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Volume 8, Issue 30 Monday, 10 June 2013 ISSN 1837-7971

Market Intelligence & Innovations in Functional Foods & Nutraceuticals

Table of Contents

Business & Market Intelligence ............................................................................................................................... 2

Consumer & Market Trends and Market Size .......................................................................................................... 4

Innovations, new products, IP ................................................................................................................................. 8

Regulations, Labelling, Health Claims & Food Safety ........................................................................................... 10

Nutrition, Diets, Health Benefits & Related Research ............................................................................................ 13

Reviews, Comments, and Opinions ...................................................................................................................... 14

Publications in the digital format (e-magazines) .................................................................................................... 16

Agricultural Commodity Prices Updates ................................................................................................................ 18

Webinars Worldwide .............................................................................................................................................. 19

Conferences & Meetings Worldwide ..................................................................................................................... 19

Disclaimer .............................................................................................................................................................. 20

Subscription Conditions ......................................................................................................................................... 20

Subscription & Contact Information ....................................................................................................................... 21

Functional Foods Weekly (46 electronic Issues/year) subscription is available as single, multiple, library, academic, site and corporate user licenses. It is targeted at FMCG food, dairy, nutrition, beverage & ingredient industry CEOs, Marketing and R&D executives and their teams. Academic & governments institutions and libraries receive special subscription rates. For current subscription rates, please contact: OzScientific Pty Ltd, PO Box 8018, Tarneit (Melbourne), VIC 3029, AUSTRALIA; email: weekly@functionalfoods.biz ; phone: +61431972591 (Australia); fax: +12673166967 (US/Global); http://www.functionalfoods.biz

Compiled from analysis of over 500 resources every week including media releases, Internet searches, news wires, RSS feeds, magazines, research journals, patent sites etc. Visit us: http://www.functionalfoods.biz

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Business & Market Intelligence

Parmalat secures price cut for Lactalis US buy Italian dairy group Parmalat has secured a reduction in the price it will pay for Lactalis

America Group, the US arm of its majority owner Lactalis. The board of the Italian dairy processor indicated that it has secured a cut of US$130m to the $904m it paid for Lactalis American Group last year. The total enterprise value now stands at $774m, Parmalat's board said in a notice to the market. Parmalat had

originally requested a price reduction of $144m, after controversy over the acquisition erupted in Italy…… Read Cargill sell Swiss flour business to focus on feed production Cargill has announced plans to sell its Penthalaz, Switzerland-based flour business, operating

as Provimi Kliba SA, to flour and grain milling company Groupe Minoteries SA. The sale includes the land, buildings, and machinery involved in the flour milling, grain origination and feed production facilities located at sites in Penthalaz and Orbe. Terms of the agreement were not made public, and the deal is

expected to close in early August. A new Company, Grands Moulins de Cossonay Sarl à Penthalaz will be established and 41 of Cargill's employees will be transferred to the new Company. Groupe Minoteries SA will purchase the shares of the new Company through the transaction….. Read PepsiCo, Theo Muller Group open a sustainable yogurt plant in New York state The more than 350,000-square-foot facility will have three production lines initially, which

can produce more than 120,000 cups of yogurt per hour. The facility can accommodate up to eight production lines with room for future expansion. The company is targeting LEED certification for the facility, which would make it the

largest LEED-certified dairy manufacturing plant in the world. The facility opening was celebrated by United States Senator Charles E. Schumer, PepsiCo Chairman and CEO Indra Nooyi, Theo Muller Group owner Theo Muller, and various New York state and local officials. "PepsiCo continues to perform at an extremely high level while simultaneously transforming our portfolio for the future and strengthening our position in high-growth food and beverage categories. We have invested over many years to expand our global nutrition offerings in ways that allow us to capitalize on new growth opportunities, and the new Muller Quaker Dairy facility demonstrates continued progress against this key business priority," said PepsiCo's Nooyi….. Read PepsiCo in talks to buy SodaStream for $2 billion: report PepsiCo (PEP.N) is in talks to buy Israel's SodaStream International (SODA.O), whose machines make carbonated drinks from tap water, for $2 billion, the Calcalist financial newspaper reported on Thursday. SodaStream, which also makes flavors, carbon dioxide refills and re-usable bottles, was listed on Nasdaq in 2010 and has a market valuation of $1.4 billion. Estimates are that PepsiCo is willing to go even higher than $2 billion and might agree to pay as much as $95 per share, Calcalist said. SodaStream's shares closed at $69.35 on Wednesday. PepsiCo has already made an offer to buy SodaStream through Goldman Sachs, according to the report…… Read

