Clean Labels: Overcoming the Top Production Hurdles February 7, 2108

Aaron Clanton, Manager of Baking Training Quality, AIB International, Inc. Holly Mockus, Senior Product Manager, Alchemy Systems Welcome!

• Audio Options: – Choose “Mic & Speakers” to use computer speakers – Choose “Telephone” to dial in using info provided • All lines are in listen-only mode • Please post your questions any time • Q&A will be at the end of the webinar

#alchemywebinar 2 Introduce Speakers

• Aaron Clanton • Holly Mockus • Manager of Baking Training Quality • Senior Product Manager

3 Agenda

1. The definition of a “clean label” 2. How to eliminate functional ingredients 3. Processing challenges in baking 4. Clean label options 5. Managing label change 6. Resources 7. Q&A The Definition of a “Clean Label” What is a Clean Label?

For Consumers For Industry 6 Consumers are Looking for Transparency

• Consumers are looking for – Simple ingredient lists – Recognizable ingredients – No artificial ingredients – No chemicals – Minimally processed products

7 Industry Hurdles

• No regulatory definition of “clean” exists • The term “organic” is regulated and certified in many countries including: – US, EU, Canada, Japan, China, Australia, Brazil, India, and others • “Natural” is more loosely defined and regulated – Many countries do not define it (including CODEX)

8 US “Natural” Policy

FDA USDA

• Not defined, but policy • Labeling guidance issued statement issued in 1993 • Product contains NO: • Product contains NO: • Artificial flavor or • Artificial or synthetic flavoring ingredients • Coloring ingredient • Added coloring, • Chemical preservative regardless of the • Artificial or synthetic source ingredients • Minimally processed 9 How to Eliminate Functional Ingredients What Should be Removed?

• Depends on list – Whole Food’s unacceptable ingredients list – National Organic Program – Other retailers, customers, consumer groups

Source: www.wholefoodsmarket.com/products/unacceptable-ingredients.php USDA NOP list: 7 CFR 205.605 & 205.606 11 Making “Clean” Products

• Remove: – Artificial flavors – Non natural colors – Chemical preservatives – Synthetically produced ingredients • Ask your supplier to verify natural or synthetic produced

12 White Pan Bread Label

Enriched bleached flour (wheat flour, malted barley flour, niacin, reduced iron, thiamin mononitrate, riboflavin, folic acid), water, high fructose corn syrup. Contains 2% or less of salt, yeast, soybean and/or cottonseed oils, wheat gluten, monocalcium phosphate, calcium sulfate, ammonium sulfate, corn starch, dough conditioners (may contain one or more of the following: mono- and diglycerides, ethoxylated mono- and diglycerides, sodium stearoyl lactylate, calcium stearoyl lactylate, calcium peroxide, DATEM, ascorbic acid, azodicarbonamide, enzymes), wheat starch, soy lecithin, calcium propionate (preservative), soy flour.

13 White Pan Bread Label

14 White Pan Bread Label

15 Additives Often Removed

Ingredient Category Ingredients Function Oxidizing agents Bromates, iodates, calcium peroxide, Strength, volume azodicarbonamide

Bleaching agents Chlorine, benzoyl peroxide Whiten flour

Emulsifiers Sodium (and calcium) stearoyl lactylate, exthoxylated Strength, texture, mono, DATEM, sucrose esters, polysorbates emulsification

Preservatives Propionates, sorbates, benzoates Mold control Stabilizers Modified food starch, synthetic hydrocolloids Provide texture

Colors Artificial colors Color Flavors Artificial flavors Flavor Antioxidants TBHQ, BHT, BHA, EDTA Oxidative stability

16 Processing Challenges in Baking Processing Challenges

• Removing ingredients provides processing tolerance • Alternative ingredients are more expensive • Bakeries are low margin and must maintain high production throughputs, speeds

18 Clean Label Requires for Baking Industry A return to baking basics:

• Mixing, fermentation, proofing, Time baking, and cooling times

• Ingredients, dough, batter, in-process, Temperature baking, and cooling temperatures

