Vol. 8, No. 3 February 2018 naturalproductsinsider.com US$20.75 Innovation Market’s evolution mirrors demands for , clean label and sustainability

Nutrition Clean Label

Sustainability

APRIL 10 & 11 Meadowlands Exposition Center Secaucus, NJ east.supplysideshow.com CONTENTS naturalproductsinsider.com Vol. 8, No. 3 February 2018

p.28 p.3 Using Enzymes to Revitalize the Protein Aisle Adding enzymes to a protein formula can help finished Viewpoint: Ubiquitous Protein product brands differentiate themselves by increasing digestibility and absorption, advises Melissa Kvidahl, National Enzyme Co.

p.32 p.5 -Based Protein: Assessing Demand for New Sources, Functionality Mark Protein Innovation Sustainable Alternatives Driving new ingredients and products in the protein category Most added protein in packaged food is sourced from are innovations that overcome challenges such as taste, texture, animals, notes Pinar Hosafci, Euromonitor International, but sustainability and nutritional profile. Steve Myers details the latest the reduction in costs for plant-based alternatives is driving a developments in the protein category. boost in plant protein innovation.

p.36

Intellectual Property Trends in Protein Innovation The term “protein” steadily grew in trademarks filed in the last p.18 five years, indicating a greater market for protein products and a greater need to protect them, explain Andreas Baltatzis and Gideon Eckhouse, KramerAmado PC. The Pros and Cons of Protein Sources maintains its position as the protein market leader, explains Jack Grogan, Uckele Health & Nutrition, but plant p.41 are gaining traction.

Protein Sources for Beverage Development Beverage developers are responding to increased protein demand by innovating with different protein sources to make well-rounded products for athletes and active consumers. p.24 Laura Dembitzer, Imbibe, shares the details.

The Ugly Duckweed: Will It Grow Into a Swan? p.45 Water lentil, also known as duckweed, is being recognized for its potential as a sustainable, nutritious protein option. Susan Moyers, Ph.D., reviews the current status of duckweed in the protein category. Takeaways for Your Business

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2 INSIDER Protein Innovation Digital Magazine February 2018 Viewpoint

Ubiquitous Protein

Love of protein is certainly not new. Low-carb dieters have long chased protein-rich foods in hopes of triggering the magic that is weight loss. However, the revolution in protein is the rush to find new sources that are -rich, free from everything “bad,” and available or producible in a sustainable way. The vast biome of edible is a major frontier being explored for protein ingredient development. On page 32, Euromonitor International presents the latest market data and insights on plant proteins. Soy remains important for dairy-alternative product formulations, but , , seaweed and various ancient grains are the future. Check out page 18 for an in-depth comparison of key traditional and alternative protein ingredients. In our main feature (page 5), you’ll learn about innovations across the protein ingredient spectrum, from animal to plant and even bacteria. Developing new sources requires unique approaches and technologies, and many of the cutting-edge efforts are relying on strategic partnerships to bring novel protein ingredients to market. Innovations are not just in finding new protein ingredients, but making existing protein ingredients better, including improved flavor, texture and absorption. Patent applications have shifted from being focused on milk and dairy to more plant- based ingredients, but overall, protein-specific patents have dropped off since a high in 2014, which might suggest a slowing of innovation. Read more on page 36. In this issue, we highlight duckweed (a.k.a., water lentil) protein as an emerging plant protein ingredient (page 24), offering solid amino acid content, sustainable and environmentally friendly production, and a “free from” list of attributes (e.g., genetically modified organisms [GMOs], allergens, etc.) consumers want to avoid. This issue also explores how the sea of protein ingredient choices is affecting beverage formulation (page 41), as well as how brands can differentiate protein products and improve absorption and digestibility by incorporating digestive enzymes (page 28). Our goal is to keep you updated on what is happening in the protein market, and help foster ideas and inform decisions on the cool protein innovations to come.

Steve Myers Managing Editor (480)281-6725 [email protected]

@stevomyers

3 INSIDER Protein Innovation Digital Magazine February 2018 IT’S INCREDIBLE WHERE YOU CAN FIND PROTEIN THESE DAYS.

AtAt CCenturyentury FFoods,oods, wwe’vee’ve aalwayslways bbeeneen oonn tthehe ccuttingutt edge ofof pprotein.rotein. IIt’st’s ddrivenriven uuss ttoo ggoo bbeyondeyond wwhey,hey and develop andand ccraftraft pproteinrotein ppowdersowders ffromrom ddifferentiff sources, including , potatoes and . In fact, we’ve been pioneering plant-based proteins from the very beginning. So look to Century Foods to be the contract manufacturer to grow your business.

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©2018 Hormel Foods, LLC Ingredients

Nutrition Clean Label New Sources, Functionality

Mark Protein Innovation Sustainability by Steve Myers INSIDER's Take  Innovations in protein ingredients  There are many alternative sources  Microorganisms, including and focus on improving functionality being explored, including plants, bacteria, are an emerging protein and nutrient profile in traditional that can offer sustainability and frontier offering complete proteins sources like dairy. allergen-free protein options as via highly controlled and sustainable well as beneficial . processes—limited mostly by funding.

Protein is booming all over the natural marketplace. While fellow macronutrients fat and fight over who is bad and who is good, protein is riding a wave of praise and is in demand across the product spectrum, from sports nutrition and weight management to beauty and pet products. Helping drive new ingredients and products, innovations are meeting challenges such as taste, texture, sustainability and nutritional profile. Dietary protein is primarily touted for its content of amino acids, building blocks the body uses to make various protein molecules with important jobs as, for example, immune cells, hormones, enzymes, muscle cells and connective tissue. Proteins have chains of amino acids. Two amino acids linked together form a dipeptide; up to 30 or so linked aminos form a polypeptide or medium protein, and longer chains of amino acids linked together (about 100 or more in single or double chains) form large proteins, which is generally considered “protein” from a human nutrition perspective. The body takes large proteins from the diet and breaks them down into amino acids necessary for a wide array of structures and functions across all body systems (e.g., immune, musculoskeletal, cardiovascular, etc.). The key for a protein ingredient, then, is to provide a robust profile of amino acids, especially those the body cannot manufacture, called essential amino acids.

Animal-Sourced Proteins Dairy and sources of protein have been popular across product categories from sports nutrition powders and beverages to functional foods and beverages for general wellness. These proteins are complete proteins, meaning they contain all the essential amino acids in sufficient ratio. Despite their market-leading positions, animal and dairy proteins continue to innovate. In 2017, FrieslandCampina DMV launched Nutri Whey Hydro to meet two of the top demands, especially from the sports and active consumer market: fast-absorbing whey protein with superior taste. The company said it utilizes a gentle hydrolyzation process to optimize taste and nutrition. Collected from farmers, the proteins are controlled, as the company put it, “from grass to glass,” including in-house processing.

IN THIS ISSUE Viewpoint p.3 Pro and Cons p.18 Table of Contents p.2

5 INSIDER Protein Innovation Digital Magazine February 2018 Ingredients

Whey protein flavor can have grassy, cheesy, bitter notes; some say it can taste like cardboard. Glanbia Nutritionals took flavor technology, EasyFlav™, originally developed to neutralize vegetable proteins, and adapted it to whey protein processing. By masking off-notes, this technology allows formulators to incorporate whey protein in a variety of functional products. Glanbia also used its history of working with diary proteins and molecular to create new flavor delivery systems. Its CarbOUT™ flavors help formulators meet low-carb requirements and exclude fillers, such as maltodextrin and dextrose. Another way companies are trying to innovate dairy protein is to beef up the amino acid content; branched chain amino acids (BCAAs) are a common target, especially , for better muscle protein synthesis (MPS), the foundation of muscle building. Nutrition 21 developed a unique combination of amylopectin and to improve the power of protein to increase muscle. Its patented ingredient Velositol was shown to double MPS rate compared whey protein alone (JISSN. 2017;14:6). Glanbia and GNC are among companies utilizing this innovative ingredient to boost their protein products. The latest trend in the dairy protein market is “native” whey and casein (known as micellar). The claimed advantage of native protein is less processing than traditional whey and casein production. With native whey and native micellar casein, the protein is separated directly from raw milk using lower temperatures, as opposed to high-

Another way companies are trying to innovate dairy protein is to beef up the amino acid content; branched chain amino acids (BCAAs) are a common target.

temperature processing such as that used to separate whey and casein during cheese production. The gentler processing of “native” proteins is touted as preserving more of the amino acids from being denatured. Specifically, native dairy protein makers espouse a higher leucine content that delivers better MPS benefits. High leucine content is a selling point of chicken protein isolate, which also touts fast absorption and digestibility. Among , chicken is a top food source of protein. International Dehydrated Foods (IDF) developed CHiKPRO™ chicken protein isolate to contain 25 g of protein per 30 g scoop. On the other hand, it contains no carbs and is free from allergens, dairy and soy, according to the company. It also plays right into the recent trend toward clean labeling, formulating products with recognizable, simple, “real” ingredients and

