Global Product Opportunities

Global Product Opportunities
Value Creation using Soy Protein
Ignace Debruyne, PhD
[email protected]
Unlocking the Value of Soy Protein in Consumer Foods
GFTC – Soy 20/20 – Brampton, ON, Canada – October 18, 2007
18/10/2007
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Contents
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Why consuming soybean based foods?
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Soybeans, Soy Protein and Soyfood Market
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18/10/2007
IP and non-GM supply
Soy as functional ingredient
Novel food product applications
Value Creation through Marketing & Communication
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EU
USA
Canada
Value creation through Innovation and Product Development
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Soy Protein Products
Soyfood Products
Similar markets
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Major drivers and objectives – Value Creation
Nutrition & Health Communication
Conclusions
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Why consuming soybean based foods?
Different objectives for different stakeholders
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For the soybean producers =
Broadening the market for soybeans
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For the Soy Ingredient
producers
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Creating soy products with built-in
functionality and properties that can be
used in a broad range of food products
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For the Food & Drink
industry
=
Selling products with an interesting
margin
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For the retailers
=
Broadening the range of products on offer
for the consumer
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For the Consumers
=
Adding new food products to the daily
consumption pattern
Filling the need for tasty foods that offer
health as well as convenience
=
18/10/2007
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Soy & Soy Ingredient producers
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18/10/2007
Creating soybeans with built-in benefits and
adapted to making food ingredients or food
products
Creating soy products with built-in functionality
and properties that can be used in a broad
range of food products
This requires variety, process and product
development as well as application directed
market development
4
The Added Value Concept
Soybeans: $200-500/ton
Soy ingredients:
$500 - $2000 / ton
Soy loaded food: $5,000 $10,000 per ton soy DM
Soy drinks & juices:
$20,000 - $50,000
per ton soy DM
Soy experience
18/10/2007
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$100,000 - $300,000
per ton soy DM
The Food & Drink Industry
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Selling products with Added Value and Significant Margin
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Ideal Margin Management:
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The real world is not ideal:
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18/10/2007
Selling existing food products based on the main nutrition ingredients such as protein,
carbohydrates and oils or fats
Creating new products that answer consumer demand for taste, convenience and
health
The answer = INNOVATION
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Short/Mid-Term: Keeping high margins on existing product range = DIFFICULT
Long-Term: Create High-Value Brands broadening the perspective for margin support
= INVESTMENT INTENSIVE
Finding the extra that gives the possibility to create products with extra margin
potential
Creating novel product groups that answer the needs of the active consumer of today
Soy and soy ingredients can bring functionality as well as health
positive messages
Roadmap: process and product development as well as application directed
market development
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The Consumer
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Looking for new opportunities all the time
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Taste and Convenience are major drivers of demand
Health and Balanced Nutrition are valuable
Open to new product positions:
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18/10/2007
Increasing globalization has broadened access to many unknown
products broadening the daily consumption palette
Completely new product platforms are possible
Trends for vegetarian, organic, health promoting, functional
foods create extra opportunities
Filling the need for convenient tasty foods that offer
health as well as convenience
Soy based and soyfood products can bring a perfect
answer to this
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How can soy protein
and soy play a key
role in fulfilling these
different objectives?
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Soyfoods and Soy Ingredients
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18/10/2007
Traditional soyfoods : tofu, soymilk, whole soy flour,
whole dried soybeans, green soybeans, soy sprouts,
fermented soyfoods (tempeh, miso, natto and soy
sauce)
Modern soyfoods (soy protein ingredients): (defatted)
soy flour(s), soy concentrate, soy protein isolate,
textured soy protein (TSP), soynuts, soy grits
Second generation soyfoods: soymilk and drinks,
desserts, cheese and yoghurt, ice cream, tofu and
veggie burgers, hot dogs and sausages, steaks and
roasts, pizza topping, soy mince, snacks and bars,
biscuits, breads and cookies
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Soy Processing
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Soy Flour
Soluble
Carbohydrates
20%
Other
10%
Dietary Fiber
20%
Protein
50%
Powders, grits, textured
† Includes TSF: Textured Soy Flour
Market & Applications
† Highly functional ingredient in baked goods; filler
improving water management in products; ingredient in
“new” high-soy foods to deliver health benefits to
consumers
18/10/2007
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†
Soy Protein Concentrate (SPC)
Other
7%
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Dietary Fiber
23%
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Ethanol/water
wash white
flakes
Acid wash
white flakes
Protein
70%
Powders, functional powders, granular, textured (flakes or crumbles)
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Functionalised: using (bio)chemical and/or physical processing
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Includes TSP: Textured Soy Protein
Market & Applications
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Feed: Calf Milk replacement
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Food: Functional Ingredient for Meat; Meat replacement/extension; Bakery products;
Dairy products
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Isolated Soy Protein (ISP)
Other
10%
Protein
90%
Powders, frozen granules/fibers
Market & Applications
† Instant Drinks; Infant Formula; functional and highprotein ingredient for almost any type of food product
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Textured Soy Protein (TSP)
Soy Mince
Soy Chunk
Fibrous Soy Protein
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Structured Soy Meat Analog
High Moisture Soy
Meat Analog
Soy in the EU-25: 38.7 million MT
SBO
SP Ingr.
SB
Soyfoods / Protein Ingr.
SBO (local use)
SBO (for export)
SB (full fat use)
SBM
SBM (local use)
SBM (for export)
Total consumption
within EU-25:
38.1 million MT
18/10/2007
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Local production (06/07):
- 0.95 mio MT SB
Total imports (06/07):
- 14.1 mio MT SB
14.2 mio MT SB crush
- 22.7 mio MT SBM
- 0.9 mio MT SBO
EU-27: Soyfood & ingredient market
Lecithin
SP Ingr. Soyfoods
Soy nutraceuticals
Total local disappearance:
0.8-1.0 million MT SB equivalent
18/10/2007
of a total soy products market of 38 million MT
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Modern Soy Drinks:
a success story in EU
L/p/yr
% of dairy
market
Source: Alpro
(De Standaard, July 14, 2006)
18/10/2007
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European Soyfoods Market Expands
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Increasing product awareness by consumers
Increasing interest in healthy diets
Increasing trend towards
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18/10/2007
Vegetarianism, or
Reduction in meat consumption
Driven by BSE, FMD, and food contamination issues
Further enhanced by the biotech issue
Today: growing demand for Soy-Juice blends
and innovative soy drinks and food products
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EU-27: soy drinks & dairy alternatives
SOYBEAN BASED
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Specialized companies
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Dairy companies
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Leche Pascual (Spain); Celia (France); Iparlat
(Spain); Carlshamns Meijeri (Sweden); Oberwart
(Austria); A.Müller (Germany), Luxlait (Luxemburg),…
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Hain Celestial: Natumi (Germany), Haldane Foods
(UK), Lima (Belgium)
Wessanen: Bio Slym (Italy); Bjorg (France); Tree of
Life (Netherlands)
Multinationals
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So Good, Nutricia
Dairy: Parmalat
Multinationals: Unilever
(Netherlands; UK) Danone
(France); Nestlé; Coca Cola;
Pepsico
Various: Spain, Portugal, Italy,
TOFU
Organic food companies
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Leaders: Alpro (Belgium; UK; France); Triballat Noyal
(France); Liquats Vegetal (Spain); Valsoia (Italy); Wild
Group (Germany); Raisio (Finland, Sweden); Sanutri
(France)
Various: Plamil (UK); Yeo’s (UK); Provida (Portugal);
Polgrunt (Poland); Vitalia Nikola (Macedonia)
ISP BASED
Mainly small to medium scale
producers: Germany (De-Vau-Ge;
Nagel; Viana; Interfood; Berief;
Sojafarm…); NL (So Fine = Alpro);
Belgium (Benelux Soya; Hobbit;
Ming); UK (Cauldron); Spain
(NaturSoy) … (origin: Chinese
cuisine)
RELATED PRODUCTS:
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Sports drinks; yoghurt (Danone)
Soy cheese (Bel; Bär; Biofun;
Sojami)
Natto; Tempeh: various producers
Commercially Available Soy Protein
Products
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Defatted Soy Flakes
Soy Grits
Full-Fat Soy Flour: Enzyme Active, Toasted and
Toasted Grits
Defatted Soy Flour
PDI 20/70/90
Relecithinated Soy Flour
Textured Soy Protein (TSP)
Soy Protein Concentrate (SPC)
Isolated Soy Protein (ISP)
Flavored Soy Pieces
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Soy Protein Ingredients in EU-27
Consumption estimated at 800-900,000MT in soybean equivalents
VOLUMES (in MT of product)
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Soy Flour ~250,000MT - (Cargill; independent processors)
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TSP Textured Soy Protein ~100,000MT - (Cargill; Solae; ADM)
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SPC Soy Protein Concentrate ~150,000MT (The Solae Company; ADM)
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ISP Isolated Soy Protein ~50,000MT (balance of imports & exports) - The
Solae Company
Lecithin ~35,000MT (~15,000MT for margarine, chocolate, bakery products,
etc.)
