A Perfect Balance SUCCESSFUL REDUCTION FOR TODAY’S MARKETPLACE SUCCESSFUL SUGAR REDUCTION A Perfect Balance FOR TODAY’S MARKETPLACE

In today’s food and beverage marketplace, both regulatory- and consumer-driven sugar reduction demands continue to evolve. Successful sugar reduction solutions must also continue to evolve in response.

WHY IS SUGAR REDUCTION SO IMPERATIVE? THE FDA-REQUIRED LABEL CHANGES REGARDING Because it is driven by both regulatory ARE: changes and consumer demand. “Added sugars,” in grams and as percent

Daily Value, will be included on the label. The upcoming June 2020 deadline for Scientific data shows that it is difficult to label changes outlined by the FDA is meet nutrient needs while staying within looming, giving added sugars and serving calorie limits if you consume more than sizes a reality check—and giving consumers 10 percent of your total daily calories from even more reason to pay attention to their , and this is consistent with the sugar consumption. 2015-2020 Dietary Guidelines for Americans.

By law, serving sizes must be based on amounts of foods and beverages that people are actually eating, not what they should be eating. Package size affects what people eat. So for packages that are between one and two servings, such as a 20 ounce soda or a 15-ounce can of soup, the calories and other nutrients will be required to be labeled as one serving because people typically consume it in one sitting.

https://www.fda.gov/Food/GuidanceRegulation/GuidanceDocu- mentsRegulatoryInformation/LabelingNutrition/ucm385663.htm

1 What the new label means to you Serving sizes and calorie counts are prominently displayed, but the biggest change may be that now, added sugars can’t escape unnoticed.

WHAT ARE ADDED SUGARS, EXACTLY?

Added sugars are things like dextrose and () and (), one and two chain sugars. The lower molecular weight provides unique functionality and low viscosity to food systems.

FDA ADDED SUGAR DEFINITION The definition of added sugars includes sugars that are either added during the processing of foods, or are packaged as such, and include sugars (free, mono- and disaccharides), sugars from and , and sugars from concentrated fruit or vegetable juices that are in excess of what would be expected from the same volume of 100 percent fruit or vegetable juice of the same type.

https://www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/LabelingNutrition/ucm385663.htm

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 2 FOR TODAY’S MARKETPLACE It all seems pretty straightforward, CONSUMER-DRIVEN but it isn’t quite that simple since SUGAR REDUCTION consumer attitudes toward sugar appear to be on a continuum: An increasing number of consumers are seeking out “For many consumers, their better-for-you options and want to limit their sugar perceptions, attitudes and and lower their calorie intake*, so they are checking behaviors regarding sugar, labels and buying items with low or reduced sugar. added sugars and sweeteners are based on a host of factors including moods, product category/type, and vary by eating or drinking occasion, etc.”* 46% say no added sugars is important to them Nearly 70% of consumers say 39% surveyed are very/somewhat reduced sugars is important concerned about sugars and to them sweeteners used in the products they buy and/or consume.* 36% say low calorie is important to them

In fact, an overwhelming majority of consumers surveyed are very or somewhat concerned about sugars and sweeteners used in the products they buy or consume most often.* And, these concerns are elevated among women and older consumers.

*ADM OutsideVoiceSM Sweeteners Attitudes & Usage Study, 2017

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 3 FOR TODAY’S MARKETPLACE It’s true, consumers care about their sugar intake—but still want the taste they love.

In fact, 50% would definitely pay more for less sugar and the taste I expect*

As an increasing number of food and beverage consumers seek out better-for-you options, the Therefore, meeting consumer demand for healthy choices, including healthy demand for reduced sugar indulgence, that feature lower calories and closer to nature ingredients will continue to food and beverage options be innovation drivers for foods and drinks.* can be a real balancing act for product developers.