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presenting them to consumers in a transparent way. Stephanie Lynch, vice president of sales, marketing and technology at IDF, noted CHiKPRO is made hormone-free in the United States from farm-raised chickens. It is available in ready-to-eat and easy-to-use powder that can be incorporated into snacks, bars, soups, gravies and many other applications. On its flavor advantages, she said, “It is the first savory protein ingredient with a relatively neutral flavor, making it ideal for innovative snack applications.” Plasma Nutrition tackled the amino acid race from another angle. Its “ingredient optimized” ioProtein™ launched in 2017 and is made using a proprietary processing technique the company said improves absorption and digestibility. A reduced-calorie version promises 26 percent fewer calories. “A study conducted by Dr. Bill Campbell of the University of South Florida and presented at the 2017 ISSN [International Society of Sports Nutrition] Conference (JISSN. 2017 Sept; 14(Suppl 2):31, P54), demonstrated that a reduced volume of ioProtein can achieve the same performance impact as a 35 percent greater volume of standard WPI (whey protein isolate [20 g vs. 27 g]),” said Chris Flynn Rozanski, co-founder of Plasma Nutrition. “As such, ioProtein Reduced Calorie allows brands to deliver maximal nutritional value with less protein-based calories.” In addition to large peptide chain proteins, smaller peptide chains are the keystones of protein ingredients made from collagen. Gelita developed a line of collagen peptides for use in weight management, sports, bone and joint health, and beauty applications. Collagen protein contains three peptide chains intertwined in a sort of triple helix formation. A common combination of amino acids in these peptides includes glycine, proline and hydroxyproline. Gelita noted, in addition to supplying amino acid building blocks, its Bioactive Collagen Peptides® can stimulate fibroblasts in the skin, which synthesize collagen; chondrocytes in joints, which secrete cartilage matrix; and osteoblasts in bones, which make new bone matrix. Its BODYBALANCE® collagen peptide ingredient was developed to feature collagen peptides that decrease fat mass and increase lean body mass. One of the top concerns the market has about animal proteins is sustainability. The volume of resources required to raise cattle and livestock, as well as concerns about overfishing, have contributed to questions about the ability of these protein sources to meet future global demands. Sustainability is one of the big Crickets and mealworms factors in growing vegetarianism and , and is a primary are the primary sources for driver of the alternative protein market. insect protein Insect protein ingredients have emerged as a potentially ingredients, sustainable solution to the projected difficulties of feeding the although fruit flies have world’s future protein demands with animal livestock. Crickets and also been reported as an mealworms are the primary sources for insect protein ingredients, alternative protein source. although fruit flies have also been reported as an alternative protein source.

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In fact, Israel-based Flying SpArk is a new producer of insect protein from Mediterranean fruit flies. In late 2017, the company joined just nine other start-ups selected from more than 1,200 applicants to IKEA’s accelerator program, IKEA Bootcamp, which targets the development of products for sale by the brand; in this case, insect protein products for its restaurants—IKEA made an estimated €2 billion from food sales in 2016. Flying SpArk said one of the primary reasons it made the final cut was that IKEA liked the company’s mission to create high-quality protein ingredients packed with nutrition, and raised and harvested following sustainable principles. Flying SpArk also raised US$1million, with support from the Israel Innovation Authority. Many finished product innovations are using insect protein to make foods beyond the initial nutrition bar offerings: pasta, bread and beverages all offer unique product developments tapping into insect protein. This has insect protein ingredient suppliers working on ways to improve taste, texture and processing properties of the ingredients to enable new product applications to hit the market. However, one important area of innovation for the insect protein supply chain is improved insect farming to meet demand and live up to the sustainable messaging. Finland’s VTT developed a dry fractionation method to manipulate the flavors and coarseness of its powder made from crickets and mealworms. Insects are primarily protein and fat with an exoskeleton of chitin and other compounds. The company uses supercritical carbon dioxide extraction to remove fat from insect raw material, and the

Many finished product innovations are using insect protein to make foods beyond the nutrition bar: pasta, bread and beverages all offer unique product developments tapping into insect protein.

remaining material is dry processed into a high-protein ingredient. According to the company, insect fractions bind water and fat, making them a fit for solid foods, such as meatballs and falafel. Aspire Food Group’s commercial cricket farming operation has employed the latest technology to solve challenges of scaling insect ingredient production to meet future demand and take cricket protein mainstream. Cricket powder currently costs a premium compared to other forms of protein powder, the company reported. Where human staffers once bore the responsibility of feeding crickets during restrictive work hours, Aspire is investing in artificial intelligence and robotics to not just feed the crickets at optimal times, but learn and monitor how the insects are feeding to continually optimize feed timing, amount and composition. The company hopes this technology can help lower the cost of cricket farming and increase yields.

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Tiny Farms is another insect protein producer using technology to optimize yields. Advanced sensors and automation are technologies helping to cut down on labor and time needed to produce cricket ingredients for human and pet food products. One of the innovations from Tiny Farms is its Open Bug Farm project, which employs a forum and wiki for sharing discussions, information, events and technology about farming insects with a community of insect farmers and interested parties around the world. Thus, Open Bug Farm’s technology is fully open source, building out on input from innovative farmers.

Beyond Animal Proteins As an example of the demand for alternative protein ingredients, PepsiCo posted a request to the innovation website NineSights looking for novel protein sources, specifically from plants, fungi and insects. “PepsiCo would like to achieve a protein level that provides a measurable positive impact for consumers while enabling a comparable consumer experience,” the company said in its post, referring to problems it has encountered when increasing protein levels in its products, including taste, texture and color. Soy has long been the primary alternative plant protein, but many are looking beyond soy to other sources, partly due to consumer concerns about soy and its hormones. In fact, PepsiCo listed soy as one of the ingredients it has worked with but is not interested in related to its latest push for novel protein. It also listed pea, dairy, cricket and mealworm powders, moringa, duckweed and single-cell protein as sources the company has used but are “not of interest.” (See page 24 for more information on duckweed.) While PepsiCo seems focused on finding the next big thing in alternative protein, consumers and companies are increasingly interested in many of the alternative proteins PepsiCo ruled out. (See page 32 for data on the growing plant protein market.) Many plant proteins are missing one or two of the essential amino acids, so formulators blend protein from multiple plant sources to design a “complete” protein. Bi said its granulation process makes it easier to blend the proteins for solutions and aids in suspension. The company noted for its most popular non-GMO plant protein ingredients—the pumpkin , lentil, rice and faba bean—the amino acid profiles are dependent on the customer’s references. While BI has noticed customers are

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interested in the amino acid profiles and looking at blends to find the optimal levels, its review of consumer trends has indicated most consumers are simply looking for plant based proteins in general. Taking an innovative approach to addressing general challenges plant proteins pose, BI incorporates honey with the proteins during processing, which it explained helps with flavor and improves processing by offering more consistent particle size and changes to bulk density that make it easier to work with on the production side for customers. Pea protein supplier PURIS, the self-proclaimed first and only U.S. pea protein maker that operates a closed-loop supply chain, said it is forward-focused and offers pea protein ingredients customized for specific applications that help product designers meet consumer demands relative to protein inclusion, taste and functionality. “We focus our innovations around the consumer, committing to give food eaters everything they want in proteins (like and great taste), and nothing that they don’t (like GMOs [genetically modified organisms], major allergens or uncertainty of origin),” said Tyler Lorenzen, president of PURIS.

Many plant proteins are missing one or two of the essential amino acids, so formulators blend protein from multiple plant sources to design a “complete” protein.

For example, the company supplies pea protein crisps (60 percent protein) for use in cereals and bars, as well as pea protein for use in ready-to-drink (RTD) beverages. “The amount of protein that is squeezed into the serving size can be difficult for vegetable proteins without compromising the organoleptic experience of the applications,” Lorenzen noted. “With our proprietary PURIS Pea Protein 870MV, we can achieve great mouthfeel, clean flavor and over 20 g per serving of protein in a ready-to-drink protein beverage, for a 12 fluid oz. serving.” AGT Foods developed proprietary technology to reduce the beany flavor of its pulse protein ingredients including dried pea, lentils, chickpeas and faba beans. The process delivers a heat treatment to produce a ready-to-eat (RTE) protein powder. The lines of protein concentrates and flours, including the VITESSENCE brand distributed exclusively by Ingredion, are clean label and sustainable, delivering high fiber and a range of micronutrients in addition to protein. “Vegetal flavor and off-notes associated with plant proteins can be a major challenge for manufacturers of food and beverages—from the moment of production all the way through the product life cycle,” said Julie Mann, global protein program manager,

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Ingredion, noting unappealing flavors can be magnified during processing, shipping and storage due to, among other factors, temperature and light fluctuations. “Beginning with the cleanest taste profile achievable can aid manufacturers to gain valuable product acceptance and perhaps better acceptability throughout shelf life. Of course, many factors, attributes and food chemistry play a role in shelf life and product acceptability. However, a clean taste pulse product is a good start.” AGT Foods is located in the Canadian province of , in a region of Western Canada where pulse and other plant protein producers are joining forces to drive innovation. The company is a part of Protein Industries Canada (PIC), a pan-prairie Canadian cluster of small to large ingredient- and agriculture-related companies covering , Saskatchewan and Manitoba. These provinces are home to major raw material suppliers of plant protein ingredients including pulses, hemp, , , canola and flax. The expertise involved in PIC ranges from research and development (R&D) and technology to finance and investment. Canada’s National Innovation Superclusters Initiative, announced in the government’s 2016/17 budget, will invest as much as $950 million in Canadian dollars between 2017 and 2022 to support superclusters—innovation hotbeds—with the potential to boost the economy and drive growth. PIC hopes to benefit farmers, processors, researchers and universities, entrepreneurs, consumers and all Western Canada (jobs, investments, etc.). Ron Styles, acting president of PIC, reported more than 50 potential superclusters responded to the government’s early 2017 call for proposals. In late spring 2017, the government announced nine proposals would proceed to the second phase of selection. The PIC-led cluster made the cut and submitted its phase two proposal in late 2017. A decision on awarding up to five proposals with supercluster innovation funding is expected in February or March 2018. PIC noted Canada is a top five agri-food exporter, with the potential to grow further into a leading value-added and higher-quality food and feed supplier. The prairies account for more than 80 percent of the nation’s arable land, on which grains, oilseeds and pulses are the primary crops grown. In fact, PIC said Canada is the world’s largest grower and exporter of pulse crops. Its abundance of R&D and universities position it for future innovations and investment. “Since we submitted our proposal at the end of November, we have continued to work on maturing our organization and refining our implementation strategy, should we be one of the proposals selected for funding,” Styles reported. As part of the efforts, the Alberta Food Cluster was formed to help small to medium enterprises (SMEs) in specialty plant protein ingredient manufacturing band together for better economies of scale. These SMEs work with locally produced pulses, algae, hemp, cereals, sorghum and other

