HEALTHIER OILS HEALTHIER BUSINESS TODAYS PRESENTERS The Omega9

HEALTHIER OILS. HEALTHIER BUSINESS.

TODAY’S PRESENTERS The Omega-9 Oils team from Dow Agro. Sciences Katherine Salloum Brand Manager 2 Mary La. Guardia Market Manager Dave Booher Group Leader

TODAY’S AGENDA § Latest Consumer Research on Fats and Oils § How High Performance Oils Deliver These Consumer Needs § Best Frying Practices § Questions and Answers 3

THE CHANGING CONSUMER LANDSCAPE § Definition of health is changing overall § Having the right kind of fats is more important than minimizing fat intake § Still confusion as to what the healthy fats and oils are § Which fats and oils are used • How usage drives purchases in packaged goods and foodservice 4

“My definition of healthy food items has changed over the past two years” Fresh Additive-free SHIFTING VIEWS ON HEALTH Natural Real Clean Unprocessed 51% 18– 34 5 38% 35+ © 2017 Technomic Inc. Source: Technomic 2016 Snacking Consumer Trend Report

DIETITIANS MOST TRUSTED HEALTH SOURCE Trusted Sources About Which Foods to Eat/Avoid 6 IFIC Food and Health Survey 2017

CONSUMER UNDERSTANDING OF HEALTHY OILS STILL CHALLENGE Perception … 7 Dow Internal Research, 2015 … is not always reality

FATS AND OILS THROUGHOUT THE STORE Prepared Foods/Restaurant 8 Center Store

CLEAN EATING = HEALTHY EATING What defines a CLEAN food? 9 Source: Healthy Eating Consumer Trend, Technomic What defines a HEALTHY food?

THIS NEW HEALTHY IS DRIVING PURCHASES § 1/3 of all food sales are “clean and clear” (Nielsen) § Label Insight: 39% of consumers would switch brands for a cleaner label § Nielsen: Products making sustainable farming claims saw average sales growth of 11. 4% § Sales growth with label claims (latest 52 weeks ending Jan. 28): • Organic: +10% • Free from additives and artificial ingredients: +8% • All natural: +7. 8% • Nothing artificial: +3. 6% 10

HOW HIGH PERFORMANCE OILS DELIVER CONSUMER NEEDS 11

FATS ARE 20– 35% OF A FOOD ITEM 12

THE OPTIMUM OIL PROFILE Heart healthy § § § High in ‘good’ fats Lowest sats 0 trans Clean, light flavor § Consumers prefer Omega-9 Oils compared to other common oils Natural stability § § § 13 High oleic, low linolenic Longer fry and shelf life No preservatives or hydrogenation

d e t ra u t a s n u THE OPTIMUM OIL PROFILE Heart healthy § § § High in ‘good’ fats Lowest sats 0 trans Clean, light flavor § Consumers prefer Omega-9 Oils compared to other common oils Natural stability § § § 14 High oleic, low linolenic Longer fry and shelf life No preservatives or hydrogenation

d e t ra u t a s n u THE OPTIMUM OIL PROFILE Heart healthy saturated § § § High in ‘good’ fats Lowest sats 0 trans Clean, light flavor § Consumers prefer Omega-9 Oils compared to other common oils Natural stability § § § 15 High oleic, low linolenic Longer fry and shelf life No preservatives or hydrogenation

Cookies 16 Attribute Current Ingredient change PH Soy Fat content 20% Sat fat in the shortening 25% Trans fat in the shortening 45% Fat (g) 3. 2 g Trans fat (g) 1. 5 g Sat fat (g) 0. 8 g MUFAs (g) 0. 6 g PUFAs (g) 0. 3 g PRODUCT REFORMULATIONS Serving size – 16 g

Cookies 17 Attribute Current Desired Ingredient change PH Soy Canola oil, palm oil Fat content 20% Sat fat in the shortening 25% 20% Trans fat in the shortening 45% 1% Fat (g) 3. 2 g Trans fat (g) 1. 5 g 0 g Sat fat (g) 0. 8 g 0. 6 g MUFAs (g) 0. 6 g 2 g PUFAs (g) 0. 3 g 0. 6 g PRODUCT REFORMULATIONS Serving size – 16 g

Cookies 18 Attribute Current Desired Ingredient change PH Soy Canola oil, palm oil Fat content 20% Sat fat in the shortening 25% 20% Trans fat in the shortening 45% 1% Fat (g) 3. 2 g Trans fat (g) 1. 5 g 0 g Sat fat (g) 0. 8 g 0. 6 g MUFAs (g) 0. 6 g 2 g PUFAs (g) 0. 3 g 0. 6 g PRODUCT REFORMULATIONS Serving size – 16 g

OIL INNOVATION FROM AGRICULTURE Canola Sunflower § Maximize stable fats and minimize the unstable § No need for hydrogenation = trans fats § Can remove chemical stabilizers 19 Soybean

FROM CLEAN TO CLEAR WHAT IS AND WHAT IS NOT ON THE LABEL MATTERS 1 CLEAN LABEL § § 20 Recognizable, natural ingredients No artificial or chemical ingredients Shorter ingredient lists with no unnecessary components Sustainable and ethical ingredients 2 CLEAR LABEL § § Honesty above all Simpler, less “busy” product labels Clear and precise information about ingredients and sourcing More front-of-pack information

TRANSPARENCY: GOOD FOR GROWERS, CONSUMERS AND FOOD MANUFACTURERS 2 On-Farm Production 1 Seed Technology Grown under a “closedloop” environment — traceable to grower Non-GMO oil produced sustainably 4 Food Industry 21 3 Processing and Distribution

