Public Health, 2011


SOURCES: ‘Target Salt 2025: A Global Overview of National Programs to Encourage the Food Industry to Reduce Salt in Foods’, World Health Organization 2014; ‘Mapping Salt Reduction Initiatives in the W.H.O. European Region’, World Health Organization 2013

Governments Must Take Action.. And They Are

= No Active Sodium Initiatives

42Public

Awareness Campaigns

35 Voluntary

Sodium Limit(s) Set

38Industry & Gov’t Joint

Agreements

83 Countries withActive Sodium

Initiatives

7Legislated sodium limits in

School, Hospital &/or Senior Living channels

13Legislated sodium limit(s) broadly applicable across food industry/channels


Industry Product Labelling Reform

Source: AFGC April 2014

Below is an example of the Front of Pack Labelling changes that are rolling out.


Health Star Rating System


Government Action is Yielding Impressive Results

Situation:• Rigorous setting of voluntary salt targets to be achieved by

the food industry… “largely achieved by the responsible food manufacturers.” 1

• Consumer awareness campaign

Impact:• Daily salt intake has dropped 15% from 9.5g to 8.1g since

2005 (equates to sodium decrease of 560mg/day)1

Amazing Health Results:• Will prevent 20,000 strokes, heart attacks and heart failure

– 8,500 of which are fatal1

• “Huge costs savings to the National Health System”1

Note: 70% of the adult population still has a salt intake higher than the recommended averaging 8.1gm/day (equates to 3,240 mg of sodium/day)1World Action on Salt & Health (WASH) “UK leading the world in salt reduction”, http://www.worldactiononsalt.com/news/saltnews/2012/78091.html

United Kingdom


Government Action is Yielding Impressive Results

Situation:

• The National Health and Medical Research Council has set an ‘Adequate Intake’ of sodium per day, this corresponds to 1.15–2.3 grams of salt. Most Australian adults have a daily salt intake of about 10 grams, i.e. many times the maximum value of the Adequate Intake range. A ‘Suggested Dietary Target’ of 1600 mg of sodium (equivalent to about 4 grams of salt) has been set for Australian adults. 1

Impact:

• In 2009, the Australian government established the Food and Health Dialogue, a voluntary program that created 20 sodium-reduction targets in nine food categories: breads, breakfast cereals, simmer sauces, soups, processed meats, savory pies, potato chips/extruded snacks, savory crackers and cheese. Participating companies determine individually which products to reformulate and the amount of sodium to be reduced per year to reach the final target. Progress is monitored by the Australian Department of Health through regular updates by participating companies on their activities. 2

1Source: nutritionaustralia.org2Source: Australian Government Department of Health. (2013). Summary of Food Categories Engaged under the Food and Health Dialogue to Date. http://www.foodhealthdialogue.gov.au/internet/ foodandhealth/publishing.nsf/Content /summary_food_categories. 3Trevena, H., Neal, B., Dunford, E., & Wu, J. H. (2014). An Evaluation of the Effects of the Australian Food and Health Dialogue Targets on the Sodium Content of Bread, Breakfast Cereals and Processed Meats. Nutrients, 6(9), 3802-3817.

Australia

http://www.foodhealthdialogue.gov.au/internet/foodandhealth/publishing.nsf/Content/summary_food_categories




Government Action is PendingCUTTING THE SALT – PROPOSALS INCLUDE:

• A "sinking lid" that would use regulation to reduce the supply of salt. Considered the most effective option.

• A excise tax on salt, judged the second most effective option.

• A mandatory 25 per cent salt reduction in all processed food, or alternatively just bread, processed meat and sauces.

SALTY TREATS

High-salt foods are generally defined as anything with more 600mg per 100g, but anything with more 120mg should eaten in moderation.

• Bread accounts for about 20 per cent of our salt intake. Some loaves have more than 450mg per 100g.

• Tomato sauce is packed with as much as 940mg of salt per 100g. Be careful squirting it all over your pie or fish and chips, which are salty enough already.

• Breakfast cereals are rarely salty, but some have as much as 550mg per 100g.

• Ready-made recipe bases, such as sweet and sour or honey soy, are packed with about 900mg of salt per 100g.

• Even doughnuts have a hefty 550mg of salt per 100g.