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plant protein sources. The cluster recognizes that much of Western Canada’s plant protein raw material is sent overseas to be processed, then the end products are imported back into the Canadian region. They see a unique opportunity to foster investment into innovation and technology that can add value to the region’s plant protein industry. One of the nine proposals chosen for the final phase of the National Innovation Superclusters Initiative is the Smart Agri-Food Supercluster (SASC), which more broadly covers farm-to-fork, agricultural business across Canada and includes heavyweights such as General Mills, Bayer and Cargill, as well as big tech such as Microsoft and Telus. Among its four Innovation Communities, SASC highlighted protein and processing innovations within its Genetics/Processing community. Protein innovations cover both plant and animal sources. In short, one of SASC’s many goals is to scale up innovations faster and unlock the value of such innovations by connecting various parts of the value chain. It recently reported the ecosystem covered by its pan-Canadian platform totaled 135 million acres of farms, ranches and facilities. Sustainable production and increasing capacity is also afoot at major U.S. plant protein producer Parabel. The Florida company produces protein made from the small flowering water lentil or duckweed plant (Lemnoideae family). The company developed a sustainable aquafarming process to enhance the nutritional profile of its LENTEIN™ brand protein ingredient. Parabel, which won the 2017 Food Ingredients Europe (FIE) Innovation Award in the Growth Category, gained international patents for its hydroponic system for sustainable and environmental achievement; it produces maximum yield, is

Microalgae harvested daily throughout the entire year and recycles 95 percent are also waterborne of the water used in its facility. plants innovatively being Cecilia Wittjber, vice president of marketing for Parabel, noted and grown harvested water lentils have a higher level of essential amino acids and BCAAs for protein ingredient than the current crop of plant proteins, including soy and pea, with a manufacturing. high leucine level rarely found in plants. Water lentils’ overall amino

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acid profile is similar to that of whey protein—LENTEIN’s protein digestibility-corrected amino acid score (PDCAAS) of 0.93 is very close to the 1.0 PDCAAS for whey, soy and egg. (see page 24 for more on duckweed.) Microalgae are also waterborne plants innovatively being grown and harvested for protein ingredient manufacturing. Microalgae is not new to the natural products industry, and several companies produce microalgae using open or closed systems to make ingredients with various nutritional profiles, including antioxidants like astaxanthin. Solazyme was a company focused on making from microalgae but changed its name to TerraVia and its focus to nutritional ingredients. It inked a deal to sell algae oil to Unilever for use in personal care products, and also partnered with food companies. It produced two AlgaVia brand food ingredients, whole algal oil and whole algal protein, from specific strains of chlorella microalgae fermented in closed, stainless steel tanks. The algae feed on plant-based sugars, which it converts to oils, lipids and protein. TerraVia’s proprietary technology allowed it to control the fat and protein content of the microalgae and manage the flavor—regular chlorella has a fishy taste.

Microalgae are waterborne plants innovatively being grown and harvested for protein ingredient manufacturing.

AlgaVia Protein-Rich Whole Algae is billed as a sustainable, allergen-free, vegan protein ingredient. Corbin Biotech, which acquired TerraVia assets when the company went under bankruptcy protection, noted AlgaVia delivers protein along with fiber, lipids and other nutrients. The protein is protected by a natural cell wall, making it stable in low-pH functional foods and beverages. Microalgae produce single-cell protein (SCP), as do yeast, fungi and bacteria. Many of these sources provide complete proteins with the nine essential amino acids. Noblegen cultivates microorganisms using a proprietary “facilitated expression” technology in an effort to make large-scale, cost-effective, natural alternatives to unsustainable ingredients. Noblegen was born out of Founder Adam Noble’s innovative work using bacteria to remove nanosilver from wastewater. Under the guidance of Noblegen Co-Founder Andressa Lacerda, Ph.D., Noble turned his attention to making bioproducts from an algae-like microorganism called Euglenia gracilis and formed the company in 2013. The start-up has since generated two food and beverage ingredients, a protein and an oil, from its microbial fermentation process.

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Lacerda noted E. gracilis is in a unique class of microorganisms, not technically considered a plant. “It’s a highly adaptable, fast-growing species that has complex, highly evolved characteristics that differentiate it from other simple plant species,” she explained, adding the species can grow without relying on light, unlike other plant species. “Given the unique natural characteristics of our microorganism, the amino acid profile of our protein ingredients competes with traditional animal sources currently available in the market,” Lacerda said. Plant-based sources, including pea, typically have a limiting amino acid profile that requires different proteins to be strategically blended in order to achieve a complete profile, she continued. However, like other plant proteins, Noblegen’s is free from allergens, harsh chemicals and GMOs, and it is sustainably produced. The other advantage of the controlled production of these types of protein ingredients is the ability to create unique nutrient profiles. Lacerda noted Noblegen can generate protein-rich or lipid-rich flours, protein concentrates of either low or high solubility (across a range of pH), and protein-oil blends that can include omega-3s. The ingredients can be used in a wide range of product applications including bakery and confectionery, snacks, bars, cereal, RTD shakes, smoothies, supplements, beverages, spreads, sauces and sports nutrition products. As a fledgling company, Noblegen has its eye on future innovations, such as new microorganism species, product development, functionality, flavors and colors, amino acid profile and complex products.

Protein Frontier: Bacteria The next innovative protein may come from bacteria. Early stage biotech company White Dog Labs is exploring advanced nutrition protein products derived from the Clostridia bacteria class, which many associate with pathogens (e.g., the species difficile, tetani and botulinum). However, there are good bacteria in this , and White Dog Labs is keen to harness the good species of this anaerobic class. “Clostridia is now being recognized as one of the major contributors to positive gut health,” said Bryan Tracy, CEO of White Dog Labs, noting his company is on its way to commercializing from its platform. In the meantime, the company’s proprietary process, called Protocol B™, is currently used in producing protein ingredients for the animal nutrition, feed and aquaculture industries. “We have tremendous capability to find, isolate, select, cultivate, enrich, expand clostridia species … to make SCPs, dead cells that serve as a protein source,” Tracy explained, but added his team is eager to further explore the opportunity for these advanced nutrition protein products in human nutrition applications. “We are mapping out how we are differentiated, not just from a nutritional perspective, but also from a functional one, such as how to provide better texture.” Additional challenges include economic, regulatory and production requirements. Tracy explained most non-animal protein ingredients and products still come

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with a premium cost. Scalability is another challenge, with such ventures as developing new, non-animal sources of protein. White Dog currently leverages the U.S. ethanol industry, which involves more than 200 plants across the Midwest that grind billions of bushels of corn to make about 16 billion pounds of ethanol per year. White Dog has developed a proprietary fermentation method, called MixoTherm, which can significantly improve ethanol

yields above previous maximum thresholds, and lower CO2 emissions considerably. This process results in an almost equivalent byproduct of dry distiller grains with solubles (DDGS), which has potential added value as fodder for the feed industry and would offer the otherwise tight margined ethanol plants a way to add profit. The key to further gains, Tracy explained, is to convert the protein these plants are already making into higher-value protein. White Dog can utilize the cellulosic sugars in the stillage to produce SCP. This SCP project was one of a handful selected by the U.S. Department of Energy (DOE) for up to $15 million in funding to demonstrate the viability of making SCP from stillage using Clostridia, and to support studies by aquaculture researchers to validate the quality of the resulting feed protein. White Dog’s SCP is a complete protein—the bacteria synthesize the amino acids they need. “We have much higher content of lysine, methionine and threonine,” Tracy said, comparing his company’s SCP to other alternative proteins. “Our innovations address the need for plant protein blending; we provide the better amino acid profiles for sports and other applications.”

The next innovative protein may come from bacteria.

He explained the amino acid profile could be further manipulated by genetic modification (GM), but his company is intent on not using GM for protein production. Instead, it locates ideal microorganisms in natural environments by fast screening to find those microorganisms that are innately producing higher levels of essential amino acids. Then, they adaptively evolve the organisms to allow for natural genetic mutations to occur, and they select those that end up with elevated essential amino acids.

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Thus far, White Dog’s approach to improving ethanol production and developing SCP ingredients is via collaboration with strategic partners, such as the global industrial gas firm Air Liquide for the MixoTherm ethanol project, and with DOE and the Center for Aquaculture Technologies Canada (CATC) for the advanced nutrition protein project, called ProTyton™. “There have been a lot of black eyes in the industrial biotech and protein space involving heavy amounts of capital investment into technology that really did not have the market share or wasn’t even quite in the market yet,” Tracy said, explaining his company’s capital concerns. Strategic partners invest capital in the White Dog projects and thus have a vested interest in the success of the technology. “We are happy to employ this same strategy toward human applications,” Tracy confirmed, “but we will only advance in a capital-disciplined way.” He noted his team has not yet seen successes from those who have taken very large sums of venture capital, like 50 to hundreds of million [U.S.] dollars in some cases. “There can be some time before they might get a return on that,” he said. “We are not sure if that is a successful approach; we are skeptical.”

An Alternative Future? U.S.-based brand Designer Protein said an innovation it would like to see from suppliers is unique U.S. sources of protein, but transparency and safety are also vital to today’s marketplace. “We look for complete disclosure at every touch point, and we are always looking for new proteins which have a competitive advantage over other proteins on the market,” said Shawn Sherwood, head of R&D, and Annie Crandall, marketing manager for Designer Protein, one of the first such companies to create female-centric products for the growing active consumer market. The duo is largely interested in “complete transparency of the protein from a raw material perspective, to manufacture, to logistics, to safety.” The demand for protein—especially from alternative, non-animal sources—is being met by innovative companies developing and employing novel technologies to identify, isolate and scale production of proteins from plants and various microorganisms. Traditional animal and dairy sources continue to lead the market and introduce innovations to improve amino acid profiles, taste, texture and other functional attributes. However, the future of sustainable protein ingredient supply appears to be moving toward utilizing all of nature’s biological protein caches, including unlikely sources such as bacteria. Companies wanting to be on the forefront of these new protein discoveries and technologies may have to put more skin in the development game by investing in the scientists and start-ups aimed at disrupting the space.