LEADING MARKETS:
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Western Europe, but quickly broadening to EU-27
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Growth driven by food industry development
18/10/2007
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Soy Flakes, Grits, Flour:
Producers (EU)
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Cargill – Cargill Soy Protein Solutions (NL; BE; UK)
ADM Protein Ingredients (NL; DE)
The Solae Company (DK; FR)
Schouten Products (NL)
Finnsoypro Oy (FI)
Solbar Hatzor (IL)
Edelsoja (DE)
Soja Austria (AT)
Arkady-Craigmillar (UK)
Kerry Ingredients (NL; UK; IE)
Vaessen-Schoemaker Chemische Industrie (NL)
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Textured Soy Protein:
Producers (EU)
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18/10/2007
Cargill (NL)
ADM (NL)
Solae Company (DK)
Solbar (IL)
Bush Boake Allen (UK)
Schouten (NL)
Arkady Craigmillar (UK)
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†
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FinnSoyPro (FI)
Soja Austria (AT)
Edelsoja (DE)
Tivall (IL)
Hamlet Protein (DK)
Kerry (NL)
Soy Protein Concentrate:
Producers (EU)
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Ethanol wash concentrate
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The Solae Company (Denmark; France)
[ADM (Netherlands)]
Solbar (Israel)
SIO (France)
Acid wash concentrate
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SEAH (France)
Remark:
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18/10/2007
SPC market has major feed share
SPC in food products squeezed between flour/TSP
and ISP
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Isolated Soy Protein:
producers (EU)
The Solae Company (BE)
† [ADM Ingredients (NL)]
† New process developments
Remark: ISP market is global
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Hydrolysed Soy Protein:
† Hamlet Protein (DK)
18/10/2007
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USA market
Consumer Attitudes (2007 USB survey)
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33% consume soyfoods/beverages once a month or more
> 60% agree consuming soy-based foods can play a role
in reducing obesity (much up since 2006)
85 % perceive soy products as healthy (+3%)
> 50% have tried soy foods/beverages in restaurants
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Soybean oil ranked among the top three healthy oils
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> 33% would order soy products if available on the menu.
70 % recognizing soy oil as a healthy oil
37% aware of the FDA claim [consuming 25 grams of soy protein
per day reduces the risk of coronary heart disease]
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18/10/2007
84% either agree with the health claim or would like more
information.
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New Soy Products in the USA
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New products launched with soy as an
ingredient in 2000 – 2007:
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The 1999 FDA approved health claim for
soy and heart health is on:
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18/10/2007
> 2,700 in 8 years
2007: 161 new products
406 new products in 2001,
278 in 2002
336 in 2003
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Product
2004 Sales
2005 Sales
2006 Sales
Tofu
Soymilk
Meat Alternatives
Energy Bars
Soy Cheese, Yogurt & Ice
Cream
* Other
Total
$261
$745
$547
$870
$258
$832
$554
$709
$250
$892
$568
$692
Increase
2005 -06
-3%
7.20%
2.50%
-2.40%
$217
$1,356
$3,996
$215
$1,350
$3,918
$214
$1,356
$3,972
-0.30%
0.40%
1.40%
* baked goods, entrees, cereals, pasta products, meal replacers, powdered soy beverages,
chips, snack foods, low-carb foods
18/10/2007
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USA Market: Sales Data
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From 1992 to 2006: soy foods sales increased from $300 million to $3.9 billion:
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Main driver since 1999:
FDA health claim “Soy Protein Reduce the Risk of Heart Disease”
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General leveling off of sales
Soymilk stays on stronger growth
Energy bars have decreased sales
Possible new growth drivers for soy
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Many consumers have incorporated soy into their diets
Supermarkets brought soyfoods to the shelves,.
2005-06: +1.4% increase in soyfoods sales
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Novel soy food categories
Soyfoods repositioned
New customers select soy for health or as vegetarian alternative
Consumers follow healthier diets
Opportunities in food service: meat alternatives, soymilk, tofu, and other soyfoods
New soyfood categories: e.g. soy-juice drinks, drinkable cultured soy, non-dairy frozen
desserts, soy entrees, pastas, snack foods
The wide variety of soyfoods helps consumers meet the federal Dietary Guidelines [foods
high in fiber, omega 3 fatty acids, key vitamins and minerals and lower in saturated fat, cholesterol, and calories]
Source: Soyfoods: The U.S. Market 2007, published by Soyatech, Inc. and SPINS
18/10/2007
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Soy in Canada
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18/10/2007
Edamame
Kinako
Kouridofu
Miso
Natto
Nimame
Okara
Tempeh
Tonyu (soymilk)
Tofu (soybean curd)
Yuba
Baby formulas
Beverage mixes, e.g., hot
chocolate, lemonade
Diet drinks, imitation milk
Frozen desserts
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Cooking spray, margarine,
vegetable shortening, vegetable oil
Spreads, dips, mayonnaise, peanut
butter
Dressings, gravies, marinades
Lecithin
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Hydrolyzed plant protein,
hydrolyzed soy protein
Monosodium glutamate
Seasoning, spices
Sauces, e.g., soy, shoyu, tamari,
teriyaki,Worcestershire
Soups, broths, soup mixes/stock
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Thickening agents
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Based on quick web search
Soyfoods Canada
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Whole Dry Soybeans
Whole Soybeans
Green Vegetable Soybeans Edamame
Soy Flour
Soy Grits
Texturized Soy Flour - TSF
Soy Isolate Fibre
Soy Lecithin
Soybean Oil
Soy Protein Concentrate - SPC
Soy Protein Isolate - ISP
Texturized Soy Protein - TSP
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Soynuts
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Meat Analogs
18/10/2007
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Tempeh
Tofu
Miso
Natto
Okara
Yuba
Soymilk
Soy Frozen Desserts
Soy Pudding
Soy Yogurt
Soy Cheese
Soy Sauce
Soy Sprouts
Source: Soyfoods Canada
Soy Processors & Supporting
Services: a vast list of players
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Cargill Texturizing Solutions
Concord Sales
Galaxy Foods
Garden Protein International
Guelph Food Technology Centre
Hain Celestial Canada
Hilton Soy Foods
Internova
La Soyarie
Leading Blends
Manitoba Pulse Growers Association
Maple Leaf Foods
N2 Ingredients
Noble Bean
Nutri-Soya Foods
Nutritel Food Technologies
Oléanergie
Okanagan's Soya
Ontario Soybean Growers
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Parmalat Canada
Prograin
Protenergy Natural Foods
Protex Foods
Roy Legumex
Sol Cuisine
So Soya
Southwest Ag Partners
Soya Dairy
SoyaWorld
Soyfoods Canada
Soylutions
SunOpta
Sunrise Soya Foods
Tayo Foods
Tetra Pak
Thompsons
Tixena Int’l Marketing
White Wave
Contents
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Why consuming soybean based foods?
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Soybeans, Soy Protein and Soyfood Market
„
„
„
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†
†
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„
18/10/2007
IP and non-GM supply
Soy as functional ingredient
Novel food product applications
Value Creation through Marketing & Communication
„
„
†
†
EU
EU
USA
USA
Canada
Canada
Value creation through Innovation and Product Development
„
†
†
Soy
Soy Protein
Protein Products
Products
Soyfood
Soyfood Products
Products
Similar markets
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Major
Major drivers
drivers and
and objectives
objectives –– Value
Value Creation
Creation
Nutrition
Nutrition &
& Health
Health Communication
Communication
Conclusions
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Threats
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18/10/2007
Overinvestment in Soy Protein
production in China strongly
affects the world market for highquality soy protein ingredients:
Quality & Functionality issues
Price competition issues (e.g.