*ADM OutsideVoiceSM Sweeteners Attitudes & Usage Study, 2017

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 4 FOR TODAY’S MARKETPLACE SUGAR REDUCTION CHALLENGES FOR Functions PRODUCT DEVELOPERS of Sugar Freezing point depression Crystallization WITH SO MANY FACTORS AT PLAY, Low browning PRODUCT DEVELOPERS ARE TASKED Viscosity/body WITH BALANCING A LONG LIST Solubility Effect gelatinization OF CHALLENGES:

• reducing overall sugar and managing added sugar values Applications • moving from double digit added sugars to single ice cream digit added sugars (ex. from 12g to 9g) to stay confections within guidelines/daily value percentages under baked goods new serving sizes sauces, jams jellies, preserves • offering reduced sugar options, but keeping the syrups, sauces same desired taste and sensory profile (texture, cookies, baked goods linger, mouthfeel, other sensory qualities intrinsic to the product experience)

• reducing sugar but maintaining the functionality sugar and other sweetening ingredients bring, such as browning, humectancy, shelf life stability, etc.

• reducing sugar while keeping the same overall formulation cost

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 5 FOR TODAY’S MARKETPLACE In today’s food and beverage marketplace, both regulatory- and consumer-driven sugar reduction demands continue to evolve. Successful sugar reduction solutions must also continue to evolve in response.

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 6 FOR TODAY’S MARKETPLACE SUGAR REDUCTION SOLUTIONS FOR PRODUCT DEVELOPERS

ADM, a world-leading nutrition company and food ingredient provider, helps product developers reduce added sugars, with their replace replace rebalance functionality flavors broad and deep ingredient portfolio and their ability to:

ADM’s portfolio of ingredients—the broadest in the industry—is filled with tools to assist product developers in reducing added sugars and solving associated challenges.

ADM also offers a variety of solutions for baking mixes

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 7 FOR TODAY’S MARKETPLACE ADM’S PORTFOLIO INCLUDES PRODUCTS THAT ASSIST IN REDUCING ADDED SUGARS AND MAY MEET THE FOLLOWING PERFORMANCE ATTRIBUTES:

BULKING CLEAN LABEL CLEAR LABEL NON-GMO

PLANT-BASED ORGANIC SUGAR FROM FRUIT REDUCTION

Additionally, ADM can help product developers solve specific application challenges:

APPLICATION CHALLENGE SOLUTION Freezing point depression in ice cream Sorbitol, Polydextrose, , Maltitol , Reduced Sugar Syrup Crystallization in confections Sorbitol, Maltitol, Mannitol, Isomalt, Xylitol Low browning in baked goods Polyols Viscosity/body in sauces, jams jellies, preserves Polyols, Reduced Sugar , , Hydrocolloids, Fibersol® 2 Solubility in syrups, sauces Polyols, Reduced Sugar Glucose Syrup, Corn Syrup, Fibersol® 2 Rise and spread in cookies, baked goods Polyols, Reduced Sugar Glucose Syrup

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 8 FOR TODAY’S MARKETPLACE ADM’S COMPLETE PORTFOLIO

Single Ingredients Blends Systems

Aroma Ingredients FruityBoost Bulk Up

Distillates Masking Solutions Fibersol & Fruity Boost (Body Add Back System)

Extracts Mouthfeel Enhancers Natural Flavors

Fibersol® Natural Colors SweetUp® 4D

Herbs Natural Flavors Sweet Food Bases & Foodstuffs

JustSweet™

Mint Flavors Natural Flavor Modifiers

Mint Oils Natural Sweetness Modifiers

Natural Colors Resolver™

Natural Flavors SavorCrave® Polyols (Sorbitol, Maltitol, No or Low Calorie No or Low Seasonings Erythritol Glycerin, PG, Xylitol) Spices Sodium Modifiers