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Chinese market re-opens for Australian canola Auatralia canola producers are reaping the benefit of the Chinese market being reopened for exports of the oilseeds, with over 450,000 tonnes booked in for export. The ban was lifted in March, after exhaustive lobbying from the Australian canola industry, and the first shipments of Aussie canola, a joint shipment from Esperance and Kwinana ports, have arrived. A further load, out of Geelong in Victoria, has also arrived in southern China, while more are on the way, either on the water or being loaded. Nick Goddard, executive director at the Australian Oilseeds Federation (AOF), said the value of the loads to go out so far tallied $80 million and more business was planned….. Read Canadian dairy producer Saputo's results disappoint Saputo Inc, Canada's largest dairy producer, reported lower-than-expected quarterly profit

on Wednesday and said it expects a challenging dairy market in the current fiscal year. The results and outlook reflect the stiff competitive pressure in the dairy business, which can influence Saputo's cost structure and pricing, said Morningstar analyst Erin

Lash. "We're not surprised that they're facing some headwinds. We don't see those pressures abating," she said. Saputo's shares were down C$1.02 or 2 percent at C$49.50 in early afternoon trading in Toronto while the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 1.2 percent. Net income rose to C$100.5 million ($97.6 million), or 51 Canadian cents a share, in the fourth quarter, compared to a net loss a year earlier due to a goodwill impairment charge. Revenue grew by 20.5 percent to C$2.05 billion…… Read Morningstar buy may be just the beginning for Saputo ino Saputo, chief executive officer and vice-chairman of the board of Saputo, Inc., made it clear on June 5 that his company’s acquisition of Morningstar Foods from Dean Foods may be just the beginning of a buying spree for the company. “You’re asking how likely is it?” Mr. Saputo said in response to a securities analysts’ question regarding the potential for additional acquisitions. “I think it’s very likely. I think there are – in that space, and in the categories of products that Dairy Foods processes and sells, you’ve got quite a few national competitors, as well as some – and perhaps even more, regional players that could really fit our platform and be a real nice tuck-in business for us. I think there are multiple targets out there. It’s a question of finding the right one, finding one that has a desire to sell as much as we have a desire to buy them.”……. Read Canada accuses Nestle, Mars of chocolate price-fixing

Canadian authorities charged Nestle, Mars and a network of independent wholesale distributors over an alleged criminal conspiracy to fix the prices of leading chocolate bars. Competition Commissioner John Pecman

called their alleged actions "egregious anti-competitive behavior that harms Canadian consumers" and "a serious criminal offense." A whistleblower triggered the investigation that uncovered "evidence suggesting that the accused conspired, agreed or arranged to fix prices of chocolate products," the Competition Bureau said in a statement. Three individuals were also charged: Robert Leonidas, former president of Nestle Canada; Sandra Martinez, former president of Confectionery for Nestle Canada; and David Glenn Stevens, head of Canadian food distributor ITWAL. If convicted, they face a fine of up to Can$10 million (US$9.75 million) and imprisonment for a term of up to five years…… Read

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Indian Dairy Giant Amul To Start Manufacturing In US Amul Dairy, a posterchild for the success of the cooperative production movement in India,

and a household name on the subcontinent, is planning to manufacture some of its dairy products in the U.S. over the coming months, in a move to cut export costs and boost sales overseas. The initiative, which has been in the works since 2011 and is the first of its kind for an Indian cooperative unit, is likely a preliminary step for Amul and the Gujarat Cooperative Milk Marketing Federation, or

