Презентация исследовательского центра компании Fonterra

Russian Dairy News Delegation 25 February 2015

Confidential to Fonterra Co-operative Group

Page 2Confidential to Fonterra Co-operative Group

Strategic priorities

Deliver on

Foodservice

potential

Selectively invest

in milk pools

Grow our

Anlene business

Develop leading

positions in paed &

maternal nutrition

Optimise

NZ milk

1

Align our business

and organisation

Build and grow

beyond our current

consumer positions

3

2

4

5

6

7

Redefine milk supply model

Invest in optionality to achieve higher less volatile returns

Investment in global multi-hubs

Organisational changes to support strategy

Food safety and quality

Focus on strategic and leadership markets

Focus on 5 global brands


Focusing on 5 global brands, with clear links to our strategy

Deliver

on Foodservice potential

Grow

our Anlene™ business

Develop

leading positions in paed.

and maternal nutrition

Optimise

New Zealand milk

1

Build and grow

beyond our current

consumer positions

3

2

4

5


OUT OF HOME EVERYDAY MOBILITY

Delivering new

products and

solutions to QSR,

FSR and bakery

customers

Dairy nutrition for the

family including

beverages, cheese,

cultured, spreads and

powder

Providing functional

ingredients and consumer

products focussed on

digestion, immunity and

cognition

Supporting active and vital lives through

specialised dairy nutrition in sports, healthy aging and

medical applications

Recognized experts in dairy nutrition and functionality

PAEDIATRIC & MATERNA

Post Farm Gate Innovation Focus – Four Key Categories


Innovation & Expertise� One of the world’s largest investors in

dairy innovation

� Innovating since 1927

� Research centre, pilot plant and in-

market technical centres close to

customers

� Approximately 300 scientists and

support staff based at the Fonterra

Research & Development Centre alone

FONTERRA RESEARCH & DEVELOPMENT CENTRE

Leading Expertise in Unlocking the Natural

Goodness of Dairy


DIRECTOR FRDC

Operations Food Design Chilled Dairy

FRDC - A matrix operational design enabling multi-

disciplinary project teams

applications expertise in cheese, cultured

foods, creams and spreads

Process Design

& Integration

Powders, Beverages

& Nutrition

Beverage & powder applications.

Understanding the role of dairy food and

ingredients on human health and nutrition

Process technology design and

development to enable the production of

new products and ingredients

The chemical, micro-structural and sensorial

design of dairy systems. Food assurance

Provides pilot plant, analytical

sensory panels, and M&D

services enabling R&D activity


World Class Expertise in Dairy Science & Technology Integrated Science, Technology, Processing and Nutrition

Food Structuring

Ingredient chemistry

FormulationProcessing

Consumer

evaluation

Nutritional validation


Non & Pre-Competitive Research

Dairy Marketplace

Competitive Technology & Product

Development

FRDC

ScienceCommercial

Products

External Capabilities & Investment

External Capabilities Provide Additional Expertise to

Drive Innovation


Technology Platforms

…while our proprietary technology

platforms arm us with a clear “right to win”

Dairy Farming

SystemsMore milk, less

footprint, milk

safety and quality

Dairy

NutritionFunctional

performance of

milk protein and fat

Dairy Food

DesignLeadership in

dairy and cream

formulation

Dairy

ProcessingAlternate make

technology for

process cheese


Manufacture of

ingredientsManufacture

of food

Sensory Properties

Consumer PreferenceFood material science

Food applications Thermo-mechanical

processesFlavour

Product safety & preservation

Separation processes

Protein interactionsFood material science

Thermo-mechanical processes

Enzyme and microbial

processes

Chemistry Structure Engineering

FRDC Core Capabilities – Food DesignThrough focus on the understanding of the food structure & processing we are designing foods to meet consumer needs


Anti-

inflammator

y

DAIRYCalcium

Bioactive

peptides

Probiotics

Lactose

Gangliosides

Lactoferrin

Dental

health

Infant

nutrition

Retaining

muscle

Cognition

Tolerance

Oligosaccharides

Heart

health

Bone

health

Disease

resistance

Immune

modulationComplex

lipids

Diabetes

CLA

Colostrum

Immuno-

globulins

Exercise &

recovery

Minor milk

proteins

Allergy

managementEarly

programming

Gut health

Appetite

control

Anti-

Infection

Weight

Control

Whey

Protein

Casein

FRDC Core Capabilities – Dairy NutritionMilk has Multiple Minor and Macro Components with Distinctive Health and Nutrition benefits

Rationale

• What are levels in HBM?

