Fast-Evolving Plant-Based Meat Alternatives

The fast-evolving plant- based, alternative meat and dairy products in foodservice

Maria Tolchinsky, MBA Senior Marketing Manager, Global Plant Based Proteins Karen Constanza Marketing Manager, Meat & Meat Alternatives

August 25, 2021 Topics

• Market trends driving plant-based eating

• Plant-based on restaurant menus

• Challenges and formulating for the plant-based future

• Q&A

Convenience Clean & Simple Health & Nutrition Sensory Experience Affordability & Performance

• Create menus with only • Reduce or remove • Make your menu • Benefit from recipe • Meet the need for more natural and familiar sugar from menus memorable with crispy, savings convenient foods and ingredients crunchy, creamy, or beverages • Improve nutrition with • Reduce manufacturing sweet textures • Offer free-from, organic added protein or fiber costs • Achieve processing and non-GMO options • Keep foods stability or extended looking fresh shelf life

NATURE-BASED RAW MATERIALS

Corn Tapioca Potato Stevia Rice Pulses Others

MORE THAN 1,000 INGREDIENTS

Starches Fruit & Vegetable Products Sweeteners Pulse proteins Others

CRAFTED SOLUTIONS

Science-based problem solving

How the CATALYST program works for you:

Tailor development plan Based on upfront dialog and your project brief, we develop a proposal to deliver on your targets

Formulate your solution Collaborative effort of cross-functional team including you and our eco- system partners to develop, test and refine your end-formula

Support you thought launch and scale-up Full support from process troubleshooting to identifying sourcing and manufacturing partners for the end-product

Our proprietary insights studies include consumer insights programs which offer bi- annual consumer data to support your business, including:

• Global or region specific insights

• Food and beverage purchasing behavior

• Attitudes and usage studies

• Claims and benefits driving purchase

• Ingredient acceptability and potential

• White space and opportunities

How important to you are each of the following things when buying a food or beverage?2

Added protein High protein 60% 65% 80% 67% 69% 57% of global consumers chose plant based of U.S. consumers are when buying looking for good alternatives to meat source of plant and/or dairy1 protein2 2017 2020 2017 2020 Total of “very important” to “quite important”

Source: 1. Innova Health & Nutrition Survey 2020, global 2. ATLAS, Ingredion proprietary consumer research, U.S., 2021

8 in 10 consumers changed their eating habits due to COVID-191

49% of consumers 30% of consumers 18% of consumers felt the COVID-19 report eating report eating pandemic more protein from more plant increased the plant sources alternatives to need for healthy since the start of animal meat1 food in their diet.2 COVID-191

Source: 1. International Food Information Council’s (IFIC) 2020 Food and Health Survey, June 2020 2. Ingredion Proprietary Research, 2021 © 2021 by Ingredion Incorporated. All rights reserved. | CONFIDENTIAL Rising mainstream appeal for plant-based

“For what reasons would you consider plant-based alternatives?”

IT IS HEALTHIER “Which claim do you prefer 53% when buying alternatives to meat and/or dairy?” IT BRINGS VARIETY TO MY DIET 35% Plant- Vegetarian Vegan IT IS BETTER FOR based THE PLANET 32% 6 out of 10 global respondents chose plant-based IT TASTES BETTER 19%

Sources: Innova Database, Innova Consumer Survey 2019 & 2020 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China and Indonesia)

Sustainability or Animal welfare Regionally environmental claims claims sourced

23% 22% #2

of North American shoppers are of North American shoppers are “Sourced regionally” buying more packaged foods or buying more packaged foods or was second highest priority beverages with sustainability or beverages with animal welfare for consumers reading environmental claims than last year claims than last year ingredient decks

Local supply Lower greenhouse gases Less water Lower energy Crops are typically A meal with pulse proteins Pulse proteins require 100X To produce pulse proteins, it sourced from within and/or flours is associated less water to produce than takes 4-7X less energy than to a few hundred with 8X lower greenhouse animal proteins2 produce the same amount of miles of our NA gas emissions than a beef- animal proteins1 plant-based protein Pulse proteins and flours based meal1 facilities, produced via dry avoiding shipping across fractionation require no the oceans saves the 2 water to manufacture equivalent of sulfur produced by 250 * Sources: million cars 1. González, A. D., Frostell, B., & Carlsson-Kanyama, A. (2011). Protein efficiency per unit energy and per unit greenhouse gas emissions: Potential contribution of diet choices to climate change mitigation. Food Policy, 36(5), 562–570. https://doi.org/10.1016/j.foodpol.2011.07.003 2. 2. Schutyser, M. A. I., Pelgrom, P. J. M., van der Goot, A. J., & Boom, R. M. (2015). Dry fractionation for sustainable production of functional legume protein concentrates. Trends in Food Science & Technology, 45(2), 327–335. https://doi.org/10.1016/j.tifs.2015.04.013

How often do you consume meat or dairy alternatives? (U.S., 2019)

Meat alternatives Dairy alternatives

12% daily 18% daily

19% 22% weekly weekly

14 © 2021 by Ingredion Incorporated. All rights reserved. | CONFIDENTIAL Source: Innova Category Survey, North America 2019, Innova Trends Survey 2019 Consumers who eat vegetarian/vegan foods at least Plant based, trending at home once a month and on menus Overall 18-34 35+ 64% 57% 56% 54% 45% 40%

• Both at home and in restaurants,

consumer consumption of vegan/ Q4 Q4 vegetarian has increased since last year 2019 2020 • Younger consumers more likely to Consumers who order vegan/vegetarian food at consume vegan/ vegetarian foodservice at least once a month • Consumers prefer to try vegan/ Overall 18-34 35+ 78% 73% vegetarian options in restaurants 69% 65% 57% 49%

Q4 Q4 2019 2020 *Base: 1,500 consumers ages 18+ *Q: How often do you typically consume the following foods, either at home or at a restaurant or other foodservice establishment? **Base: varies based on those who eat vegetarian/vegan dishes **Q: How often do you typically purchase the following foods from any type of restaurant or foodservice location? © 2021 by Ingredion Incorporated. All rights reserved. | CONFIDENTIAL Source: Technomic online survey How have plant-based items on restaurant menus worked out?