ISP @ SPC price)
Producers reorganize production
and sales:
Solbar: SB sourcing for SPC, ISP
Cargill: sold ISP to Solae
Solae: ISP production
management
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†
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GM Soy and Labeling
Since 1997: consumer concern
in Europe
Today
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Labeling when adventitious
presence > 0.9%
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Major food companies
seeking non-biotech soy for
use in (soy)food products
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Consumers have little or no
choice, only non-GM options
Growing awareness of
environmental and economic
benefits
Threats = Opportunities
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Growth of the soyfoods & soy ingredients market is
driven by consumer concerns about
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This can be translated in growing demand for
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18/10/2007
Food contamination risks
Intensive production and/or processing, e.g. use of chemicals
Biotech discussion
Traceability throughout the production chain
Health promoting foods
Vegetarian products
Organic products
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Non-GM soybeans
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Major soy ingredient producers and
soyfood manufacturers have reacted to
consumer concern on GM soy by :
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18/10/2007
Entering into contracts with farmers to grow
non-GM soybeans
Identity Preservation (IP) “from Farm to Fork”
Processing and packaging with full
traceability back to the field
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Opportunities
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Tasteful soyfoods and ingredients
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Soy & Health
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18/10/2007
Taste, an issue and an opportunity
Major factor for commercial success remains taste
Novel functional food products carrying health and nutrition
claims with soy as major ingredient
Innovation, functionality and product development
Modern soyfoods beyond dairy alternatives and
snacks
Traceability from farm to fork
Marketing & Communication about product and product
benefits and qualities
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Overcoming negative attitudes and
perceptions of soy
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18/10/2007
Proper raw material selection
Proper combination with other ingredients
Attractive form & packaging
Eliminate/ reduce negative taste
Eliminate negative digestive factors
Optimize flavor and taste
Enhanced natural sweetness
Adapt to local market taste
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Which soy is adapted to your needs?
Commodity Soy
Specialty Soy (IP)
18/10/2007
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Soyfood production benefits from using
specialty soybeans!
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IP Soyfood Soybeans are
designed for making high quality
soyfoods
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SOYFOOD quality:
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18/10/2007
Variety Specific
Quality specific
System specific
Protein level high and constant
Clean, equal size, equal color
No FM, splits, loose hulls
Hilum color set
System specific: non-GM;
organic
Variety specific: functional or
compositional requirements
realized; minor components set;
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Traders guarantee quality and
specifications
Manufacturers must manage the quality
control issues associated with IP
soybean sourcing
Downstream processing introduces
different flavor quality and consistency
challenges
Soy Supply through Identity Preservation
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Driver: increasing demand for specialty soyfood
soybeans, including non-biotech soybeans
This requires a closed, contractual Identity
Preservation (IP) with a comprehensive, credible and
audit proof record keeping system, and an easy, fast
and independent control system
IP is consistent with three main principles:
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18/10/2007
No 100 % purity standard
Volumes moderate
Price premium over standard commodity
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Soy for Functional
& Healthy Food Products
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Quality protein brings
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Nutrition: increased protein content
Health: link to Health Claims
Functionalized ingredient provides basic
structural properties:
„ Gelling
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18/10/2007
Emulsifying
Fat Binding
Water Binding
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Soyfoods & Soy based formulas
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Tonyu (soy milk)
Tofu (soybean curd)
Okara
Miso
Natto
Yuba
Tempeh
Kinako
Kouridofu
Nimame
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Edamame
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Baby & Infant formulas
Beverage mixes, e.g., hot chocolate,
lemonade
Diet drinks, imitation milk
Frozen desserts
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18/10/2007
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†
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Cooking spray, margarine, vegetable
shortening, vegetable oil
Spreads, dips, mayonnaise, peanut
butter
Dressings, gravies, marinades
Lecithin
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Hydrolyzed plant protein, hydrolyzed
soy protein
Monosodium glutamate (MSG)
Seasoning, spices
Sauces, e.g., soy sauce, shoyu,
tamari, teriyaki, Worcestershire
sauce
Soups, broths, soup mixes & stock
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Thickening agents
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Main market areas
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18/10/2007
Drinks and dairy
alternatives
Bakery and biscuit
products
Meat and meat
replacement
products
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Soy Protein: Nutritional Characteristics
PDCAAS = Digestibility reference
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Egg White
1.00
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Milk Protein
1.00
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ISP
1.00
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SPC
0.99
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Beef
0.92
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Wheat gluten
0.25
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Soy + Gluten
1.00
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Soy Protein
Functional Characteristics
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Solubility
Dispersibility
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Heat irreversible
Cohesion/adhesion
Viscosity
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Mouthfeel
Equipment
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Textured Mince, Chunks,
Pieces, and fibers
Elasticity
Flavor binding
Color Control
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Fat “emulsions”
Oil “emulsions
Texture, oil-out, mouthfeel,
flavor, cost
Structure
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Gel formation
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Ease of use
Water management in food
products can be very
profitable
Emulsification/fat absorption
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Water absorption/binding
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Breads, seafood
Foaming
Soy Protein replacing Dairy Protein
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18/10/2007
Soy protein = high-quality protein
Also equal quality when substituting soy for dairy protein
Soy protein can replace 20 - 100 % of dairy protein
Cost savings of 20 - 60 % vs. dairy proteins
Many soy protein products provide calcium-to-protein ratios
equivalent to dairy proteins with similar macronutrient compositions
Application areas for dairy replacement:
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Nutritional drinks & beverages
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Nutrition bars
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Bakery products
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Sauces
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Gravies
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Puddings
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Frozen desserts
47
Food products that can contain Soy
†
†
†
†
18/10/2007
Baked goods and baking
mixes, e.g., breads,
cookies, cake mixes,
doughnuts, pancakes
Bread crumbs, cereals,
crackers
Snack foods, e.g., candy,
chocolate, energy bars,
fudge, popcorn, potato
chips
Breaded foods, chili,
pastas, stews, taco filling,
tamales
48
†
†
†
†
†
Processed and prepared
meats, e.g., beef, deli,
pork, poultry
Seafood-based
products, fish
Canned tuna; minced
hams
Simulated fish and meat
products, e.g., surimi
(imitation crab, or fish, or
lobster, or meat),
simulated bacon bits
Vegetarian dishes
Soy Products with Bakery Potential
†
Defatted (<1.0% fat) Soy Flour
„
„
†
†
†
†
†
18/10/2007
20, 70, 90 PDI (industry standards, any value possible)
Defatted Grits
Relecithinated or Refatted Soy Flour (3-20%)
Full-Fat (20%) or Low Fat (6-8%) Soy Flour: enzyme
active or toasted
Toasted Full-Fat Grits
Soy Protein Concentrate
Isolated Soy Protein
49
Why add soy protein to bread?
