FLC MAR ANNUAL MEETING OCTOBER 24, 2007

Going To School On Children’s Nutrition

NAVIGATING TECHNOLOGY NAVIGATING TECHNOLOGY TRANSFERTRANSFER

DEVINE FOODS INC.

Born Of A Passion To Provide Healthy Foods

For Kids…

A Passion Based on Facts

GENESIS OF THE COMPANY

• Personal Experiences• Whole Food Focused Research

– Taste preferences and Eating Habits are developed early in life

– Impact of Diet– Collaboration with Food Scientists at Cornell

• Passionate Mission

WHO ARE WE

• Woman Owned Business• Technology Based Company Driven By

Innovation• Focused on Truly Healthy Foods that

Address the Twin Threats of Obesity and Diabetes

• Develops Natural Whole Foods Delivered in Forms and Tas

DEVINE FOODS’OBJECTIVES

• To create healthy, great tasting and convenient products for children that are appropriate for school food service– Nutrition impacts a child’s ability to learn– Early nutrition impacts lifelong health

• To create great tasting and more convenient ways for everyone to follow the USDA Nutrition Pyramid Guidelines– 6-11 daily servings of grains– 5 daily servings of vegetables– Achieve daily fiber requirement

GROWING RELEVANCE

• ATTACKING THE TWIN EPIDEMICS OF TODAY– OBESITY– TYPE 2 DIABETESWHILE….

• ADDRESSING CONVENIENCE CONCERNS

• FULFILLING TASTE DEMANDS

OBESITY

• Obesity related diseases are now the second leading cause of death– Surgeon General warns obesity may soon overtake

tobacco as the leading cause of preventable deaths

• 65% of Americans are either overweight or obese• Problem affects all ethnic and socioeconomic

groups• Geographically pervasive

The Surfacing of an Epidemic: Prevalence of Obesity* Among U.S. Adults 1991

*Approximately 30 pounds overweight

Source: Behavioral Risk Factor Surveillance System (BRFSS)

Note: BFRSS uses self-reported height and weight to calculate obesity; self-reported data may underestimate obesity prevalence.

The Surfacing of an Epidemic: Prevalence of Obesity* Among U.S. Adults 2000

*Approximately 30 pounds overweight •Source: Behavioral Risk Factor Surveillance System (BRFSS)•Note: BFRSS uses self-reported height and weight to calculate obesity; self-reported data may underestimate obesity prevalence.

Health Risks Associated With Obesity

• Adapted from www.niddk.nih.gov/health/nutrit/pubs/statobes.htm26

Prevalence of Overweight* Among U.S. Children and Adolescents

• *Gender- and age-specific BMI > the 95th percentile• Source: Centers for Disease Control and Prevention (CDC), National Center for Health

Statistics (NCHS) National Health Examination Survey (NHES), National Health and Nutrition Examination Survey (NHANES)

Age-adjusted Prevalence of Overweight or Obesity in Selected Groups (NHANES III, 1988–1994)

•Source: Centers for Disease Control and Prevention (CDC), National Center for Health Statistics (NCHS),

National Health and Nutrition Examination Survey (NHANES)

TYPE 2 DIABETES, A GROWING EPIDEMIC IN

CHILDREN• Type 2 diabetes in children was virtually unheard

of a decade ago.• About 85% of Type 2 cases in kids are linked to

obesity. 77% of obese children remain obese as adults

• The percentage of overweight young people has doubled since 1980 with over one-quarter of children estimated to be overweight. (The US Department of Health and Human Services, the Centers for Disease Control and Prevention (CDC).

THE IMPACT ON CHILDREN’S HEALTH

• Childhood Obesity Rates Have Doubled in the Last decade

• Nearly a Quarter of the 63 Million Americans Between Age 4 and 18 Are Now Clinically Overweight

• Obesity Increases the Risk of Diabetes, High Blood Pressure, Coronary Artery Disease and Some Cancers

THE IMPACT ON CHILDREN’S HEALTH

• Type 2 diabetes, a growing epidemic in children

• Type 2 diabetes in children was virtually unheard of a decade ago.

• About 85% of Type 2 cases in kids are linked to obesity. 77% of obese children remain obese as adults

THE IMPACT ON CHILDREN’S HEALTH

• Fat Cells Make Estrogen So Obesity May Trigger Puberty At Younger Ages

• A Study of 17,000 Girls Found That 15% of Whites and 48% of African Americans Between Ages 8 and 9 Had Entered Puberty

• Entering Puberty Before Age 12 Carries a 20% Higher Risk of Developing Breast Cancer Than Starting Puberty At Age 14

THE IMPACT ON CHILDREN’S HEALTH

• The Number of Children With Asthma is Up 160%Over the Last 15 Years

• Incidence of Childhood Cancer is Up Across the Board

• Unhealthy Children Are More Susceptible to Other Health Issues As Adults

THE IMPACT ON

SOCIETY• Health Care Expenses in The U.S. Now

Exceed $1 Trillion Making It The Largest % of GDP Than Any Developed Nation

• Consider How An Already Constrained Healthcare System Will Cope With the Future Fallout From These Alarming Childhood Obesity and Disease Trends