• Is there an ingredient to fill

the gap?

• Do physiological indicators/status change?

• Can the “active”

component reach the target site?

Mechanism

• Is there biological plausibility for the functional outcomes?

• What happens in the

brain?

Proof of Need

• Does deficiency impact brain function?

• Can dietary supply

overcome deficiency?

EfficacyProof of Concept

• Does the final product enhance cognitive function in humans?

• Is the product safe and well tolerated?

• Does the ingredient have an impact on brain function?

• What is the

effective dose and is this safe?

Bioavailability

Researc

h F

ocu

s

0

2

4

6

8

10

ug/ml

GM3 GD3

Serum GA levels; breastfed vs

Standard formula vs Infacare-GA

Breastfed

Infacare-GA

Control


FRDC Core capabilities – Dairy ProcessingCore expertise in primary and secondary process design and commercialisation of ingredients & finished goods

1955 – First to mechanise the Casein Process

1973 – First UF plants, first WPC plant

1979 – First Caseinate production

1981 – First to produce TMP

1988 – Scaled Lactoferrin process

1995 – First to develop WPI at scale

1994 – First to produce MPC at scale

2000 – First to developed functional MPCs

2008 – Developed functional WPC

2012 – Developed low viscosity fMPC

2014 – Functional low viscosity WPC


We design our protein ingredients to provide customised taste and texture solutions in a wide range of

applications

Health Convenience

Taste and

Texture

Functional

Foods

Proteins Have a Range of Health & Nutrition Benefits but

Requires Solutions that don’t Compromise Taste & Texture

Essential part of

� Every body tissue

� Immune system

� Blood

� Hormones

� Mobility

� Muscle function

� Body composition

� Bone health

� Recovery

� Muscle tone

� Muscle mass

� Joint health

� Hunger management

� Weight management

� Sugar control

� Energy

essential

nutrition

muscle

maintenance

sports

performance

appetite

control

VITALITY


UHT Creams

Beverages

Powdered

Beverages

Cheese Cultured Foods

Recent Innovation Successes

International Standards Codex, IDF,ISO

Fonterra InvolvementRoger Hall / GM Regulatory Services


25 February 2015


Importance of International standards to Fonterra

• We export to over 120 countries

• Complex regulatory environment to operate in

• International standards (Codex, ISO) provide for greater alignment across markets

– Protecting health of consumers and ensuring fair trade practices in food trade

• Fonterra provides technical advice on international standards development through involvement in:

– International Dairy Federation (IDF)

– International Standards Organisation (ISO)

– NZ and Australian Government Codex process


Fonterra’s engagement with IDF

IDF Governance

• President IDF – Dr Jeremy Hill, Fonterra Chief Technology Officer

• Chair IDF Methods Standard Steering Group (2010 – 2014) Dr Jaap Evers,

Fonterra Group Regulatory

• Chair IDF Food Standards Steering Group (2010 – 2104) Roger Hall, Fonterra

Group Regulatory

• Member IDF Science & Programme Co-ordinating Committee (2010-2014) Jaap Evers, Roger Hall

IDF Standing Committees

• >20 experts involved in technical programmes of IDF standing committees


IDF FACTS AND FIGURES

• Founded in 1903

• Over 75% of world

milk production

• >1200 experts

• 18 Standing

Committees

IDF - Global expertise in dairy 4


INTERNATIONAL DAIRY FEDERATION

IDF - Global expertise in dairy 5

IDF roleProvide science-based expertise

and consensus for the global

sector and be the global voice of

dairy to intergovernmental

organizations and stakeholders


Formal Working

Relationship

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Type of relationships

Others

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Organisation

FAOCodexOIE

ISOWHOILSIAOACIFAP, IMS, IFIF, IFAH, IFT, YLFA, GDP, EFSA …

Joint Events

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Joint Publications

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Work is grouped into 9 areas