†
COST REDUCTION
†
†
†
†
†
†
†
18/10/2007
Water absorption
Fat absorption &
repulsion
Emulsification
Gelling
Viscosity Control
50
†
†
†
Texture Upgrade
Color Control
Enhancement
Shelf Life
Improvement
Nutrition Upgrade:
„
„
More Protein
Better Protein
[Wheat + Soy]
Bakery Goods – Soy Flour Usage
†
Moisture
holding/retention
„
†
†
Bleaching,
strengthening
Egg replacement
„
†
„
„
cookies, cakes,
doughnuts, pancakes
Nutrition
„
18/10/2007
breads, buns, rolls,
cakes, pancakes
Example: doughnuts
† Traditionally made with
milk and/or egg
† Benefits of soy flour
usage
cereals, snack bars,
fortification
51
„
†
Flavor
Water absorption &
proper cooked
shape/color
Reduced fat absorption
Soy flour functionality
depends on PDI in this
application
Cost Reduction
Product
%Egg
Replaced
100
% Savings
Choc. Chip cookie
100
17
High-egg/oil
muffin
Lean muffin
25
12
50
16
Cake doughnut
100
14
Chocolate Cake
25
6
Sugar cookie
18/10/2007
52
22
Meat Industry
†
†
†
Functional Soy
Protein Concentrates
Isolated soy protein
Textured Soy Protein
†
Margins
„
„
†
Future Growth
„
†
†
18/10/2007
Enhancing product
quality
Optimising costs
53
Volumes
Price vs. Inflation
„
„
„
Increase volume –
stimulate the market
Add value
Competitive Edge
Control Costs
Soy Protein for Meat Products
†
Traditional application segments
„
„
„
„
†
New expansion area for Innovative and
Convenience Products:
„
„
18/10/2007
Emulsified Meat
Coarsely Ground Meat
Marinated Meat
Injected Meat
Meat Extender
Meat Replacer
54
Meat analogue products
18/10/2007
55
Novel Products: Soy proteins for
dairy and soft drink alternatives
†
†
†
†
†
†
†
18/10/2007
Functional ISP,
SPC and whole
soybean (powders)
High solubility
Good dispersibility
Viscosity
Bland flavor
Light color
Nutrition
56
Novel Products: Soy protein for
snackfoods, cereals,nutritional bars
†
†
Extruded cereals
& snacks
All soy proteins:
„
„
†
†
Nutritional bars
All soy protein:
„
„
18/10/2007
Protein fortification
Texture
Protein fortification
Product texture
57
Novel Products: Soy flour in
Pasta products
†
†
15-25% inclusions
Technical advantages:
„
„
†
†
18/10/2007
Less sticky dough
Easier rolling and cutting of the dough due to
the improved water management
Finished pasta = Standard pasta
Flavor is basically unchanged
58
Nutrition & Health Communication
†
†
Soy feeding the world: the basic nutrition
proposition
Soy products fit a healthy lifestyle
„
„
†
Soy products bring convenience and taste
„
18/10/2007
Health Claims
Functional Foods
Innovation and Product development
59
Soy(food) products as nutritional
and healthy vegetarian staple food
†
†
†
A great shortage in economic high-quality
protein exists throughout major parts of the
world
A growing demand exists for vegetable based
high-quality protein in other parts of the world
Soy protein is the answer to both. It brings
„
„
„
„
18/10/2007
A complete amino acid composition
With all the essential amino acids in quantities
required
At a very competitive and economic price
Without major digestive problems
60
“HEALTHY Soyfoods”
†
Generic food requirements
„
„
†
Advanced “health claims”
„
„
„
„
„
„
18/10/2007
Nutritious: protein and oil composition; interesting minor
constituents
Only a limited need for fortification
Health promotion; maybe, disease prevention claims
Incorporate protein at high enough level to induce health
benefits
Make claims only when clear scientific evidence is available
Use clear and controllable labelling
Introduce products as an essential part of a healthy diet
Present a range of products fitting dietary demands
61
Consumer Awareness
The Diet/Health Connection
Evolution & Trends
†
1970’s: fruit juices, whole meal bread, yoghurt, cereals
†
1980’s: low fat, low sugar, low salt products
†
1990’s: fortified foods, e.g. with calcium, soy protein, fiber,
antioxidants
†
Now: natural, healthy & minimal processing
†
Future?: foods containing health promoting and/or disease
preventing components
†
†
18/10/2007
Increasing awareness of the relationship between
diet and health
Increasing interest in adding specific foods into the
diet that have proven health benefits
62
Health benefits of soy
†
Soy is an excellent source of high quality protein
„
†
†
†
Can take advantage of the FDA and similar Health Claims
Low in saturated fats and cholesterol free
Soybeans contain a high concentration of several
compounds which have demonstrated anticarcinogenic activity
Low levels of breast and colon cancer in China and
Japan partially attributed to high soyfood consumption
Health & Functional claims: tools to improve
health benefit communication
18/10/2007
63
Soy Protein Claims for Heart Health
†
Authorized
„
„
„
„
„
„
„
„
„
†
Japan (1996)
U.S.A. (1999): FDA
†
U.K. (2002): JHCI
South Africa (2002)
The Philippines (2004)
Brazil (2005)
Indonesia (2005)
Korea (2005)
Malaysia (2006)
Under Review
„
„
France
Canada
In Transition: EU
„
„
The Soy Heart Health Claim
as approved by JHCI can
serve as a model for a claim
based on the Nutrition and
Health Claims Regulation
[Art.13.1; in process]
The claim
†
†
18/10/2007
64
Is based on generally
accepted scientific evidence
Can be well understood by
the average consumer
Example: Regulation on Nutrition and
Health Claims Made on Foods (EU)
Nutrition
claims
Health claims
Art 13 Health claims
―nutrient
―nutrient
content
content
―comparative
―comparative
―‘other
―‘other
substance’
substance’
Annex
Annex
18/10/2007
65
Based
Basedon
on
generally
generally
accepted
accepted
scientific
scientific
evidence
evidence
Article
Article13.1
13.1
Based
Basedon
onnewly
newly
developed
developed
scientific
scientific
evidence
evidenceor
or
requesting
requestingdata
data
protection
protection
Article
Article13.5
13.5
Regulation published: January 2007
Reduction
Reductionof
of
disease
diseaserisk
riskand
and
claims
claimsreferring
referring
to
tochildren’s
children’s
development
development
and
andhealth
health
Article
Article14
14
Various Heart Health Claims
Simple to Complex
†
†
†
†
†
†
†
†
†
18/10/2007
Brazil – “Daily consumption of at least 25g of soy protein could help the
cholesterol reduction. Its consumption should be associated with a balanced diet
and a healthy lifestyle.”
Canada* – The consumption of 25 grams of soy protein per day reduces the risk
of heart disease. This product contains ____ grams of soy protein per serving.”
France* – “Soya protein, as part of a diet low in fat and saturated fat, may reduce
blood cholesterol.”
Japan – “Helps improve diet for those with high cholesterol level.”
Korea – "Soy protein helps improve elevated levels of blood cholesterol.“
Malaysia – “Soy protein helps reduce cholesterol levels.”
South Africa** – “Diets which contain at least 25 grams soy protein [4 servings]
daily and which are low in saturated fat and cholesterol, may reduce the risk of
heart disease by lowering cholesterol levels.”
U.K. – “The inclusion of at least 25 grams of soy protein per day, as part of a diet
low in saturated fat, can help reduce blood cholesterol levels.”
U.S.A., Philippines, Indonesia – “25 grams of soy protein a day, as part of a diet
low in saturated fat and cholesterol, may reduce the risk of heart disease. A
serving of [name of food] supplies ____ grams of soy protein.“
66
* under review; ** under revision
Classes of Phytochemicals in
Soybeans Having Biological Activity
Isoflavones
(phytoestrogens)
Protease
inhibitors
Oligosaccharides
Saponins
Phenolic acids
Phytic acid
Phospholipids
(Lecithin)
18/10/2007
67
Phytosterols
Tocopherols
(Vitamin E)
http://www.soyconference.com
Completely
Renewed and
Upgraded
Web Site
18/10/2007
68
Conclusions (1)
Key Factors Impacting Food Industry
Consumers
- Taste
- Convenience
- Health
- Safety
Retailers
- Price Pressures
- Private Labels
- Brand Protection
†
†
†
†
Food Industry Reaction
= Margin Management Driven
Shift Focus From R&D to Branding & Marketing
Seek Innovation from Suppliers to Differentiate
Drive Down Costs – Consolidation
.
Increased Emphasis on Food Safety / Security
Technology Providers
- Food Ingredients
- Packaging
- Biotechnology
Governments
- Food Security & Safety
- Labeling
- Health Requirements for Food
18/10/2007
69
Based on: Solae Company
Conclusions (2)
†
Key Message: Create Added Value and Margin
†
Soy Protein ingredients are used as highly
functional components in dairy, bakery and meat
products
„
„
†
18/10/2007
Inclusion of soy can reduce costs and improve quality
Soy flour, SPC, ISP and TSPs can be utilized as
functional ingredients and at the same time deliver
health benefits to consumers
Traditional and modern Soyfoods are new
platforms offering broad opportunities for product
development needed to open novel market
segments
70
Conclusions (3)
†
Key message: Bring Products fulfilling
Consumer Demands
†
Traceability and IP Soybeans guarantee the
demand for high-level food security
Convenience Products should have a balanced
nutritional composition if possible combined
with bringing functionality such as health
benefits
Marketing, Branding and communication are
major tools in developing a successful soyfood
and soy ingredient business
†
†
18/10/2007
71
THANK YOU
Ignace Debruyne & Associates Consultancy
[email protected]
18/10/2007
72
Global Product Opportunities
Value Creation using Soy Protein
Ignace Debruyne, PhD
[email protected]
Unlocking the Value of Soy Protein in Consumer Foods
GFTC – Soy 20/20 – Brampton, ON, Canada – October 18, 2007
18/10/2007
1
Contents
†
Why consuming soybean based foods?
„
†
Soybeans, Soy Protein and Soyfood Market
„
„
†
„
„
„
„
18/10/2007
IP and non-GM supply
Soy as functional ingredient
Novel food product applications
Value Creation through Marketing & Communication
„
†
EU
USA
Canada
Value creation through Innovation and Product Development
„
†
Soy Protein Products
Soyfood Products
Similar markets
„
†
Major drivers and objectives – Value Creation
Nutrition & Health Communication
Conclusions
2
Why consuming soybean based foods?