GCMMF, to set up its own manufacturing facility in the U.S. at a later date. “The production is expected to commence in next six to eight months, and thereafter the federation will undertake marketing of the dairy products range there,” GCMMF Managing Director R.S. Sodhi told the Press Trust of India. “With this arrangement in place, the federation expects sales to get a big push in the U.S.”….. Read Heinz takeover of baby food supplier blocked in Australia Australia's competition regulator has blocked an attempted takeover of Rafferty's Garden,

an organic baby food supplier, by US-based food giant HJ Heinz on concerns that the deal would have reduced competition significantly. The Australian Competition and Consumer Commission said the proposed deal would have removed a strong opponent for Heinz, itself the subject of a

$23.2 billion takeover bid from Warren Buffett's Berkshire Hathaway and Brazilian financier Jorge Paulo Lemann's private equity firm 3G Capital. "The proposed acquisition would combine the two largest suppliers of wet and dry infant food in Australia, resulting in highly concentrated markets where barriers to entry and expansion are high," ACCC Chairman Rod Sims said in a statement…… Read Back to the Table of Contents

Consumer & Market Trends and Market Size

Children increasingly unaware of sources of foods Almost a third of UK primary pupils think cheese is made from plants and a quarter think fish fingers come from chicken or pigs, suggests a survey. Nearly one in 10 secondary pupils thinks tomatoes grow under ground, according to the poll for the British Nutrition Foundation (BNF). Some 27,500 five-to-16-year-olds were questioned last month. The charity says the figures prove the need for better teaching about cooking and healthy eating. The survey also revealed confusion about the source of staples such as pasta and bread among younger pupils, with about a third of five-to-eight-year-olds believing that they are made from meat. About 19% of this age group did not realise that potatoes grew under ground, with 10% thinking they grew on bushes or trees…… Read China’s grocery market to grow by one-third, India to overtake Japan China, the world’s biggest food and grocery market, is now valued at more than US$1tn per year and is forecast to grow by a further one-third by 2016, according to latest figures published by IGD. Over the same period, India’s market will have also seen significant growth

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to the point of overtaking Japan to become the world’s third largest grocery consumer with a value of US$566bn. Indeed, all of the BRIC nations are expected to feature among the top five grocery markets by 2016, with a value worth just over US$3tn in total. “For food and consumer goods companies, the Asia-Pacific and Latin American grocery markets offer long-term growth opportunities, with many businesses already profiting from entering them,” said Joanne Denney-Finch, chief executive, IGD….. Read Dairy prices dip again, despite processor optimism Prices fell at GlobalDairyTrade for a third successive auction - but this time led by near-term contracts, with product for more distant delivery supported by upbeat forecasts from processors. The GlobalDairyTrade index dropped by 5.3% to a three-month low, taking to 14.1% its decline from the record high reached early last month. The drop was led by whole milk powder, for which prices tumbled by 7.1%, taking their decline in the last three auctions to 18.1%. Butter milk powder prices fared best at Tuesday's auction, rising by 3.3%. However, in a departure from the pattern of decline up to now - in which product for delivery late in the year has fared worst, undermined by the prospect of a strong start to New Zealand's production season, now that drought concerns have dissipated – near-term contracts fared worst this time….. Read Consumption of Added Sugars Among U.S. Adults, 2005–2010 Increased consumption of added sugars, which are sweeteners added to processed and

prepared foods, has been linked to a decrease in intake of essential micronutrients and an increase in body weight. The Dietary Guidelines for Americans, 2010 recommends limiting total intake of discretionary calories, including both added sugars and solid fats, to 5%–15% per day. Recent analyses indicate

that children and adolescents obtain approximately 16% of their total caloric intake from added sugars. Key finding from the survey:

The mean percentage of total calories from added sugars decreased with increasing age and increasing income.

Non-Hispanic black men and women consumed a larger percentage of their total calories from added sugars than non-Hispanic white and Mexican-American men and women.

More of the calories from added sugars came from foods rather than beverages.

More of the calories from added sugars were consumed at home rather than away from home.