OMEGA-9 SUSTAINABILITY STORY 22 HEALTHY CONSUMERS HEALTHY FARMERS HEALTHY PLANET § Supplying Better Nutrition § Reducing Food Waste § Providing Traceability § Expanding Markets § Increasing Revenue § Attracting the Next Generation § Reducing Water Use § Supporting Soil Health § Yielding More

NON-TRADITIONAL FOODSERVICE: GROCERANT 23

QUESTION HOW DO YOU VIEW OIL IN YOUR ORGANIZATION? 1 24 IT IS SOMETHING WE COOK IN 2 IT IS SOMETHING WE CAN IMPACT § Bottom line costs § Product flavor and appearance § Nutritional goals § Operations § Sustainability efforts

BEST FRYING PRACTICES HEALTHIER OILS. HEALTHIER BUSINESS. TM

TEMPERATURE CONTROL Uncontrolled temperature can lead to rapid fryer oil breakdown, high oil absorption and inconsistent or unsatisfactory fried foods. 1. Check oil operating temperature daily – Use a fry thermometer to ensure the oil operating temperature does not exceed 365°F. If necessary, adjust the fryer’s thermostat setting. 2. Lower the temperature when not in use – Turn the fryer temperature down to 225°F when it is not in use. TIP: Remove the fry baskets when you lower the temperature as a reminder to turn the temperature back up when you are ready to use the fryer again. 26 3. Start up slowly – 15 minutes prior to initial use, start the fryers at a low temperature of 225°F. Increase the temperature to operational level 5 minutes prior to use. 4. Allow recover time – Fryers must have time to recover to the correct frying temperature before you add more food. 5. Check cooking instructions – Check package for correct fry temperature and times for specific foods.

FOOD AND EQUIPMENT HANDLING Properly handling the food you are frying and your kitchen tools can help improve frying quality. 1. Monitor turnover – A good volume of food through the fryer means high turnover (oil added daily to “top up” the fryers), which significantly reduces the amount of oil that is discarded. 2. Watch the salt – Do not salt food near the fryer and avoid using processed foods containing salt as an ingredient. 3. Remove loose breading – Breaded products should be shaken away from the fryer to remove any loose or excess breading. Any products you are frying should be as dry as possible. 4. Shake ice crystals – Shake ice crystals off frozen foods away from the fryer and do not dump frozen french fry bags into baskets while they are over the fryer. 27

CLEANING AND MAINTENANCE Proper cleaning and maintenance extends the oil’s fry life. 28 1. Skim floating particles – Skim the frying oil to remove small pieces of food or excess breading from the fryer. Skimming should be done whenever floating particles are present. 2. Filter oil daily – Filter the oil at least once a day to remove all sediment accumulated in the fryer. 3. Check oil quality – Observe the oil quality regularly, discarding if necessary. 4. Check oil level – Ensure fryer oil level does not drop below the line. 5. Monitor basket limits – Do not overload fryer baskets with too much food. 6. Filter and cover oil when not in use – If the oil will not be used for a while — overnight or during the weekend, for example — it is best to filter the oil and cover the fryer with a metal lid, keeping the oil as cool as possible. 7. Clean fryer weekly – Clean and boil the fryer weekly with an approved commercial cleaner developed for fryers. Remove gum from fryers and elements and rinse thoroughly, ensuring all soap residue is flushed out. Rinse again with clean water and dry thoroughly. Refill fryer following the rotation method, adding fresh oil if needed.

TASTE/QUALITY IS KING DELIVER ON YOUR CULINARY AND OPERATIONAL STANDARDS FRY MORE THROUGH SMART OIL USAGE USE FOOD COLORS AS AN INDICATOR FOR TESTING OIL NOT color of the oil 29

KEY TAKEAWAYS § Watch temps — typically stay around 350°F § Anything in the fryer breaks down the oil; skim as often as possible; filter twice a day § Fill baskets away from the fryer; contaminants in the fryer prematurely break down your oil § Taste is king; use food taste/quality and appearance as your guide to discarding oil § Oil is a high non-food cost for most organizations and a key area for savings 30

CASUAL DINING One-month test conducted to examine fry life, nutrition and food quality of Omega-9 Canola Oil versus commodity soy § § 31 Strong fry life Significant savings Nutritional advantage Sustainable win

FOODSERVICE IMPACT By changing to Omega-9 Canola Oil, you can impact: § The bottom line by reducing oil usage, thus reducing food cost § Operational efficiency through decreased number of oil changes, decreased product handling, and easier equipment cleaning § Health and wellness efforts with a significant reduction in saturated and trans fat, as well as cholesterol (tallow users) § Flavor development in your products with our clean, neutral profile § Sustainability efforts through a significant decrease in the plastic and cardboard manufactured for oil packaging 32

FIND A SUPPLIER § Omega-9 Oils are available through six major national suppliers under their own brands § These products are available through many leading foodservice distributors 33

KEY TAKEAWAYS HEALTH CONSCIOUS CONSUMERS +HEALTHY OILS HEALTHY BUSINESS 1 34 CONSUMERS WANT HEALTHY FATS 2 HIGH PERFORMANCE OILS DELIVER ON CONSUMER NEEDS AROUND TASTE, NUTRITION AND PERFORMANCE 3 THE RIGHT OIL AND THE RIGHT FRYING PRACTICES CAN IMPROVE YOUR BOTTOM LINE

WANT TO LEARN MORE? About Omega-9 Oils omega-9 oils. com 35 About Good Fats goodfats 101. com

CONTACT US 36 Katherine Salloum Brand Manager Mary La. Guardia Market Manager Dave Booher Group Leader KSalloum@dow. com MKLa. Guardia@dow. com 403 -267 -3582 630 -428 -8494 dmbooher@dow. com 317 -337 -4596 Connect with us on

QUESTIONS? 37