Overarching Narrative Specialty food ingredients are an integral

Overarching Narrative Specialty food ingredients are an integral part of the overall food value chain. They make possible the great – nutritious, safe, sustainable, affordable, convenient and delicious – foods and beverages consumers enjoy every day. Typically, specialty food ingredients preserve, texture, emulsify, colour, help processing and add an extra health dimension to produced food. They range from micro-ingredients like vitamins, minerals and enzymes to macroingredients like specific proteins, fats, carbohydrates, fibres and other substances. Around 200 businesses are involved in the EU speciality food ingredient market, today worth around € 16 billion, a significant share of the global market valued at € 40 billion and employing 90, 000 people. Just under a quarter of the companies involved in the sector are small or medium enterprises. With the world facing multiple challenges, from feeding a growing population in a sustainable way to tackling public health challenges and meeting individual nutritional needs or personal dietary choices, thanks to our focus on nutrition and food science and our knowledge of consumers’ current and evolving preference, the specialty food ingredients’ industry will continue to reformulate existing products and bringing innovative new products to market. 3/6/2021 DRAFT 1

Message #1 – Innovation Our intense focus on nutrition and food science, together with our knowledge of consumers current and evolving preferences, enable us to create innovative products that meet consumer need. Our industry has the products, technology, expertise and dedicated R&D resources that allow us to meet ever-increasing and constantly changing consumer demands and regulatory and societal needs. Product reformulation that preserves the overall product attributes (appearance, taste, texture, shelf life, etc. ) while enhancing the consumer experience is a complex process – one that is only possible with our intense focus on nutrition and food science, resulting in products that respond to consumer needs (e. g. healthier foods, more convenient foods, foods with expanded shelf life, etc. ). We know how important it is to create products that meet evolving consumer needs. We are dedicated to delivering innovations that reflect the trends, insights and understanding that are driving the product – now and in the future. • • • Our industry contributes over € 40 billion to annual turnover of EU food and drinks industry and invests 3 -8% of our turnover, on average, each year back into technology & innovation. The industry invests in robust teams of research, development, applications, technical services and intellectual property specialists working in companies and locations across Europe and around the world to provide a range of expertise and services to foods & drinks manufacturers. We invest in research to ensure the efficacy of our ingredients and their potential uses to help foods & drinks manufacturers to develop products that meet consumer needs. • For example, a company-funded study found incorporating soy protein-based foods into higher protein energy-restricted regimes can be successful in reducing body weight for consumers looking to increase consumption of plant sources in their diets or for those adhering to a flexitarian or vegetarian diet. The total research and development (R&D) period for a new molecule or food product is 4 to 10 years. For a new formulation of an existing ingredient, the time period is typically 1 -3 years. 3/6/2021 • • • Specialty food ingredients manufactruers undertake proprietary research to understand consumer preferences in food and beverage products, and then, using our ingredient expertise, identify ingredient solutions that can meet those needs. Consumers are looking for healthier food choices – without sacrificing great taste. Our companies work with inhouse experts of food manufacturers to improve their formulas and meet their internal goals of making healthier products for consumers. Considerable progress has been made in the area of health and nutrition. The preparation of foods such as margarine containing poly-unsaturated fats and many low-calorie products would be impossible without using specialty food ingredients. • Our industry is developing new products that allow food manufacturers to meet consumers’ quality demands beyond just flavour, but also on appearance and texture, for products such as reduced sugar fruit spreads. • Our companies have developed sodium reduction options that deliver maximum salty flavour with less sodium, including salt substitutes that deliver enriched potassium levels. Our technical experts have in-depth knowledge of ingredients and how they work with a wide range of other ingredients. This breadth of expertise helps foods & drinks manufacturers create products that consumers will love. DRAFT • • • Understanding the importance of maintaining good health, our industry provides ingredients for nutritional supplements and functional food products that support weight management, joint health and strengthening bones and muscles. Approximately 70% of the world’s population have lactose malabsorption, which has led to a growing demand for low-lactose products, such as milk, yogurts and cheeses. By adding small amounts of the enzyme lactase to milk, manufacturers can reduce or remove lactose and allow people with lactose mal-absorption to enjoy dairy products. Our way of life has thoroughly changed in the last few decades. Activities away from the home have reduced the amount of time consumers spend in the kitchen. The use of specialty food ingredients, combined with innovative food technology, has made possible the large scale preparation of good wholesome food at economical prices. Thanks to specialty food ingredients we also have access to many convenience foods that can be ready quickly and easy but with great taste such as dry sauce mixes, instant mashed potato and instant desserts as well as prepared dishes and snacks. Indeed, there is a whole range of different ingredients that are essential in many of the day-to-day foods we eat in our busy modern lives. 2