Different objectives for different stakeholders
†
For the soybean producers =
Broadening the market for soybeans
†
For the Soy Ingredient
producers
=
Creating soy products with built-in
functionality and properties that can be
used in a broad range of food products
†
For the Food & Drink
industry
=
Selling products with an interesting
margin
†
For the retailers
=
Broadening the range of products on offer
for the consumer
†
For the Consumers
=
Adding new food products to the daily
consumption pattern
Filling the need for tasty foods that offer
health as well as convenience
=
18/10/2007
3
Soy & Soy Ingredient producers
†
†
†
18/10/2007
Creating soybeans with built-in benefits and
adapted to making food ingredients or food
products
Creating soy products with built-in functionality
and properties that can be used in a broad
range of food products
This requires variety, process and product
development as well as application directed
market development
4
The Added Value Concept
Soybeans: $200-500/ton
Soy ingredients:
$500 - $2000 / ton
Soy loaded food: $5,000 $10,000 per ton soy DM
Soy drinks & juices:
$20,000 - $50,000
per ton soy DM
Soy experience
18/10/2007
$100,000 - $300,000
per ton soy DM
5
The Food & Drink Industry
†
Selling products with Added Value and Significant Margin
„
Ideal Margin Management:
†
†
„
The real world is not ideal:
†
†
†
†
†
18/10/2007
Selling existing food products based on the main nutrition ingredients such as protein,
carbohydrates and oils or fats
Creating new products that answer consumer demand for taste, convenience and
health
The answer = INNOVATION
†
†
Short/Mid-Term: Keeping high margins on existing product range = DIFFICULT
Long-Term: Create High-Value Brands broadening the perspective for margin support
= INVESTMENT INTENSIVE
Finding the extra that gives the possibility to create products with extra margin
potential
Creating novel product groups that answer the needs of the active consumer of today
Soy and soy ingredients can bring functionality as well as health
positive messages
Roadmap: process and product development as well as application directed
market development
6
The Consumer
†
Looking for new opportunities all the time
„
„
„
Taste and Convenience are major drivers of demand
Health and Balanced Nutrition are valuable
Open to new product positions:
†
†
„
†
†
18/10/2007
Increasing globalization has broadened access to many unknown
products broadening the daily consumption palette
Completely new product platforms are possible
Trends for vegetarian, organic, health promoting, functional
foods create extra opportunities
Filling the need for convenient tasty foods that offer
health as well as convenience
Soy based and soyfood products can bring a perfect
answer to this
7
How can soy protein
and soy play a key
role in fulfilling these
different objectives?
18/10/2007
8
Soyfoods and Soy Ingredients
†
†
†
18/10/2007
Traditional soyfoods : tofu, soymilk, whole soy flour,
whole dried soybeans, green soybeans, soy sprouts,
fermented soyfoods (tempeh, miso, natto and soy
sauce)
Modern soyfoods (soy protein ingredients): (defatted)
soy flour(s), soy concentrate, soy protein isolate,
textured soy protein (TSP), soynuts, soy grits
Second generation soyfoods: soymilk and drinks,
desserts, cheese and yoghurt, ice cream, tofu and
veggie burgers, hot dogs and sausages, steaks and
roasts, pizza topping, soy mince, snacks and bars,
biscuits, breads and cookies
9
Soy Processing
18/10/2007
10
Soy Flour
Soluble
Carbohydrates
20%
Other
10%
Dietary Fiber
20%
Protein
Powders, grits, textured
50%
† Includes TSF: Textured Soy Flour
Market & Applications
† Highly functional ingredient in baked goods; filler
improving water management in products; ingredient in
“new” high-soy foods to deliver health benefits to
consumers
18/10/2007
11
†
Soy Protein Concentrate (SPC)
Other
7%
†
Dietary Fiber
23%
†
Ethanol/water
wash white
flakes
Acid wash
white flakes
Protein
70%
Powders, functional powders, granular, textured (flakes or crumbles)
†
Functionalised: using (bio)chemical and/or physical processing
†
Includes TSP: Textured Soy Protein
Market & Applications
†
Feed: Calf Milk replacement
†
Food: Functional Ingredient for Meat; Meat replacement/extension; Bakery products;
Dairy products
†
18/10/2007
12
Isolated Soy Protein (ISP)
Other
10%
Protein
90%
Powders, frozen granules/fibers
Market & Applications
† Instant Drinks; Infant Formula; functional and highprotein ingredient for almost any type of food product
†
18/10/2007
13
Textured Soy Protein (TSP)
Soy Mince
Soy Chunk
Fibrous Soy Protein
18/10/2007
14
Structured Soy Meat Analog
High Moisture Soy
Meat Analog
Soy in the EU-25: 38.7 million MT
SBO
SP Ingr.
SB
Soyfoods / Protein Ingr.
SBO (local use)
SBO (for export)
SB (full fat use)
SBM
SBM (local use)
SBM (for export)
Total consumption
within EU-25:
38.1 million MT
18/10/2007
15
Local production (06/07):
- 0.95 mio MT SB
Total imports (06/07):
- 14.1 mio MT SB
14.2 mio MT SB crush
- 22.7 mio MT SBM
- 0.9 mio MT SBO
EU-27: Soyfood & ingredient market
Lecithin
SP Ingr. Soyfoods
Soy nutraceuticals
Total local disappearance:
0.8-1.0 million MT SB equivalent
of a total soy products market of 38 million MT
18/10/2007
16
Modern Soy Drinks:
a success story in EU
L/p/yr
% of dairy
market
Source: Alpro
(De Standaard, July 14, 2006)
18/10/2007
17
European Soyfoods Market Expands
†
†
†
Increasing product awareness by consumers
Increasing interest in healthy diets
Increasing trend towards
„
„
„
„
†
18/10/2007
Vegetarianism, or
Reduction in meat consumption
Driven by BSE, FMD, and food contamination issues
Further enhanced by the biotech issue
Today: growing demand for Soy-Juice blends
and innovative soy drinks and food products
18
EU-27: soy drinks & dairy alternatives
SOYBEAN BASED
†
Specialized companies
„
„
†
Dairy companies
„
†
†
†
†
†
†
Leche Pascual (Spain); Celia (France); Iparlat
(Spain); Carlshamns Meijeri (Sweden); Oberwart
(Austria); A.Müller (Germany), Luxlait (Luxemburg),…
„
Hain Celestial: Natumi (Germany), Haldane Foods
(UK), Lima (Belgium)
Wessanen: Bio Slym (Italy); Bjorg (France); Tree of
Life (Netherlands)
Multinationals
18/10/2007
So Good, Nutricia
Dairy: Parmalat
Multinationals: Unilever
(Netherlands; UK) Danone
(France); Nestlé; Coca Cola;
Pepsico
Various: Spain, Portugal, Italy,
TOFU
Organic food companies
„
†
Leaders: Alpro (Belgium; UK; France); Triballat Noyal
(France); Liquats Vegetal (Spain); Valsoia (Italy); Wild
Group (Germany); Raisio (Finland, Sweden); Sanutri
(France)
Various: Plamil (UK); Yeo’s (UK); Provida (Portugal);
Polgrunt (Poland); Vitalia Nikola (Macedonia)
ISP BASED
Mainly small to medium scale
producers: Germany (De-Vau-Ge;
Nagel; Viana; Interfood; Berief;
Sojafarm…); NL (So Fine = Alpro);
Belgium (Benelux Soya; Hobbit;
Ming); UK (Cauldron); Spain
(NaturSoy) … (origin: Chinese
cuisine)
RELATED PRODUCTS:
†
†
†
Sports drinks; yoghurt (Danone)
Soy cheese (Bel; Bär; Biofun;
Sojami)
Natto; Tempeh: various producers
19
Commercially Available Soy Protein
Products
„
„
„
„
„
„
„
„
18/10/2007
Defatted Soy Flakes
Soy Grits
Full-Fat Soy Flour: Enzyme Active, Toasted and
Toasted Grits
Defatted Soy Flour
PDI 20/70/90
Relecithinated Soy Flour
Textured Soy Protein (TSP)
Soy Protein Concentrate (SPC)
Isolated Soy Protein (ISP)
Flavored Soy Pieces
20
Soy Protein Ingredients in EU-27
Consumption estimated at 800-900,000MT in soybean equivalents
VOLUMES (in MT of product)
†
Soy Flour ~250,000MT - (Cargill; independent processors)
†
TSP Textured Soy Protein ~100,000MT - (Cargill; Solae; ADM)
†
SPC Soy Protein Concentrate ~150,000MT (The Solae Company; ADM)
†
ISP Isolated Soy Protein ~50,000MT (balance of imports & exports) - The
Solae Company
Lecithin ~35,000MT (~15,000MT for margarine, chocolate, bakery products,
etc.)
