THE GROWING OPPORTUNITY FOR FOODS

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1 THE GROWING OPPORTUNITY FOR ALLERGY-FRIENDLY FOODS

2 DE VE L O P E D THE G O L D -S TANDAR D IN F R E E - F R OM O U R M I S S I O N: To create and share great tasting Free-From food products the world trust and loves. AL L E N J O Y L I F E F O O D P R O D U CTS AR E : Verified non-gmo Certified gluten-free Free-From 14 Allergens Kosher & Halal certified Many products are certified Vegan & Paleo Made with best-in-class ingredient sourcing & manufacturing Manufactured at North America s largest allergy friendly bakery W E AR E O B S E SSED W I T H TAS T E & NUTRITION: We will never stop optimizing taste & nutrition quality Have the highest standard for quality and selfpolicing policies in the industry 2

3 EN JOY LI FE FO OD S H I STORY Core New Enjoy Life Foods founded with the mission to provide delicious food for people who have a food intolerance, food allergy and/or Celiac disease Created the Free-From food category and became a trusted provider of tasty snacks to millions of consumers with strict dietary restrictions Grew 40% for 3 consecutive years Acquired by Mondelez International Broke ground on ELF s new state of the art bakery #1 Free-From brand in 6 key categories Through proprietary research, identified a larger segment of the population who want to eat Enjoy Life products for reasons other than food intolerance or allergies. 3

4 PO RT FO LI O OVERVI EW 80+ SKUs in 7 categories (200 total variations incl. Canada) Baking Chocolate (packing only) Cookies Snack Bars Chocolate Confectionary Baking Mixes (co-man) Salty Snacks (co-man) Trail Mix 4

5 N O RT H A M ERI CA S LA RGEST D ED I CAT ED A LLE RGY-FRI EN D LY BA K ERY GRAND OPENING September 2016 LOCATION Jeffersonville, Indiana 200,000 Square-feet of modernized production capacity Providing our community with safe, allergy-friendly foods in North America and abroad! CERTIFIED Gluten-free and dedicated nut-free facility 5

6 T H E FR EE -FROM M A RK ET PO PULAT I ON U S Free-From consumers are quickly growing, but they can t find what they want where they shop Through extensive qualitative research conducted in 2016, we uncovered the Enjoy Life Free-From targeted consumer base will soon more than double 6

7 FOOD A LLERGI ES A RE REA CH I N G EPI D EM I C PROPORT I ON S <1 IN 50 CHILDREN <.75% OF AMERICANS 1 IN 13 CHILDREN 4.0% OF AMERICANS 7

8 T H E FR EE -FROM CON SUM ER M I N D SET W O R R I ERS W O N D ER AB O U T W O N D ERERS W O N D ER AB O U T They worry about the potential danger in food They have no choice but to choose Free-From foods due to their allergies or intolerances Consume 426M snacks & desserts a week 70% of snacks & desserts consumed are prepackaged People wondering about the ingredients in all of their food They want to make better choices Consume 553M snacks & desserts a week 73% of snacks & desserts consumed are prepackaged 8

9 W E REM O VE A LL BA RRI ER S TO EN JOYM EN T Enjoy Life invented the Free-From category of snacks in 2002 Authenticity and credibility have been the stars we steer by and in what we make investments each and every day We have 60+ products to satisfy all taste palettes and all snacking occasions Enjoy Life is the curator of ingredients that are not only flavorful and delicious, but are also better for you 41% of clean-eaters can t find the products they are looking for, so Enjoy Life is pushing to get Free- From snacks into every grocery store in America and around the globe Enjoy Life is currently in 37,500 retail doors throughout the US and Canada, and growing There are 76MM people looking for Free-From foods, ranging from people with the most stringent requirements to those trying to live a more healthy lifestyle We currently have more than 500K active members in our social media community, including the endorsements of food-allergy families, influencers, and organizations 9

10 PRI M A RY FREE-FROM SH O PP ER I S H I GH LY EN GA GED 67% Heavy Internet Users 70% Watched Videos Online 61% Looks For Recipes Online 48% More Likely To Visit A Blog 39.2 Median Age 74% Married $66K Median HHI Source- MRI 2015 Sample Size HH with children 10

11 T H E A GE O F T H E EM POWERED CON SUM ER 11

12 FR EE-FROM CON SUM ER EXT REM ELY D ESI RA B LE SH O PPER Free-From Shoppers: Are within the top 15% in terms of spending Spend more time in stores Make more frequent visits than all other heavy shoppers Average Basket $46 Free-From Basket $102 Free-From Shopper Baskets Are Valuable to Retailers Source: Kantar Retail Shopper Genetics. 52 weeks ended May 31,