Dairy Science &

Technology

Dairy Science &

Technology

Nutrition & HealthNutrition & Health

Dairy Policies,

Economics & Marketing

Dairy Policies,

Economics & Marketing

SustainabilitySustainability

EnvironmentEnvironment

Animal Health &

Farm Management

Animal Health &

Farm Management

Methods of analysis &

sampling

Methods of analysis &

sampling

Food standardsFood standards

Food Safety & HygieneFood Safety & Hygiene


SCIENTIFIC

EXCELLENCE

INDUSTRY

APPLICABILITY

STRATEGIC

NETWORKING

GLOBAL

INFLUENCE

www.fil-idf.org


Coordination of analytical programme


Fonterra’s engagement with ISO

• ISO TC34

– SC5

– SC14

• Joint IDF/ISO work


Mission

ISO develops high quality voluntary International Standards which

facilitate international exchange of goods and services, support

sustainable and equitable economic growth, promote innovation and

protect health, safety and the environment


ISO member countries

ISO develops high quality voluntary International Standards which

facilitate international exchange of goods and services, support

sustainable and equitable economic growth, promote innovation and

protect health, safety and the environment


ISO in figures

More than:

• 160 members,

• 100 000 experts

• 230 Technical Committees

• 4500 projects under development

• 1100 publications in 2013

• 19 800 standards in catalogue

• 700 organizations in liaison

• 20 meetings every day


ISO Standards development

ISO TMB

TCTC

Chair Advisory Group

TC 34

Food products

Subcommittees Working Groups


TC 34 SubCommittees and Working GroupsSC 2 Oleaginous seeds and fruits and oilseed meals

SC 3 Fruit and vegetable products

SC 4 Cereals and pulses

SC 5 Milk and milk products

SC 6 Meat, poultry, fish, eggs and their products

SC 7 Spices, culinary herbs and condiments

SC 8 Tea

SC 9 Microbiology

SC 10 Animal feeding stuffs

SC 11 Animal and vegetable fats and oils

SC 12 Sensory analysis

SC 14 Fresh, dry and dried fruits and vegetables

SC 15 Coffee

SC 16 Horizontal methods for molecular biomarker analysis

SC 17 Management systems for food safety (DK)

WG 13 Royal jelly

WG 14 Vitamins, carotenoids and other nutrients

WG 16 Animal welfare

WG 17 Water activity

WG 18 Natural food ingredients


Cooperation ISO/TC 34/SC 5 - IDF

• Formalized cooperation since 1963

• About 180 joint standards published, see www.iso.ch

• About 20 Standards/TS in development or under revision

• About 25 work items under consideration


Fonterra’s engagement with Codex

• Through IDF

– Codex Alimentarius Commission - Chair of FSSG leads IDF delegation to CAC

– Codex Committees - IDF attends as NGO

• Through New Zealand and Australian government delegations – as technical

advisor


Fonterra Input to Codex and NGOs

Codex AlimentariusInternational Food Standards development

-Protect consumer

-Fair trade

Government DelegationsMembers of Codex

Provide Government positions

Non–Government Organisations (NGOs)

Provide technical advice to Codex

For example - IDF, ISDI

Fonterra member

of Government delegations –

providing technical advice

Fonterra leads IDF

delegations or is a member of IDF

delegation to Codex - providing

technical advice


Fonterra Input To Codex and NGOs• Codex Committees

– CAC

– CCMAS

– CCNFSDU

– CCFA

– CCFL

– CCFH

– CCNFDSU

– CCFICS

– CCMMP

• Fonterra involvement

– Lead IDF delegation

– Lead IDF delegation

– Member NZ Gvt delegation


– Member IDF delegation


– Member Australian Gvt delegation


– Member CCFH WG on e-sakazakii





– Member IDF delegation


Codex Alimentarius• Latin: “Food Code”