QSR plant-based servings have grown 7% as a result of new plant-based offerings (2014-2019)

Total annual servings (000) 350,000

300,000

250,000

200,000 COVID-19 150,000 global pandemic 100,000

50,000

0 2014 2015 2016 2017 2018 2019 2020 Burger King Chick-fil-A Chipotle Mexican Grill Domino's McDonald's Panda Express Panera Bread Pizza Hut Starbucks Subway Taco Bell Wendy's

Plant-based proteins 47% of consumers will grow nearly 35% want more variety in on menus by the end plant-based meats2 of 20221

crumbles pm sausage am sausage

bacon

patty burger

nugget hot dog

chorizo chicken

roast strip

wing loaf turkey

egg lamb meatball

pork deli slice pepperoni ham steak seafood jerky

inception adoption proliferation ubiquity fine dining, mixology, earliest stage trendy restaurants + specialty grocers chain restaurants + mainstream grocery find it just about anywhere

Plant-based Plant-based Spicy black Plant-based nuggets & wings taco filling bean burger hot dog

Coconut milk Plant-based cheese Oat milk Oat milk for iced lattes topped sliders offerings soft serve

Make flavor & texture Price the primary message competitively

Integrate with other Emphasize the dishes on the menu protein content

Matching animal meat protein challenges Consumer demands Manufacturing challenges

Flavor Gel texture and cohesiveness Mouthfeel Reduced stickiness during processing Juiciness Water holding Textural bite and chew Fat releasing/lubricity Nutritional Fat appearance Clean label/short ingredient list Freeze/thaw stability Color/visual

Both consumer demands and manufacturing challenges must be addressed together to create market-accepted, innovative products.

Challenges of formulating protein-enhanced plant-based dairy alternatives Consumer demands Manufacturing challenges

Taste Flavor Nutritional content Balancing nutrition and functionality Mouthfeel and creaminess Texture and viscosity Functionality and shelf life stability Processing and shelf life stability Clean and simple labels with a short ingredient list Label declaration

Both consumer demands and manufacturing challenges must be addressed together to create market-accepted, innovative products, and Ingredion has the right on-trend, plant-based, allergen-free portfolio of ingredients to solve those challenges.

Plant-based protein claims1

Soy & wheat free Soy free +32% Wheat free +25% +105%

Soy-free plant-based Gluten-free plant-based protein protein movement2 movement2

Chemical Isoflavone GMO concerns/ chemistry Weight Allergenicity Allergenicity Dietary choice presence hexane likened to management processing estrogen

Sources: 1. SPINS Natural Enhanced Channel and SPINS Conventional Multi Outlet (powered by IRI), 52 Weeks Ending 1-24-2021 2. Various 2018 customer meetings and symposia; © 2021 by Ingredion Incorporated. All rights reserved. | CONFIDENTIAL You need the right ingredient solutions to solve these challenges…

Challenge What ingredients are needed?

Texture/bite, chewiness and protein Textured plant-based protein content

Protein content, browning, color & Plant-based proteins flavor development

Binding, structure, cohesiveness, Starches freeze-thaw stability and water holding

Mouthfeel, juiciness, freeze/thaw Hydrocolloids stability & yield

Deliver/mimic color of meat products Fruit or vegetable-based coloring

© 2021© 2021 by byIngredion Ingredion Incorporated. Incorporated. All Allrights rights reserved. reserved. | CONFIDENTIAL | CONFIDENTIAL Plant-based seafood patty Create a plant-based seafood patty that provides the texture & tenderness of a traditional seafood patty.

Ingredients % Water 54.00 Textured pea protein 22.00 Texture & stabilizing food system 5.0 Pea protein isolate 2.0 Coconut oil 12.0 Yeast extract 1.0 Salt 1.0 Old bay seasoning 1.0 Lemon juice concentrate 0.8 Dehydrated minced onion 0.71 Dehydrated minced garlic 0.47 Black pepper 0.02 Total 100.00

Reliability of supply

Consistent quality

Sustainability – carbon footprint

Minimize ingredient complexity

Communicate with your suppliers to understand potential supply challenges

Developing your own product • Point of differentiation • Novelty may drive consumers to trial products • More up-front product development time

Developing a co-branded product • Common introduction method for QSR • Trust & familiarity may drive initial trials • Reliance on brand/manufacturer

Chefs & food Front-of-house preparation staff staff • Train on how to • Encourage trial of new plant- cook/prepare plant-based based menu items menu items • Provide talking point to help • Provide proper tools, promote plant-based menu equipment & ingredients items

Source: Playbook for Guiding Diners Toward Plant-Rich Dishes in Food Service, World Resources Institute © 2021 by Ingredion Incorporated. All rights reserved. | CONFIDENTIAL What does the future hold for plant-based dairy & meat?

19% 85% Love it Know it

64% 21% Have Had many tried it times

Source: Datassentials

New offerings for plant- Plant-based seafood Plant-based eggs based breakfast

Full plant-based Price parity with Animal-free concepts meat & dairy meat & dairy

• Interest in plant-based meat & dairy continues to grow

• Foodservice provides an opportunity for consumers to experiment with new plant-based items

• Formulating for plant-based items requires knowhow and expertise

• To keep up with the fast-evolving plant-based market, leverage partners that can help get you to the consumers faster