Message #2 – Safety & Quality We develop and provide safe ingredients that meet consumer demands for transparency, traceability and trust, not just in our products, but throughout our supply chains. Consumers expect their food to be safe. All marketed ingredients must be safe to human health. We adhere to the highest industry safety standards and apply rigorous scientific standards to innovative food industry and product research. Today, consumers require complete and total transparency from all involved in the food supply chain. We meet this demand through traceability of our ingredients and the science and data to explain what our ingredients do and why they’re safe. Several types of specialty food ingredients are added to a food with a safety purpose. The precise nature and purpose of a food determines what specialty food ingredients are needed, as does the way in which it is processed. • • • Most of the industry’s ingredients are subject to pre-market authorisation, which implies the assessment of their safety by the European Food Safety Authority (EFSA) before they can put be on the market. A novel food ingredient can only be authorised when it is judged not to pose a risk to human health. It must also not mislead the consumer and, if replacing another ingredient, not be nutritionally disadvantageous. Specifically for food additives, experts identify the Acceptable Daily Intake (ADI) that corresponds to the quantity of said additive that may be ingested on a daily basis over a lifetime without health risks. Member States of the European Union are obliged to monitor the level of consumption of food additives, to ensure that their population is always below the ADI. Health and nutrition claims associated with functional ingredients are also subject to a thorough evaluation by EFSA prior to their authorisation. EFSA is internationally known to apply the highest scientific standards in the world. Claims on food labels and in advertising must be based on evidence that is generally accepted by the scientific community. They must be used in compliance with the regulation and notably include a reference to the importance of a balanced diet and healthy lifestyle. Many specialty food ingredients have a long history of safe use in food. For example: • Milk soluble alginates (sourced from brown seaweeds) became important stabilizers for ice cream in 1934. • Guar gum (sourced from guar plants) started to be used in processed food after the Second World War to overcome a shortage of locust bean gum, though guar beans and pods have been harvested for thousands of year for human consumption. 3/6/2021 • • • There approximately 320 food additives authorised in Europe and classified into 26 functional categories. This diversity represents a guarantee of safety and food quality. The manufacturer must statutorily use the one that is best adapted to the desired technological effect, whilst taking into account the production properties and the nature of the product. For this reason, it is more efficient and safer to use several substances in small quantities rather than resort to a smaller number of additives, the combined consumption of which could lead to exceeding the ADI of each. All food additives used by a manufacturer have to be listed on the label by their name or their E number with minor exceptions (e. g. packaging gases) Many ingredient manufacturers have set ambitious traceability goals to ensure a sustainable and transparent supply chain, and are closely tracking implementation to ensure significant steps are taken to achieve their goals. Consumers are looking for simpler, understandable ingredient labels and high standards of food safety. In response, our industry has invested in: • Ingredient solutions that increase food safety and shelf life, with formulations based on natural ingredients such as vinegar, jasmine tea extract and citrus flour. • De-oiled rapeseed lecithin that meets demands for allergen-free, label-friendly ingredients and can be sourced from Central European crops with the highest levels of quality and food safety. • Pea protein, as an alternative source of protein, which offers a non-GMO, organic, allergen-friendly option. DRAFT Just as different food products have different properties, so do the various specialty food ingredients; for example, food additives exhibit specific properties, even if they are designed for the same purpose, such as preservation or emulsification. Some foods are acidic and so any additives used must remain stable in acidic conditions. Other foods require heating to high temperatures, which means the food additive must be able to withstand heat. The differences between additives may be very subtle, but it is only when one stops to consider their specific properties that it becomes evident that such a wide variety is essential. For example, specialty food ingredients can be used to: • Stop foods from deteriorating too rapidly, e. g. by preventing undesirable micro-organisms from growing, or by slowing down the chemical reactions that make them go off without affecting their flavour or nutritional value (e. g. preservatives, cultures in fermented products) • Maintain a food’s nutritional profile, for example by preventing vitamins, essential amino-acids and unsaturated fats from degrading (e. g. antioxidants). • Mitigate the formation of undesirable components such as acrylamide generated in a wide range of cooking processes (e. g. Enzyme asparaginase and ingredients such as citric or ascorbic acid, calcium salts). 3

