8’tiveFUNCTIONAL BEVERAGES ATTRACTIVE PACKAGE

Functional FoodsA HEALTHY, GROWING TREND AMONG HEALTH CONSCIOUS

What makes a good QUALITY PRODUCTS

Why NutritionMatters To You

CNI Venture Sdn BhdQuarterly Product BulletinJuly - September 2013

THE GL BAL FUNCTIONAL FOOD & BEVERAGE MARKET OUTLOOK

The market for functional foods and beverages continues to grow in step with changing consumer health and wellness lifestyles. Nutrition Business Journal estimated the functional food market at US$39 billion in sales in 2010, up 4.6% from 2009.

As an overall trend within functional food and beverage consumption, we see consumers steering towards wellness with greater breadth and depth of knowledge. Specifically, we are witnessing a cultural shift from “health” toward “quality of life,” where today’s consumers focus on positive and vital experiences, emotional wellness, new exercise techniques and complementary medicine

Functionality of food is usually connected to overall well-being rather than targeted, acute health conditions. Consumers, especially those most active in wellness, seek positive nutrition in food and have the knowledge to connect foods to positive health benefits.

Foods fortified with nutritional and disease-preventing qualities are invigorating the global food industry. Health-conscious consumers are driving the demand for products that aim to promote better health, increase longevity and prevent the onset of chronic diseases.

These are known as “functional foods” – foods packed with essential nutrients that often go beyond the initial purpose of fostering normal growth and development. Also called nutraceuticals—they are derived from natural foods and can be added to other foods to impart specific health benefits.

The first “functional food” was introduced in the 1940s as a Vitamin B-enriched flour to combat pellagra (a vitamin deficiency disease most commonly caused by a chronic lack of niacin, or vitamin B3 in the diet). Others included iodine-fortified salt that substantially decreased incidences of goiter, the abnormal enlargement of the thyroid gland; and vitamin D-enriched milk that virtually eliminated rickets, a condition that affects bone development in children.

Other examples are “functional foods”:• Yoghurts are filled with “friendly” bacteria,

or probiotics• Low-fat spreads that contain cholesterol-

reducing ingredients• Eggs that come from hens fed with heart-

protecting essential fatty acid• Breads enriched with soya and linseed oil.• Caffeine, vitamin or herb-charged drinks to

boost energy levels• And even bottled water with added calcium to

maintain fluid levels and protect your bones.

FUNCTIONAL FOODS:

HEALTHY, GROWING trend among the

HealthConscious

Key drivers of

FUNCTIONAL Food

Advances in food and medical science as well as changing consumer demand and demographics are fuelling growth in this market. Its significant potential is likely to attract further investment by food and food technology companies. Moreover, the industry is well-positioned to respond to emerging healthcare trends, including personalized medicine and greater incentives to reduce medical costs.

Many large multinationals are already established in the functional food market. Today, soft drinks, ready-to-mix beverages and dairy products are the leading product categories; and not surprisingly - energy drinks are in the top category.

Changing demographics, in particular the ageing baby boomer population, are helping to set the foundation for future growth. Healthcare trends, including pharmaceutical investment and research into diseases and chronic conditions that are rapidly gaining greater significance are fuelling its potential growth.

Functional foods are used, distributed and regulated differently from medical foods and drugs. The primary distinction is that functional foods may be consumed freely as part of everyday life. Medical foods and drugs are used in specific cases to treat or manage a condition under medical supervision (see table).

The difference between

FUNCTIONAL FOODS, MEDICAL FOODS AND DRUGS

Difference Functional foods Medical foods Prescription drugs

Energy enhancement; weight management; bolster gut, bone or heart health; disease risk reduction; memory improvement

No prescription or supervision needed; consumer selects

Supermarkets, drugstores, online, major retailers, Network marketing companies

No specific body, but is considered food and is therefore subject to FDA regulation

As desired

(FDA regulates any specific health claims that might be made)

Uses

Method of Obtainment

Distribution Channels

Regulatory body

Amount Consumed

Dietary management of a disease or condition with distinctive nutritional requirements (e.g. difficulty swallowing, loss of appetite, nutrition repletion.

