Danisco A/S

Solutions for wholemeal and addedfibre bread

Bakery Market Trends

Danisco A/S

Agenda

• Background to global bread market (with focus on wholemeal and high fibre)

• From low to high fibre bread on the market today

• Typical industry issues associated with manufacturing

• Functionality / product range overview

• What Danisco can offer as solutions to the typical industry issues

• Summary

Danisco A/S

Global bread bakery market

• Globalisation but still with strong local tradition

• Health and convenience are the main drivers for bakery consumption

• Move towards bread with an intrinsically healthy image:

• wholemeal, high-fibre white bread and rye bread

• fortified products containing soya, selenium, vitamins

• Pressure from the media, governments and consumers on the baking industry to offer healthier products

Danisco A/S

Worldwide bakery market forecast

0 50,000 100,000 150,000

      Bread

      Cakes

    Breakfastcereals

Forecast bakery worldwide market

Value forecast 2009US$ million

Volume forecast 2009 ,'000 tonnes

Source : Euromonitor

Danisco A/S

Consumer trends

Obesity

• Obesity in Western Europe varies from 7% of Swiss populationto 22% of UK population

• Obese children: More than 20% of children under 10 years in US and Australia are overweight, in the UK it is now 10%

Ageing population and media coverage of health problems

• Increasing consumer awareness of potential health problems

• Increasing consumer awareness of the nutritional qualities and health benefits of different foods

• Greater consumer willingness to take personal responsibility for their own health needs

• Preference for prevention over cure (i.e. functional foodinstead of tablets)

Danisco A/S

Health and Wellness World

10%

20%

67%

3%

Organic

Fortified/functional

Reduced/removed lesshealthy contentFood intolerence

World market for Health & Wellness food products

2004: Total retail value in million €110,700

2009: Forecast total retail value in million €136,700Source: Euromonitor 2004 figures

Danisco A/S

0

10

20

30

40

50

60

70

80

90

Number of launches

Snack B

ars, S

nack M

ixes &

Energy

Bars

Sweet B

iscuits

/Cookie

s

Cold Cere

als

RTD Ju

ices &

Juice

Drinks

Bread &

Bread P

roduct

s Pasta

Yogurt

Hot Cere

als

Weight C

ontrol Milk

Baking

Ingred

ients &

Mixe

s

Savoury

Biscuits

/Cracker

s

Savoury

/Salty Sna

cks

Cakes, P

astries

& Sweet G

oods

Fruit

Bread is a key product category with fibre claims worldwide 2004

Key response from food industry to consumer health concerns is to launch products with fibre claims

Source : GNPD Mintel

Food industry launches fibre products

Danisco A/S

Consumption of fibre-rich bread

Consumption

In % white / brown & wholemeal

Country Grain White Other

UK 20 60 20

Germany 45

Netherlands 55 15 30

Belgium 20 30 50

Poland 10

Hungary 40

Spain* 20 80

Portugal* 20 80

Ø In many European countries grain-containing bread is gaining in importance as consumers realise the health benefits

Source : Leatherhead, UK Flour Advisory Bureau

*Spain, Portugal, sliced bread only

Danisco A/S

Market for fibre-rich bread

• In the UK, the healthy ”white” bread has a market value of £62 million per year

• In 2004, Asda’s (leading UK retail chain) saw growth of 16.4% of brown & wholemeal bread types with two non-white products appearing on the 2004 Top10

• In Poland, mixed wheat rye/rye bread accounted for 85% of fresh bread sold in 2001

• In general consumers will pay more for healthier bread options but taste is key

Sources: European Baker, British Baker, Leatherhead

% growth

In multigrain vs white bread

Country Grain White

UK 14.3 8.4

Ireland 17

Germany 13.8 9.2

France 15.1 -

Danisco A/S

Health benefits of wholegrain consumption

• Improved digestion

• Decreased risk for heart diseases, stroke, some cancers and type-2 diabetes

• (Weight control)

Danisco A/S

Legislation concerning fibre claims

EU:No set levels for such claims yet. There is proposed legislation going through Brussels at the moment which states that:

• a claim that a product is a "SOURCE OF FIBRE" can only be made if the product contains at least 3g of fibre per 100g or at least 1.5g of fibre per 100kcal

• a claim that a product is "HIGH FIBRE" can only be made if the product contains at least 6g of fibre per 100g or at least 3g of fibre per 100kcal.

USA:A claim that a product is a ”GOOD SOURCE OF FIBRE” can be made ifthe product contains at least 2.5g of fibre per serving

Danisco A/S

Dietary recommendations

EU:

• UK: 18g of fibre per day for an adult

US:

• New national dietary guidelines: consume 3 or more ounce equivalents of whole grain products per day, along with enriched grain products.

Sources :

UK British Nutrition Foundation, US Departments of Health and Human Services and Agriculture, Flour Advisory Bureau

Average bread selling

Prices in £/kg

City Price

London 0.61

New York 2.56

Paris 2.54

Rome 1.96

Berlin 1.56

Danisco A/S

From low- to high- fibre bread

White bread 1.5g fibre/100g

Added fibre bread3g fibre/100 g

Wholemeal 6g fibre/100g

All dietary fibre figures are quoted as averages - Source:-”Manual of Nutrition” Foods Standard Agency

Mixed and multigrain and brown breads 4g fibre/100g

Rye breads 8g fibre/100g

Danisco A/S

What are typical industry issues ?