……. Pdf, 8 pages…. Read

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Americans are Consuming Less Fluid Milk Americans are drinking less fluid milk, on average. In this study, ERS researchers find that declining consumption since the 1970s reflects changes in the frequency of fluid milk intake,

rather than changes in portions. USDA survey data collected between 1977 and 2008 reveal that Americans are less apt to drink fluid milk with their midday and night-time meals than in earlier years, reducing the total

number of consumption occasions per day. Moreover, more recent generations of Americans show greater decreases in consumption frequency, holding constant other factors such as education and race. The majority of Americans born in the 1990s consume fluid milk less often than those born in the 1970s, who, in turn, consume it less often than those born in the 1950s. All other factors constant, as newer generations with reduced demand gradually replace older ones, the population’s average level of consumption of fluid milk may continue to decline……. Pdf, 35 pages… Read The 2013 Food & Health Survey: Consumer Attitudes toward Food Safety, Nutrition & Health (US) The 2013 Food & Health Survey: Consumer Attitudes toward Food Safety, Nutrition & Health, commissioned by the International Food Information Council Foundation, is the

eighth annual national quantitative study designed to gain insights from Americans on important food safety, nutrition and health-related topics. The vast majority of Americans believe it’s possible to have a great deal of control over their level of physical activity, the healthfulness of their diet and their weight, yet far fewer are actually taking

that control. Ninety percent of consumers say it’s possible to have “a great deal” or “complete” control over their physical activity, yet only 65 percent are actually trying to take that same amount of control in their own lives—a 25-point “control gap.” In terms of the healthfulness of their diet, there is a 20-point gap (88% versus 68%), and regarding their weight, the gap is 16 points (81% versus 65%). This indicates that there are barriers preventing people from taking more control of their physical activity, diet and weight. A lack of willpower (64 percent), the dislike of exercise (60%), the perceived high cost of healthful food (54%), and slow progress (51%) are barriers that prevent Americans from taking greater control over their weight……. Pdf, 99 pages… Read

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U.S.D.A. study finds nutritional improvement in cereal New research from the U.S. Department of Agriculture (USDA) Agricultural Research Service (ARS) published in the second issue of Procedia Food Science shows the nutrition profile of ready-to-eat cereals has markedly improved, according to data collected between 2005-2011. The study found that whole grain is now a key ingredient in two-thirds of cereals made by leading ready-to-eat cereal manufacturers, led in part by General Mills' initiative to increase whole grain across its Big G cereal portfolio. According to the U.S. Dietary Guidelines, Americans are falling short when it comes to whole grain. 2 Health benefits of eating adequate amounts of whole grains include healthier body weight and, potentially, protection against cardiovascular disease and type 2 diabetes…… pdf, 7 pages….. Read Survey: Consumers Shop C-Stores As Regularly As Supermarkets In an effort to understand how the consumer shops in convenience stores, a recent survey of 1,000 men and women across the U.S. was conducted by Social Science Research Solutions (SSRS) for Imprint Plus, a leading manufacturer of customized, re-usable, magnetic name badge and signage systems. When asked how often consumers shop in a convenience store, 59 percent of the respondents reported more than once a week, with that number increasing to more than 70 percent among 18- to 44-year-olds. Surprisingly 25 percent of the consumers surveyed reported that they shop in a convenience store more or as frequently as they shop at the supermarket or grocery store….. Read Dairy looks to become Japan’s next big growth market Japan’s dairy food sector is expected to buck the otherwise weak consumer spending trend in Japan with strong growth all the way through to 2017. According to research by Canadean, the sector will see a compound annual growth rate of 4.6% and volume CAGR of 3.9% over the period. It also identified that milk will hold the largest value as its volume continues to dominate the dairy market over the next four years. The dairy food sector is the third largest in the Japanese food industry and will witness the fifth fastest growth towards 2017. Of these categories, milk is by far the strongest with a value share of 42.7% and a volume share of 51.8%. It is expected to continue growing with a forecast growth rate of 5.0% in value and 4.2% in volume towards 2017 – making it the second fastest growth dairy food category. The second largest category, yoghurt, has a value share of 25.4% and a volume of 23.1%, although it is projected to have only the fifth fastest growth of 3.8% in value and 2.9% in volume…… Read Flavoured milk to spur dairy growth, says Tetra Pak New research from Tetra Pak forecasts that flavoured milk consumption will grow at more than double the rate of white milk globally between 2012 and 2015. Consumers are increasingly turning to tasty, nutritious and conveniently packaged flavoured milk as an alternative to other beverages, creating opportunities for dairies to improve profitability. Flavoured milk, the second most widely consumed Liquid Dairy Product (LDP) after white milk, is forecast to increase by a compound annual rate (CAGR) of 4.1% between 2012 and 2015, rising from 17 billion litres to 19.2 billion litres……. Read Greek Yogurt Continues Its Sales Growth Marathon In the wake of the Greek yogurt craze, yogurt remains a superfood with significant upside, according to a recently released report from Packaged Facts (www.packagedfacts.com), The Yogurt Market and Yogurt Innovation: Greek Yogurt and Beyond. Packaged Facts forecasts that U.S. retail sales of yogurt will approach $9.3 billion by 2017, up from $7.3 billion in 2012. Even with its recent market growth, yogurt continues to be consumed at a much lower