SweetRight™ Stevia Spices & Herbs

VerySweet™ Monk Fruit SweetRight™ Enzyme Modified Stevia

VivaSweet™ Sucralose SweetRight™ Stevia Flavor Modifier + Resolver™

Xanthan Gum SweetUp®

Bean Grits & Flours Fruit Up™ Fruit Up™ + Fibersol®

Carob Extract Honey Coating Fruit Up™ + Fibersol® + SweetRight™ Stevia

CornSweet® Corn Syrups MultiJuice (EMEAI) Fruit Up™ +SweetRight™ Stevia

CornSweet® HFCS NFS (EMEAI) Fruit Up™ + Honey

Crystalline Fructose Sweet Food Bases & Foodstuffs Vegan Sweetheart

Deionized Apple

Deionized Grape

Dextrose

Dried Fruits

Flo-® Dry Malt

Flours

Glucose Syrup

®

Nutritive Honi-Bake Dry Honey

Isoglucose

Maltodextrin

Nut Butters

Plant-Based Proteins

Rice Syrup

Starches

Sucrose

Sugars

Sweet N Neat® Dry Honey & Honey Coating Dry

VegeFull™ Bean Powders

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 9 FOR TODAY’S MARKETPLACE ADM has one of the largest, most competitive sweetener portfolios in the U.S., including standout ‘MVP’ products for sugar reduction.

TASTE MVPS

STEVIA The SweetRight™ stevia portfolio applies scientific innovation and technical expertise to stevia ingredient development, allowing product developers to answer consumer demand for clean label sweetness, with 50% or more sugar reduction.

SUCRALOSE VivaSweet™ sucralose is a great-tasting, zero-calorie sweetener. Because of its heat and pH stability, VivaSweet is suitable for use in virtually any food or beverage, and will retain sweetness throughout extended periods of storage. Best of all, products containing VivaSweet retain a sweet taste profile that allows consumers to enjoy low-calorie products that taste great.

MONK FRUIT VerySweet™ monk fruit plant-based sweetener is up to 200 times as sweet as sugar and features a delicious taste without bitterness. VerySweet™ meets zero calorie demands without sacrificing taste, making it an ideal choice for clean label sugar reduction in a wide range of food and beverage applications, alone or in tandem with stevia.

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 10 FOR TODAY’S MARKETPLACE The newest arrival to ADM’s comprehensive stevia toolbox, SweetRight™ Edge stevia system delivers increased sugar reduction—up to 10-15% over other steviol glycosides— and superior sensory performance, with less bitterness, linger and astringency. ADM’s stevia toolbox also contains single ingredient stevia products at up to 250x sweeter than sugar to fill a variety of application demands and solve developers’ most pressing formulation challenges. All ADM stevia products are carefully crafted from stevia plants that comply to our rigorous quality control standards.

Stevia is viewed by consumers as a natural sweetener and is the fifth most consumed and preferred sweetener in packaged goods.

BEVERAGES BAKING DAIRY PRODUCTS

• Deliver optimal taste, mouthfeel • Heat stability ensures sensorial • Enhance creamy dairy notes • and lower calories with a clean label • integrity and desirable texture • in yogurt and milk flavors

• Achieve higher quality sweetness • Ideal for replacement of artificial • Set off ‘brown’ flavor notes like • with deep sugar reduction levels • sweeteners in snack bars and more • vanilla, chocolate and cooked sugars

• Work well across applications • Helps create better-for-you • Heighten ‘cooked fruit’ flavor notes • including CSDs, juices and juice • indulgent foods with great taste • like berry, tropical and fruity • drinks, , RTD teas and coffees • and sweetness • sports drinks and more

Sugar Reduction Achievable with SweetRightTM Stevia

EDGE + EMS EDGE

Cost RA80 RA60 RA97 RA95 EMS 95

EMS 97

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 Sweetness Equivalency

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 11 FOR TODAY’S MARKETPLACE FUNCTIONALITY MVPS

ERYTHRITOL Erythritol features a clean sweet taste—with approximately 70% sweetness of traditional sugar and low calories—with the benefits of a low glycemic index and high digestive tolerance. Erythritol offers sugar-like functionality, replacing product volume in reduced sugar applications, and can be used alone or in combination with other sweeteners.

CRYSTALLINE FRUCTOSE With exceptional sweetness—up to 1.8 times that of sucrose—crystalline fructose has a quick, clean upfront sweetness which works well with sugar and high potency sweeteners to deliver on better-for-you claims. Crystalline fructose helps to optimize product formulation in a variety of applications, with unique benefits including a low glycemic index, high sweetness synergy, flavor enhancement, freezing point depression and humectancy.