16 INSIDER Protein Innovation Digital Magazine February 2018 PLANT MORE PROTEIN IN MORE PRODUCTS

Build it into every bite. Our new clean-taste pulse proteins help you answer demand for vegetable-based protein and fiber without compromising taste. Give your consumers the added nutrition and delicious flavor they want along with a sustainability story that makes every bite taste that much better.

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The Pros and Cons of Protein Sources by Jack Grogan INSIDER's Take  Whey protein has traditionally been  Plant-based proteins made from  Plant-based proteins tend to be considered the “gold standard” for rice and pea are gaining traction in deficient in some amino acids, whereas supplementation, known for being the market due to sustainability and whey is a complete protein; however, a complete protein and backed by digestibility, and their benefits to bones, brands combine plant-based protein several sports nutrition studies. muscles and connective tissues. sources to fill nutritional gaps.

Whether you’re a hard-core exercise fanatic, a desk-bound professional or a health-conscious mom, it’s crucial to have plenty of protein throughout the day. Protein is one of the most important nutrients in the diet. In fact, the word “protein” comes from a Greek word meaning “of first importance.” It is used in virtually every process within the body. All the tissues of the body are made primarily of protein. This includes muscle, bones, organs, connective tissue; ultimately, protein is the stuff we’re made of. Protein governs metabolism and gene repair. It is also used to carry signals from one part of the body to another, to support immune responses, and for hormone and enzyme production. Traditionally, animal-based proteins have been the go-to supplement for anyone interested in optimizing protein intake. Whey protein dominates the options, and is generally considered the “gold standard” for meeting the complete protein needs of all the essential amino acids in adequate amounts. Whey protein forms have significantly different bioavailabilities and costs. The more heat and pressure used in the manufacturing, and the faster whey protein is made, the less bioavailable the protein. Although less expensive, whey manufactured in this manner results in a lower-quality, poorly utilized product that yields inferior results. The highest-quality whey protein is manufactured at a lower pressure and temperature, and a slower manufacturing rate. Since the time required to manufacture the highest- quality whey protein is longer, it’s a costlier process. There are three basic forms of whey protein:

 Whey protein isolates yield a higher percentage of pure protein, and can be filtered enough to be free of lactose, , fat and cholesterol. This means everything beneficial about the protein is left intact, while removing most of the unwanted leftovers. It is the most expensive, but has the highest level of bioavailable protein.

 Although whey protein concentrate is typically the better-tasting of the three and usually the least expensive because it requires the least amount of filtration, it also has the highest lactose (milk sugar) and fat content of the whey proteins.

 Whey protein hydrolysate is a pre-digested form of whey protein, usually from isolate, that utilizes enzymes to partially hydrolyze or digest the protein. This protein has the least amount of fat and is lactose-free. It is widely considered to have the least favorable taste.

IN THIS ISSUE New Sources p.5 Duckweed p.24 Table of Contents p.2

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The quality of a protein cannot be determined by simply looking at a product label. The level of protein grams per serving could be the same, but the higher-quality protein is more bioavailable. In addition, some protein products may contain the more costly, high-quality whey protein or whey protein isolate, but are blended with lower-cost, lower-quality whey proteins; while the labeled ingredients look promising, this formulation is diluted in quality, potency and benefits.1 Many studies confirm the benefits of whey protein. One study showed that if a high amount of whey protein is consumed, levels of ghrelin, a hormone that signals the brain is hungry, are reduced.2 This resulted in full and satisfied feelings for longer periods of time. In addition, various studies indicated that, consumed in small amounts prior to a meal, whey protein improves post-meal glycemic control.3 Whey is shown to be higher in leucine (a branched-chain amino acid [BCAA]), absorbed more quickly and to produce a more pronounced increase in muscle protein synthesis to help build and maintain lean muscle.4,5 These studies also indicated an ability to blunt cortisol stress, and possibly affect brain function and behavior by inducing the synthesis of neurotransmitters, resulting in beneficial cognitive performance and elevated mood.6

The quality of a protein cannot be determined by simply looking at a product label.

Some downsides are noted by users and researchers. Whey protein can be difficult to digest for some individuals, leading to flatulence, diarrhea and bloating. Some whey proteins are heavily processed, which can degrade the nutritional quality. Additionally, to make whey palatable, some manufacturers fill whey products with artificial sweeteners. And finally, with few exceptions, whey is from cows that are given a variety of hormones and medications, including antibiotics, to maximize their milk production. Although a growing number of manufacturers are now offering whey proteins from grass-fed, organically raised cows, a much larger percentage of the proteins on the market come from cows given a diet of soy and corn grown with unnatural fertilizers.7,8,9 On the other hand, according to a new report from 1010 data, there has been a growing move toward plant-based protein powders. Although whey protein is still the current market leader, plant proteins are gaining share.10 Pea and rice proteins are viable alternative sources of protein. With careful attention, they can supply a balanced, full-spectrum of amino acids in a highly absorbable, bioavailable form. For vegans and those allergic to certain animal-based proteins, they offer a practical alternative.

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Pea and rice proteins are easily digested and assimilated. They digest slowly to give a long-lasting protein/amino acid benefit to support lean mass, including bone, muscle, connective tissue and all other tissues of the body. High-quality pea and rice proteins are processed at a low temperature to ensure easy digestion and rapid absorption. Pea protein comes from the yellow split pea and is easy to digest. It has a possible protein content of 80 percent, which is moderately lower than brown rice at 90 percent and whey isolate at 95 percent.11 It absorbs quickly, making it a good post-workout choice. Pea protein is a good vegetable protein source of the lysine, which cannot be made in the body and must therefore be consumed through the diet. Lysine can be particularly deficient in vegan-/vegetarian-based diets. Pea protein is an outstanding, non-dairy source of amino acids for the body, and it enhances a positive balance, which is essential for tissue repair and recovery.12 Rice protein is manufactured to separate the proteins from the carbs associated with rice, and has the added benefit of being gluten-free, and high in fiber and B. A typical product may contain anywhere from 20 to 24 g of protein per one scoop serving, which is only slightly less protein than whey isolate. Brown rice protein has been clinically proven to be the equal of whey as a supplement for strength training.13

Rice protein has the added benefit of being gluten-free, and high in fiber and vitamin B.

Rice protein contains high levels of the essential amino acid L-methionine, or simply methionine, which can also be deficient in vegan-/vegetarian-based diets. L-methionine is necessary to produce epinephrine (adrenalin) and the hormone .14 Methionine is the precursor of , which has multiple, critical functions in the body. While taurine is present in eggs, seafood and meat, the production of taurine from methionine may be the only source of taurine for the vegetarian or individual on a restricted diet. Taurine is essential for normal function of both the heart muscle and skeleton. It protects against toxicity from both lead and cadmium. It is also essential to produce bile acids. Lysine and methionine are the precursors of , the molecule responsible for converting fatty acids into energy and helping to lower cholesterol. L-lysine and L-methionine are required to produce L-carnitine, a carrier needed to move fatty acids into the mitochondria where they can be burned to produce energy for the cells.15 Deficiency of lysine or methionine can cause fatty build-ups in the liver.

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The most common misgiving the consumer has with plant-based proteins is they tend to be deficient in some amino acids, whereas whey protein has a complete amino acid profile of all nine of the amino acids, and is therefore considered a complete protein. Plants, however, are not complete proteins because they tend to either miss one or more, or be lower in some of the essential amino acids. One solution seen in the marketplace is to combine plant-based protein sources to fill any potential nutritional gap from a single protein source. A popular combination is brown rice and pea protein. With rice protein high in amino cysteine and methionine, but low in lysine, and pea protein low in cysteine and methionine but high in lysine, this combination provides all essential amino acids. Plant-based proteins contain less leucine than whey protein. Leucine is a key factor in maximizing muscle protein synthesis (MPS) from resistance training. However, once this leucine level is reached, protein’s ability to increase MPS plateaus. Plant-based proteins contain about 6 to 8 percent leucine, while animal-based proteins contain about 8 to 11 percent. The same lean mass and strength improvements can be achieved with either whey or rice protein, provided the dose of rice protein is high enough to provide an effective amount of leucine.16 In other words, simply a higher dosage is needed.

Jack Grogan is chief science officer forUckele Health & Nutrition. He is a recognized expert in hair analysis, a tool in determining the causes of nutritional imbalances and deficiencies. With considerable experience in the fields of biology, biochemistry and nutrition, he has been influential in the development of hundreds of proprietary nutritional formulas and programs.

References 1. Walzem RL, Dillard CJ, German JB. “Whey components: millennia of evolution create functionalities for mammalian nutrition: what we know and what we may be overlooking.” Crit Rev Food Sci Nutr. 2002 Jul;42(4):353-75. 2. Astbury NM et al. “Snacks containing whey protein and polydextrose induce a sustained reduction in daily energy intake over 2 wk under free-living conditions.” Am J Clin Nutr. 2014 May;99(5):1131-40. DOI: 10.3945/ ajcn.113.075978. 3. Akhavan T et al. “Mechanism of action of pre-meal consumption of whey protein on glycemic control in young adults.” J Nutr Biochem. 2014 Jan;25(1):36-43. DOI: 10.1016/j.jnutbio.2013.08.012. 4. Witard OC et al. “Myofibrillar muscle protein synthesis rates subsequent to a meal in response to increasing doses of whey protein at rest and after resistance exercise.” Am J Clin Nutr. 2014 Jan;99(1):86-95. DOI: 10.3945/ajcn.112.055517. 5. Volek J et al. “Whey protein supplementation during resistance training augments lean body mass.” J Am Coll Nutr. 2013;32(2):122-35. 6. Kraemer W et al. “The effects of soy and whey protein supplementation on acute hormonal responses to resistance exercise in men.” J Am Coll Nutr. 2013;32(1):66-74.