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per capita rate in the U.S. than in other countries where yogurt is a staple. Moreover, yogurt is spreading beyond the breakfast daypart, reflecting the "breakfast-all-day" culinary and menu trend. In the U.S. market, retail dollar sales of Greek yogurt increased more than 50% in 2012 to reach $1.6 billion, with significant gains in the mass-market as well as natural and specialty retail channels. At the same time, non-Greek yogurt saw its sales decrease…… Read The rise of the protein drinks for ordinary people Protein products are increasingly being marketed in supermarkets to ordinary people. Do they serve any real purpose for non-athletes? The "sport-related" protein product sector is booming. It's estimated that the world will be chewing and gulping down £8bn a year of bars, drinks, and other supplements by 2017. But there's now a wave of products where the branding marks a departure from the traditional world of the protein supplement. The classic protein drinks have usually been characterised by displays of over-sized bottles and tubs, often with labels depicting rippling torsos. The powders and bars targeted hardcore gym-goers and amateur athletes. The typical customer was someone who wanted to build muscle and aid recovery after a serious workout. But the latest generation is positioned more around healthy lifestyle…… Read Reaching Millennials through packaging Millennials are so much more than a demographic, but let’s get their vital statistics out of the way so we can move on to the juicy stuff. The Millennial generation is most often charted as those who are roughly 18 to 35 years of age who “grew up” during the changeover to the new millennium. They are large in both number and influence, topping 80 million in the U.S. population and comprising the most widely networked group the world has ever seen. And Millennials have a reputation: They are known for being incredibly well informed, highly passionate, and incredibly critical….. Read Back to the Table of Contents

Innovations, new products, IP

New BOOST® Nutrition Bar Provides Nutrition On-The-Go Research shows that over 40% of adults do not meet the recommended daily intake for many vitamins and minerals through diet alone.(1,2) For older adults in particular, getting the right nutrition each day can be a challenge. Nestle Health Science understands the needs of seniors and has developed a nutrition bar to meet the specific nutritional needs of older adults to help them get the nutrients they may be missing. New BOOST® Nutrition Bars are hitting store shelves nationwide starting this spring. BOOST® Nutrition Bars, available in great-tasting Chocolate and Peanut Butter Chocolate flavors, contain 21 vitamins and minerals, including 50 percent of the daily value of calcium per serving and 11 grams of protein in the convenience of a bar. Protein is essential to help maintain muscle and calcium is a critical nutrient for bone health….. Read

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New product marks 'the beginning of the end for the can'? Kiwi innovation has created a world first that’s putting chunky fruit into pourable pouches for adults and teenagers. Just as juice has gone from bottles to cartons, fruit processor