1. Lack of stability or tolerance to processing causing low volume and ”heavy” eating quality

2. Shorter shelf life due to perception of dry crumb

3. ”Fragile” processing conditions tend to lead to the addition of extra dried vital wheat gluten

Danisco A/S

Functionality/product overview for fibre-enriched bread

Enz

ymes

Fun

ctio

nal

Sys

tem

s

Lite

sse

®

Improved volume

Improved shelf life

Gluten reduction

Fibre-source ü

ü

Product

Functionality Ant

ioxi

dant

s

Em

ulsi

fiers

Fib

rex

®

Fla

vour

s

Tex

tura

l In

gred

ient

s

üü

ü üü

ü

ü ü üüü

üü

ü

üü

* Litesse® has fibre status in the following EU countries (FRA, FIN, NOR and BEL) - April 2005

Danisco A/S

• Improved volume

• Improved shelf-life

• Gluten reduction

• Fibre source

Key application examples for fibre-rich bread

Danisco A/S

Solutions to increase volume in wholemeal bread

Control 0.3% PANODAN®

A2020

0,3% PANODAN®A2020

+

160 ppmGRINDAMYL™

POWERBake 900Fibre content = 6.6 g/100g

Danisco A/S

Solutions to increase volume in wholemeal bread with addition of 10% brown flax seeds (on amount of flour)

Loaf No 1 = control without treatment

Loaf No 2 = addition of 0.3% PANODAN® A2020

Loaf No 3 = addition 0.3% PANODAN® A2020 and 200 ppm GRINDAMYL™ XV

Fibre content = 7.8 g/100g

Danisco A/S

Solutions to overcome lack of stability

Standard wholemeal toast bread made withPANODAN® A2020

Standard wholemeal toast bread made without sufficient stabilisation

Shocked Unshocked Shocked Unshocked

UnshockedShocked

Danisco A/S

Solutions for softness in wholemeal toast bread

0,00

5,00

10,00

15,00

20,00

25,00

1 4 7

Shelf life (days)

Fir

mn

ess/

gra

m

Control

0,3% DIMODAN® PH 100/B

200 ppm GRINDAMYL MAX-LIFE 85

0,3% DIMODAN® PH 100/B + 200 ppmGRINDAMYL MAX-LIFE 85

Danisco A/S

Solution to reduce gluten in wholemeal toast bread

Trial 1 Trial 2 Trial 3 Trial 4 Trial 5

Trial 1: 4% gluten (4.57 cc/g)

Trial 2: 2% gluten and 125ppm GRINDAMYL™ SUREBake 853 (4.70 cc/g)

Trial 3: 3% gluten and 100ppm GRINDAMYL™ SUREBake 853 (4.78 cc/g)

Trial 4: 2% gluten and 150ppm GRINDAMYL™ S743 (4.65 cc/g)

Trial 5: 3% gluten and 100ppm GRINDAMYL™ S743 (4.69 cc/g)

Fibre contents are unchanged at 6g/100g

Danisco A/S

Solution for gluten reduction in wholemeal rolls

Control with 3% gluten (4.11 cc/g)

250 ppm GRINDAMYL™ S743 with 0.5% gluten (4.18 cc/g)

Roll height = 6cm

Roll height = 6cm

Fibre contents are unchanged at 6g/100g

Danisco A/S

Solution to create fibre-enriched brown rolls

Control (5.32 cc/g) Addition of 2% Litesse® II 120 ppm

GRINDAMYL™POWERBake 900 (5.40 cc/g)

Roll height = 7.5 cm Roll height = 8.5cm

Fibre content is 4.8g/100g

Fibre content is 3.0g/100g

* Litesse® has fibre status in the following EU countries (FRA, FIN, NOR and BEL) - April 2005

Danisco A/S

Facts to consider

• When mixing in an open bowl spiral mixer it can be beneficial to extend mixing by as much as 50% when using additional fibres in order to maintain a good dough development

• When making a wholemeal dough in a Tweedy mixer, it may be beneficial to decrease the energy input from approx. 11wh/kg to 9wh/kg

• Beware of the baker’s first answer towards increasing loaf volume….- it is always to use additional gluten

Danisco A/S

Fibre contents in Danisco high fibre products

*Litesse 90%

GRINDSTED® Fibrex 73% (1/3 soluble)

GRINDSTED® Guar gum 83%

GRINDSTED® LBG 83%

* Litesse® has fibre status in the following EU countries (FRA, FIN, NOR and BEL) – April 2005

Danisco A/S

Summary

• Key emerging trend on the bakery market is an increase in fibre-rich products based on increasing consumer awareness of health benefits in food

• Use PANODAN® and/or GRINDAMYL™ H or POWERBake xylanase to increase bread volume, tolerance and stabilise formulations

• Use DIMODAN® and/or GRINDAMYL™ MAX-LIFE to improve crumb structure and softness

• Use GRINDAMYL™ S743 or GRINDAMYL™ SUREBake 853 to reduce/replace gluten

• Use Fibrex®, Litesse®, GRINDSTED® Guar or GRINDSTED® LBG to increase nutritional *fibre content

* Litesse® has fibre status in the following EU countries (FRA, FIN, NOR and BEL) - April 2005