• Throughout process of dough, batter, pH/TTA sponges, finished product

Water Hardness • Understand incoming water hardness

19 Time & Temperature

• In order to achieve a finished product that is consistent: – Day to day – Shift to shift – Dough to dough – Loaf to loaf • We must control the time and temperature of the process

20 Removal of Functional Ingredients

• Removing or replacing artificial ingredients can lead to textural, quality, and shelf-life changes in the product – Preservative removal can lead to microbial growth (mold) • Consumer expectations of product shelf-life

21 Shelf-life Concerns for Consumers • Visible mold growth = “spoilage” • Firmness or crumbliness of crumb • Loss of flexibility • Dryness • Flavor loss and/or change • Loss of shine or migration of color

22 Control of Mold

• Minimize contamination of products with mold • Implement control factors that enhance mold growth • Establish clear expected shelf-life • Utilize mold inhibitors (preservatives)

23 Factors Affecting Mold Growth

• Temperature • pH • Source of oxygen • Nutrients (carbon, hydrogen, nitrogen) • Moisture / water activity • Time

24 Clean Label Options Alternative Ingredients

Ingredient Category Ingredients Clean label options Oxidizing agents Bromates, iodates, calcium Ascorbic acid, enzymes, peroxide, gluten azodicarbonamide Bleaching agents Chlorine, benzoyl peroxide Enzymes, soy flour Emulsifiers Sodium (and calcium) stearoyl Enzymes, lecithin, natural lactylate, ethoxylated mono, hydrocolloids DATEM, sucrose esters, polysorbates Preservatives Propionates, sorbates, benzoates Fermentates, vinegar, raisin juice concentrate, live cultures Dough relaxers L-cysteine, sodium bisulfite Enzymes, inactive yeast

26 What are Enzymes?

• Proteins – Not living organisms – Produced by fermentation • Enzymes are catalysts • Substrate specific – Amylase attacks only amylose – Protease only attacks protein

27 Reaction Rate Affected By: • pH • Moisture (aw) • Concentrations – Enzyme and substrate • Time • Temperature – Q10 rule: double reaction rate for every 10°C (18°F) increase

28 POLL

What commonly used ingredients contains active enzymes?

• Flour

• Yeast

• Non-diastatic malt

• Honey

• None, you have to add enzymes

29 Potential Problems with Using Enzymes

• Variable levels of purity • Difficult to compare – Use bake test – Effectiveness varies with processing conditions • Generally reduce process tolerance – Narrow optimum pH ranges – Require time to work

30 Potential Problems with Enzymes

Enzymes have a narrow window of activity: Baking Profile

Bake Temperature Bake Shorter Longer activity activity time time Bake Time

31 Process Temperature Profiling

• Use recording thermometers in proof box or oven ✓ Side to side variations ✓ Temperature at each level or zone ✓ Monitor internal temperature of dough ✓ Temperatures over time ✓ Verify microbial kill achieved

32 Temperature Profile of Oven

33 Managing Label Change POLL

Will your facility or organization be affected by label changes during 2018?

• Yes

• No

• Not sure

35 Stats

• 2016 “Food and Health” survey by the International Food Information Council – 47% of consumers look at the ingredients list when making a purchasing decision – 41% defined a “healthy eating style,” as “limited or no artificial ingredients or preservatives” – 29% defined “natural” food as “associated with having no preservatives or additives” – 27% said when shopping health concerns influence their choice of food – 23% indicated they are more likely to buy food with a health claim on the package than food without

http://www.foodinsight.org/sites/default/files/2016-Food-and-Health-Survey-Report_FINAL1.pdf

36 Stats

• In 2016: – 4,591 new products carrying a U.S. Department of Agriculture-approved “no additives or preservatives” label introduced to the market – 3,732 new genetically modified organism-free products – 3,011 were organic – 6,552 were low-to-no allergen – 6,123 were gluten-free – 5,056 claimed an environmentally friendly package • Each of these categories has grown year-by-year since at least 2009. https://www.foodsafetymagazine.com/enewsletter/embracing-the-clean-label-movement/

