Opportunities with extracts in beer.

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1 International Beer Strategies Conference 2018 Opportunities with extracts in beer. May 2018

2 Agenda 1. Beer Market Background New product and flavour trends in the beer market and the growth of the low-alcohol segment. 2. Sensient Natural Origins Extracts An opportunity to add authenticity, provenance and clean label to beer. 3. Case study How the origin and the extraction process can impact on the finished extract profile. 2

3 About us. 3

4 About us. Sensient Technologies. A Strategic Advantage. 130 years of extraction expertise & flavour history 60+ years of natural colour expertise #1 colour company globally Top ten global flavour manufacturer providing integrated ingredient solutions Flavour & Colour application specialist project teams for rapid customization Consumer insight support with primary research Global Sensory Network dedicated to customer projects 4

5 Beer Market Background. 5

6 Beer Market Background. Consumer thirst for experimentation is increasing. Since 2016, 17% of all beer launches into retail in Europe have been flavoured (+15% vs 2012). Total beer launches in Europe - since Jan/2016 As flavoured beer becomes more established, brands have become more creative to differentiate themselves, resulting in a high increase in the number of flavour components offered in Europe, despite the same proportion of flavoured launches. Unflavoured 83% Flavoured 17% Increase in the number of flavour components From 69 in to 131 in Source: Mintel GNPD

7 Beer Market Background. Non/Low alcohol beer is the fastest growing segment, but many consumers still perceive it as a poor imitation of the real thing. The Non/Low Alcohol Beer market is the fastest growing segment in beer both in Western Europe and Globally. Non/Low Alcohol Beer Share% % 4.3% (+20% vs 2012) Western Europe represents 34% of the global Non/Low Alcohol Beer market having a higher market share than the rest of the World. 58% of all low/non alcoholic beer launches into retail in Europe since 2016 have been flavoured. Global Western Europe 7 Source: Euromonitor

8 Beer Market Background. Authenticity and trust remain a key trend in beer. Craft beer has been a trend for a few years, but now that the flavoured beer market is growing in most European markets, this opens opportunities for brands to use Extracts and Provenance in order to: - bring authenticity to the beer - have a clean label (with the potential of using a fruit image on the label) - Link the natural flavour to transparency, trust and tradition. - bring back the loss of beer profile for non-alcoholic beers. 8

9 Sensient Natural Origins Extracts. 9

10 Our key technologies. Sensient Natural Originsᵀᴹ A collection of unique, from the named source extracts. LABEL APPEAL Pure & named source ingredient panel extracts PROVENANCE CAPABILITIES Sourcing partnerships that deliver transparent supply chain _Authentic tastes transform profiles _Transparent labels create unique consumer experiences _Provenance means confidence _Can be used alone or within natural flavors _No environmental impact Sensient Natural Origins AUTHENTIC FLAVORS Isolate flavor molecules that characterize the raw botanicals 10

11 Our key technologies. Sensient Natural Originsᵀᴹ Wide range of extraction capabilities give us unparalleled flexibility to deliver what is right for your product. Our range gives us flexibility in: _Intensity _Low temperature heat processing _Versatility of flavour delivery/tonality Higher Concentration & Lower Dosage Lower Concentration & Higher Dosage Sub/Super Co 2 Extracts Sub/Super Co 2 + Molecular Distillation Molecular Distillation Extracts Counter Current Extracts CO2 Co-Solvent Extracts Solvent Extraction with Concentration Solvent Extraction Distillation Percolation 11

12 Ginger Case Study. A Selection of Ginger SNO Extract. 13

13 Case study. A Selection of Ginger SNO Extract. A simple way to add a warming zest. Sensient has been working with ginger extracts since 1940 and we re one of the beverage industry s top flavour creators. We ve mastered distinctive flavours for everything from ginger beer and ale, to ginger tea, performance drinks and even spirits. 14

14 Case study. A Selection of Ginger SNO Extract. Extraction GC Profiles. Traditional Steam Distilled Chinese Ginger Oil Liquid CO2 Chinese Ginger C

15 Case study. A Selection of Ginger SNO Extract. Nigerian Ginger. Solvent Extraction. _Nigerian Ginger ( , ) Starting Raw Material Origin Manufacturing Method Starting Raw Material Type Nigeria Solvent Extraction Dried split root _Main aroma chemical composition a-pinene, Camphene, Zingerberene, Farnescene, AR Curcumene, B-Bisaboline _Creative Uses Fresh and root, earthy, less citrus than the Chinese. To impart woody, root notes. _Solubility Alcohol and Water Starting Dosage Rates Bakery 0.5% Beverage Alcohol 0.3% Beverage Water 0.1% Confectionery 0.4% Dairy 0.3% 16

16 Case study. A Selection of Ginger SNO Extract. Nigerian Ginger. CO2 Extraction. _Ginger Nigerian C1509 ( ) Starting Raw Material Origin Manufacturing Method Starting Raw Material Type Nigeria Liquid Carbon Dioxide Dried split root 17 _Main aroma chemical composition a-pinene, Camphene, Zingerberene, Farnescene, AR Curcumene, B-Bisaboline, Sesquiphellandrene _Creative Uses Heavy and rooty / earthy, less citrussy than the Chinese. To impart woody, rootier notes. Fragrances. _Solubility Alcohol and Oil _Kosher certified / Halal suitable? Yes / Yes Starting Dosage Rates Bakery 0.1% Beverage Alcohol 0.03% Beverage Water % Confectionery 0.03% Dairy 0.01% Seasonings 0.1%

17 Case study. A Selection of Ginger SNO Extract. Nigerian Ginger. Molecular Distillation. _Ginger Nigerian C1622 ( ) Starting Raw Material Origin Manufacturing Method Starting Raw Material Type Nigeria Molecular Distillation of Liquid Carbon Dioxide Dried split root 18 _Main aroma chemical composition a-pinene, Camphene, Zingerberene, Farnescene, AR Curcumene, B-Bisaboline, Sesquiphellandrene _Creative Uses Low colour version of C1509, more concentrated. Earthy and rich notes. Fragrances. _Solubility Alcohol and Oil _Kosher certified / Halal suitable? Yes / Yes Starting Dosage Rates Bakery 0.1% Beverage Alcohol 0.01% Beverage Water % Confectionery 0.03% Dairy 0.01% Seasonings 0.1%

18 Case study. A Selection of Ginger SNO Extract. Ginger Chinese. CO2 Extraction. _Ginger Chinese C2130 ( ) Starting Raw Material Origin Manufacturing Method Starting Raw Material Type Chinese Liquid Carbon Dioxide Dried split root 19 _Main aroma chemical composition Farnesene, AR Curcumene, Zingiberene B-Bisabolene, Sesquiphellandrene, a-pinene, Camphene _Creative Uses Light and Rooty and Citrusy, less earthy than the Nigerian. To impart fresh light ginger citrus notes in Ginger ale flavours. _Solubility Alcohol and Oil _Kosher certified / Halal suitable? Yes / Yes Starting Dosage Rates Bakery 0.07% Beverage Alcohol 0.01% Beverage Water % Confectionery 0.03% Dairy 0.01% Seasonings 0.1%

19 Cheers! Sensient sample bar is now open. 21

20 Sensient Sample Bar. List of available samples. _0% ABV Beer with Hop Extract _2% ABV Beer with Lime Extract _4% ABV Beer with Chrysanthemum Extract 22

21 Sensient Get in touch to find out more about our range of flavors and discover what we can create together. sensientflavors.com

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