La Vanille T

LA VANILLE T

January 2019 LA VANILLE T KEY BENEFITS

LOCAL PRESENCE CUSTOMIZATION COMPETITIVE PRICING CLASSIC METHODS In MADAGASCAR Starting from EXTRACTS Thanks to our strategy Respecting traditional workflow

TOTAL QUALITY & SAFETY ETHICS SUSTAINABILITY CIMR & SENSORY SUPPORT Ensuring traceability Respecting workers & communities A strategy for the long-term Knowledge of your consumers

• The global market is increasingly interested in natural ingredients. Sourcing raw materials in a constant and safe way is of fundamental importance

• Takasago, as it is typical of Japanese companies, has always been committed to securing a fast and stable supply of world's natural raw TAKASAGO MADAGASCAR materials through vertical integration

• Takasago produces coffee extracts in Malaysia; it sources and produces tea extracts in China, and produces citrus oils in the Citrus Center in Florida

• As for vanilla, Takasago has signed a partnership with one of the biggest and more experienced vanilla operators in Madagascar. Owning its own factory, with local vanilla experts, extraction and processing equipment, Takasago can now ensure the best vanilla quality, fully controlling the production process.

TAKASAGO MADAGASCAR Experts in vanilla for more than 30 years

In September 2012 Takasago has created “Takasago Equipped with modern and high tech infrastructure, IT- Madagascar”, a joint venture company with system and QC which allows its experts to provide Ramanandraibe. traceability on-the-fly during purchase, inventory and production processes.

COLLECTION Thanks to our presence on the territory, we can provide better market intelligence and can deal APPROACH MEANS with factors influencing supply, providing early indications on crops and beans price forecasts. SUPERIOR MARKET

INTELLIGENCE Ambanja Sambava

Andapa Antalaha Maroantsetra • Vanilla production mainly managed from Mananara 8 sites allowing to cover the whole country vanilla production.

Antananarivo • Control of 29 municipalities in SAVA / 17 Toamasina municipalities in southeast. Takasago Madagascar Head Quarter Takasago Madagascar Factory

• 3300 planters and 7 associations (1331 planters) including Fairtrade. • 24 collectors / Producers Manakara

Takasago can access all vanilla production areas in Madagascar. This truly exclusive beans sourcing process allows us to:

- Ensure bean supply also in case of natural calamities

- Ensure constant and stable quality of our products also in case of disadvantageous climate conditions in one specific area

- Ensure price control, thanks to the access to all types and qualities of beans throughout the country, which allows us to average on price and therefore limit price increases

Moreover, Takasago implements a 3 years storage plan, a strategy that protects us from excessive price and quality fluctuations for the benefit of our customers. Storage in several protected warehouses also safeguards us from robbery.

All rights reserved The 60-hectare vanilla plantation owned by Takasago’s partner is located in Sava, an area TAKASAGO between Sambava and Antalaha. It is called „Domain of Ambohimanitra” an evocative PLANTATION name which means “the hill of a thousand fragrances”. It is used for research reasons and it is a model plantation.

Takasago owns its own production plant in the maritime port of Taomasina. Production of master extracts starts here.

Takasago has acquired the Moroccan extraction plant Cananga for the processing of natural raw materials, establishing “Takasago Morocco”. Takasago Morocco is an HACCP standard facility specialized in vanilla extracts customization. The five big competitive advantages of owning a plant in Morocco can be summarized as follows:

1. Logistic facilities: between Madagascar and Morocco and between Morocco and other countries. It is a buffer to cover logistical issues that could be faced in Madagascar

2. Morocco site is specialized in customizing natural products. This allows easy introduction of vanilla customization processes

3. BCP Reasons for vanilla beans and Extracts

4. Allowing expansion of portfolio for Vanilla products thanks to a close link with our Vanilla Research Center based in Germany

5. LVT extracts are fine-tuned and customized to comply with various Glocal requirements(Halal, Kosher, Fairtrade…), Produce final vanilla extracts in various standards in the USA folding definition or France “X” folding.