37 Stats • According to a global study by Cone Communications – 91% of global consumers expect companies to make efforts to address environmental concerns – 84% of shoppers seek out environmentally responsible products whenever possible – 71% would pay more for a sustainable product • PMMI reports – 50% of food processing operations are affected by clean label

http://www.pmmi.org/sites/default/files/Infographic_Food-Processing.pdf http://www.conecomm.com/research-blog/2017-csr-study

38 Change is Inevitable

• Label changes due to continuing changes in consumer preference and regulation require a strong change management process! – Rigor – Training – Communication – Reinforcement – Accountability

39 Label Changes

Finished Goods

Work-In-Process

Packaging Materials

Raw Materials

Formulation

40 Label Changes • Formulation – R&D personnel Finished Goods • Labeling Regulations Work-In-Process • Allergens

• Functional Ingredients Packaging • Anti-Microbials Materials • Kill Step Raw Materials • Manufacturing Process Steps

• Packaging Formulation

41 Label Changes • New Suppliers – Onboarding Finished Goods – Labeling requirements – Specs – Product identity Work-In-Process – Training programs Packaging • Existing Suppliers Materials – Change management process – Inventory, FIFO, FEFO Raw Materials – Labeling requirements – Product identity Formulation – Training programs

42 Label Changes

• Packaging Suppliers – Specifications Finished Goods – Labeling procedures – Change over procedures Work-In-Process – Film splices – Materials appropriate for use Packaging Materials – Product contact – Approval process Raw Materials – Printing – Lot codes Formulation – Traceability

43 Label Changes

• Processing Procedures – Change management Finished Goods – Scheduling Work-In-Process – Inventory control – Proper labeling throughout process Packaging Materials – Product identity – Sanitation requirements Raw Materials

Formulation

44 Label Changes

• Final Pack – Change management Finished Goods – Correct labels Work-In-Process – Change over procedures – Packaging integrity Packaging Materials – Verify materials – Bar code scanning Raw Materials – Inner / outer materials match Formulation

45 Engage Your Employees with Alchemy

• Utilize/Customize Alchemy’s multi-lingual courseware for new hire and refresher trainings on food safety topics • Reinforce your training with coordinated huddle guides, digital signage, and posters • Promote employee-supervisor communication with an award-winning coaching app • Ensure audit-ready automated documentation and real-time reporting

46 In Summary

• Switching to clean label ingredients • Knowledge Exchange: Training – Need tighter processing controls – Digestible format – Return to baking basics of – Contextually relevant controlling time, temperatures, • Form new ‘good’ habits pH, and TTA – Combat the ‘forgetting curve’ • Frequent Reminders • Passive and Active – Accountability • Positive reinforcement • Consequences

47 Resources Baking Specialist Courses on Alchemy Academy

With Alchemy and AIB’s courses, baking professionals can: Course Library: ✓ Drive higher productivity and reduce waste ✓ Function of Ingredients ✓ ✓ Enhance credibility with employers and customers Bread Troubleshooting ✓ Bread Quality ✓ Expand knowledge of baking fundamentals ✓ Baker’s Math & Science ✓ ✓ Accelerate the advancement of baking career Bread Manufacturing Process ✓ Hamburger Buns ✓ Tortillas ✓ Hearth Breads ✓ Pan Breads

49 Upcoming Webinars

HACCP Today: Critical Controls Concepts

Wednesday, Feb 28, 2018 Wednesday, March 7, 2018 10am PT | 12pm CT | 1pm ET 10am PT | 12pm CT | 1pm ET

Join this webinar to learn: Join this webinar to learn: • How to overcome the challenges companies face • The 14 key elements of HACCP Development and Implementation with training • Maintaining effective monitoring, corrective action and verification • Best practices for engaging your employees and earning procedures their commitment • Performing HACCP Reassessments properly • The impact your food safety program has on productivity • How to measure the success and effectiveness of a HACCP program

50 THANK YOU