ENZAFOODS claims it’s the beginning of the end for the can. The new "FreshFields’ Fast and Fruity" pouch range is being launched in Australia and New Zealand supermarkets with sales expected to exceed $4 million in the first year. ENZAFOODS sales and marketing manager Dave France said the company was taking consumers where they had never been before - "juice has gone from bottles to cartons, now real chunky fruit will now be sold in re-sealable pouches." "No longer will you have to use a can-opener, or worry how to store what’s left over in the fridge. You can re-seal and keep it

in the fridge for up to five days - no waste, no mess." "Baby food and puree fruit is in pourable pouches, but there’s nothing for anyone over the age of 10. "I guess you could say the days of the can, could well be numbered." Mr France said it’s not only the packaging that sets this food innovation apart, but the formulation of "chunk and bite" that’s giving consumers a new experience - gone is the syrup or juice that comes with preserved tinned fruit….. Read Natural appetite controlling drink debuts in can A health drink launched to tackle the growing problem of obesity in the United States has signed a deal to be distributed in cans through a chain of health food stores. The new drink, called full core, will be available in Rexam’s 12oz sleek cans at approximately 4,550 GNC outlets throughout the United States and Puerto Rico. Drink founders Peter Hayes and Jeff Brudos said they were thrilled with the deal. Hayes said, “The partnership with GNC will give thousands of consumers across the country the opportunity to experience this breakthrough product…… Read “Pure” avocado powder on the way New Zealand spray dryer, FoodWaikato and oil producer Avocado Oil New Zealand have

come together to develop an avocado powder for use in food, cosmetic and nutriceutical products. The product, to be marketed under the Avopure brand, will be sold initially in Australia, the US, Japan and China. “Our plant has been up and running for one year now and we’ve primarily been drying milk products. So drying avocados – in fact fruit of any kind – was new territory for us,” said Dave Shute, FoodWaikato Plant Manager. “We did our first trial run in January, which introduced us to the challenges of dealing with a fruit that is fibrous, highly viscous, and oxidises rapidly

if exposed to air,” he said. FoodWaikato said it also faced the “huge challenge” of cleaning the plant to the highest food safety standards so that it was ready to process milk again within 24 hours of the avocado drying trial. The plant is now preparing to undertake commercial production of the avocado powder with Avocado Oil New Zealand….. Read

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Kellogg Launches Hot Cereal, Bars, Shakes And More For Changing Breakfast Preferences Kellogg Company is introducing several new breakfast products to meet the changing needs and preferences of many of its consumers, including Special K® Nourish hot cereal and bars, and Kellogg's® To Go breakfast shakes. "Special K Nourish hot cereal and bars are specifically designed for people who are seeking positive nutrition to help manage their weight," said Doug VanDeVelde, senior vice president, Kellogg Morning Foods. "These consumers are focused on eating better, not just eating less." When considering a nutritious breakfast, 54 percent of consumers think fiber is important and 49 percent think protein is important.[i] Special K Nourish hot cereal features a unique whole grain blend, including quinoa, oats, barley and wheat, and each serving provides 8 grams of protein and 5 grams of fiber…… Read Bio-Based PEF Bottles to Hit Market by 2016 ALPLA Werke Alwin Lehner GmbH joined Avantium, Coca-Cola and Danone in an agreement to develop PEF (polyethylene furanoate) bottles and ideally bring 100% bio-based PEF bottles to the market by 2016. PEF is a generation of 100% bio-based and recyclable polyester with the potential to replace conventional fossil resources-based durable materials like PET. PEF has a significantly higher barrier to oxygen, carbon dioxide and water compared to PET, extending product shelf life and reducing production costs. An independent life-cycle-analysis study by the Copernicus Institute at the University of Utrecht has demonstrated the carbon footprint of PEF is 50% to 70% lower than today’s PET. Brand owners are leading the transition from fossil resources-based packaging materials like PET (polyethylene terephthalate), to bio-based materials. These materials should comply with existing recycling solutions. The YXY technology platform is a catalytic technology to convert plant-based materials into chemical building blocks for bio-plastics, such as PEF…… Read Cadbury maker Mondelez creates chocolate that doesn't melt The maker of Cadbury chocolate is close to introducing heat-resistant bars it can sell at market stalls in Africa and some of the world's hottest places. Mondelez International, which also makes Oreo cookies, has spent at least 10 years on research and is close to introducing the new snacks to consumers, according to Lawrence MacDougall, the company's president for Eastern Europe, Middle East and Africa (EEMEA). However, he declined to give a specific date for the roll-out. He gave no details on the content of the chocolate, how it tasted or what it would be called but said that it could solve the problems Mondelez and other snack producers face in sub-Saharan Africa, where many consumers shop in outdoor markets and food can be left for hours in the blazing heat. "It can withstand 40 degrees and not turn to liquid," Mr MacDougall told Reuters in an interview……. Read Back to the Table of Contents