• “La Vanille T” is Takasago’s signature vanilla brand

• Takasago cultivates, harvests, processes and extracts its own vanilla locally in Madagascar, selecting the best vanilla pod quality and influencing the whole curing process.

• “La Vanille T” means an extensive and unique palette of vanilla nuances designed to flavor desserts, ice-creams, yogurts, beverages, baked goods, chocolate and sweets, to delight consumers all over the world. AVAILABLE CERTIFICATIONS

. Fairtrade FLO-Cert

. Halal

La Vanille T means:

• Competitive pricing.

• Available in a whole portfolio of distinctive vanilla specialties, ranging from NI, 1 fold extracts to oleoresins.

• Customized vanilla products and flavors with individual footprint tonalities, all compliant with country-specific food regulations.

• Benefiting from local presence in Madagascar: control of local production and raw material sourcing, exchange and education of the farmers to get best quality, first hand insight information on harvest expectation.

TAKASAGO Takasago’s LVT series have each one a diverse flavor profile, property and price. CUSTOMIZATION Takasago has access to all type of beans because we process directly in Madagascar – not only export grade beans. This STARTS WITH ensures us price advantage and full customization. EXTRACTS All rights reserved CONSUMER INSIGHT DRIVES CUSTOMIZATION

• Takasago can count on a wide array of proprietary consumer insights tools and on a solid expertise in psychophysiological research.

• Consumers’ taste preference for vanilla flavored foods and “The provenance is important because it gives a reliable beverages can be better understood and constantly mapped. indication the quality.” • Optimal, truly customized flavoring solutions for every customer’s need and product type are thus available .

Vision: Takasago as global player in vanilla extracts & natural vanilla flavors and develop innovative products and solutions

Mission: Support Sales & Marketing

• Focus on Quality of vanilla beans Sensory, Traceability

• Origin of vanilla beans

• Vanillin content & dry matter

• Provide technical support to Vanilla sourcing

• Developing new technologies in the profession

Knowhow about vanilla bean qualities of vanilla beans on the market

COLLECTING VANILLA SAMPLES

Ambata Vohemar

Ambanja

Andapa

Sambava

Antalaha

Vanilla collection prior to validation Source: Takasago Europe Vanilla Research Centre VANILLA RESEARCH CENTER

OUR UNRIVALLED KNOWLEDGE VANILLA BEANS

Vohemar

Woody Smoky Ambata Dried fruit

Woody Fatty Woody Ambanja Acidic Smoky Smoky Vanillic Woody Smoky Dried fruit Vanillic Woody Tabacco Weak Dried fruit Caramel Phenolic Sambava buttery Fatty Woody Andapa Smoky phenolic Antalaha

Source: Takasago Europe Vanilla Research Centre Sensory evaluation of each lot collected

Globally ISO 14001 Certified Members of SEDEX

We understand that our actions today will affect the future. Health, safety and our environment are of utmost importance to us and we pledge to do our part by adhering to our comprehensive Environment, Health and Safety (EHS) 100 plan, which requires that all manufacturing sites globally are ISO 14001 certified.

ISO 14001 certification (version 35) covers the economic impact of our business with a commitment from management by taking into account the culture factor to produce better in quality and yield.

Moreover, we are member of SEDEX, which empowers ethical and responsible supply chain, dealing with all ethical international labor unions.

EHS stands for Environment, Health and Safety. Our EHS100 Plan is meant to transform our goals for all three into action. ENVIRONMENTAL ACTIONS PROTECTING THE BIODIVERSITY OF MADAGASCAR

On October 27th 2014 Takasago has entered a scientific and financial partnership on vanilla research with the Regional University Center of the SAVA (CURSA).

Takasago is funding the establishment of a Research Laboratory and supporting a Ph.D. student local research. Takasago and CURSA share a common vision for Madagascar and the SAVA region: rehabilitating the local education system and agronomy research infrastructures with the final goal of reenergizing the ecotourism and agriculture.