New Zealand

http://www.stuff.co.nz/national/health/68254440/salt-tax-could-raise-450-million

http://www.stuff.co.nz/national/health/68254440/salt-tax-could-raise-450-million


3Nutritional Balance


Potassium: Essential, Under-Consumed & “On Trend”

Source: The American Journal of Clinical Nutrition Pub. 9/2012 PMCID: PMC3417219

Leading health authorities advocate for more potassium in typical diets…


Rec. MINIMUM Actual Rec. MAXIMUM Actual0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

4,700

2,6002,300

3,400

Cons

umpti

on (m

g/di

em) Potassium (K) Sodium (Na)

2 to 1Ideal K to Na Ratio

4,700mg 2,300mg


Genetically modified ingredients

Caffeine

Sucralose (e.g. Splenda)

Partially hydrogenated vegetable oils

Refined sugar

Artificial preservatives (such as BHT)

Aspartame (e.g. Equal)

Saccharin (e.g. Sweet N' Low)

Artificial flavors

Artificial colors/dyes

Growth hormones

MSG

Cholesterol

Saturated fat

Trans fat

High fructose corn syrup (HFCS)

Sodium

33%

33%

34%

34%

36%

37%

38%

40%

40%

42%

42%

43%

46%

48%

49%

50%

50%

Sodium:the #1

Avoided Ingredient

Source: Presentation at the 2014 Global Forum on the Future of Food: Hartman Group Health + Wellness 2013 (n=1,728)

Ingredients Avoided by Consumers Survey Question: “Please indicate whether you DELIBERATELY avoid/reduce any of the

following ingredients in your daily diet.”

Sodium

What Consumers DON’T WantSodium is the #1 Avoided Ingredient


What Consumers DO WantPotassium is a Top 10 Desired Ingredient/Nutrient

Ingredients Desired By Consumers

2014 n=1,005; Arrows indicate significant (.95 level) differences vs. 2013.

Source: International Food Information Council Foundation 2014 Food & Health Survey

Survey Question: To what extent do you try to consume the following…”

Flavonoids

Sodium/salt

Sugars in general

Soy

Mono/poly unsaturated fats

Fats/oils

Caffeine

Complex carbohydrates

Omega-9 fats

Omega-6 fats

Calories

Probiotics

Potassium

Omega-3 fats

Calcium

Protein

Whole grains

Fiber

3%

4%

5%

7%

7%

8%

9%

10%

10%

11%

13%

18%

21%

36%

50%

53%

53%

Potassium 19%


Consuming Enough Potassium Isn’t Easy, Potassium Enrichment Necessary

Daily Servings of Top 10 Sources of Potassium Required

#1 White Beans

#2 Spinach

#10 Bananas

#5 Baked Squash

#3 Baked Potato with Skin

#4 Dried Apricots

#6 Plain Yogurt, Skim/Nonfat

#7 Salmon

#9 White Mushrooms

#8 Avocados


NuTek Salt Can Help Balance NutritionExample: Potassium Enrichment & Sodium Reduction

NOTE: 1:1 Replacement Assumed

Net Potassium Added

587 mg per Sandwich (+12% pts DV)

Net Sodium Removed

559 mg per Sandwich (-24% pts DV)

One Serving = 54% of DV for Sodium

Menu ItemCurrent Sodium by Weight (mg)

6'' Italian White Bread (71g) 270Pepperoni (18g) 400

Genoa Salami (18g) 320Black Forest Ham (14g) 260

Total Sandwich 1,250

CurrentPotential Sodium by Weight (mg) Reduction

163.3 39.52%160.56 59.86%190.8 40.38%176.4 32.15%

691 44.72%

NuTek Salt


Why We Need Potassium

Role in our Body: Negate blood pressure raising effects of excess dietary sodium

Regulates fluid balance and cellular integrity

Maintains normal heart rhythm

Facilitates muscle contraction and nerve cell transmission

Activates enzymes critical for carbohydrate and protein metabolism

Is important for normal growth and building muscle

May bolster bone strength by helping guard against bone loss2

Helps to reduce the risk for kidney stones2

Science Daily, 9/8/132http://www.webmd.com/food-recipes/potassium-sources-and-benefits

Na+ Cl- NaCl+ =

Table/Sea Salt (Sodium Salt)

K+ Cl- KCl+ =

Potassium Salt


4NuTek Salt Technology & Product Efficacy


NuTek Salt: Patented Sodium TechnologyComparisons to Existing Technologies

Potassium Chloride

(KCl)

NaCl Substitute Dry Mix

(Agglomerated)

NaCl Substitute

Dry Mix

NuTek SaltSingle Crystal

Sodium Chloride (NaCl) Potassium Chloride Blend

Sodium Chloride (NaCl)

Potassium Chloride (KCl)

Modifier (i.e. fumeric acid, citric acid, lactic acid)

Flavors/Bitter Blockers (i.e. yeast extracts, lysine, trehalose, anise, or other natural / artificial flavors)

Drying Agents (maltodextrin, various flours)

Classification of competitive products is basis internal NuTek Salt analysis and research. It in no way reflects commentary or communication from the competitive product manufacturer.