Regulations, Labelling, Health Claims & Food Safety

2015 Dietary Guidelines Advisory Committee Appointed by HHS & USDA The U.S. Department of Health and Human Services (HHS) Secretary Kathleen Sebelius and U.S. Department of Agriculture (USDA) Secretary Tom Vilsack unveiled the appointment of

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15 nationally recognized experts to serve on the 2015 Dietary Guidelines Advisory Committee. The Committee's recommendations and rationale will serve as a basis for the eighth edition of the Dietary Guidelines for Americans. The Dietary Guidelines serve as the foundation for national nutrition programs, standards, and education. In addition, the Dietary Guidelines provide key recommendations for the general population as well as specific population groups to help people choose an overall healthy diet that works for them….. Read AFGC plan to push for relaxed 'gluten-free' definition meets opposition (Australia) An imminent application by the Australian Food & Grocery Council (AFGC) to broaden the definition of the term 'gluten free' in Australia has met with opposition from some quarters. Allergy-focused food processor, Freedom Foods, has stated that it opposes a push to allow food containing up to 20 milligrams of gluten per kilogram to fall into the gluten-free category. Currently, food manufacturers must ensure there is no detectable level of gluten in foods when making a gluten-free claim under Food Standards Australia New Zealand (FSANZ) regulations. The AFGC, however, is preparing to submit an application to FSANZ calling for the relaxation of the gluten-free definition in line with standards in the UK and Europe…. Read New law sets harsh penalties for use of banned food additives (Taiwan) The use of banned additives in food products could lead to a maximum penalty of life imprisonment in cases where death occurs as a result of such an illegal practice, according to a bill that was passed Friday by the Legislature. Food or food additives should not be adulterated with unapproved substances during the process of manufacturing, processing, formulating, packaging, transportation, storage, selling, importation or exportation, according to the amended Act Governing Food Sanitation. Banned additives should also not be put into food products made as gifts or as exhibits, the law stipulates. Violators could face up to three years in prison and/or a maximum fine of NT$8 million (US$266,894), the bill states. In cases where death occurs as a result of consumption of food contaminated with banned additives, the maximum penalty is life imprisonment and/or a fine of NT$20 million, under the new law….. Read New rules for specialised food products (EU) Foods for particular nutritional uses (PARNUTs) are currently regulated under the PARNUTs Directive, differently from other food products. Problems with the application of the Directive include overlaps with other food legislation, legal loopholes, and inconsistent national interpre­tation. To remedy these problems, the Commission has proposed to replace the PARNUTs Directive with a new Regulation applying to a much more limited group of foods. PARNUTs food is consumed by persons with particular nutritional requirements, including infants and young children, persons with digestive system disorders, athletes and people on low-calorie diets. PARNUTs food represents 1 to 2% of the European food market (around €24 billion annually). The current PARNUTs Framework Directive 2009/39/EC is based on an approach introduced in 1977. It applies to a broad category of ‘dietetic foods’. The Directive is complemented by specific legislation concerning infant food, slimming food, and food for persons with gluten intolerance. Since the introduction of the PARNUTs Directive, developments in the food sector have intro­duced new foods which could be classified as both PARNUTs and normal foods, for example food supplements for pregnant women……. Read