Used with medical supervision

Hospitals, pharmacies, drugstores, online

No additional FDA review/ roval needed, but must abide by regulations concerning foods, e.g., labelling

As needed

(FDA regulates any specific health claims that might be made)

Treatment of disease, symptom, or condition

Prescribed by health provider

Pharmacies, hospitals

FDA approval needed, a multiyear, multistage review process

As prescribed

Source: Nutraceutical World, The New York Times, US Food and Drug Administration, Institute of Food Technologists

Key CATEGORIES and EMERGING PRODUCTS

Soft Drinksdairy dominate

&FUNCTIONAL FOODS are categorized both by food and by health benefit. Soft drinks and dairy products constitute 60% of the market among foods. The soft drink category includes enhanced water, which is increasing in popularity as consumers seek alternatives to carbonated beverages, perceived by some as high in sugar or artificial ingredients and therefore less healthy.

DAIRY is gaining in popularity, driven in large part by innovations in yoghurts, where helpful bacteria are naturally perceived as being beneficial to a healthy digestive system. Products in the gut, bone, and heart health categories comprise a sizable share of the market and have traditionally been purchased by older consumers. Other functional foods include products with claims to help manage weight, sharpen mental faculties, and improve infant health. These products tend to be sought by younger consumers, especially those with or expecting children.

Beverages lead global market for functional foods, growth by form2007 - 2013 (Forecast) (USD$M)

78,300

2007

16,800

FOODS

32,900

BEVERAGES

8.5% ANNUAL GROWTH

128,000

2013

Of late, even every day beverages like coffee infused with beneficial herbs like CNI Tongkat Ali, Ginseng, Tiger Milk Mushroom have made quite an impact on the functional food landscape.

Source: Nutraceuticals World, BCC, Datamonitor, Beverages World, New Nutrition Business,

The Food Institute Report, Jefferies, Foodnavigator-usa.com; Scientia Advisors

WHICH PRODUCTS AND HEALTH BENEFITS ARE

FORECAST TO LEADGrowth Rates?

TOP PRODUCT: BEVERAGES

• Globally, beverages are forecast to be the fastest-growing segment and to assume the largest share of the market (56% in 2013).

• Two key drivers are consumer preference for the convenience and versatility of beveragesand the relative ease of creating tasty products and innovative packaging. Both aspects generally are more difficult in the case of food.

TOP HEALTH BENEFIT: ENERGY

• Energy drinks are expected to remain popular because consumers can quickly “feel the benefit” of the product.

• In particular, certain kinds of energy drinks and isotonics (beverages that replace lost electrolytes or rehydrate) are cited as growth niches.

GROWTH DRIVERS AND SUCCESS FACTORS

Greater health awareness by consumers and the potential for premium pricing are helping to fuel

growth in the functional foods market. What are the growth drivers and success factors in the functional food competitive arena?

FUNCTIONAL FOODS MARKETING FUNDAMENTALS

• Products with an immediate, easy -to-feel effect, such as an energy boost, are likely to be more successful

• Innovative packaging can also differentiate products and enable premium pricing.

• Consumers need to grasp the health benefits associated with a given functional food in order to appreciate its relevance and premium pricing. Manufacturers of functional foods need to consider what actions they can take to better educate potential customers and provide this level of understanding.

• Manufacturers must be able to target a niche, communicating a specific health benefit linked to a common ailment or incorporating multiple desirable qualities into a single product.

The new 8’tive functional beverages now comes in a very attractive package that bespeak of quality, innovation and function. Like the name says, 8’tive is a collection of 8 innovatively manufactured functional beverages for everyone. Instead of just catering to individuals, 8’tive is targeted to everyone – from family members, friends, business associates and in fact, all walks of life.

In-depth research and surveys have shown that every family unit has varying needs. For example, Dad may want a beverage to energise his day. Mum may want a caffeine-free drink. Or the kids may want a healthy goat’s milk, or maybe healthy chocolate. Beyond the family, 8’tive is also designed for the out-of-home experience. Your office staff and business associates may prefer coffee, while some; milk tea, soya milk or something more exotic like durian coffee for a change! 8’tive is the embodiment of the functional and healthy lifestyle for everybody to enjoy!

8 energizing& healthyvariants!