• Joint FAO / WHO programme

– Intergovernmental forum

– Non-government organisations (NGOs) may participate

• Mandate/Objectives

– Develop food standards/guidelines/codes of practice

– Protect health of consumers

– Facilitate international trade of foods


Codex Alimentarius

• Food standards including dairy-specific commodity standards

– Milk powders & Cream powders

– Cheese

– Butter

– Milkfat products

– Casein products

– Whey powders

– etc



Thank you

Fonterra’s Whey Capability

Fonterra Research and Development Centre


25/02/2015


•Hunger management

•Weight management

•Sugar control

•Energy

•Muscle tone

• Mobility

• Muscle function

• Body composition

• Bone health

• Recovery

• Muscle tone

• Muscle mass

• Essential part of

• Every body tissue

• Immune system

• Blood

• Hormones

essential

nutrition

sports

performance

body

shape

muscle

maintenance

Protein has many nutritional benefits...

Protein


Whey protein is recognised as a veryhigh quality protein

Most rapidly digested

0.0

0.5

1.0

1.5

2.0

2.5

0 30 60 90 120 150 180

Fold

change in p

lasm

a

leucin

e (

from

baselin

e)

Minutes following consumption of protein

Whey

Casein

Optimal source of BCAAs

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Casein Whey

Fold

change in p

rote

in

syn

thesis

(fr

om

casein

)

Promotes more muscle synthesisAdapted from Tang et al, 2009

Fast leucine appearance in blood

Adapted from Tang et al, 2009

0

2

4

6

8

10

12

g/1

00g p

rote

in

SureProtein™ Whey

Calcium Caseinate

0

50

100

150

200

250

300

350

0 30 60 90 120 150 180

Leucin

e (

µM

ol/L

Time (minutes)

SureProtein™ Whey

Calcium Caseinate


FRDC Core Capabilities – Dairy ProcessingCore expertise in primary and secondary process design and commercialisation of ingredients & finished goods

1955 – First to mechanise the Casein Process

1973 – First UF plants, first WPC plant

1979 – First Caseinate production

1981 – First to produce TMP

1988 – Scaled Lactoferrin process

1995 – First to develop WPI at scale

1994 – First to produce MPC at scale

2000 – First to developed functional MPCs

2008 – Developed functional WPC

2012 – Developed low viscosity fMPC

2014 – Functional low viscosity WPC


Market Requirements

Formulation targets and constraints

Ingredient chemistry

Product development

Beverage processing

Sensory evaluation

Shelf life testing

We understand that successful product development

incorporates many key success factors


Fonterra has developed a range of Functional

Whey Proteins with unique characteristics

WPC5152009• NON-REACTIVITY

• LOW VISCOSITY

• HIGH-PROTEIN BAR

• HIGH-PROTEIN YOGHURT

• PROTEIN FORT NOUGAT

Functional Whey

Technology• built on

• add value

• developed in-house

• unique

• commercially viable

More to come…

WPC5502014

• NON-REACTIVITY

• LOW VISCOSITY

• SUSPENDABILITY

• HEAT STABILITY

• MEDICAL BEVERAGE

• SPORTS BEVERAGE

• RTF BEVERAGE

FUNCTIONALITY APPLICATIONS

• FOAMING

• EMULSIFYING

• GELLING

• SOLUBILITY

• WATER BINDING, etc

• BAKERY

• MEAT

• CONFECTIONARY

• BEVERAGE

• YOGHURT, etc

WPC392

Standard WPC80

PATENT PENDING

• Specialist inert functionality WPC550 offers

excellent

ingredient and

processing

benefits making

it the ideal whey

protein

ingredient for

use in 100%

whey beverage

applications.