LEADING MARKETS:
†
Western Europe, but quickly broadening to EU-27
†
Growth driven by food industry development
18/10/2007
21
Soy Flakes, Grits, Flour:
Producers (EU)
†
†
†
†
†
†
†
†
†
†
†
18/10/2007
Cargill – Cargill Soy Protein Solutions (NL; BE; UK)
ADM Protein Ingredients (NL; DE)
The Solae Company (DK; FR)
Schouten Products (NL)
Finnsoypro Oy (FI)
Solbar Hatzor (IL)
Edelsoja (DE)
Soja Austria (AT)
Arkady-Craigmillar (UK)
Kerry Ingredients (NL; UK; IE)
Vaessen-Schoemaker Chemische Industrie (NL)
22
Textured Soy Protein:
Producers (EU)
†
†
†
†
†
†
†
Cargill (NL)
ADM (NL)
Solae Company (DK)
Solbar (IL)
Bush Boake Allen (UK)
Schouten (NL)
Arkady Craigmillar (UK)
18/10/2007
†
†
†
†
†
†
FinnSoyPro (FI)
Soja Austria (AT)
Edelsoja (DE)
Tivall (IL)
Hamlet Protein (DK)
Kerry (NL)
23
Soy Protein Concentrate:
Producers (EU)
†
Ethanol wash concentrate
„
„
„
„
†
The Solae Company (Denmark; France)
[ADM (Netherlands)]
Solbar (Israel)
SIO (France)
Acid wash concentrate
„
SEAH (France)
Remark:
„
„
18/10/2007
SPC market has major feed share
SPC in food products squeezed between flour/TSP
and ISP
24
Isolated Soy Protein:
producers (EU)
The Solae Company (BE)
† [ADM Ingredients (NL)]
† New process developments
Remark: ISP market is global
†
Hydrolysed Soy Protein:
† Hamlet Protein (DK)
18/10/2007
25
USA market
Consumer Attitudes (2007 USB survey)
†
†
†
†
33% consume soyfoods/beverages once a month or more
> 60% agree consuming soy-based foods can play a role
in reducing obesity (much up since 2006)
85 % perceive soy products as healthy (+3%)
> 50% have tried soy foods/beverages in restaurants
„
†
Soybean oil ranked among the top three healthy oils
„
†
> 33% would order soy products if available on the menu.
70 % recognizing soy oil as a healthy oil
37% aware of the FDA claim [consuming 25 grams of soy protein
per day reduces the risk of coronary heart disease]
„
18/10/2007
84% either agree with the health claim or would like more
information.
26
New Soy Products in the USA
†
New products launched with soy as an
ingredient in 2000 – 2007:
„
„
†
> 2,700 in 8 years
2007: 161 new products
The 1999 FDA approved health claim for
soy and heart health is on:
„
„
„
18/10/2007
406 new products in 2001,
278 in 2002
336 in 2003
448 in 2004
27
„
Product
2004 Sales
2005 Sales
2006 Sales
Tofu
Soymilk
Meat Alternatives
Energy Bars
Soy Cheese, Yogurt & Ice
Cream
* Other
Total
$261
$745
$547
$870
$258
$832
$554
$709
$250
$892
$568
$692
Increase
2005 -06
-3%
7.20%
2.50%
-2.40%
$217
$1,356
$3,996
$215
$1,350
$3,918
$214
$1,356
$3,972
-0.30%
0.40%
1.40%
* baked goods, entrees, cereals, pasta products, meal replacers, powdered soy beverages,
chips, snack foods, low-carb foods
18/10/2007
28
USA Market: Sales Data
From 1992 to 2006: soy foods sales increased from $300 million to $3.9 billion:
†
„
„
„
Novel soy food categories
Soyfoods repositioned
New customers select soy for health or as vegetarian alternative
Main driver since 1999:
FDA health claim “Soy Protein Reduce the Risk of Heart Disease”
†
„
„
Many consumers have incorporated soy into their diets
Supermarkets brought soyfoods to the shelves,.
2005-06: +1.4% increase in soyfoods sales
†
„
„
„
General leveling off of sales
Soymilk stays on stronger growth
Energy bars have decreased sales
Possible new growth drivers for soy
†
„
„
„
Consumers follow healthier diets
Opportunities in food service: meat alternatives, soymilk, tofu, and other soyfoods
New soyfood categories: e.g. soy-juice drinks, drinkable cultured soy, non-dairy frozen
desserts, soy entrees, pastas, snack foods
The wide variety of soyfoods helps consumers meet the federal Dietary Guidelines [foods
†
high in fiber, omega 3 fatty acids, key vitamins and minerals and lower in saturated fat, cholesterol, and calories]
Source: Soyfoods: The U.S. Market 2007, published by Soyatech, Inc. and SPINS
18/10/2007
29
Soy in Canada
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
18/10/2007
Edamame
Kinako
Kouridofu
Miso
Natto
Nimame
Okara
Tempeh
Tonyu (soymilk)
Tofu (soybean curd)
Yuba
Baby formulas
Beverage mixes, e.g., hot
chocolate, lemonade
Diet drinks, imitation milk
Frozen desserts
30
†
†
†
†
Cooking spray, margarine,
vegetable shortening, vegetable oil
Spreads, dips, mayonnaise, peanut
butter
Dressings, gravies, marinades
Lecithin
†
Hydrolyzed plant protein,
hydrolyzed soy protein
Monosodium glutamate
Seasoning, spices
Sauces, e.g., soy, shoyu, tamari,
teriyaki,Worcestershire
Soups, broths, soup mixes/stock
†
Thickening agents
†
†
†
†
Based on quick web search
Soyfoods Canada
†
†
†
Whole Dry Soybeans
Whole Soybeans
Green Vegetable Soybeans Edamame
†
†
†
†
†
†
Soy Flour
Soy Grits
Texturized Soy Flour - TSF
Soy Isolate Fibre
Soy Lecithin
Soybean Oil
Soy Protein Concentrate - SPC
Soy Protein Isolate - ISP
Texturized Soy Protein - TSP
†
Soynuts
†
Meat Analogs
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
18/10/2007
Tempeh
Tofu
Miso
Natto
Okara
Yuba
Soymilk
Soy Frozen Desserts
Soy Pudding
Soy Yogurt
Soy Cheese
Soy Sauce
Soy Sprouts
Source: Soyfoods Canada
31
Soy Processors & Supporting
Services: a vast list of players
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
18/10/2007
Cargill Texturizing Solutions
Concord Sales
Galaxy Foods
Garden Protein International
Guelph Food Technology Centre
Hain Celestial Canada
Hilton Soy Foods
Internova
La Soyarie
Leading Blends
Manitoba Pulse Growers Association
Maple Leaf Foods
N2 Ingredients
Noble Bean
Nutri-Soya Foods
Nutritel Food Technologies
Oléanergie
Okanagan's Soya
Ontario Soybean Growers
32
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
†
Parmalat Canada
Prograin
Protenergy Natural Foods
Protex Foods
Roy Legumex
Sol Cuisine
So Soya
Southwest Ag Partners
Soya Dairy
SoyaWorld
Soyfoods Canada
Soylutions
SunOpta
Sunrise Soya Foods
Tayo Foods
Tetra Pak
Thompsons
Tixena Int’l Marketing
White Wave
Contents
†
†
Why consuming soybean based foods?
„
„
†
†
Soybeans, Soy Protein and Soyfood Market
„
„
„
„
†
†
„
„
18/10/2007
IP and non-GM supply
Soy as functional ingredient
Novel food product applications
Value Creation through Marketing & Communication
„
„
†
†
EU
EU
USA
USA
Canada
Canada
Value creation through Innovation and Product Development
„
†
†
Soy
Soy Protein
Protein Products
Products
Soyfood
Soyfood Products
Products
Similar markets
„
„
„
„
„
„
†
Major
Major drivers
drivers and
and objectives
objectives –– Value
Value Creation
Creation
Nutrition
Nutrition &
& Health
Health Communication
Communication
Conclusions
33
Threats
†
†
†
†
†
†
18/10/2007
Overinvestment in Soy Protein
production in China strongly
affects the world market for highquality soy protein ingredients:
Quality & Functionality issues
Price competition issues (e.g.