NEW PACKAGE

8’tiveQUALITY now comes in a

8’tive:Availability, Functionality And Truly SatisfyingWe all drink many types of beverages every day. Whether it’s coffee, cocoa, oat mix, tea or a combination of these, 8’tive does it better. All in one convenient box and ready to mix and enjoy, whether served cold, or hot. It’s functional too because every beverage mix in your 8’tive box has been exclusively formulated to enhance your health.

8’tive is ideal for every occasion, everywhere and every day –at home, office, outdoors or serving business guests and friends.

Up Soya Collagen SoyaSoya drink is produced from organic soybeans that are pollution-free and “Green Food”certified, coupled with plant collagen and lilium bulb extract. It is a popular dairy alternative in the West and it has been a traditional beverage in Asia. Soya is ideal for the lactose intolerant or lactose sensitive, and is generally accepted as a healthy alternative to cow’s milk without the beany taste.

UP Soya Collagen soya is fortified with plant collagen that is not only nutritious, but also promotes youthful-looking skin. It contains no preservatives, is safe and hygienic, and suitable for vegans.

Up café Gourmet CoffeeUpcafe Gourmet Coffee is a precise blend of Mandheling, Guatemalan and Brazilian Arabica coffee beans with Maca extract. Together, this combination delivers a smooth and flavourful cup of coffee that evokes a unique palatable experience. Coffee serves to energize, while the added Maca (Lepidiummeyenii) extract boosts vitality.

Up Cocoa Nutri Chocolate

Delicious and nutritious, Upcocoa Nutri Chocolate is a tasty cocoa beverage that

is added with cocoa extract and Milkwort Root extract. While hot chocolate is

generally consumed for pleasure, there is also several potential health benefits

associated with drinking hot chocolate, some of which includes antioxidant/anti-

ageing, and memory improvement.

Cocoa extracts are loaded with polyphenol that are beneficial to heart health and anti-ageing. It’s

unique because of its double chocolaty taste and the

first chocolate drink with Milkwort Root Extract.

Up meal Chlorella CerealAn instant cereal drink that is delicious to drink and easy to prepare. Up meal Chlorella Cereal is packed with the wholesome goodness of 20 types of ingredients including cereal, oats, sprouted grains and greens, multi seeds and chlorella; and gives a healthy, energizing meal everywhere and anytime! Its added sprouted ingredients of essential proteins and nutrients along with other phytonutrients contribute to the body’s energy, stamina, growth and overall heath needs.

Up café Durian White Coffee

The durian, often referred to as the King of Fruits is

the favourite fruit of many Malaysian. Upcafé Durian

White Coffee combines the potent flavours of durian with a twist of mangosteen extract. The latter is rich in Xantone,

which is a natural chemo preventive agent and other

health benefits. The result is a flavourful cup of energizing

coffee that has antioxidant and anti-inflammatory effects.

Up tea Triplet Milk TeaUptea Triplet Milk Tea combines the goodness of black tea, green tea and rooibos tea. It is distinctively aromatic, smooth and full bodied to uplift your mood. It combines the goodness of black, green and rooibos tea which are rich in phytonutrients and promotes anti-stress, antioxidant and inner body balance functions. What’s more, the green tea extract is enriched with EGCG, a powerful antioxidant. Up tea Triplet Milk Tea is convenient and simple to prepare, and a definite choice for discerning tea lovers.

Up café White Coffee Cendawan Susu HarimauUpcafe White Coffee Cendawan Susu Harimau, or Tiger Milk Mushroom is the first white coffee that is formulated from the local treasured herbs - tiger milk mushroom, and blended with ginseng extract, premium Arabica and Robusta coffee beans. The coffee is aromatic, with a smooth taste and it’s high in nutrients to keep you energetic and alert. Tiger Milk Mushroom helps boost respiratory functions, energy and vitality, and strengthens immunity.

Up Dairy Goat MilkThe nutrition composition of goat’s milk is

closest to human milk compared to all other mammals’ milk. Thus, it is most suitable for

human consumption, and that’s why goat’s milk is nicknamed the “King of Milk”. Goat’s milk

helps regulate lung, stomach, intestinal and kidney functions. It also enhances the immune system,

easy to digest and is suitable for those with lactose intolerance, especially to cow’s milk. It is a rich

source of beneficial nutrients such as Colostrum (20% IgG), Inulin and Fructo-oligofructose (FOS),

honey, calcium and many other nutrients.