7. Swallow DM. “Genetics of lactase persistence and lactose intolerance.” Annu Rev Genet. 2003;37:197-219.

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8. Fischer W et al. “Contaminants of milk and dairy products: contamination resulting from farm and dairy practices.” In: Fuquay JW, ed. Encyclopedia of Dairy Sciences. 2nd ed. San Diego, CA: Academic Press; 2011:887-897. 9. Baars A et al. “Dioxins, dioxin-like PCBs and nondioxin-like PCBs in foodstuffs: occurrence and dietary intake in the Netherlands.” Toxicol Lett. 2004;151:51-61. 10. 1010data.com [Internet]. “Product Report Insights: Plant-based protein powders drove growth.” Available from: 1010data.com/media/2033/1010data_datasheet_ecom-market-share_28jul17.pdf. 11. VRG.org [Internet]. Baltimore: “The Vegetarian Resource Group; c1995-2013 [cited 2013 Nov 4] Protein in the Vegan Diet.” Available from: vrg.org/nutrition/protein.php#r2. 12. Schmidt J et al. “Plasma concentrations and intakes of amino acids in male meat-eaters, fish-eaters, vegetarians and vegans: a cross-sectional analysis in the EPIC-Oxford cohort.” Eur J Clin Nutr. 2015 Sep 23;70(3). 13. Monteiro A et al. “Nonlinear periodization maximizes strength gains in split resistance training routines.” J Strength Cond Res. 2009 Jul;23(4):1321-6. DOI: 10.1519/JSC.0b013e3181a00f96. 14. Joy J et al. “The effects of 8 weeks of whey or rice protein supplementation on body composition and exercise performance.” Nutr J. 2013;12:86-93. 15. Rebouche C et al. “Utilization of dietary precursors for carnitine synthesis in human adults.” J Nutr. 1989 Dec;119(12):1907-13. 16. Nutritionexpress.com [Internet]. Jeff S. Volek, Ph.D., R.D, “Do plant proteins build lean muscle as well as whey protein?” nutritionexpress.com/article+index/protein/all+about+protein/showarticle.aspx?id=1953.

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Ingredients

The Ugly Duckweed: Will It Grow Into a Swan? by Susan Moyers, Ph.D. INSIDER's Take  Duckweeds have been consumed as  Dried duckweed contains up to  As brands start to commercialize nutritious vegetables for generations 35 percent protein and important duckweeds, the ingredient is gaining in some parts of the world and are amino acids such as lysine, and the traction in popular media outlets and gaining traction in the West for branched-chain amino acids valine, is being supported by research and protein content. leucine and isoleucine. trade organizations.

Just like the duckling in the Hans Christian Anderson tale, the botanical duckweed has been scorned as “ugly,” scum, a menace and a yuck-weed. But the tiny may soon see redemption as a powerhouse of protein. The family of duckweeds (Lemnaceae family) flourish, floating atop still or slow-moving in most parts of the globe. Their reproduction can be extremely rapid, doubling mass in as few as two days, forming a virtual carpet across the water. Duckweeds are also called water lentils, and khai nam (water eggs). In some parts of the world, notably Laos and Thailand, water lentils have been consumed as a nutritious vegetable for many generations. The flavor profile is like spinach or watercress, and the dried protein blends with other ingredients. Elsewhere, duckweed has been used as fish food and animal feed, and is especially important as a food source for migrating waterfowl. Out of about 40 species of duckweed, the most prominent is Duckweed minor. Protein content of the dried plant is in the range of 25 to 35 is rich in lysine, percent.1 The amino acid profile of protein concentrate meets the World which makes it worthy Health Organization’s (WHO) recommendations for amino acids, as a “complementary” except for methionine. Duckweed is rich in lysine, which makes it protein in low-lysine worthy as a “complementary” protein in low-lysine, vegetarian diets vegetarian diets based based on rice or corn. Analysis has indicated duckweed species also on rice or corn. contain a good number of branched-chain amino acids (BCAAs [valine, leucine and isoleucine]), which are sought-after in products designed for athletes. And, duckweeds have good content of omega-3 fatty acids, resulting in a favorable omega-6:omega-3 ratio of 0.5 or less.2 On the downside, the plants sometimes are found to contain , which can be harmful in large doses, especially for people at risk of kidney calcifications. But this can be managed by manipulating calcium in the growth water.3 Duckweed absorbs other in a water

IN THIS ISSUE Pro and Cons p.18 Using Enzymes p.28 Table of Contents p.2

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system, including toxic ones such as lead and cadmium, and has been used for in polluted lagoons.4 Duckweed species therefore require careful cultivation, grooming and management for use in human food and supplement products. For optimum production, duckweeds need to be monitored, grown on surface partitions that are shielded from wind, maintained at a favorable mass by fertilization to adjust nutrients, and harvested to retain peak yields. A Florida-based company, Parabel, developed a unique line of duckweed products. The protein marketed for humans is called LENTEIN Complete™. The firm reports LENTEIN Complete is a powder typically containing 45 percent crude protein. Two Parabel products are designed for pets and livestock—the high-protein Lemna Protein Concentrate (LPC) and the high-fiber Lemna Meal (LM). On farms based in Florida, Parabel is working to develop consumables ranging from snack foods and beverages for people, to formulations for poultry, livestock, fish and pets.

Duckweed is gaining traction in popular media as an alternative to animal protein.

Other companies, such as Israeli startup Green Onyx, are working to bring duckweed growing indoors. Green Onyx has created a standalone appliance that grows duckweed; the appliance occupies roughly the same countertop space as needed for a home stand mixer. Green Onyx works with a variety of duckweed called arrhiza. And Israeli startup Hinoman employs a type of duckweed it calls Mankai™, which is cultivated in a covered outdoor hydroponics system. Mankai also boasts 45 percent protein on a dry-weight basis. As the cultivation of duckweed expands into parts of the world where it is not traditionally seen, it is also gaining traction in popular media as an alternative to animal protein. The U.K.’s Daily Mail, for instance, suggested the challenges of our world’s

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growing population and stretched-thin food supply could benefit as duckweed “feed[s] the world;” Martha Stewart recommended we “skip the steak” and eat duckweed for dinner; and, Science Daily cited a study which concluded duckweed is a “tiny plant with huge potential.” Research and applications of duckweeds are promoted by two organizations, The International Lemna Association (ILA) and the International Steering Committee on Duckweed Research and Applications (ISCDRA), organized at Rutgers University. Among the organizations’ goals is to educate and increase public awareness about the importance and potential of duckweeds for a more sustainable future.

EAS independent consultant, Susan Moyers, Ph.D., has more than 20 years of experience in developing, training and auditing food and management systems. She is a safe quality food (SQF)- registered consultant and trainer; a lead trainer for FDA’s preventive controls and foreign supplier programs; and a consultant, auditor and trainer for dietary supplement cGMPs (current good manufacturing practices) and hazard analysis and critical control points (HACCP) systems. EAS Consulting Group LLC specializes in FDA regulatory matters. Its prime focus is to assist domestic and foreign pharmaceutical, medical device, tobacco, food, dietary supplement and cosmetic firms comply with applicable laws and regulations. EAS is staffed with former FDA compliance and inspection officials and industry executives, and is assisted by an extensive network of independent consultants with many years of FDA and industry experience.

References

1. Rusoff LL, Blakeney EW Jr, Culley DD Jr. “Duckweeds (Lemnaceae family): a potential source of protein and amino acids.” J Agric Food Chem. 1980 Jul-Aug;28(4):848-50. 2. Appenroth KJ et al. “Nutritional value of duckweeds (Lemnaceae) as human food.” Food Chem. 2017 Feb 15;217:266-273. DOI: 10.1016/j.foodchem.2016.08.116. 3. Mazen A et al. “Calcium oxalate formation in : physiological and ultrastructural aspects of high capacity calcium sequestration.” New Phytologist. 2003;16:435-448. 4. Verma R, Sutha S. “Lead and cadmium removal from water using duckweed— L.: Impact of pH and initial metal load.” Alexandria Engineering J. 2015;54(4):1297-1304.

26 INSIDER Protein Innovation Digital Magazine February 2018 OF PROTEIN

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Using Enzymes to Revitalize the Protein Aisle by Melissa Kvidahl

INSIDER's Take  Protein powders haven’t changed  Adding enzymes to a protein formula  Sports health consumers base their much since their inception, but can help finished product brands purchases on product quality; their innovation can keep up interest in the differentiate themselves by increasing top considerations include safety, supplement aisle as competition grows digestibility and absorption. clinical support, natural ingredients in the nutrition arena. and digestibility.

Clean label and better-for-you trends have transformed the food and beverage industries. From gluten-free to low , consumers demand more from the foods they buy. At the top of their most-wanted lists? Added protein. According to research from the Natural Marketing Institute (NMI), 53 percent of the general population seeks high-protein foods. And it’s no surprise—about 20 percent consider themselves to be protein-deficient. Brands are rushing to meet these demands with innovative formats that run the gamut from bars and yogurt to cereal and % snacks, such as chips boosted with added protein. And, their 53 creativity is being rewarded. Nielsen reported sales of food items of the general with protein claims increased by about 5 percent in the 52 weeks population seeks ending July 2, 2016 (amounting to a rise of US$19.6 billion in sales). high-protein foods. While innovation has boomed in the food sector to meet evolving And it’s no trends and increasing demand, protein’s roots in sports nutrition surprise—about have largely stagnated. % In sports nutrition aisles of natural products stores, protein powders 20 are relatively similar to those of previous decades: lots of protein, but consider little else. Current differentiators include packaging and protein themselves to be source (pea protein versus whey protein, for example), but in a protein-deficient. saturated market with so much choice, that’s not enough. To truly According to research from the differentiate—and compete with an ever-expanding portfolio of foods Natural Marketing Institute (NMI) now offering added protein—powder brands will need to offer more than just high-protein content. They’ll need to offer superior delivery and absorption for the athletes who depend on such products. They’ll need to tap into the excitement surrounding protein, and truly innovate. One of the ways to do this is through enzymes.