ISP @ SPC price)
Producers reorganize production
and sales:
Solbar: SB sourcing for SPC, ISP
Cargill: sold ISP to Solae
Solae: ISP production
management
34
†
†
†
GM Soy and Labeling
Since 1997: consumer concern
in Europe
Today
„
Labeling when adventitious
presence > 0.9%
„
Major food companies
seeking non-biotech soy for
use in (soy)food products
„
Consumers have little or no
choice, only non-GM options
Growing awareness of
environmental and economic
benefits
Threats = Opportunities
†
Growth of the soyfoods & soy ingredients market is
driven by consumer concerns about
„
„
„
†
Food contamination risks
Intensive production and/or processing, e.g. use of chemicals
Biotech discussion
This can be translated in growing demand for
„
„
„
„
18/10/2007
Traceability throughout the production chain
Health promoting foods
Vegetarian products
Organic products
35
Non-GM soybeans
†
Major soy ingredient producers and
soyfood manufacturers have reacted to
consumer concern on GM soy by :
„
„
„
18/10/2007
Entering into contracts with farmers to grow
non-GM soybeans
Identity Preservation (IP) “from Farm to Fork”
Processing and packaging with full
traceability back to the field
36
Opportunities
†
Tasteful soyfoods and ingredients
„
„
†
Soy & Health
„
†
†
†
†
18/10/2007
Taste, an issue and an opportunity
Major factor for commercial success remains taste
Novel functional food products carrying health and nutrition
claims with soy as major ingredient
Innovation, functionality and product development
Modern soyfoods beyond dairy alternatives and
snacks
Traceability from farm to fork
Marketing & Communication about product and product
benefits and qualities
37
Overcoming negative attitudes and
perceptions of soy
†
†
†
†
†
†
†
†
18/10/2007
Proper raw material selection
Proper combination with other ingredients
Attractive form & packaging
Eliminate/ reduce negative taste
Eliminate negative digestive factors
Optimize flavor and taste
Enhanced natural sweetness
Adapt to local market taste
38
Which soy is adapted to your needs?
Commodity Soy
Specialty Soy (IP)
18/10/2007
39
Soyfood production benefits from using
specialty soybeans!
†
IP Soyfood Soybeans are
designed for making high quality
soyfoods
„
„
„
†
SOYFOOD quality:
„
„
„
„
„
„
18/10/2007
Variety Specific
Quality specific
System specific
Protein level high and constant
Clean, equal size, equal color
No FM, splits, loose hulls
Hilum color set
System specific: non-GM;
organic
Variety specific: functional or
compositional requirements
realized; minor components set;
40
†
†
†
Traders guarantee quality and
specifications
Manufacturers must manage the quality
control issues associated with IP
soybean sourcing
Downstream processing introduces
different flavor quality and consistency
challenges
Soy Supply through Identity Preservation
†
†
†
Driver: increasing demand for specialty soyfood
soybeans, including non-biotech soybeans
This requires a closed, contractual Identity
Preservation (IP) with a comprehensive, credible and
audit proof record keeping system, and an easy, fast
and independent control system
IP is consistent with three main principles:
„
„
„
18/10/2007
No 100 % purity standard
Volumes moderate
Price premium over standard commodity
41
Soy for Functional
& Healthy Food Products
†
Quality protein brings
„
„
†
Nutrition: increased protein content
Health: link to Health Claims
Functionalized ingredient provides basic
structural properties:
„ Gelling
„
„
„
18/10/2007
Emulsifying
Fat Binding
Water Binding
42
Soyfoods & Soy based formulas
†
Tonyu (soy milk)
Tofu (soybean curd)
Okara
Miso
Natto
Yuba
Tempeh
Kinako
Kouridofu
Nimame
†
Edamame
†
Baby & Infant formulas
Beverage mixes, e.g., hot chocolate,
lemonade
Diet drinks, imitation milk
Frozen desserts
†
†
†
†
†
†
†
†
†
†
†
†
18/10/2007
†
†
†
†
†
Hydrolyzed plant protein, hydrolyzed
soy protein
Monosodium glutamate (MSG)
Seasoning, spices
Sauces, e.g., soy sauce, shoyu,
tamari, teriyaki, Worcestershire
sauce
Soups, broths, soup mixes & stock
†
Thickening agents
†
†
†
†
43
Main market areas
†
†
†
18/10/2007
Drinks and dairy
alternatives
Bakery and biscuit
products
Meat and meat
replacement
products
44
Cooking spray, margarine, vegetable
shortening, vegetable oil
Spreads, dips, mayonnaise, peanut
butter
Dressings, gravies, marinades
Lecithin
Soy Protein: Nutritional Characteristics
PDCAAS = Digestibility reference
†
Egg White
1.00
†
Milk Protein
1.00
†
ISP
1.00
†
SPC
0.99
†
Beef
0.92
†
Wheat gluten
0.25
†
Soy + Gluten
1.00
18/10/2007
45
Soy Protein
Functional Characteristics
†
†
Solubility
Dispersibility
„
†
†
Heat irreversible
Cohesion/adhesion
Viscosity
„
„
18/10/2007
„
†
„
Mouthfeel
Equipment
46
†
†
†
Textured Mince, Chunks,
Pieces, and fibers
Elasticity
Flavor binding
Color Control
„
†
Fat “emulsions”
Oil “emulsions
Texture, oil-out, mouthfeel,
flavor, cost
Structure
Gel formation
„
†
„
Ease of use
Water management in food
products can be very
profitable
Emulsification/fat absorption
„
Water absorption/binding
„
†
†
Breads, seafood
Foaming
Soy Protein replacing Dairy Protein
†
†
†
†
†
†
18/10/2007
Soy protein = high-quality protein
Also equal quality when substituting soy for dairy protein
Soy protein can replace 20 - 100 % of dairy protein
Cost savings of 20 - 60 % vs. dairy proteins
Many soy protein products provide calcium-to-protein ratios
equivalent to dairy proteins with similar macronutrient compositions
Application areas for dairy replacement:
„
Nutritional drinks & beverages
„
Nutrition bars
„
Bakery products
„
Sauces
„
Gravies
„
Puddings
„
Frozen desserts
47
Food products that can contain Soy
†
†
†
†
18/10/2007
Baked goods and baking
mixes, e.g., breads,
cookies, cake mixes,
doughnuts, pancakes
Bread crumbs, cereals,
crackers
Snack foods, e.g., candy,
chocolate, energy bars,
fudge, popcorn, potato
chips
Breaded foods, chili,
pastas, stews, taco filling,
tamales
48
†
†
†
†
†
Processed and prepared
meats, e.g., beef, deli,
pork, poultry
Seafood-based
products, fish
Canned tuna; minced
hams
Simulated fish and meat
products, e.g., surimi
(imitation crab, or fish, or
lobster, or meat),
simulated bacon bits
Vegetarian dishes
Soy Products with Bakery Potential
†
Defatted (<1.0% fat) Soy Flour
„
„
†
†
†
†
†
18/10/2007
20, 70, 90 PDI (industry standards, any value possible)
Defatted Grits
Relecithinated or Refatted Soy Flour (3-20%)
Full-Fat (20%) or Low Fat (6-8%) Soy Flour: enzyme
active or toasted
Toasted Full-Fat Grits
Soy Protein Concentrate
Isolated Soy Protein
49
Why add soy protein to bread?