When it comes to purchasing a product, quality is everything. No consumer will ever want to purchase a product that is of sub-standard quality.

In manufacturing, quality is defined as a measure of excellence or a state of being free from defects, deficiencies and significant variations. It is brought about by strict and consistent commitment to certain standards that achieve uniformity of a product in order to satisfy specific customer or user requirements. ISO 8402-1986 standard defines quality as “the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs.

According to Peter F. Drucker, the “father of modern management”, “quality is what the customer gets out (of the product) and is willing to pay for. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality.”

QUALITYPRODUCT?

What makes a good

by understanding our CUSTOMER’S NEEDS

Quality Begins Similarly for us at CNI, we are continuously striving to deliver the highest quality products possible. All our development teams place a great deal of focus on ensuring that our products, whether exiting or soon-to-be launched, provide our customers and users with the level of quality they’ve come to expect from us.

To be able to know exactly what is expected from us, it’s essential to have a close relationship with our customers and product users. Our support team, marketing, sales and customer service constantly keep monitor our customers’ feedback across the market. People from within the development team also have contact with customers on a regular basis. All these sources of input enable us to enhance and improve CNI’s products in line with people’s needs, while maintaining the quality that they demand.

Quality is our

PASSION

• INNOVATIVE FORMULA - That the formula is original, researched, developed and fully tested to perform as per claimed

• FUNCTIONALITY - All our products should provide the functionality that is needed to support the customer’s needs

• CLEAR LABELLING - provides access to information about the product, ingredients, manufacturer, country of origin and so forth.

• USABILITY – CNI’s products should be able to be used in a way that people can relate to, in order to achieve proper and efficient use of the product

• QUALITY PACKAGING - More than just aesthetics, packaging must be practical and considerations such as air-tight lids, water resistant packaging material, UV and heat retardant all help to keep the product contents fresh for consumption.

• COMMITMENT - Companies must build quality into their products or services. From a production perspective, this means a companywide commitment to eliminate errors at every stage of the product development process. From product design, process design, packaging, and manufacturing. It also means working closely with suppliers to eliminate defects from all incoming sources.

Quality is our way of lifeAs a quality centric network marketing organisation, CNI has invested significantly in R&D and biotechnology centres and manufacturing plants globally. All these are to ensure that consumers get what they want -innovative products that perform and deliver the value they, at a price that match these expectations. Indeed – we are committed to be at the forefront of product innovation and development.

For us at CNI, our development team are even more focused on quality for the product itself. We passionately believe that it’s the customer and the user that determine the level of quality we achieve, and that a number of factors determine the quality they experience, such as:

Do you know that

• CNI is one of the first companies to use the Intermediate Bulk Container (IBC) system for food production, ensuring that powder-based products are free from any contamination?

• CNI was selected to be one of the top 3 cosmetic over-the-counter (OTC) GMP factories by the National Pharmaceutical Control Bureau of Malaysia?

• All machines in CNI’s factory facilities are sophisticated and state-of-the-art?

• CNI’s factories and production facilities are GMP, HACCP, OHSAS, ISO 17025 and ISO 14001:2004 accredited?

Beyond all our quality achievements are some brief takes on what goes on behind the scenes, and just how much we’ll go towards quality achievement and assurance.

Product Design & Development

The success of any and every product of undisputed quality first begins in product design and development. Our marketing intelligence, market feasibility and other studies will be the launch pad of any new product. We begin by looking at trend leaders, competitive offerings and product realities before we put pen to paper and create compelling product concepts that are designed to sell. Finally, we render complete Computer Aided Designs (CADs) and pass them on to our factory product sampling teams to realize our designs. Often, we work closely with our suppliers in getting their input to tailor our products to their requirements. From start to finish, we try to bring maximum flexibility to the design the process to make the best and most appropriate products to our customers.

