YOCREAM INTERNATIONAL Frozen Yogurt Manufacturing Presented February 27, 2008 John Hanna, CEO and Chairman of the Board YoCream International, Inc. 1-800-YOCREAM www.yocream.com CORPORATE OVERVIEW Company Heritage Inspired by Mama Hanna, who originally created the recipe for our frozen yogurt in her kitchen back home, our products are made with pride from only the highest quality ingredients. The Hanna brothers - John, Dave, and Jim - founded International Yogurt Company in 1976. Since then it has come to be known as YoCream International, because the company s product line has expanded to include much more than yogurt. Today the company produces frozen yogurt, ice cream, frozen custard, sorbet, smoothies and frozen beverages under it s flagship brand, YOCREAM 1
CORPORATE OVERVIEW About YoCream International, Inc. YoCream International, Inc., with headquarters and a dairy and manufacturing facility in Portland, OR, is a pioneer and leading producer of frozen desserts and beverages Founded in 1977, YoCream produces and markets frozen yogurt, ice cream, frozen custard, smoothies and frozen beverages to foodservice markets YoCream offers: 30 years experience of providing solutions to the foodservice market: Fast Food (QSR), Full-Service Restaurant, Business & Industry, Healthcare, College & University, Military, and Convenience Stores Well-respected food service brands noted for quality, consistency and value A broad line of products produced at our own dairy and manufacturing plant in the U.S. to maintain top levels of quality control and food safety CORPORATE OVERVIEW YoCream Dairy & Manufacturing Plant A fully licensed dairy, YoCream pasteurizes under USDA certification and inspection, organic certification, and kosher certification. The manufacturing plant has five distinct packaging operations. Products can be packaged in a multitude of packaging sizes, styles, and finished casings. Half Gallon Gable Top Filler Line ESL Gable Top Pure Line Hard Pack Line Aseptic and Fresh Bag-in-Box Line Frozen Beverage Syrup Line The Food Safety and Quality Assurance Department ensures the most stringent levels of regulatory compliance are maintained, meeting and exceeding all inspection standards of USDA, FDA, military, customer food safety audits, aseptic processing standards, export requirements, kosher and organic certification. The manufacturing processes are complemented by the fully staffed on-site Research and Development department. 2
PRODUCT LINE REVIEW YoCream Soft Serve Frozen Yogurt In a dish, on a cone, whipped in a shake, served in a float or topped with flavorful additions, YoCream frozen yogurt offers: Sweet and creamy product profile tastes just like ice cream and has added health benefits of being nonfat and containing beneficial probiotic cultures High beneficial live culture counts, ensured by YoCream s proprietary two-step production process, are good for the digestive system and enable most lactose-intolerant people to easily digest frozen yogurt More that 40 flavors offer great variety and menu flexibility No sugar added and low fat varieties complete the product line *NONFAT FROZEN YOGURT MEETS NATIOINAL YOGURT ASSOCIATION CRITERIA FOR LIVE AND ACTIVE CULTURE YOGURT PRODUCT LINE REVIEW YoCream Original Tart Frozen Yogurt The consumer trend is again moving toward the tart frozen yogurt, popular in the 1970 s. YoCream is proud to reintroduce it s Original Tart Frozen Yogurt. Popular with young adults and healthconscious consumers, Original Tart frozen yogurt offers: Crisp tart flavor profile perfect for topping with fresh fruit, nuts or cereal Nonfat dessert offering a good source of calcium Even higher levels of probiotic culture counts than sweet frozen yogurt, providing optimal health benefits from a frozen dessert *MEETS NATIOINAL YOGURT ASSOCIATION CRITERIA FOR LIVE AND ACTIVE CULTURE YOGURT 3
MANUFACTURING The Culture Process Pasteurizing process 4
Mixing tanks Gable top carton filler 5
FROZEN YOGURT Frozen Yogurt Trends Market Research: Frozen Yogurt and Soft Serve Category Total U.S. sales of ice cream and frozen desserts reached nearly $23 billion. Of that total, $8.9 billion was spent on products for at home consumption, while $13.9 billion was spent on products purchased for away from home consumption (products purchased at scoop shops, foodservice and other retail outlets). 1 Frozen Yogurt retail sales percentage growth is outpacing percentage sales of Ice Cream. 2 The resurgence in frozen yogurt popularity is being led by the new trend, Tart Frozen Yogurt. 3 Euromonitor forecasts 37% growth in fortified/functional dairy product sales in the US between 2005 and 2010, while AC Neilsen data shows drinkable yogurt is the world s fastest-growing food category at 18% with growth in 40 of 45 markets polled. 4 Consumer acceptance of drinkable yogurt has created awareness of yogurt health benefits which is evident in increased popularity of smoothies blended with frozen yogurt and fruit, especially in h ll i 5 1 Source 2007 Dairy Facts 2 Source Dairy Foods, January 2008 3 Source Dairy Foods, March 2007 4 Source Functional Foods & Nutraceuticals, March 2007 5 Source On Campus Hospitality, March 2007 REGULATORY Frozen Yogurt Standards of Identity California - Required presence of L. bulgaricus, S. thermophilus, and L. acidophilus. No minimum CFU per gram requirement - Titratable Acidity of not less than 0.3% expressed as lactic acid or 0.5% expressed as lactic acid if fruit or fruit flavoring is added Oregon - Prepared from a product fermented with L. bulgaricus and S. thermophilus. - Frozen dessert in which cultured milk is an ingredient shall not be required to meet any minimum bacteria count standards. - Titratable Acidity of not less than 0.2% expressed as lactic acid 6
REGULATORY Proposed Standard of Identity Frozen Yogurt is a dairy product which has been pasteurized and afterwards fermented by L. bulgaricus and S. thermophilus and may include other safe and suitable food grade bacterial cultures. Frozen Yogurt must contain 10 million colony forming units (CFUs) per gram. Is this culture count too high? Not high enough? Is yogurt probiotic in the absence of acidophilus or other recognized probiotic bacterial cultures? Measurement Methodology??? Standard Culture Count (Lactic Acid Bacteria)? Culture Viability Measurement (Inoculation of pasteurized dairy media with sample)? TA What does it really measure? What makes sense for the industry? What works in the field for testing purposes? 7