Opportunity for Growth Enzymes represent an opportunity for protein supplement and powder brands to revitalize a mature market. In fact, market research from National Enzyme Co. (NEC) found that out of over

IN THIS ISSUE Duckweed p.24 Market Data p.32 Table of Contents p.2

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200 protein powders reviewed, only a handful included enzymes, demonstrating a clear hole in the market for such products. Enzyme-fortified protein powder has many benefits for athletes. First, proteolytic enzymes help boost digestion and absorption of protein (Int J of Sport Nutr and Exerc Metab. 2006;16:129-152). “What many people don’t recognize is that proteins are extremely complex macro molecules and are relatively difficult for the body to digest,” said Naeem Shaikh, Ph.D., vice president of research and innovation at NEC. “We see variations like protein hydrolysate, protein concentrates and isolates in the market as formulators try to make it easier to digest and absorb.” Indeed, for many brands and athletes, protein hydrolysate is an option. But, as Shaikh pointed out, this option often requires more processing, which perhaps is the reason the taste is so bitter compared to untreated equivalent protein. “If you’re a purist, and you want a whole food or pure food, this isn’t an option you will like,” he added. Enzymes, on the other hand, are a natural solution used to supplement the body’s endogenous digestion capabilities and, as such, appeal to clean label and natural trends.

Enzyme-fortified protein powder has many benefits for athletes. First, proteolytic enzymes help boost digestion and absorption of protein.

Similarly, while many consumers will look to free-form amino acid content to boost their muscle-building plan, that may not be the most complete answer, either. One study published in Nutrition Research found that proteins are more than the sum of their amino acid parts (2001 October;28(10):651-658). Researchers randomly assigned 15 subjects divided into three groups to ingest either 15 g of whey protein, 6.7 g of essential amino acids or 7.57 g of nonessential amino acids. They used the leg arteriovenous model to measure the leg phenylalanine balance, an index of muscle protein accrual. Researchers observed a significant increase in protein markers in those who ingested the whey protein compared to those who ingested the equivalent amounts of essential or nonessential amino acids. With whole proteins as consumers’ best options, enzymatic support is beneficial. “Between ingestion and digestion of protein, there is a window of approximately 90 minutes for protein to be broken down into smaller polypeptides or amino acids, and to be absorbed through the mucosal wall (Int J of Sport Nutr and Exerc Metab. 2006;16:129-152). The undigested protein portion will be pushed through to the large

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intestine,” explained Shaikh, adding that, in some cases, if absorbed, the body may consider partially digested protein larger than a tripeptide to be a foreign invader. “This could trigger the immune system as the body tries to remove the molecule,” Shaikh added. “Antibodies will be produced, and this whole process will have been triggered that may result in other unnecessary responses. So, it’s very important to have complete digestion of protein molecules in a relatively short period of time.”

A Worthy Investment According to NMI, most sports health consumers base their purchases on product quality (64 percent). Half of them will even choose quality over price. What does “quality” mean? NMI said sports nutrition enthusiasts’ top considerations are safety, clinical support, natural ingredients and digestibility. Proteolytic systems can expedite digestion—promoting optimal % release of amino acids and hydrolyzing the proteins commonly used 64 in muscle-building products. In fact, unpublished, in vitro research from NEC showed that when compared to endogenous enzymes, of sports health adding 50 mg of its branded BioCore AminoTap® PS to a whey protein consumers isolate boosted branched-chain amino acids (BCAAs) and base their purchases release by approximately one and a half times; adding 250 mg of the on product quality. blend bumped the release to approximately two and a half the times in simulated gastrointestinal (GI) fluids. Half of them It’s important to partner with a company deeply rooted in the will even choose science of enzymes. Because sports nutrition consumers seek quality over price. scientific evidence behind their purchases, the right partner can

be the differentiator needed to set a product apart from a sea According to research from the of competitors. Natural Marketing Institute (NMI)

This article was submitted by National Enzyme Co. (NEC) and written by Melissa Kvidahl. Based in New Jersey, Kvidahl is a freelance writer with 10 years of experience covering the natural products industry, from food and beverage to personal care, from research developments to market trends. Her work appears in a number of industry publications, including Natural Products INSIDER, Food Insider Journal, Natural Foods Merchandiser, Delicious Living and more. She can be contacted at melissakvidahl.com.

30 INSIDER Protein Innovation Digital Magazine February 2018 For the brand and product developer in the pursuit of fueling consumer interest and inspiring product loyalty with your next innovative protein product. Consider BioCore AminoTap® PS as a game changing proteolytic system. Delivering impressive BCAAs and glutamine release when combined with protein, BioCore AminoTap® PS is a system with variable dosing flexibility that will address multiple price points and formulation applications to meet product goals. BioCore AminoTap® PS allows you the freedom to be in the driver’s seat, by dialing in the product performance from 50 – 250 mg dosage with supporting in vitro studies for both animal and plant proteins.

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Plant-Based Protein: Assessing Demand for Sustainable Alternatives by Pinar Hosafci INSIDER's Take  Most added protein in packaged  Pulses, such as soy, lentils and  Chickpeas are increasingly being food is sourced from animals, but the faba beans, and sea plants, such as used by chefs and vegan food reduction in costs for plant-based seaweed, are promising future sources companies as a replacement for egg alternatives is driving plant protein of protein due to their versatility and whites, particularly in baked goods innovation. high protein content. and condiments.

Protein is an indispensable part of the human diet, but the way it is produced today presents challenges, both for human consumption and its economic and environmental impact. Within developed markets, consumers eat more than the recommended amount of protein; however, most of this protein comes from animal-based protein sources. In fact, except for Japan and India, fresh meat and dairy tend to be the main contributors to protein purchases in the top-10 packaged food markets across the globe, which puts new strains on water, soil fertility, biodiversity and . Not only is society too reliant on animals as a direct source of protein, but most added protein to packaged food is sourced from animal-based ingredients. Caseinates, a protein commonly found in cow’s milk, account for more than half the animal-based protein sources, followed by whey, which is another milk-based protein.

Meat Substitutes More Affordable A key driver for the recent boom in plant-based alternatives for processed meat is the narrowing price gap. In New Zealand, Australia and Ireland, meat substitutes are less expensive than standard meat.

Unit Price of Processed Meat vs Meat Substitutes 2016

New Zealand Taiwan ■ Meat Substitutes Slovakia ■ Ireland Processed Meat Australia United Kingdom Finland Germany Switzerland Netherlands Sweden Israel Belgium France Canada Singapore Norway Italy Austria USA South Korea Portugal Denmark Spain 0 2 4 6 8 10 12 14 16 18 20 22 24 26 USS per kg

IN THIS ISSUE Using Enzymes p.28 Intellectual Property p.36 Table of Contents p.2

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Pulses, Sea Plants Leading Sources of Plant Protein As an affordable alternative to animal-based protein, pulses are ideal for improving diets in low-income areas, where the protein sourced from milk is often five times more expensive than that from pulses. Pulses are showing strong growth in emerging markets such as India, Mexico and Egypt. In addition, some varieties, such as soy beans, lupine, lentils and faba beans, have a high protein content, with lupine boasting 36.2 g of protein per 100 g—higher than beef with 26.6 g per 100 g. Offering compelling nutrients such as fiber and omega fatty acids, and touting lower calories and carbon footprint than dairy and meat, plant sources are being promoted as natural, sustainable alternatives. These claims—paired with health concerns, such as lactose or gluten intolerance—have been major brand differentiators for top-selling plant-sourced brands, such as Alpro and Silk. Soy beans are the most popular plant-based protein ingredient in packaged food, but only a fraction of them are consumed directly in a raw format, unlike quinoa, which is predominantly consumed raw. Soy is an important ingredient in milk alternatives, yogurt, cream and meat substitutes, as well as ice cream. However, in addition to its status as a big-eight allergen and widespread skepticism of the ingredient among health-conscious Millennials, a growing number of consumers in developed markets are looking beyond soy to newer plant alternatives that are less likely to be sourced from genetically modified crops.

As an affordable alternative to animal-based protein, pulses are ideal for improving diets in low-income areas.

Peas, hemp, seaweed and ancient grains—such as chia, buckwheat and amaranth— are some of the more promising future sources. Peas and hemp could be compelling alternatives to cow’s milk and dairy ice cream, while ancient grains, seaweed, moringa and insects will be most suited as auxiliary ingredients to savory snacks and baked goods.

Gluten-Poor, Protein-Rich Ancient Grains Ancient grains, which have traditionally been used by civilizations from the Aztecs to the Greeks, are being rediscovered and incorporated as auxiliary ingredients into baked goods, biscuits, snack bars, cereals and pasta. Pepperidge Farm, a subsidiary of Campbell Soup Co., has launched an ancient grain line under its Harvest Blends brand, and Hovis introduced a chia loaf in the U.K. in February 2016 in collaboration with The

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Chia Co., stressing its high content of omega-3s, protein and fiber. These new varieties are fueling sales of high-fiber bread, which was worth US$24 billion globally in 2017, and is expected to reach $28 billion by 2022, growing by a compound annual growth rate (CAGR) of 3.4 percent; well ahead of the overall bread market at 1.6 percent, according to Euromonitor International. Breakfast cereals are following in the footsteps of bread, with Kellogg launching the Ancient Legends range first in Australia and then in the U.K., General Mills launching Cheerios+Ancient Grains in the United States, and PepsiCo taking both its leading hot cereals brand Quaker and its ready-to-eat cereals brand Real Medley into the super-grain range. Chia have recently risen to the top of the list of superfoods in several countries including the United States, U.K., Australia and Denmark, on the back of the smoothie trend. Many varieties of ancient grains, such as buckwheat, chia and teff, are naturally gluten-free, which further adds to their appeal, especially among health-conscious Millennials, who equate gluten-free with healthy.