As of March 2015, this pioneering research – unique in this genre in Madagascar – has already achieved extraordinary results, among which the diagnosis and classifications of vanilla diseases, the inventory and characterization of the different varieties of vanilla in the SAVA region, their botanical and genetics identification, the creation of a Genomics bank, and the implementation of an experimental field for vanilla.

Takasago Madagascar, our plant dedicated to the production of vanilla extracts located in Tamatave (Madagascar), has obtained from the National Office for Environment an Environmental License granted after successfully completing a comprehensive environmental audit.

Takasago was assessed and positively evaluated on the status indicators like Waste Management, Pollution Management, Risk and Danger Management, Socio-Economical aspects, Sewage systems, Noise level, Air Quality, Urban Safety, quality habitats and urban landscape, Water Consumption, Water Pollution and others.

Lack of access to energy is a daily problem in Madagascar, which influences also the access to health services especially in rural areas, to education and to information. Moreover, the strong dependence on petroleum and wood-generated energy – representing 70% of the energy consumption in economic sectors – means severe environmental consequences such as pollution and forest depletion. Industries are generally subject to high risks with energy sourcing and to a high average price of electricity.

Takasago is actively reducing energy consumption and controlling CO2 emissions globally, with examples including Takasago De Mexico using a solar water heater, which reduces CO2 emissions by nine tons a year, and Takasago Europe Perfumery Laboratory in France receiving 50 percent of the power consumed at the plant from renewable resources.

Takasago Madagascar has chosen solar energy for its laboratories, for the offices and for the canteen infrastructure. Moreover, a powerful electricity generator has been installed to avoid production failure and quality risks and to ensure the uninterrupted functioning of our network infrastructure.

PURE, GOOD TASTING WATER

Population increase in both urban and rural areas, the dilapidation of forests by bushfires and environment disruption due to intensive agriculture are seriously threatening the delicate and precious ecosystem of Madagascar. Takasago knows that sustaining our business means sustaining our environment, especially in regards to one crucial asset: drinking water. Takasago Madagascar site is located in a region rich in water, but unfortunately characterized by a poor pipes network and low quality and safety of water. Collaborating with a company specialized in water treatment, we have installed a state-of-the-art water treatment system in our site. Provided with four different filtration systems, among which a UV Sterilizer complying with EEC requirements, the system continuously provides drinkable water not only meeting standards on bacteriological parameters, but also with a good taste.

Takasago’s purchasing strategy combines supply from both green and bulk OF BEANS market, and allows us to rationalize the whole process with respects to standards for beans quality, reception procedure, inventory and production All the beans that Takasago purchases are certified from Madagascar management systems. authorities about absence of pesticides, naturality and Bourbon quality. We have for objective and challenging goal the one of focusing on green In addition to that, we can also perform Carbon 14 analysis on batches of our market only. This will allow us to provide the best quality for our extracts and extracts, in order to consolidate the full traceability of beans origin and to be the best traceability possible, being able to control directly the preparation. able to label them as Bourbon.

Takasago ensures to support also smallholders and disadvantaged producers with our unique geo-spread and highly composite beans sourcing method. In 2016, we have committed to an exclusive research program in cooperation with Belgium University and In a true Japanese spirit, we established a long-term SAVA University for the genetic research on vanilla cooperative partnerships to ensure our supply of species in Madagascar. vanilla is socially and environmentally sustainable, with the help of our local partner which grants us We practice pre-financing, which supports the accessibility to planters. Local economy on one side, and stimulates planters to harvest beans when fully mature We support local education, sustaining the birth of to provide optimum quality on the other side. SAVA local university in 2012 through IT equipment donation. Moreover, we are sponsoring a PhD student program for Finally, we always ensure we pay a fair price local resources development with a project entitled for all the types of beans we purchase, “Culture of Madagascar vanilla: Heritage to upgrade making sure no planter is discriminated. urgently!“ (Project SAVAMA)

HEALTH AND SAFETY

Takasago requires all its affiliates to comply with the most up-to-date standards in terms of work safety, and Takasago Madagascar is no exception. Workers are provided with insurance and equipment for accidents prevention.