WHOLE GRAIN GOODNESS AS A DEFENSE

– AID WEIGHT LOSS VIA INCREASED FULLNESS

– REDUCE BLOOD SUGAR AND THE NEED FOR SPIKED INSULIN LEVELS

– REDUCE BLOOD PRESSURE– REDUCE CHOLESTEROL LEVELS– REDUCE THE RISK OF COLORECTAL

CANCER

WHOLE GRAINS

• DEVINE FOODS PATENTED TECHNOLOGY ALLOWS WHOLE GRAIN USE IN NON GRAIN FORMATS– PROCESS AND COMPOSITION PATENTS

FOR GRAINS AND VEGETABLES

• LIQUID OR FROZEN FORMS AS SUBSTITUTES FOR OR INCORPORATION WITH JUICE, MILK AND OTHER EVERYDAY PRODUCTS

UNIQUE PRODUCTS

• How Are They Better?– In The Forefront of The Nutrition Evolution

• Supplements (Tablets and Powders)

• Foods and Beverages That Are Supplemented

• Whole Foods

– Role of Trace Elements/Phytonutrients

– What You Eat (Not What You Avoid) Determines Health

– Devine Foods’ Patents Can Make Whole Foods Great Tasting And Convenient

WORKING WITHTHE USDA

CREATING HEALTHIER

FOODS FOR THE

SCHOOL LUNCH PROGRAM

Eastern Regional Research Center 600 East Mermaid Lane Wyndmoor, PA 19038

SURVEY FINDINGS

• A survey conducted by the NIH and the USDA concluded that only 1% of children met the USDA dietary recommendations for all five food groups-grain, fruit, vegetables, meat and dairy.

Eastern Regional Research Center600 East Mermaid LaneWyndmoor, PA 19038

AMERICAN HEALTH FOUNDATION:

Fiber Recommendations• Fiber has important health benefits for childhood. It helps

protect against abnormal bowel function, obesity and high cholesterol during childhood.

• Children currently consume inadequate amounts of dietary fiber.

• Increasing consumption of fiber in children’s diets can be accomplished by increasing consumption of a variety of fruits, vegetables and grain products.

Eastern Regional Research Center600 East Mermaid LaneWyndmoor, PA 19038

AMERICAN HEALTH FOUNDATION

• Fiber from food sources, rather than from supplements, is suggested.

• Fiber acts as a nutritional foundation to help prevent adult diseases, including heart disease, cancer, stroke, diabetes, adult obesity and hypertension

Eastern Regional Research Center600 East Mermaid LaneWyndmoor, PA 19038

Eastern Regional Research Center600 East Mermaid LaneWyndmoor, PA 19038

Although the Institute of medicine recommends calciumintakes of 800 mg/day for children ages 3 to 8 and 1,300mg/day for children and adolescents ages 9 to 17, only about 25% of boys and 10% of girls ages 9 to 17 areestimated to meet these recommendations

Factors contributing to low calcium intakes are: restriction of dairy products low level of fruit and vegetable consumptionhigh intake of low calcium beveragesLactose Intolerance rises as demographics changeDairy alergies and dairy avoidance persist“HIH Consensus Development Program, Draft Statement, March 27-29, 2000”

CALCIUM RECOMMENDATIONS

CHANGING DIETARY HABITS

• Soft Drinks Are The Leading Source Of Sugar In The Diet

• Children Who Have One Sugar Sweetened Beverage a Day Have a 60% Greater Risk of Becoming Obese

• Soft Drinks Are the Leading Cause Of Type II Diabetes

• Type II Diabetes Now Accounts for 50% of Diabetes Cases in Kids, Compared to <1% Twenty Years Ago

Eastern Regional Research Center600 East Mermaid LaneWyndmoor, PA 19038

CSPI - Quoting Government Data - 10/98

CHANGING DIETARY

HABITS• TODAY…

– TEENAGE GIRLS AND BOYS DRINK TWICE AS MUCH SODA AS MILK

• TWENTY YEARS AGO…– TEENAGE GIRLS AND BOYS DRANK TWICE AS

MUCH MILK AS SODA

CSPI Quoting Government Data - 10/98

CHANGING DIETARY HABITS

• THE AVERAGE 12-19 YEAR OLD WHO DRINKS SODA CONSUMES ABOUT TWO CANS PER DAY

• 5% OF MALE SODA DRINKERS AGE 13-18 DOWN ABOUT 5+ CANS A DAY AND 5% OF FEMALE DRINKERS CONSUME 3+ CANS PER DAY

MARKETFACTORS

• PROLIFERATION OF SODA AND JUICE DRINK PRODUCTS– Direct tradeoff in calcium consumption

• SODA CONTRACTS EXPANDING REACH INTO LOWER SCHOOLS

Eastern Regional Research Center 600 East Mermaid Lane Wyndmoor, PA 19038

STRATEGIC ALLIANCE WITH USDA (CRADA)

• APPEALING FORMAT TO DELIVER CALCIUM AND NUTRITION– Milk Shake/Soft Serve/Hard Pack

• Reduced Sugar• High Fiber• Fat-Free• Lactose Free• Whole Grain Nutrients• Protein

– Middle School & High School– Elementary School

Eastern Regional Research Center600 East Mermaid LaneWyndmoor, PA 19038

Eastern Regional Research Center600 East Mermaid LaneWyndmoor, PA 19038

Non-Fat, Reduced Sugar, High Fiber

Soft Serve/Ice Cream/Smoothie

NUTRITIONPROFILE

• COMPARABLE PROTEIN AND CALCIUM LEVELS FOUND IN CHOCOLATE MILK WITHOUT THE FAT

• HALF THE SUGAR OF A MILKSHAKE• A GOOD SOURCE OF FIBER CLAIM• HEART HEALTHY GRAINS• LACTOSE FREE

Eastern Regional Research Center600 East Mermaid LaneWyndmoor, PA 19038