Lupine proteins have two traits that other plant proteins do not: a neutral taste and an ability to blend water and oil.

Lupine the Next Big Thing in Plant-Based Protein Lupine is another plant-based protein that has the potential to substitute meat and compete with soy. Lupine proteins have two traits that other plant proteins do not: a neutral taste and an ability to blend water and oil. This makes lupine an attractive base for yogurt and ice cream, as it highlights the creamy and soft texture of these products. In addition to being a high source of protein, lupine helps enrich the soil with nitrogen and , which are particularly good for the rye crop. Sauces and dressings is another potential application area. While lupine flour has been used in some European countries as a replacement for soy in specialty breads and catering foods, it was not until 2016 that a dedicated brand was launched. Luve, which blends the words lu(pine) and ve(gan), is a German packaged food brand that has products ranging from pasta and milk to ice cream and frozen desserts, which are exclusively based on lupine.

34 INSIDER Protein Innovation Digital Magazine February 2018 Market Data

Chickpeas: Magical Replacement for Eggs, Milk Aquafaba, chickpea water, is increasingly being used by chefs and vegan food companies as a replacement for egg whites, particularly in baked goods and condiments. The chickpea brine has similar functional properties to meringue, while being cheaper than eggs and boasting cancer-fighting properties. Fabanaise, vegan mayonnaise from the U.S.-based condiment company Sir Kensington’s, has put aquafaba on the map as a viable ingredient in food processing. The mayonnaise analogue has received positive reviews for its taste and texture, and will receive wide distribution in 2017. is being promoted as a sustainable alternative to other plant-based milk types, such as soy and almond. Unlike almonds, which require lots of water and are mostly grown in draught-hit California, and soy, which contributes to deforestation, peas are often produced locally and have a smaller environmental footprint. The American start-up Ripple introduced pea milk, derived from yellow split peas, to replace cow’s milk. It joins hemp milk, brown rice milk and cashew drinks on the growing list of other alternatives in the now Pea milk booming business of dairy alternatives. is being promoted as a Other milk alternatives, which include products such as almond milk, sustainable alternative coconut milk, cashew milk and milk, are expected to hit sales of to other plant-based $10 billion by 2022, while soy milk will reach $7 billion by that same milk types, such as year. The growing demand for milk alternatives is not boding well for soy and almond. organic milk, at least in the United States, where the organic milk category has seen slower growth in 2017—a trend that is expected to continue over the next five years. Soy and ancient grains are no longer the main alternatives to meat and dairy. Innovation is integrating high-protein pulses such as lupine and chickpeas, algal ingredients including spirulina, and insects into packaged food and beverages to develop new alternative proteins. Demand for protein will continue to surge for meat, dairy products and eggs as incomes in emerging markets rise and people switch from cheaper nutrients like carbs toward more value-added nutrients like protein. From a sustainability perspective, developing new sources of protein both for human and animal consumption is therefore a major challenge, and critical for taking away the pressure on land use for agriculture, as well as reviving overstretched ocean ecosystems.

Pinar Hosafci is the head of packaged food research at Euromonitor International, driving the quality and evolution of Euromonitor’s global food industry research. As the content head of the industry, she provides insight into the consumer trends, key markets, competitive landscape and growth opportunities in the global food and nutrition space to help organizations make strategic business decisions. Hosafci has a keen interest in plant- protein and food security.

35 INSIDER Protein Innovation Digital Magazine February 2018 Intellectual Property

Intellectual Property Trends in Protein Innovation by Andreas Baltatzis and Gideon Eckhouse INSIDER's Take  Protein patent applications peaked  Milk protein sources were previously  The term “protein” steadily grew in in 2014, followed by a 55 percent the main target for innovation, but trademarks filed the last five years, decline in 2015, which could signal patent activity has seen a recent shift indicating a greater market for protein a decline in innovation or be due to toward plant-based protein sources. products and a greater need to new patent restrictions. protect them.

Protein products have expanded beyond their initial market of sports nutrition into consumers’ everyday diets. With this expansion comes the need for innovation in protein sources, improved taste and delivery, and functional products meeting specific consumer needs. Depending on the source, various proteins may be deficient in certain essential amino acids or may cause an allergic reaction. In addition to creating new products, innovative companies must establish distinctive brands to stand out in a crowded marketplace. Patent applications directed at protein-related inventions peaked in 2014 and were followed by a 55 percent decline in 2015. Whether the decline was a return to the mean or the indication of a new market trend remains to be seen. The decrease in patent application filings could be due to restrictions on patenting naturally derived products (instituted in 2014), which has a limiting effect on new patent applications. Patents are classified based on the type of invention claimed. Subcategories related to proteins include amino acids, peptides, vegetable proteins, dairy proteins and proteins from microorganisms. Companies developing new products should consider patents in their areas of interest for identifying whitespace and freedom to practice.

Protein Patent Applications by Year 757

700

600 531

500

400 361 340 348 291 290 280 288 300 264 238 242 204 237 200 131 166 99 100 57 72 74

0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year

IN THIS ISSUE Market Data p.32 Beverages p.41 Table of Contents p.2

36 INSIDER Protein Innovation Digital Magazine February 2018 Intellectual Property

Protein Inventions as Classified in Patent Applications

Classification Application Number Amino acids 2,028 Peptides; Protein hydrolysates 1,739 Vegetable proteins 1,066 Dairy proteins 1,273 Proteins from microorganisms 127

Vegetable sources of protein may meet specfic consumer health needs or preferences; however, they may be difficult to isolate and may not contain all the essential amino acids. While milk sources were previously the main target for innovation, plant-based protein has recently overtaken milk as the focus of patent activity.

Patents for Vegetable and Milk Proteins 149

104 98 113 85 70 73 63 68 70 60 57 70 50 51 46 41 48 48 54

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year ■ Vegetable ■ Milk

Leading protein innovators include companies with a history of creating nutrition and food products. Since dairy is a major source of protein, several dairy companies also have substantial patent portfolios related to protein innovation. Leading Protein Patent Holders

Company Applications Company Applications

Nestlé/Nestec 311 Unilever 66

Abbott/Abbott Laboratories 165 Mead Johnson Nutrition 65

Nutricia 144 Solae 55

Ajinomoto 113 Kyowa Hakko 55

Megmilk Snow Brand 73 Meiji 46

DSM 66 Fuji Oil 44

Manufacturers and retailers of protein-containing products must convey to consumers that the product contains protein, as well as find a distinctive name that separates them from other products. Registering a trademark includes classifying the goods with the

37 INSIDER Protein Innovation Digital Magazine February 2018 Intellectual Property

name it will use. For protein products, three of the most important classifications of goods include International Class 001 (for protein ingredients used in products), International Class 005 (for dietary supplements containing protein) and International Class 029 (for certain types of foods). Terms Used in Protein Trademarks

Terms in IC 001, 005 and 029 Protein 1,125 Meat 1,053 Collagen 130 9 Amino/Amine 641 Chicken 1,335 Vegetable/Veggie 676 Whey 414 Egg 492 Pea 67 Cheese 1,188 Quinoa 15 Milk 828 Yogurt 377 Soy 415

These terms include common words that do not convey distinctive ownership of a brand. Therefore, successful trademark registration relies on coupling these terms (which convey a component or ingredient of the product) with a novel term, an established company name, or term that does not immediately describe the product. Creativity combined with easy-to-understand information can result in a brand name that stands out in the mind of consumers and tells them what to expect from the product. The classification of goods must be specific to how the trademark will be used. More brand owners described the goods associated with the mark using the term “protein” as compared to using “protein” in the name itself.

Creativity combined with easy-to-understand information can result in a brand name that stands out in the mind of consumers and tells them what to expect from the product.

38 INSIDER Protein Innovation Digital Magazine February 2018 Intellectual Property

Trademarks That Use ‘Protein’ to Describe Product

1544 1695 2100 2500 2540

2013 2014 2015 2016 2017

During the last five years, the occurrence of the term “protein” steadily grew in trademark filings. This may indicate a greater market for protein products and a greater need to protect them. One final consideration of trademarking protein products relates to using the name. A trademark cannot be registered without first proving that the mark is used to sell the product to consumers. This can be a challenging requirement for some types of protein products, such as the ones that are included in other finished products. Manufacturers do not always label their protein ingredients when they are sold to formulators, retailers and other downstream actors. Aside from directly labeling the product they sell, manufacturers may require listing their product among the ingredients in the consumer- facing label. This should satisfy the requirements for proving use while simultaneously building goodwill and brand recognition.

Attorney Andreas Baltatzis is a director at KramerAmado PC, a boutique law firm specializing in intellectual property (IP). He represents a number of innovative nutritional supplement and companies that improve people’s lives every day. Baltatzis also helps companies prepare and implement IP strategies by obtaining patents and trademarks that protect their innovations and cash flow, as well as advising clients on successfully launching new products and brands.

Gideon Eckhouse is a senior associate at KramerAmado, with more than 10 years of experience in patents and trademarks. He assists innovative nutritional supplement and nutraceutical companies in protecting their IP throughout the world. Eckhouse counsels and implements global trademark strategies for new brand launches. Additionally, he prepares and prosecutes patent portfolios protecting new products coming to market.

39 INSIDER Protein Innovation Digital Magazine February 2018 There is only one place on the East Coast where you can find the latest ingredients & solutions for your next Protein Innovative product.

SupplySide East 2018 IT’S BACK Early Registration closes AND IN THE February 23, 2018. NYC AREA Register today at east.supplysideshow.com Secaucus, NJ Meadowlands Exposition Center April 10-11, 2018 Beverages

Protein Sources for Beverage Development by Laura Dembitzer INSIDER's Take  Proteins derived from milk—milk  Plant protein from soy also contains  Pea protein and brown rice protein are protein concentrate, whey protein all nine essential amino acids, but often used in beverages because they and casein—are commonly used in beverage manufacturers must mask are allergen-friendly and sustainable, beverages, as they contain all nine the beany flavor and chalky texture but they can also pose formulation essential amino acids and boast with additives and stabilizers to challenges in areas such as flavor high-protein concentrations. achieve a creamier mouthfeel. and mouthfeel.