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START TO FINISHCNI’sProducts:

a commitment of quality from

Whenever our customers everywhere in the whole buy and use a CNI product, they are assured of the highest quality and performance. But what goes on behind the scenes are some of our most comprehensive and intricate manufacturing process which many of our customers are unaware of.

At CNI - our QA process is a continuous method whereby we follow the manufacturing process from the beginning to the end to safeguard product quality. Our QA method starts in the product development phase where we create products that are designed to the highest standards. Once the design process is completed, all of our products undergo a Product Testing phase at our testing labs –where the product is tested for Product Integrity and Packaging Tests.

• For example, for our coffee and beverage pouches, we only use laminated aluminium foil film and bags have great seal abilities, good chemical and water resistance. Its advantages are excellent as they are opaque, with good oxygen barrier, well formed, and maintain fresh the content with long-term preservation.

• For individual beverage stick wrappers, we use laminated PET/PE/AL/LL foil. It is widely used in high speed production for flexible packaging because of its ability for increasing

QUALITYASSURANCEefficiency. Laminated aluminium foil roll is also resistant to water and many chemical components. It also protects sensitive products from light, is a good oxygen and moisture barrier, and helps extend the product’s shelf life over a long period.

• Product labelling and packaging – ensures that consumers have complete access to information on the content and composition of products, in order to protect their health and other interests. Other information may include its origin or intended use. Some foodstuffs, such as genetically modified organisms, allergenic foods, or even various beverages, are adhered strictly to their specific regulation.

As production processes and technologies evolve with time, CNI continues to invest in the latest production facilities to keep up with these changes – ensuring that every product offered by CNI fulfils the promise of quality, value and performance.

In order to ensure that our Product Design is produced at the high level quality that we demand we only work with the best raw material suppliers. To verify our suppliers, our Sourcing and QA teams visit each of our new factories to inspect their capabilities & qualifications. Using the quality standards demanded by our customers, we ensure that each of our suppliers comply with all of these criteria. Each factory is measured for production standards, quality assurance, ethical standards, social and environmental standards, packaging capabilities, and production history. We then work with each factory to address their deficiencies, if any, and bring them up to our standard. Ultimately, we will only commit ourselves to work with the best suppliers that are able to supply the highest production standard at the most competitive price.

SupplierSourcing

Good nutrition is important throughout your life! It can help you feel your best and stay strong. It can help reduce the risk of some diseases that are common among older adults. And, if you already have certain health issues, good nutrition can help you manage the symptoms.

The Nutrition Facts Label is a guide found on all packaged foods and beverages and helps you make choices that can affect your long-term health!

Why NUTRITIONMatters For You

Good nutrition can help you avoid or manage these common diseases:

• Certain cancers • High blood pressure• Type 2 diabetes • Obesity• Heart disease • Osteoporosis

Serving SizeThis section shows how many servings are in the package, and how big the serving is. Serving sizes are given in familiar measurements, such as “cups” or “pieces.” Remember: All of the nutrition information on the label is based upon one serving of the food.

Amount of CaloriesThe calories listed are for one serving of the food. “Calories from fat” shows how many fat calories there are in one serving.Remember — a product that’s fat-free isn’t necessarily calorie-free. Read the label!

Percent (%) Daily ValueThis refers to the nutrients in one serving of the food that contributes to your total daily diet. Use it to choose foods that are high in the nutrients you should get more of, and low in the nutrients you should get less of. Daily Values are based on a 2,000-calorie diet. However, your nutritional needs will likely depend on how physically active you are. Talk to your healthcare provider to see what calorie level suits you.

Limit these NutrientsEating too much total fat (especially saturated fat and transfat), cholesterol, or sodium may increase your risk of certain chronic diseases, such as heart disease, some cancers, or high blood pressure. Try to keep these nutrients as low as possible each day

Get enough of these nutrientsMost of us don’t get enough dietary fibre, vitamin A, vitamin C, calcium, and potassium in their diets. These nutrients are essential for keeping you feeling strong and healthy.Eating enough of these nutrients may improve your health and help reduce the risk of some diseases.

