PRESENTATION FOR: FoodTech Summit & Expo

Presented by: Jill McKeague Executive Director of Product Management

 Kalsec 2019 TECHNOLOGY ADOPTION CURVE

Source: Roger’s Adoption Curve FOOD TREND ACCELERATION FACTORS

Urbanization Technology Culture

Television shows

Recipe websites

Experience from traveling abroad

Online reading, newspapers, etc.

Percent 18-34 35+

Source: Technomic, 2017; Kalsec 2018 FOOD ADOPTION CYCLE Maturing Establishing Emerging Developing

Gastropubs

Fast-casual

Casual independents Casual chains Family restaurants Specialty grocery QSR Convenience stores Fine dining Gourmet food stores Supermarkets Dollar stores Ethnic independents Food Shows and documentaries Mass Merchandisers Drug stores Food Bloggers Meal kits Pinterest Recipe sharing Travel abroad experiences Instagram Cookbooks Coupons

Source: Datassential, 2016; Kalsec 2018 Beer Flavors Asian Flavors Italian Flavors Jalapeno Flavors

In Stores: In Stores: In Stores: In Stores: La Borracha Con Yakimeshi con Pollo de Tomate Para Botanas de Quinoa y Cerveza Tailandes: Thai Pastas Tradicional Semillas de Chia Sabor Chicken Jalapeno y Limon

2018 NPI’s: 6 2018 NPI’s: 43 2018 NPI’s: 183 2018 NPI’s: 310

Source: Datassential, 2016; Kalsec, 2018; Innova, 2019 FOOD ADOPTION CYCLE – CURRENT TRENDING FLAVORS Maturing Establishing Emerging Developing

Habanero Chipotle

Cardamom Southwest Chili Lime Lemon Pepper

Togarashi Peanut Sauce Smoked Jalapeno

Berbere Teriyaki

Ancho Hops / Beer Flavors Mediterranean Horseradish

Shakshouka Kimchi Lemongrass Pesto

Za’atar Masala Maple

Moroccan Thai Curry Buffalo Sauerkraut

Source: Datassential, 2016; Kalsec, 2018 CONSUMER PERSONAS

 Seeks new & unique  Seeks related & familiar  Seeks known/tried & true  Low risk aversion  Somewhat risk averse  Picky, basic palate  Sense of adventure  Likes “classic with a twist”  Risk-averse  No cost concern products  Very late to trial of new  Globally engaged  Follows trends trends  Experience Oriented  Routine oriented  Influencers/Trendsetters

Source: Kalsec, 2018  Seeks known/tried & true  Picky, basic palate  Risk-averse  Very late to trial of new trends  Routine oriented

Source: Kalsec, 2018; Innova, 2019  Seeks related & familiar  Somewhat risk averse  Likes “classic with a twist” products  Follows trends

Source: Kalsec, 2018; Innova, 2019  SeeksSeeks newnew && uniqueunique  LowLow riskrisk aversionaversion  SenseSense ofof adventureadventure  NoNo costcost concernconcern  GloballyGlobally engagedengaged  ExperienceExperience OrientedOriented  Influencers/TrendsettersInfluencers/Trendsetters

Source: Kalsec, 2018; Innova, 2019 Global Hot & Spicy Research 2019 KALSEC HOT AND SPICY EBOOK RESEARCH METHODOLOGY

January 2019 6,000 consumers 12 countries

Americas: Europe: Asia-Pacific:

Brazil Germany Australia Canada France China Mexico Italy India United States United Kingdom Thailand PREFERRED HOT AND SPICY

80 70 70 61 60 57

50 40 40 36 33 Percent 30

20

10

0 Mexican Chinese Americas Europe Asia-Pacific

Source: Kalsec 2019 TOP SPICY CUISINES

In which types of do you enjoy spicy food? 100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% Mexican Latin American Chinese American Italian Thai

Source: Kalsec 2019 HOT & SPICY: MEXICO FAST FACTS (MEXICO COUNTRY DATA)

Roughly 2/3 of Mexican consumers say they are willing to try any food and/or flavor

Source: Kalsec 2019 CONSUMER PREFERENCES

71% 77% of Mexican of Mexican consumers consumers choose spicy choose spicy options when options when cooking at home dining out