REDUCED SUGAR GLUCOSE SYRUP Reduced sugar glucose syrups retain much of the functionality provided by sugar without contributing to the ‘added sugars’ designation consumers don’t want to see on nutrition labels. Reduced sugar glucose syrups use unique technology to redistribute the molecular weight of the syrup offering similar functionality and viscosity—with up to 50% less added sugars.

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 12 FOR TODAY’S MARKETPLACE KEY ALTERNATIVE SWEETENERS COST AND PERCEIVED NATURALNESS

Rabobank 2018

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 13 FOR TODAY’S MARKETPLACE Application Expertise and Support

Beyond the expansive ingredient portfolio, systems and blends, ADM offers customers industry-leading capabilities and insights. Truly successful sugar reduction requires the ability to examine and consider every ingredient in a formulation to offer the exact selection of ingredients that maintain functionality requirements—while also meeting each specific development goal.

SWEET SAVVYSM: INDUSTRY-LEADING SWEETENING INGENUITY

The ADM team utilizes their legacy of global sweetening experience and unparalleled technical ingenuity when working with customers on their specific sugar reduction projects across a wide variety of applications and markets.

This industry-leading sweetening expertise and ingenuity form ADM’s Sweet SavvySM, an optimized, holistic approach that gives their customers just the right solutions to give consumers reduced-sugar products that still taste deliciously sweet.

A Perfect Balance: SUCCESSFUL SUGAR REDUCTION 14 FOR TODAY’S MARKETPLACE COMPREHENSIVE + comprehensive portfolio + technical expertise/Sweet SavvySM SUPPORT NETWORK + commitment to quality AND SUPPLY CHAIN + unrivaled applications science and technical capabilities ADM possesses a comprehensive network of facilities and equipment, combined with their global supply chain and proprietary logistics infrastructure, to bring customers best-in- class services. The ADM Sweeteners portfolio It all adds up to ADM’s is sourced globally, ensuring a reliable, flexible exceptional ability to strike supply chain to meet every business need. the perfect balance and

successfully solve sugar ADM’s commitment to high quality standards is second to none, as they deliver on meeting reduction challenges—replacing or exceeding regulatory requirements globally functionality, replacing and impose their strict standards on their sweetness and rebalancing industry partners. ADM’s three U.S. application flavors—no matter the goals, labs with lab scale equipment are designed to application or target audience. mimic most food application processes—to help scale up solutions faster and more successfully.

SOURCES https://www.fda.gov/Food/GuidanceRegulationGuidanceDocumentsRegulatoryInformation LabelingNutrition/ucm385663.htm ADM OutsideVoiceSM Sweeteners Attitudes & Usage Study, 2017 Rabobank 2018

FIND OUT MORE ABOUT ADM SWEETENERS’ SUGAR REDUCTION SOLUTIONS email [email protected] or call 800-257-5743

ADM | admsweeteners.com Copyright © 2019 Archer Daniels Midland Company

VivaSweet™, SweetRight™ and VerySweet™ are trademarks of Archer-Daniels-Midland Company. Fibersol® is a registered trademark of Matsutani Chemical Industry Co., Ltd.

ARCHER DANIELS MIDLAND COMPANY DISCLAIMS ANY AND ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. OUR RESPONSIBILITY FOR ANY CLAIM IS LIMITED TO THE PURCHASE PRICE OF MATERIAL PURCHASED FROM US. CUSTOMERS ARE RESPONSIBLE FOR OBTAINING ANY LICENSES OR OTHER RIGHTS THAT MAY BE NECESSARY TO MAKE, USE, OR SELL PRODUCTS CONTAINING OUR INGREDIENTS. ANY CLAIMS MADE BY CUSTOMERS REGARDING INGREDIENT TRAITS MUST BE BASEDSUCCESSFUL ON THE SCIENTIFIC STANDARD SUGAR AND REGULATORY/LEGISLATIVEREDUCTION REQUIREMENTS OF THE COUNTRY IN WHICHA PerfectTHE FINAL PRODUCTSBalance: ARE OFFERED FOR SALE. 15 FOR TODAY’S MARKETPLACE