Heat Stability

Storage Stability

Fonterra’s WPC550 offers unique ingredient performance benefits

Model medical beverage formulation:

10% protein, 1.6 kcal/mL

WPC 550 WPC80 WPH WPI

Excellent

heat stability

compared to other

whey protein

ingredients

0

2

4

6

8

10

0

10

20

30

40

50

0 1 2 3 4 5 6

Sed

imen

tatio

n (%

)

Vis

co

sit

y (

cP

) at

100 s

-1

Time (months)

Viscosity

Sedimentation

Significantly low

viscosity compared

to other medical

formulations &

Excellent shelf life

stability


Fonterra ProbioticsDr James Dekker


25 February 2015

Page 2Confidential to Fonterra Co-operative Group2

Probiotic Bacteria

Ilya Metchnikoff

1845-1916

Page 3Confidential to Fonterra Co-operative Group3


Probiotic bacteria

“Live micro-organisms which, when

administered in adequate amounts,

confer a health benefit on the host”

FAO/WHO Report (2001)

• An ideal probiotic must be shown to be:

– Safe – show no adverse effects on the host

– Stable – reach the consumer in a live state and survive in

the human gastrointestinal tract

– Effective – provide a positive health benefit to the host

Efficacy Safety

Stability

Ideal

Probiotic


Fonterra probiotics

• Well researched strains:

– First developed during mid 1990’s

– 70+ peer-reviewed publications

– Health benefits in healthy populations

– Established safety record

• Stability/Applications

– Superior long-term survival in dry powders

– Reduced cost-in-use

– Demonstrated survival of gut transit

• Demonstrated efficacy:

– Immune protection & gut health benefits in humans

– Anti-pathogen effects (in animal models)

– Improves colonic transit time in adults (HN019)

– Protects against respiratory disease in infants (HN019)

– Protects against eczema in infants (HN001)

• Halal & Kosher certified

• Patent Protected

Bifidobacterium animalis

subsp. lactis HN019

Lactobacillus

rhamnosus HN001


Bifidobacterium animalis subsp. lactis HN019


HN019 and colonic transit time (CTT) in healthy adults

• Average CTT for a healthy individual is 18 – 72 hrs

• Variable or abnormal CTT is associated with gastrointestinal ill-health, pain, or discomfort

• Constipation is one of the most common digestive complaints

• Placebo-controlled double-blind clinical trial on healthy adults with mild gastrointestinal symptoms in USA

• Placebo control group (n=33)

• High dose HN019 (1010 CFU/day) (n=34)

• Low dose HN019 (109 CFU/day) (n=33)

• Subjects treated for 14 days

• CTT assessed using radio-opaque beads

• Also examined frequency of digestive discomfort symptoms

Waller et al (2011) Scan. J. Gastro.


Results

Treatment baseline CTT post-treatment CTT P value

High HN019 49 ± 30 hrs 21 ± 32 hrs <0.001

Low HN019 60 ± 33 hrs 41 ± 39 hrs 0.01

Placebo 43 ± 31 hrs 44 ± 33 hrs n.s.


Change in Gastrointestinal Symptom Severity after 14 Days Supplementation with HN019 or Placebo

Symptom

High Dose HN019

(n=33)

Low dose HN019

(n=26)

Placebo

(n=29)

Vomiting - 17% * - 12% - 2%

Regurgitation - 24% * - 20% * - 5%

Gurgling - 16% * - 31% ‡ - 7%

Nausea - 23% † - 22% † - 7%

Abdominal pain - 27% † - 35% ‡ - 12%

Diarrhea - 6% 0% -17% *

Flatulence - 15% * - 19% * - 8%

Constipation - 29% ‡ - 32% ‡ -15% *

Irregular bowel

movements- 20% † - 25% † - 11%

*p<0.05

†p<0.01

‡p<0.001

HN019 improved GI symptoms

Waller et al (2011) Scan. J. Gastro.


Paediatric HN019 studies:Colds & Flu, Respiratory Disease

Study Sazawal et al Wickens et al China Trial “New Trial”

Country India NZ China -

Age (at start) 1-3 years newborn 6-12 months 1-3 years

Treatment

period

1 year (+1 year

follow-up)2 years 12 weeks 1 year

Format GUM Supp. FOF -

Dose

(CFU/day)~1.9 x107 9 x109 ~1x108 ~1x109

Relative

risk

(Less risk)

(More risk)


Lactobacillus rhamnosus HN001


“Wellington eczema trial”

• Double blind randomized placebo-controlled trial that examined the onset of eczema in infants at

risk of allergic disease supplemented with HN001 (DR20), HN019 (DR10) or placebo

• Maternal supplementation was from 35 weeks gestation until 6 months if breastfeeding

• Infant supplementation was from birth until 2 years.