Message #3 – Health & Nutrition Eating more healthily is our common goal. We are committed to invest in research and innovation to respond to existing public health needs and to provide food solutions to population with specific needs. Food consumption studies show that nutritional recommendations are not always followed. With the modern fast-pace of life and eating habits, nutrients intake is sometimes insufficient. Therein lies the importance of health ingredients. Research on the topic of "healthy ageing" has been carried out in the face of the ageing of the European population and the anticipated increase in healthcare expenses. Prevention through a healthier diet can be part of the solutions. Overweight and obesity are public health challenges and are linked to increase in other health problems such as cardiovascular diseases or diabetes. Their causes are manifold: a balanced diet can be part of the solution to tackle these challenges. Allergies and intolerances such as coeliac disease (intolerance to gluten), can limit food choice and lead to unbalanced diets. • • • Nutriments are "essential", when the body is unable to produce them alone in sufficient quantities whilst they are critical to the body's proper functioning. It is therefore imperative that they be provided by diet, enriched foodstuffs or dietary supplements. The use of health specialty food ingredients contributes to readjusting nutritional intake and to providing specific health benefits. There are several families of health ingredients: probiotics, food fibres, plant extracts and derivatives (carotenoids, phytosterols, etc. ), fats (omega-3), proteins, vitamins and minerals. For example: • CAROTENOIDS: This large family of pigments takes its name from the carrot. It includes a few true stars, starting with beta-carotene. In addition to its role as an antioxidant, beta-carotene is a precursor of vitamin A and hence contributes to vitamin A intake. Three other carotenoids play an important role, i. e. , lutein and zeaxanthin mainly stored in the retina where they are said to contribute to the prevention of age-related macular degeneration and lycopene contained in tomatoes that are said to have antioxidant properties. Health ingredients are used in different types of food products for general consumption, such as certain breakfast cereals, and in food products aimed at population groups with specific nutritional needs: infants, young children, the elderly, athletes, individuals affected by certain pathologies. They can also be found in the form of dietary supplements. 3/6/2021 • • In practical terms, the work involves the decrease of risk factors associated with diseases: age-related macular degeneration, memory loss, osteoporosis, joint diseases, etc. Existing products such as calcium and Vitamin D enriched dairy products can already contribute to this goal, but our industry is now looking beyond vitamins and minerals to explore what further innovation can help support the goal of healthy ageing, including contribution to e. g. maintenance of normal blood cholesterol concentrations; maintenance of tooth mineralisation by decreasing tooth demineralisation; reduction of post-prandial glycaemic responses; normal lipid metabolism; maintenance of normal vision; normal cognitive and neurological function; maintenance of normal cardiac function. The efficacy of ingredients is assessed by the European Safety Food Authority (EFSA) and recognised by a specific health claim according to Regulation (EC) 1924/2006. Moreover it will be important to make these products desirable for elderly population that often experience a loss of appetite. DRAFT Ingredients manufacturers seek to introduce ingredients into a wide range of food products that can contribute to reducing body fat mass. The challenge for manufacturers is to ensure that, in order to have a significant impact on obesity, the ingredients are sufficiently versatile and palatable to be used in a wide range of food products. • For example, low calorie sweeteners combined with bulk sweeteners help replace sugar in sweet tasting foods and drinks, creating products that can be of help to people with diabetes and individuals wishing to manage or control their weight. Moreover, with dental caries being a major public health concern globally, these ingredients do not promote tooth decay, because they are hardly or not fermented by oral bacteria. • Additionally, fibres and low calorie fats can be used as a fat replacer. Fibers also have a proven effect, notably on intestinal transit or on a drop in cholesterol. According to recent studies, prebiotic fibres could play a role in weight control. • Texturising agents such as modified starches are useful to provide texture and creaminess to foods and low-fat products. • Gelatine can form an oil-in-water emulsion, making it a suitable ingredient to partially replace the high fat content in some products and being a useful tool in the reformulation of low-fat or reduced-fat meals. • As regards the battle against food allergies, ingredients manufacturers strive to find novel ingredients which can ensure the normal appearance, characteristics and health benefits of foods, but remove the allergenic properties. • Ddeveloping adequate replacements for wheat and rye flour still remains a major challenge but ingredients such as rice-starch can confer the required texture, such as crunchiness in crackers. These innovations rely on the synergy between ingredients: prebiotics, probiotics and alternative sources of proteins. • LACTASE: Lactose-intolerant individuals are unable to digest this milk sugar, since the enzyme that allows doing so, lactase, is absent or insufficiently present in their intestines. Industrial use of lactase allows to produce lowlactose or lactose-free milks. Dietary supplements provide lactase to intolerant individuals. 4