†
COST REDUCTION
†
†
†
†
†
†
†
18/10/2007
Water absorption
Fat absorption &
repulsion
Emulsification
Gelling
Viscosity Control
50
†
†
†
Texture Upgrade
Color Control
Enhancement
Shelf Life
Improvement
Nutrition Upgrade:
„
„
More Protein
Better Protein
[Wheat + Soy]
Bakery Goods – Soy Flour Usage
†
Moisture
holding/retention
„
†
†
„
„
cookies, cakes,
doughnuts, pancakes
Nutrition
„
18/10/2007
breads, buns, rolls,
cakes, pancakes
Bleaching,
strengthening
Egg replacement
„
†
Example: doughnuts
† Traditionally made with
milk and/or egg
† Benefits of soy flour
usage
„
†
cereals, snack bars,
fortification
Flavor
Water absorption &
proper cooked
shape/color
Reduced fat absorption
Soy flour functionality
depends on PDI in this
application
51
Cost Reduction
Product
%Egg
Replaced
100
% Savings
Choc. Chip cookie
100
17
High-egg/oil
muffin
Lean muffin
25
12
50
16
Cake doughnut
100
14
Chocolate Cake
25
6
Sugar cookie
18/10/2007
52
22
Meat Industry
†
†
†
Functional Soy
Protein Concentrates
Isolated soy protein
Textured Soy Protein
†
Margins
„
„
†
Future Growth
„
†
†
Enhancing product
quality
Optimising costs
18/10/2007
Volumes
Price vs. Inflation
„
„
„
Increase volume –
stimulate the market
Add value
Competitive Edge
Control Costs
53
Soy Protein for Meat Products
†
Traditional application segments
„
„
„
„
†
New expansion area for Innovative and
Convenience Products:
„
„
18/10/2007
Emulsified Meat
Coarsely Ground Meat
Marinated Meat
Injected Meat
Meat Extender
Meat Replacer
54
Meat analogue products
18/10/2007
55
Novel Products: Soy proteins for
dairy and soft drink alternatives
†
†
†
†
†
†
†
18/10/2007
Functional ISP,
SPC and whole
soybean (powders)
High solubility
Good dispersibility
Viscosity
Bland flavor
Light color
Nutrition
56
Novel Products: Soy protein for
snackfoods, cereals,nutritional bars
†
†
Extruded cereals
& snacks
All soy proteins:
„
„
†
†
Protein fortification
Texture
Nutritional bars
All soy protein:
„
„
18/10/2007
Protein fortification
Product texture
57
Novel Products: Soy flour in
Pasta products
†
†
15-25% inclusions
Technical advantages:
„
„
†
†
18/10/2007
Less sticky dough
Easier rolling and cutting of the dough due to
the improved water management
Finished pasta = Standard pasta
Flavor is basically unchanged
58
Nutrition & Health Communication
†
†
Soy feeding the world: the basic nutrition
proposition
Soy products fit a healthy lifestyle
„
„
†
Health Claims
Functional Foods
Soy products bring convenience and taste
„
18/10/2007
Innovation and Product development
59
Soy(food) products as nutritional
and healthy vegetarian staple food
†
†
†
A great shortage in economic high-quality
protein exists throughout major parts of the
world
A growing demand exists for vegetable based
high-quality protein in other parts of the world
Soy protein is the answer to both. It brings
„
„
„
„
18/10/2007
A complete amino acid composition
With all the essential amino acids in quantities
required
At a very competitive and economic price
Without major digestive problems
60
“HEALTHY Soyfoods”
†
Generic food requirements
„
„
†
Advanced “health claims”
„
„
„
„
„
„
18/10/2007
Nutritious: protein and oil composition; interesting minor
constituents
Only a limited need for fortification
Health promotion; maybe, disease prevention claims
Incorporate protein at high enough level to induce health
benefits
Make claims only when clear scientific evidence is available
Use clear and controllable labelling
Introduce products as an essential part of a healthy diet
Present a range of products fitting dietary demands
61
Consumer Awareness
The Diet/Health Connection
Evolution & Trends
†
1970’s: fruit juices, whole meal bread, yoghurt, cereals
†
1980’s: low fat, low sugar, low salt products
†
1990’s: fortified foods, e.g. with calcium, soy protein, fiber,
antioxidants
†
Now: natural, healthy & minimal processing
†
Future?: foods containing health promoting and/or disease
preventing components
†
†
18/10/2007
Increasing awareness of the relationship between
diet and health
Increasing interest in adding specific foods into the
diet that have proven health benefits
62
Health benefits of soy
†
Soy is an excellent source of high quality protein
„
†
†
†
Can take advantage of the FDA and similar Health Claims
Low in saturated fats and cholesterol free
Soybeans contain a high concentration of several
compounds which have demonstrated anticarcinogenic activity
Low levels of breast and colon cancer in China and
Japan partially attributed to high soyfood consumption
Health & Functional claims: tools to improve
health benefit communication
18/10/2007
63
Soy Protein Claims for Heart Health
†
Authorized
„
„
„
„
„
„
„
„
„
†
Japan (1996)
U.S.A. (1999): FDA
†
U.K. (2002): JHCI
South Africa (2002)
The Philippines (2004)
Brazil (2005)
Indonesia (2005)
Korea (2005)
Malaysia (2006)
Under Review
„
„
France
Canada
In Transition: EU
„
„
The Soy Heart Health Claim
as approved by JHCI can
serve as a model for a claim
based on the Nutrition and
Health Claims Regulation
[Art.13.1; in process]
The claim
†
†
18/10/2007
64
Is based on generally
accepted scientific evidence
Can be well understood by
the average consumer
Example: Regulation on Nutrition and
Health Claims Made on Foods (EU)
Nutrition
claims
Health claims
Art 13 Health claims
ʊnutrient
ʊnutrient
content
content
ʊcomparative
ʊcomparative
ʊ‘other
ʊ‘other
substance’
substance’
Annex
Annex
18/10/2007
65
Based
Basedon
on
generally
generally
accepted
accepted
scientific
scientific
evidence
evidence
Article
Article13.1
13.1
Based
Basedon
onnewly
newly
developed
developed
scientific
scientific
evidence
evidenceor
or
requesting
requestingdata
data
protection
protection
Article
Article13.5
13.5
Reduction
Reductionof
of
disease
diseaserisk
riskand
and
claims
referring
claims referring
to
tochildren’s
children’s
development
development
and
andhealth
health
Article
Article14
14
Regulation published: January 2007
Various Heart Health Claims
Simple to Complex
†
†
†
†
†
†
†
†
†
18/10/2007
Brazil – “Daily consumption of at least 25g of soy protein could help the
cholesterol reduction. Its consumption should be associated with a balanced diet
and a healthy lifestyle.”
Canada* – The consumption of 25 grams of soy protein per day reduces the risk
of heart disease. This product contains ____ grams of soy protein per serving.”
France* – “Soya protein, as part of a diet low in fat and saturated fat, may reduce
blood cholesterol.”
Japan – “Helps improve diet for those with high cholesterol level.”
Korea – "Soy protein helps improve elevated levels of blood cholesterol.“
Malaysia – “Soy protein helps reduce cholesterol levels.”
South Africa** – “Diets which contain at least 25 grams soy protein [4 servings]
daily and which are low in saturated fat and cholesterol, may reduce the risk of
heart disease by lowering cholesterol levels.”
U.K. – “The inclusion of at least 25 grams of soy protein per day, as part of a diet
low in saturated fat, can help reduce blood cholesterol levels.”
U.S.A., Philippines, Indonesia – “25 grams of soy protein a day, as part of a diet
low in saturated fat and cholesterol, may reduce the risk of heart disease. A
serving of [name of food] supplies ____ grams of soy protein.“
66
* under review; ** under revision
Classes of Phytochemicals in
Soybeans Having Biological Activity
Isoflavones
(phytoestrogens)
Protease
inhibitors
Oligosaccharides
Saponins
Phenolic acids
Phytic acid
Phospholipids
(Lecithin)
18/10/2007
Phytosterols
Tocopherols
(Vitamin E)
67
http://www.soyconference.com
Completely
Renewed and
Upgraded
Web Site
18/10/2007
68
Conclusions (1)
Key Factors Impacting Food Industry
Consumers
- Taste
- Convenience
- Health
- Safety
Retailers
- Price Pressures
- Private Labels
- Brand Protection
†
†
†
†
Food Industry Reaction
= Margin Management Driven
Shift Focus From R&D to Branding & Marketing
Seek Innovation from Suppliers to Differentiate
Drive Down Costs – Consolidation
.
Increased Emphasis on Food Safety / Security
Technology Providers
- Food Ingredients
- Packaging
- Biotechnology
Governments
- Food Security & Safety
- Labeling
- Health Requirements for Food
18/10/2007
69
Based on: Solae Company
Conclusions (2)
†
Key Message: Create Added Value and Margin
†
Soy Protein ingredients are used as highly
functional components in dairy, bakery and meat
products
„
„
†
18/10/2007
Inclusion of soy can reduce costs and improve quality
Soy flour, SPC, ISP and TSPs can be utilized as
functional ingredients and at the same time deliver
health benefits to consumers
Traditional and modern Soyfoods are new
platforms offering broad opportunities for product
development needed to open novel market
segments
70
Conclusions (3)
†
Key message: Bring Products fulfilling
Consumer Demands
†
Traceability and IP Soybeans guarantee the
demand for high-level food security
Convenience Products should have a balanced
nutritional composition if possible combined
with bringing functionality such as health
benefits
Marketing, Branding and communication are
major tools in developing a successful soyfood
and soy ingredient business
†
†
18/10/2007
71
THANK YOU
Ignace Debruyne & Associates Consultancy
[email protected]
18/10/2007
72