13 T H E RESPON SI BI LI T Y O F M A N U FA CT U RERS 13

14 T H E RESPON SI BI LI T Y O F M A N U FA CT U RERS 14

15 T H E RESPON SI BI LI T Y O F M A N U FA CT U RERS 15

16 RO LE O F Q UA LI T Y A SSURA N C E The responsibilities of QA in Allergen -Free Food Production involve the following: -Management of the standard food safety and quality programs applicable to food manufacturing such as GMPs, HACCP, and Quality Control -Oversight of the Allergen Control and Testing Program -Management of applicable special Dietary, Allergen, and scientific certifications such as Kosher, Halal, Non -GMO, Gluten-Free, FODMAP & Vegan -Oversight of all Regulator y & Labeling Compliance programs and activities 16

17 A LLE RGEN M A N A GEM EN T PRODUCTION OF ALLERGEN-FREE FOODS REQUIRES PREVENTION AND PROACTIVITY! Supplier selection is KEY suppliers are allergen-free or have dedicated allergen-free production; suppliers must have rigorous, verified and validated allergen controls and cleaning programs Thorough Supplier Questionnaires and on-site Audits verification of allergen presence, and control procedures All incoming ingredients tested for at-risk allergens (i.e. gluten in grains, milk in chocolate) Strong on-site allergen controls PREVENTION REDUCES THE RISK OF ALLERGEN CONTAMINATION BY 95% 17

18 A LLE RGEN T EST I N G Incoming ingredients (including some food contact packaging) according to risk matrices Finished Goods as required by Customer or Regulatory Authority Qualitative methods like strip testing Quantitative methods like ELISA Assays and X -MAP Concrete Analysis such as HPLC or GCMS Sampling protocol is MOST IMPORTANT; avoid the needle -in-the haystack approach 18

19 GO OD M A N U FA CT U RI N G PROCESSES GMPs are important to prevent allergen crosscontamination in an allergen free environment Employee Practices no high-risk allergens (peanuts and tree-nuts) brought in with employee effects like lunches and personal items Captive shoe programs ensuring allergens aren t tracked in from the outside (ever eaten at a restaurant with peanuts on the floor?) Proper Hand-washing procedures Transport inspection procedures 19

20 LA B ELI N G A ND RE GULATORY FALCPA (Food Allergen Labeling and Consumer Protection Act) rendered unnecessary entirely allergen-free means no allergen declarations Accomplished through direct consumer information panels like allergen-free checklists or romance statements Providing statements around facility controls (nut -free, gluten-free) or processes (dedicated lines and manufacturing) FDA requires proof; if declared allergen -free, validation testing and program compliance must be absolute and verified 20

21 T H E FUT U RE O F FOOD ; WH ER E T H E M A RK ET I S H EA D ED 36% of consumers (age 18-34) followed a specific diet or eating plan within the last 12 months. 76% of consumers put trust in dieticians and nutritionists vs. 38% placing trust in government standards. Major CPG brands, i.e. Nestle, ConAgra are entering the Free-From space due to growth potential and whitespace. Gluten-Free shelf sets at brick & mortar retailers are shrinking in favor of other ingredient-conscious diets or specialty products. Utilize data and technology to identify, connect, and marketing to targeted consumers. 21

22 M E E T I N G C O N S U M E R N E E D S AT T H E M A R K E T I N T E R S E C T I O N O F F O O D, T E C H N O L O G Y, D ATA M I N I N G A N D S P E C I A L D I E T S Special Diets Gluten-Free/Allergy Friendly Grain-Free Plant-Based Paleo Fodmap Whole-30 Gut Health Microbiome/Microflora Food as Medicine Data Mining Consumer by Diet Platform Consumer by Ingredient Eating Occasions Eating Frequency Look Alikes Professional Outreach Professionally Recommended Customer acquisition through Identification Technology Home Testing Genetic Testing Customized Nutrition Direct to Consumer Subscription Programs Artificial Intelligence Augmented Reality Conversational Commerce In-store nutrition testing Technology-based NPD Shelf-Stable Foods Snacking (Redefined) On-the-Go Nutrition Meal Replacement Meal Kits Functionality 22

23 Free-From Not just an opportunity, but a responsibility. 23

24 Because it s not about us 24

25 It s about them! 25

26 26

27 THANK YOU! Joel Warady LinkedIn: joelwarady

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