Frito‐Lay: Healthier Snacking Story Oldways Supermarket Diean Leadership Symposium Katherine Francis, RD March 31, 2011

1 Who We Are

Mission Statement: – To develop and disseminate scienfic informaon to support R&D product development in Health and Wellness –FLNA Nutrion Science and Regulatory Affairs •Kari Hecker Ryan, PhD, RD Director, Nutrion Science and Regulatory Affairs •Danielle Dalheim, RD Senior Nutrion Scienst •Katherine Francis, RD Associate Nutrion Scienst

2 Frito-Lay has a long history of leading healthy snacking 33% Less Fat

Trans Fats All Natural Out Reduced Low Fat No Fat Whole Grain Fat Half Calories No Fat Pita & Bagel Chips WG

’87 ‘89 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ’07 ’08 ’09 ’10 ‘11

Sunflower Oil Lightly Vegetables Portion Salted Reduced Fat Control Reduced Natural/ Fat Organic

Fat Free Portion Less Fat/ Less Fat/ Control Tropical Oils Out Fewer Calories Fewer Calories 3 Our Good Food Story

We have already made significant improvements

<1987 1987‐2002 2002‐present

Sat Sat Fats Fats Good Sat Good Trans Good Fats Fats Fats Fats Fats

Corn, Sunflower, Palm oil PH soybean oil Coonseed oil Soybean, and Canola Oil

4 We only use heart healthy oils

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Canola Oil

NuSun Oil

Sunflower Oil

Soybean Oil

Corn Oil

Olive Oil

Peanut Oil

Cottonseed Oil

PH Canola Oil

PH Soybean Oil

Lard

Beef Tallow

Palm Oil

Coconut Oil

Polyunsaturated Fat Monounsaturated Fat Saturated Fat Trans fat *

Replacing saturated fat with similar amounts of unsaturated fat may reduce the risk of heart disease. To achieve this benefit, total calories should not increase

5 Beer Than You Think

Nutrion Facts Our nutrional profile is Serving size 1 oz. (28g/About 15 chips) beer than you think Amount Per Serving Calories 150 Calories from Fat 90 % Daily Value Calories/serving comparable Total Fat 10g 15% to other snack foods Saturated Fat 1g 5% Monounsaturated Fat 4.5g 9 out of 10 grams of fat Polyunsaturated Fat 4.5g are MUFAs and PUFAs

Trans Fat 0g 0 grams trans fat Cholesterol 0mg 0% Sodium 170mg 7% Comparable sodium to a of white bread Potassium 350 mg 10% Total Carbohydrate 15g 5%

Dietary Fiber 1g 5% Sugars 2g Protein 2g Nutrients inherent to Vitamin E 6% Vitamin C 10% potatoes and healthy oils Vitamin B6 4% Magnesium 4%

Niacin 6% Iron 2% 6 The “Salty” Snack Chip Story

Are they really “salty” snacks?

– Despite their salty taste, the amount of sodium in chips is comparable to other foods, such as breads and cereals.

– Chips taste saler because the salt is on the chip’s surface; while other foods mix in and bake the salt, which hides its taste.

7 SODIUM COMPARISONS OF FRITO‐LAY PRODUCTS AND COMMONLY CONSUMED FOODS AND SNACKS LEADING FRITO‐LAY AVERAGE SERVING OF AVERAGE SERVING OF PRODUCTS COMMON FOODS* COMMON SNACKS*

Tostos Restaurant Style Torlla Chips Fruit yogurt (140 mg/cup) Trail mix (170mg/ ½ cup) (120mg/oz)

SunChips Mulgrain Snacks Original Whole wheat English muffin Microwave popcorn (120mg/3 cups) (120 mg/oz) (155mg/half)

Ruffles Potato Chips (160 mg/oz) White bread (170 mg/slice) Graham crackers (190mg/2 sheets)

Fritos Corn Chips (160 mg/oz) Angel food cake (210mg/piece) Wheat crackers (225 mg/oz)

Lay’s Classic Potato Chips (180 mg/oz) Ready‐to‐eat corn flakes cereal (265 Goldfish‐shaped cheese‐flavored mg/cup) crackers (240mg/oz)

Doritos Nacho Cheese Torlla Chips Plain bagel (380 mg/3oz) Snack mix [pretzels, rye chips, mini (180 mg/oz) breadscks, wheat crisps] (380mg/ 2/3 cup)

Cheetos Crunchy Cheese Flavored Coage cheese (460 mg/4oz) Pretzel scks (560mg/oz) Snacks (290 mg/oz) *USDA Nutrient Database 8 PRODUCT NEWS

9 Culinary Innovaon Center

– Directed by Certified Research Chef Stephen Kalil •Combine culinary arts, science and technology ‐ together known as “culinology” – to recreate eang experiences

10 Lightly Salted 50% less sodium than original variety per 1‐oz serving

85 mg 80 mg 220 mg

11 Tostos with 8 grams of Whole Grains

22 million pounds of whole grains added to the American diet every year!