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Nutrition FactsLabel Guide

NUTRITION FACTSServing Size: 1 Cup (113g)Servings Per Container 8

Amount per serving

Calories 100 Calories from Fat 20

% Daily Value* (DV)

Total Fat 2g 3%Saturated Fat 1.5g 7%

Trans Fa 0g

Cholesterol 10mg 3%

Sodium 460mg 19%

Total Carbohydrate 4g 1%

Dietary Fibre 0g 0%

Sugars 4g

Protein 16g

Vitamin A 0% Vitamin C 0%Calcium 8% Iron 0%*Pecent Daily Values (DV) are based on a 2,000 Calorie Diet

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SERVING SIZE • This is the key to the rest of the information

on the Nutrition Facts Label. The nutrition information about the food – like the calories, sodium, and fibre – is based upon one serving.

• If you eat two servings of the food, you are eating double the calories and getting twice the amount of nutrients, both good and bad.

• If you eat three servings, that means three times the calories and nutrients – and so on.

NUTRIENTS• A nutrient is an ingredient in a food that

provides nourishment. Nutrients are essential for life and to keep your body

functioning properly.

• You should try to get adequate amounts of these nutrients each day: Calcium, Vitamin A, Dietary fibre, Vitamin C and potassium (the listing of this nutrient is optional)

• These are the nutrients you should eat in moderate amounts as they can increase your risk of certain diseases: Total fat (especially saturated fat), Cholesterol, and Sodium.

PERCENT DAILY VALUE (%DV)

• The % DV is a general guide to help you link nutrients in one serving of food to their contribution to your total daily diet.

• You can tell if a food is high or low in a particular nutrient by taking

• A quick look at the %DV.

• If it has 5% percent of the Daily Value or less, it is low in that nutrient. This can be good or bad, depending on if it is a nutrient you want more of or less of.

• If it has 20% or more, it is high in that nutrient. This can be good for nutrients like fibre (a nutrient to get more of ) but not so good for something like saturated fat (a nutrient to get less of ).

ImportanceThree areas of

KNOWING THE SERVING SIZE IS IMPORTANT. IT’S HOW YOU ASCERTAIN HOW MANY CALORIES AND NUTRIENTS YOU ARE GETTING.

DIETARY SALT/SODIUMSalt is a crystal-like compound that is used to addflavour and preserve food. The words “salt” and “sodium” are often used interchangeably. Salt is listed as “sodium” on the Nutrition Facts Label.A small amount of sodium is needed to help certain organs and fluids work properly. Note: Sodium has been linked to high blood pressure. In fact, eating less sodium can often help lower blood pressure, which in turn can help reduce the risk of heart disease

FIBREor “dietary fibre,” is sometimes called “roughage.” It’s the part of food that can’t be broken down during digestion. So because it moves through your digestive system “undigested,” it plays an important role in keeping your system moving and “in working order.”dietary fibre, particularly soluble fibre, may help lower your cholesterol and reduce your chances of getting heart disease. It also aids in the regularity of bowel movements and prevents constipation.

TOTAL FATFat, or “dietary fat,” is a major source of energy that helps your bodyabsorb certain important vitamins. As a food ingredient, fat provides taste, consistency, and helps you feel full. There

are two kinds of fats - “Good” Fat which includes unsaturated fats (monounsaturated and polyunsaturated) that can help lower cholesterol levels. “Undesirable” Fat: saturated and transfatscan raise cholesterol levels in the blood – which increases the risk of heart disease.

CHOLESTEROL Cholesterol is a crystal-like substance carried through the bloodstream by lipoproteins – the “transporters” of fat. Cholesterolis required for certain important body functions, like digesting dietary fats, making hormones, and building cell walls.Too much cholesterol in the bloodstream can damage arteries. There are two kinds of cholesterol, High-density lipoprotein (HDL) - the “good” cholesterol, and Low-density lipoprotein (LDL): This “bad” cholesterol.

CALCIUMCalcium is a mineral that has a lot of uses in the body, especially in building healthy bones and teeth.Lack of calcium causes osteoporosis, which is the primary cause of hip fractures. It’s extremely important to get enough calcium throughout your life, especially after menopause(especially for women), as they have a much higher risk for osteoporosis, but men can get it too.

UNDERSTANDING your

NUTRITIONAL NEEDS

How to feel healthier, look younger and keep illnesses away?

Discover our amazing & latest product in the next issue of INSIGHT!