NOTE: Tate & Lyle Soda-lo is patented technology providing a hollow sphere comprised only of Sodium Chloride (NaCl)

Patented Wet Chemistry

Technology


NuTek Salt: Patented Sodium Technology

Traditional Salt 1000x Magnification Traditional KCl 1000x Magnification

NuTek Salt 1000x Magnification

Carrier ModifierKCl

NuTek Salt Structural Composition


PRODUCT CARRIER

NuTek Salt 14510 Rice Flour

NuTek Salt 15000 Maltodextrin

NuTek Salt 24510 Wheat Flour

Application Specific Carriers3 Identically Performing Products – Carriers Tailored for “Clean Label”

Protein Applications:• US FSIS Does Not Require Labelling of

Maltodextrin (processing aid)• Maltodextrin is often found on many Protein

Products

Bakery Applications:• Wheat Flour Already on Label

General Applications:• Low Alergenicity• Currently Used Across Food Matrix


NuTek Salt Value Proposition

• Same Functionality and Food Safety as Sodium Salt• Clean Label • GMO Free • Naturally Sourced• Globally Proven & Accepted• Improves Nutritional Balance

• Sodium Reduction & Potassium Enrichment• Flavor Enhancement • Cost Effective

• Cost Savings have been Achieved in Many Instances through Elimination of Expensive Flavors / Maskers• MSG Removal

• Patented Process Technology • NuTek has 8 active sodium reduction technology patents in its portfolio.• NuTek has filed 7 additional patents that are pending. • In addition, NuTek has a great deal of intellectual property the company classifies as trade secrets


5The Global Bakery Industry


SOURCES: ‘Target Salt 2025: A Global Overview of National Programs to Encourage the Food Industry to Reduce Salt in Foods’, World Health Organization 2014; ‘Mapping Salt Reduction

Initiatives in the W.H.O. European Region’, World Health Organization 2013

FACTS• Netherlands: Maximum salt inclusion of 1.8% of dry matter of finished product or 1.5% of flour (Royal

Decree)• Portugal: Mandated limit of 1.4g Salt / 100g (560 mg Sodium/100g)• Hungary: Mandated limit of 1.3-2.5% salt inclusion in dry matter of finished bakery products• Belgium: 2% Salt Inclusion maximum in dry matter of finished product (Royal Decree)• Greece: Maximum of 1.5% added salt in bakery category

Global Markets with Bakery Specific Regulations There are multiple countries with Mandatory Targets just in Bakery

Country RegionMandatory

Targets (Bakery)Mandatory Targets

(Comprehensive)Argentina South America - ✔

Ecuador South America ✔ -Paraguay South America ✔ -Belgium Europe ✔ -Bulgaria Europe - ✔

Greece Europe - -Hungary Europe ✔ -Netherlands Europe ✔ -Portugal Europe ✔ -South Africa Africa - ✔


Bread is the Highest input of Daily Sodium Intake

Figure 1: Percentage contribution of top 20 food categories to total dietary salt intake

Seafood Dishes and ProductsPotatoes and Products

MiscellaneousFats and Oils

Non-alcoholic beveragesMeat Poulet Dishes

Meat Poulet eggsSalt

Cereal dishesCondiments

0 2 4 6 8 10 12 14 16

Percentage contribution of top 20 food categories of total dietary salt intake

Bread


Australian Facts on Sodium

In Australia cardiovascular disease accounts for 34% of all deaths and costs the government over $5.9 billion per year. 6,000 lives per year can be saved if we can reduce the amount of sodium Australians eat by 30%.

Nu-Tek Salt can help food manufacturers achieve this goal of 30-50% sodium reductions in one reformulation, saving industry millions by not having the cost of multiple reformulations.


*Data represents mg of Sodium per 100 grams of finished product

BAKERY REDUCTION CAPABILITIES:“Industry Benchmarks” Represent Industry Product Averages “NuTek Solution” Benchmarks & Reductions are Actual Commercialized Products


World Bakery Master Competition 2014NuTek Salt – The Major Advantage


6Market Presence of Potassium Chloride


NuTek Salt: “In Market” Reduction Achievements

BURGER’S• Bun - 49% Sodium Reduction

• Processed Cheese – 30% Sodium Reduction

• Bacon – 50% Sodium Reduction

TORTILLA’S• Tortilla - 50% Sodium Reduction• Beef – 52% Sodium Reduction• Cheese – 41% Sodium Reduction


NuTek Salt: “In Market” Reduction Achievements

PIZZA• Pizza Base - 49% Sodium Reduction

• Pizza Sauce – 39% Sodium Reduction

• Pepperoni – 51% Sodium Reduction

• Cheese – 37% Sodium Reduction

FRESH ROLLS• Bread Roll - 43% Sodium Reduction

• Beef – 40% Sodium Reduction

• Ham – 30% Sodium Reduction

• Turkey – 31% Sodium Reduction


Potassium Chloride on the Label - CPG Companies

Many More

Many More

Many More

Many More

Many More


Potassium Chloride on the Label: QSR & FC Companies

Confidential & Privileged - NuTek Food Science 2015

Thank You