Message #4 – Sustainability We provide tools and solutions for tomorrow’s challenges, contributing to a sustainable future for people, planet and business, improving resource efficiency along the whole food value chain thanks to specialty food ingreidents’ effective impact during food processing and storage. Consumers expect companies to be environmentally responsible. As part of the food supply chain, we support a holistic sustainability story. Environment, health and resource efficiency are essential elements of our supply chain. We can improve resource efficiency in the food chain by reducing downstream losses. Roughly 1. 3 billion MT of food is lost or wasted annually, corresponding to one third of the global food production, and being responsible for about 4. 4 gigatons of greenhouse gas annually. In a world where there are greater demands on our increasingly stressed food systems, our industry is driving future-ready innovation. • • Specialty food ingredients enable the full use of food raw materials, improve the efficiency of food processing and help reduce food waste. Due to its innovative nature, the industry constantly strives to improve manufacturing processes. Our industry is using innovative technologies like GPS mapping to improve the sustainable sourcing of ingredients such as cocoa. Individual companies are making commitments not only to sustainable sourcing of ingredients, but to improving the livelihoods of farmers and producers by enabling them achieving better incomes and living standards. Many of our industry’s ingredients are sustainably sourced from raw materials. For example: • Alginate is produced from brown and red seaweeds which do not use land, fertilizers or fresh water. • Pectin is produced from citrus peels that have already been used for extraction of juice and oils, and after the pectic is extracted, are used for animal feed. • 3/6/2021 Our industry acknowledge its responsibility of being as resource-efficient as possible in the production of specialty food ingredients. Among other activities the specialty food ingredients production notably strives for energy efficiency improvements and lower water usage, resulting in energy saving, thus reduction of Greenhouse gas. Moreover, specialty food ingredients improve resource efficiency in the food chain by continuously innovating and by using all valuable components of raw materials, • Fibres are a typical example of the valorisation of a by-product through their use as a bulking agent in food, as are e. g. gelatine produced from slaughtering by-products or whey protein from cheese manufacturing. • When possible, ingredients manufacturers convert their side streams into by-products to avoid waste, e. g. dicalcium phosphate is a product derived from the gelatine manufacturing. • In the baking industry, ingredients companies are helping manufacturers increase the shelf life of products, which saves raw materials, energy and water consumption and sends less waste to the landfill. Enzymes applied in UHT processing of milk can reduce energy and water use by 15%. They can also help increase juice extraction from fruit, increasing yield by 15% and the quantity of fruit juice extracted while keeping its nutritional value. DRAFT Specialty food ingredients have a significant impact in the reduction of this waste by extending the shelf life and protecting the organoleptic properties of the food. Hence less food is wasted as it can stay longer on the shelf or consumers have more time to consume the foods until their ‘use by’ date or even after the ‘best before’ date. For example: • Preservatives are well-known for their important role in extending shelf-life of foodstuffs without compromising their safety. Buffered vinegar, for example, can extend the shelf life of sausages from 12 days to 15 days while maintaining spoilage bacteria. • Antioxidants such as rosemary extract are added to many types of foods such as fats and oils, sauces and dressings, meat, poultry and fish, to extend shelf-life. • Stabilisers and gelling agents that reduce the syneresis in milk-based desserts; • Emulsifiers avoid separation of oil and water in mayonnaise and sauces; • Colours can compensate for discoloration of soft beverages occurring over time; • Antioxidants avoid rancidity of fats and oils; • Anti-caking agents prevent powdered cake preparations to agglomerate. • Innovation will ensure that projected populations of 9 to 11 billion will get the affordable, nutritious and safe foods and beverages that meet their expectations – and are produced within planetary boundaries. Our companies are working to replicate ingredients and/or sources of ingredients that are currently at risk and unsustainable to offer food developers reliable and resilient solutions. For example: • Employing a new technology to replicate the functionality of wild seaweed using cultivated seaweed for carrageenan extraction. • Creating a natural, traceable, sustainable, high-quality alternative to marine-based omega-3 s necessary to meet the global demand for farmed salmon. 5