12 SunChips with Fiber Always made with 18 grams of whole grains… Good source of Fiber starng in 2010

13 NATURAL

14 Natural Many of our core products have always been natural …

Potatoes or Corn Heart Healthy Oils Salt

15 Natural In 2011 Lay’s, Tostos, SunChips, Baked! Lay’s, Ruffles and will be made with all natural ingredients.

– No arficial or synthec ingredients – No arficial flavors – No arficial preservaves – No parally hydrogenated oils – No MSG – No ingredients considered “unacceptable” by Whole Foods

Approximately 50% of the Frito‐Lay porolio will be made with all natural ingredients by the end of 2011.

16 Natural Colors – Not using FD&C colors in our natural products • Yellow 6 Lake • Red 40 – Only using colorants from natural sources

• Paprika Extracts • Turmeric Extracts • Annao Extracts • Caramel Color

– Not making claims about “no arficial colors” for this reason

17 Natural Natural ≠ Healthy – Not conveying to our consumers that these products are beer for them now that they are natural

– Limit communicaon to statements of fact about the product – what’s in the product, and what’s not

– More and more consumers are looking for natural products – and we always strive to meet their needs

18 SODIUM

19 Sodium This year, Frito‐Lay is reducing sodium in its flavored potato chips by an average of 25%.

–No salt replacers, just less topical salt and fewer ingredients that contribute sodium, such as sodium bicarbonate –Evaluang several opons to reduce sodium in other products •Test finer flake salt to get beer coverage with less sodium •Remove sodium bicarbonate from baked products like pretzels

20 Gluten Free Starng in 2011, Frito‐Lay will be claiming gluten free on many of it’s core products.

– Many of our products naturally do not contain wheat, rye, or barley. We are not reformulang to remove gluten. – Validate internally to comply with FDA proposed rule of < 20 ppm

21 Gluten Free

– Consumers get a lot of misinformaon about gluten free •Gluten‐free diets being pushed by celebries as healthier or for weight loss •Frito‐Lay is only claiming gluten free on packaging, not implying any other nutrion benefits – Will explain what gluten is and why people with Celiac Disease need to avoid it via FAQs on our website

22 Gluten Free SHARING OUR STORY

24 Sharing Our Story

25 Sharing Our Story

Ingredient images Minimal copy Prominent panel with more informaon MUFAs and PUFAs highlighted

26 Why Feature Farm‐Grown Ingredients?

– Underscore simple ingredients

– Educate consumers on what goes into their favorite snack chips

– Highlight that our products are a source of important nutrients: Potassium, iron, Vitamins C and E

– Show that in a 10‐oz bag of Lay’s® Classic there are about: • 4.5 medium potatoes • 7 tsp oil • 0.7 tsp salt

27 Dual Labeling Nutrition Facts Serving Size 1 oz (28g/About 15 chips) Servings Per Container 2.5 Amount Per Serving Calories 1 ozEntire Package

160 400 Calories from Fat 90 230 %Daily Value* Total Fat 10g , 26g 16% 40% Saturated Fat 1g , 2.5g 5% 13% Trans Fat 0g, 0g

Polyunsaturated Fat 2.5g , 7g

Monounsaturated Fat 5g , 13g

Cholesterol 0mg, 0mg 0% 0% Sodium 170mg, 410mg 7% 17% Potassium 350mg, 870mg 10% 25% Total Carbohydrate 15g, 38g 5% 13% Dietary Fiber 1g, 3g 5% 12% Sugars less than 1g, 2g

Protein 2g , 4g

Vitamin A 0% 0% Vitamin C 10% 25% Calcium 0% 2% Iron 2% 8% Vitamin E 6% 15% 2.5‐oz bag 28 Poron Control

29 Perfect Pairings

– Chips can also be a vehicle to get more fruit, vegetables and legumes into the diet by pairing with dips

• Tostitos with with Bean Dip • Stacy’s with Hummus • Tostitos with Guacamole

30 RESOURCES

31 Connect with Frito‐Lay

TWITTER ONLINE TOOLS @Fritolay www.SnackSense.com

www.LicensetoSnack.com

WEBSITE BLOG www.Fritolay.com www.snackchat.com

32 www.FritoLay.com

33 SnackSense.com

FREE CPEs

Downloadable Tools for Health Materials Professionals 34 Licensetosnack.com Tools to Help Educate Consumers

36 Frito‐Lay + Supermarket RDs= Growing Relaonships

37 Engagement Throughout the Year

– Provide samples and informaon before products hit shelves – Healthy Snacking Research Center quarterly newsleer •From the Frito‐Lay RDs – Provide product and resources for health fairs and in‐store events

38 Frito‐Lay Supermarket RD Insights Summit

– Since 2009, Frito‐Lay has hosted 23 Supermarket RDs for a hands‐on, behind‐ the‐scenes look at our commitment to health & wellness and innovaon. • Health & Wellness overview with Frito‐Lay RDs • Culinary Center demonstraons • Facilitated discussion with markeng & shopper markeng teams • Tour of the SMART Learning Center • Consumer Affairs overview • Trends report with industry expert Phil Lempert • Plant tour of the Irving, TX facility

39 What quesons do you have?

40 Product Tasng

Healthy Snacking Hour & Cooking Demonstraon

41