Protein first became a popular ingredient in sports nutrition because of claims that it promotes muscle growth, enhances satiety and boosts energy. Over the last several years, however, protein-rich food and beverage products have gone mainstream. Two additional macro trends driving the growth in protein beverages are demand for hyper-customization and convenience. That is, consumers want more grams of protein per serving, more options for protein sources and protein on-the-go. The protein market is saturated, particularly as the popular ingredient has made its way into products previously not associated with protein, such as coffee creamer, salad dressing, pancakes and even water. Beverage developers are responding to demand with innovative uses of different protein sources to make well-rounded products for athletes and active consumers. The following breakdown highlights some of the most commonly used protein sources in beverages and what brands should consider when formulating with these ingredients: Milk: Milk protein is the most basic form of dairy protein in that it is the primary byproduct of acidifying and filtering milk. Cow’s milk consists roughly of 80 percent casein protein and 20 percent whey. It contains all Cow’s milk nine essential amino acids, and is common for protein beverage consists of formulation and meal replacement beverages. It’s also used to improve the nutritional value, sensory and functional properties of a beverage. 20% Milk protein concentrates and isolates are probably the most common Whey proteins used in beverage applications, but are lesser known by consumers. Milk protein concentrates used in beverages typically contain % 70 to 85 percent milk protein and, as the amount of protein increases, the 80 amount of fat, lactose and other insoluble components decreases. Milk Casein protein isolates typically contain at least 90 percent protein, and are low in fat and lactose. Whey: Whey protein is made from the liquid byproduct of cheese production. It’s used in protein beverages and as an additive in processed foods like breads, crackers and infant formula. Whey is a preferred protein

IN THIS ISSUE Intellectual Property p.36 Takeaways p.45 Table of Contents p.2

41 INSIDER Protein Innovation Digital Magazine February 2018 Beverages

source for many athletes because it contains more branched-chain amino acids (BCAAs)—including leucine, which is an important amino acid in signaling muscle protein synthesis (MPS)—than other types of protein. It is also rich in and minerals, is rapidly digested and increases muscle growth by stimulating MPS within the first few hours of consumption to support recovery (J Can Chiropr Assoc. 2009 Aug;53(3):186- 193). Whey protein products have experienced substantial innovation over the last few years, including the incorporation of whey in products like water and hot chocolate. Whey is more water-soluble than other sources of protein, and is available as a concentrate or isolate. Whey protein concentrate is less expensive because it’s less processed. It’s also higher in lactose, and consequently, is not allergen-friendly for those who suffer from lactose intolerance. Whey protein isolate has been processed to make the protein more concentrated and is more expensive, but has a higher amount of protein per serving. It’s also low in carbohydrates, fat and lactose, and therefore, is more allergen-friendly.

Whey protein products have experienced substantial innovation over the last few years, including the incorporation of whey in products like water and hot chocolate.

Casein/Caseinates: Casein is a major component in milk, cheese, yogurt, ice cream, coffee creamer, protein powders and shakes, infant formula and more. It acts differently than whey in beverage formulations and in the digestive system. Casein is a popular ingredient for athletes in recovery beverages because it contains all nine essential amino acids and is slow-digesting. Casein is produced by adding acid to skim milk, which results in an acid casein curd. The curd can be processed to develop several types of casein and caseinates that can be used in protein beverages, but micellar casein concentrate, sodium caseinate and calcium caseinate are most commonly used by beverage developers. Micellar casein concentrate is produced through microfiltration. It’s the slowest-digesting form of casein and an emerging ingredient used mostly in protein powders marketed to serious athletes. Sodium caseinate, the most water-soluble form of caseinate, is made when sodium hydroxide is combined with casein curd. The less water-soluble calcium caseinate

42 INSIDER Protein Innovation Digital Magazine February 2018 Beverages

is made when acid casein curd is combined with calcium oxide or calcium hydroxide. Both caseinates are slow-digesting proteins and high in amino acids, but beverage developers must consider solubility, mouthfeel, dispersability and heat stability when choosing which caseinate to use. Soy: is made from meal that has been dehulled and defatted. It’s used in food and beverages like plant-based meat alternatives, milks, protein shakes, protein powders, nondairy creamer, salad dressings, cheeses and infant formulas. Some beverage brands have shied away from using soy protein, though, because of consumer concerns that it could impact hormone balance. Soy contains all Soy is a low-carb, high-quality protein. As with milk proteins, nine essential beverage developers must choose between a concentrate or an amino acids, and isolate. Soy protein isolate is a purer protein than soy protein compared to whey, is concentrate; it doesn’t have carbohydrates or fiber. Soy also higher in arginine, contains all nine essential amino acids, and compared to whey, is phenylalanine higher in arginine, phenylalanine and tryptophan, but lower in leucine. Despite this, beverage developers often use additional and tryptophan, nutrients in beverages formulated with soy protein to improve taste, but lower in leucine. texture and nutritional value. Soy has a beany flavor and chalky texture, so beverage developers often use additives and stabilizers to aid mouthfeel. Pea: Pea protein is experiencing significant growth, largely thanks to demand for plant-based food and beverages. It’s extracted from split peas and is used in products such as meat alternatives, vegan cheeses, yogurts, milks and snack bars. It’s also commonly used to boost protein content when developing products like nut milks.

Pea protein is experiencing significant growth, largely thanks to demand for plant-based food and beverages.

Pea is vegan and safe for people with allergies to gluten and dairy. Among the other benefits of pea protein, it’s rich in lysine, arginine, isoleucine, valine and glutamic acid. However, it isn’t a complete protein, so it’s often paired with other vegan

43 INSIDER Protein Innovation Digital Magazine February 2018 Beverages

sources of protein, like brown rice or hemp, when formulating for a sports nutrition or meal replacement product. Pea protein can pose challenges because of its earthy flavor and bitter off-notes, so flavor masking is essential. Brown Rice: Brown rice protein is made by combining brown rice with select enzymes that cause the carbohydrates and protein to separate. It’s primarily used as a vegan, allergen-free alternative to whey, casein and soy in sports nutrition products, including powders and shakes. Brown rice protein is safe for consumers with lactose, gluten and allergies. Like casein, brown rice protein is slowly digested, and contains all the necessary amino acids (although it’s low in lysine). It’s also high in fiber and vitamin B. Although brown rice is a high-quality protein, it presents several formulation challenges. It has a distinct, somewhat sweet flavor that can be more challenging to mask, in addition to having a very chalky texture. It’s often combined with pea protein in beverage formulas for a superior amino acid profile and smoother texture. The protein market is constantly evolving, and new and innovative products are launching regularly. Expect to see more protein options and novel uses of protein this year as 2018 will be big for plant-based proteins because of the proliferation of vegetarian and vegan products. According to Research and Markets, the plant-based protein market is expected to reach US$14.22 billion globally by 2022 at a compound annual growth rate (CAGR) of 5.9 percent, almost double what it was in 2016. The whey protein market isn’t slowing down either, and is expected to reach $12.4 billion globally by 2021 at a CAGR of around 7.2 percent. Keep an eye out for whey in new applications, such as enhanced waters, hot chocolate, coffee and tea, as well as new formats, like nitro-infused cans.

Laura Dembitzer is the marketing director at Imbibe, a Chicago-based flavor and beverage development company. Dembitzer works with beverage brands and retail chains to help them innovate and create products from the initial stages of development all the way through to commercialization and launch.

44 INSIDER Protein Innovation Digital Magazine February 2018 Takeaways

Takeaways for Your Business

Innovation within the protein category represents demands for nutrition, clean labels and sustainability. The popularity of dairy and meat sources of protein remains strong. These proteins are complete proteins, meaning they contain all the essential amino acids in sufficient ratio. Despite their market-leading positions, animal and dairy proteins continue to innovate. Ingredient manufacturers are developing technologies to improve the taste of whey proteins, while brands boost amino acid content to support muscle protein synthesis. The latest trend in the dairy protein market is “native” whey and micellar casein, which claims less processing than traditional whey and casein production. However, sustainability concerns are prompting innovation outside dairy- and meat- derived proteins. Common insect protein options include crickets and mealworms, although fruit flies have also been reported as an alternative protein source. Innovative plant proteins include water lentils, or duckweeds, and algae-derived proteins. Water lentils have a higher level of essential amino acids and branched-chain amino acids (BCAAs) than the current crop of plant proteins, including soy and pea, with a high leucine level rarely found in plants. In fact, their overall amino acid profile is similar to that of whey protein. Also driving interest in plant-based alternatives is the high costs of meat and meat substitutes around the globe, according to Euromonitor International. Protein ingredients derived from pulses, soy, ancient grains and lupine are seeing interest as substitutes for meat. The nod toward plant-derived protein options is supported by patent applications filed in recent years. While milk sources were previously the main target for innovation, plant- based protein has recently overtaken milk as the focus of patent activity. When it comes to trademarks filed the last five years, the occurrence of the term “protein” steadily increased. This may indicate a greater market for protein products and a greater need to protect them. Among emerging innovative solutions may be a protein derived from bacteria. Early stage biotech company White Dog Labs is exploring advanced nutrition protein products derived from the Clostridia bacteria class. Enzymes represent another opportunity for protein supplement and powder brands to revitalize a mature market. In fact, market research from National Enzyme Co. (NEC) found that out of over 200 protein powders reviewed, only a handful included enzymes, demonstrating a clear hole in the market for such products. Looking at product innovation, beverages—a key category for protein fortification—are seeing a wide range of protein-enhanced products such as coffee creamer and water. Beverage developers are responding to demand by innovating with different protein sources to make well-rounded products for athletes and active consumers.

IN THIS ISSUE Beverages p.41 INSIDER Contacts p.46 Table of Contents p.2

45 INSIDER Protein Innovation Digital Magazine February 2018 Contacts

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