Moreover, Takasago Madagascar is undergoing HACCP in order to ensure the safety and health of workers. Hazard analysis and critical control points or HACCP is a systematic preventive approach to food safety from biological, chemical, and physical hazards in production processes that can cause the finished product to be unsafe, and designs measurements to reduce these risks to a safe level.

All rights reserved TAKASAGO PARTICIPATES Takasago expresses our heartfelt sympathies to all those affected by cyclone. Takasago offered donations through our Madagascar subsidiary, Takasago WITH DONATIONS AFTER Madagascar S.A. with the aim of contributing fast and full recovery of the areas affected by this cyclone. The donations will help provide foods and relief ENAWO CYCLONE HIT goods to the areas. Takasago is sincerely hoping for the early recovery of the affected region. MADAGASCAR

o Climate (Cyclone; Dry season; Rain) Beans purchase throughout Madagascar

o Maturation and Preparation influencing quality Focus on Green market as much as possible, controlling directly preparation as a goal

o Disease (Parasite, insect, viruses) Sponsoring on CURSA University Phd program

o Pollination rate = Plant fatigue Planters education and training ENVIRONMENTAL

o Crop size 3 years stock strategy to protect us from fluctuations

o Robbery Diversified, highly protected storage

o Bad Practice Process (Vacuum Package…) Focus on Green market as much as possible, controlling preparation as a goal

HUMAN o Politic, Economy (market calendar…) Cooperation with Local Vanilla Society

o Stock Control 3 years stock strategy to protect us from fluctuations

USA

23 vanilla 12 profiles 24 UK imagery countries 6 countries td attributes France

1. Vanilla Discovery Board 2. Global Vanilla Imagery 3. Global Vanilla Profile Study among Experts and Foodies

Identified key attributes, Cluster Analysis of vanilla Identify vanilla flavour imagery and emotions attributes, 9000+ consumers familiarity and liking in major associated with vanilla worldwide markets

32 TAKASAGO´S PORTFOLIO ONE FLAVOR, COUNTLESS NUANCES

3 FOLD 3 FOLD 10 FOLD PATISSIER STYLE NATURAL COST- NI COST-EFFECTIVE RICH AND JOYFUL WOODY, VERSATILE MULTI-PURPOSE, HOMELY SUPER PREMIUM EFFECTIVE SOLUTIONS SOLUTIONS Sample 1 LVT 1 3 fold

vanillin 10 9 Bourbon 8 caramel character 7 6 5 4 3 2 1 spicy 0 creamy

fruity woody

smokey

Recommended dosage: Ice-cream: 0,20% Sample 2 LVT 20 3 fold

vanillin 10 9 Bourbon 8 caramel character 7 6 5 4 3 2 1 spicy 0 creamy

fruity woody

smokey

Recommended dosage: Ice-cream: 0,20% Sample 3 LVT 17 10 fold

vanillin 10 9 Bourbon 8 caramel character 7 6 5 4 3 2 1 spicy 0 creamy

fruity woody

smokey

Recommended dosage: Ice-cream: 0,15% Sample 4 Vanilla – TAHITI TEG-10339693

vanillin 10 9 8 anised 7 caramel 6 5 4 3 2 1 spicy 0 creamy

fruity woody

smokey

Recommended dosage: Ice-cream: 0,20% Sample 5 Vanilla Extender Nat. TEG-10353881 Dos. 0,06%

Sample 6 Vanilla Extender Nat. TEG-10323942 Dos. 0,15% Sample 7 Vanilla Extender NI TEG-10132901 Dos. 0,18%

Sample 8 Vanilla Extender NI TEG-10139600 Dos. 0,15% Recipe

Ice Cream base 13% sugar, 10% fat o Milk extended shelf life 3,5% fat 48,6% o Pasteurized Cream, 30% fat 27,8% o Glucose Syrup 45 BE 5,0% o Sugar 13,0% o Skimmed Milk Powder 4003016 5,0% o Cremodan Cremiline 816 (Danisco) 0,6% THANK YOU

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Credits: Takasago Sustainability Report 2011 Pictures: Fotolia, Lebret