Source: Kalsec 2019 MEXICAN CONSUMER TRENDS

98%

Nearly all Mexican 2/3 of Mexican consumers say they are consumers enjoy some eating spicier food more level of heat or spiciness often now than they were in their food one year ago

Source: Kalsec 2019 Source: Kalsec 2019 PREFER HOT OR EXTREMELY HOT

22% 29% 38% 64% Brazil Canada United States Mexico

Source: Kalsec 2019 MEXICO CONSUMER HEAT PREFERENCES

Extremely Hot 22% Hot 42%

Medium 20%

Mild 14%

No Heat 2%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Source: Kalsec 2019 TOP APPLICATIONS

Which types of foods would you be most likely to try with a spicy option? 90%

80%

70%

60%

50%

40%

30%

20%

10%

0% Snacks Meat/Poultry/Fish Sauces Soup Condiments

Source: Kalsec 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments

Healthy

For kids

Extreme heat

Source: Kalsec 2019; Innova 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments

Clean label

Global flavors

Premium/gourmet

Source: Kalsec 2019; Innova 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments

Healthy convenience

On the go

Indulgent convenience

Source: Kalsec 2019; Innova 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments

Healthy

For kids

Indulgence

Source: Kalsec 2019; Innova 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments

Refreshing

Soothing

Healthy

Source: Kalsec 2019; Innova 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments

Healthy Clean label Healthy Healthy Refreshing

For kids Global flavors On the go For kids Soothing

Extreme heat Premium/gourmet Indulgence Indulgence Healthy

Source: Kalsec 2019; Innova 2019 TOP FLAVOR COMBINATIONS

Which of the following spicy flavor combinations are you interested in trying? 80% 70% 60% 50% 40% 30% 20% 10% 0%

Source: Kalsec 2019 INTEREST & TRIAL OF SPECIALTY PEPPERS

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% Ghost Szechuan Green Serrano Jalapeno Chipotle Habanero Cayenne Pasilla Ancho Hatch Mexico Global

Source: Kalsec 2019 PEPPER FAMILIARITY

Ancho Ghost Spicy + tangy Chipotle Green Hatch Spicy + citrus Habanero Szechuan Jalapeno Serrano

Source: Kalsec 2019 FOCUS ON: CLASSIC FLAVORS IN MEXICO

Jalapeño Chipotle

Extra Spicy Habanero

Source: Innova 2019 FOCUS ON: HATCH GREEN CHILE

Source: Innova 2019 FOCUS ON: HATCH GREEN CHILE

Source: Innova 2019 FOCUS ON: GHOST PEPPER

Source: Innova 2019 FOCUS ON: SZECHUAN

Szechuan Flavored Mala Hot Chicken Flavor Ramen Stir Roasted Wing , China Noodle, Malaysia

Coated Peanuts with Mala Spicy Flavor, Singapore

Szechuan Flavored Sausage Seasoning, China

Szechuan Tomato Stir Fry Sauce, Spicy Pork Snack, China Malaysia

Source: Innova 2019 FOCUS ON: SZECHUAN

Source: KFC Malaysia 2019 FOCUS ON: SZECHUAN

Source: Panda Express 2019 What will your next chili be?

 Kalsec 2019 KALSEC HEAT PORTFOLIO  A unique combination of pungent ingredients and carriers  that deliver heat and sensory attributes  targeted for a specific time and palate location  based on individual applications

 Custom systems to meet your specific needs  Timing of heat  Intensity  Pungent perception  Location on tongue HEATSYNC® SYSTEM EXPRESSIONS

Combinations of:

F = Fast or quick heat

M = Mixed or slower heat

L = Lingering or tingling sensation

N = Nasal sensation  Heat elements plus:  savory  sour  sweet  tangy

 Intense sensory experience

 Current and emerging flavor trends  Extracted in the U.S.

 Meet consumer preferences for complex and specific sources of pungency

 Option to indicate pepper type on product label

 Ideal for use in , prepared meals, sauces, soups, dressings, marinade, meat and poultry products KALSEC SPECIALTY PEPPER EXTRACTS KALSEC SPECIALTY PEPPER EXTRACTS

Szechuan Standardized on sanshools providing a unique numbing, Lemony citrus and herbaceous undertones (sesh-wan) tingling sensation What will your next snack mix be?

Visit Kalsec at booth #1916 to learn more about our heat management portfolio and to create your own snack mix.

 Kalsec 2019