• Treatments:

» HN001 = 6x109 CFU per day

» HN019 = 9x109 CFU per day

» Placebo

• At 2 years published:

» Results for eczema prevalence, eczema severity, and skin prick test reactivity

» Results for cytokine analysis or subset of breast milk and cord blood samples

» Safety

• 1st Follow-up = 4 years

• 2nd Follow-ip = 6-years


Effect of HN001 and HN019 on Eczema at 6 yrs

Placebo

HN019

HN001

Treatment

Period

0

20

40

60

0 2 4 6

% Eczema

Year

Cumulative eczema prevalence

Wickens et al, Clin Exp Allergy, 2013, 43:1048-1057


Thank you

Complex Milk LipidsPaul McJarrow


25th February 2015


Fonterra has expertise in dairy lipids

� Over 30 years experience in dairy lipid fractionation

� Processing, formulation and benefit patents

� Flexibility to develop tailored lipid solutions, balancing ease of

formulation with cost competitiveness

� Consistent composition for infant formula manufacture based on significant knowledge around milk fat processing

� Knowledge & capability to produce paediatric quality ingredients

using separation techniques rather than chemically- based

processes for extraction

� Analytical expertise, preclinical and clinical trials


Fonterra and complex lipids

• Fonterra has been selling complex milk lipids for many years

• Our phospholipid and ganglioside concentrates have been used

in customers and our own maternal, infant, student and elderly

finished products and supplements.


Milk complex lipids

Non triglycerides

–Triglycerides make up 98% of milk lipids

–Milk complex lipids include

–Phospholipids (SM, PS, PC, PE, PI)

–Gangliosides (GD3, GM3)

–Cerebrosides (LacCer)

–Other minor components

0

5

10

15

20

25

Human milk

(our data)

Human milk

(old)

Bovine Milk Infant

Formula

Soy

Formula

ug

/mL

ga

ng

lio

sid

es


Complex lipids help protect the infant


Complex lipids are involved in brain development and function (learning and memory)

• The brain is rich in lipids

• 80 % of myelin (dry weight)

• 49% of white matter (dry weight)

• 37% of grey matter (dry weight)

• Phospholipids

• 32 % of myelin (dry weight)

• 20% of white matter (dry weight)

• 20% of grey matter (dry weight)

• Gangliosides

• about 1% of the dry weight of the brain

• Increase significantly in 3rd trimester to year 2

• Infant formula fed babies have lower levels of

of brain gangliosides than breast fed


Fonterra and other researchers have shown

• Phospholipid profile of bovine milk is similar to human milk

• Literature data on human milk complex lipid levels is unreliable

– Use of modern analytical techniques show higher values than past small studies

– This impacts on formulating IF to human levels

of complex milk lipids

• Gangliosides can cross the human placental barrier

• Preclinical feeding of rat mothers with complex lipids can increase the ganglioside concentration

in the brains of the offspring 0

50

100

150

200

250

300

350

400

450

GM3 GM2 GM1 GD3 GD1a GD1b GT1b GQ1b

ug

/g b

rain

Control

CML

* *

*

*


Fonterra and other researchers have shown

• Milk complex lipids can improve the behaviour – preterm infants and young school age children

• Complex milk lipids can reduce the incidence of diarrhea

• Supplementing IF with gangliosides increases infant serum ganglioside levels

• In preclinical work with rats learning and memory improved with complex milk lipid

• Supplementing IF with complex lipids improves cognitive performance in IF fed infants


Summary

1. Fonterra has a long history of production and research with complex lipids

2. Complex lipids include phospholipids , gangliosides, and other non

triglycerides.

3. Complex lipids are components of all vertebrate cells, with the very high

concentrations in neural tissue.

4. Complex lipids have a number of roles in the infant health and development

a. Immune

b. Gut integrity

c. Anti-infection

d. Brain development

5. Dietary complex lipids can protect and improve cognitive measures in

children and adults

9

Presentations & Public Speaking

Презентация исследовательского центра компании Fonterra