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Saputo Hits Kraft With Trademark Suit Over 'Toppers' Cheese Saputo Cheese USA Inc. hit Kraft Foods Group Inc. and a subsidiary with a lawsuit in Illinois federal court Friday, saying Kraft’s “Toppers” Velveeta cheese products infringe Saputo’s “Toppers" brand cheese mark that it has used since 1996. Saputo raises allegations that the Toppers mark, which it says has come to be associated with its cheeses, is continually being infringed by Kraft, which promotes, markets, advertises and distributes a line of Velveeta brand cheese products under the mark “Toppers.”….. Read Views wanted on chia seeds (UK) A company has asked the FSA's expert advisers on novel foods to consider an application for chia seeds to be approved for use in the European Union (EU) under the simplified approval procedure. Views are wanted on the independent experts' draft opinion. A novel food is a food or food ingredient that does not have a significant history of consumption within the EU before 15 May 1997. The company is Infoods Ltd (based in the UK). It is requesting an opinion from the Agency on the 'equivalence' of their chia seeds, which are grown in particular regions of South America, with the chia seeds grown in Australia and marketed by The Chia Company. The European Novel Foods Regulation includes a simplified approval procedure for when a company believes its novel food is substantially equivalent to a food that is already on the market. In such a situation, the applicant can submit a notification to the European Commission after obtaining an opinion on equivalence from an EU Member State – in this case the UK……. Read Stevia industry criticises consumer group over “not natural” charge The European stevia industry has criticised a German consumer group that took the manufacturer of a stevia sweetener product to court claiming that stevia leaves on the pack design were “misleading” to consumers. The Consumer Association for the German region of Baden-Württemberg said in a press release that the sweetener product obtained at the end of processing had “nothing to do with a natural extract or even the stevia plant”. It added that “steviol glycosides do not occur naturally in foods”. In a joint statement The European Stevia Association (EUSTAS) and the International Stevia Council (ISC) say that consumer group’s own comments are misleading. They point out that steviol glycosides are approved under European law and that they are obtained using “conventional extraction techniques” also regulated under EU law. European law currently permits a two-stage extraction process – the first involving water extraction of the leaves of the stevia rebaudiana bertoni plant and preliminary purification of the extract by employing ion exchange chromatography to yield a steviol glycoside primary extract, and the second involving re-crystallisation of the steviol glycosides from methanol or aqueous ethanol resulting in a final product consisting mainly (at least 75 %) of stevioside and/or rebaudioside A.”….. Read Ireland: Even terms like ‘live cultures’ are implied (& banned) EU probiotic health claims Irish authorities have clarified the country’s position in regard to probiotic health claims, taking a literal reading of the EU position that the term ‘probiotic’ alone is an implied health claim. Since no probiotic has yet won a health claim under the EU nutrition and health claim regulation (NHCR), monikers like ‘probiotic’ are banned in marketing and promotional materials to consumers, although there has been some debate about terms like ‘live cultures’. The Food Safety Authority of Ireland (FSAI) issued a statement to clarify its position on the matter. “Stating ‘contains probiotic’ (or similar) on a product is not the same as saying ‘contains ingredient X’,” FSAI said…… Read

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Nutrition, Diets, Health Benefits & Related Research

Vegetarian diet reduced risk for all-cause mortality Vegetarian diets are linked to lower all-cause mortality and cause-specific mortality, according to data published in JAMA Internal Medicine (original Ref). Michael J. Orlich, MD, of the Adventist Health Studies, School of Public Health at Loma Linda University in California, and colleagues observed associations between vegetarian diets and lower cardiovascular mortality and lower noncardiovascular, noncancer mortality in this prospective cohort study. Of the 73,308 patients included in the Adventist Health Study 2 (AHS-2), 5,548 (7.6%) were vegans, 21,177 (28.9%) were lacto-ovo-vegetarians, 7,194 (9.8%) were pesco-vegetarians, 4,031 (5.5%) were semi-vegetarians and 35,359 (48.2%) were not vegetarians. During a mean follow-up of approximately 6 years, the researchers reported 2,570 deaths, suggesting a mortality rate of 6.05 (95% CI, 5.82-6.29) deaths per 1,000 person-years. Furthermore, the HR for all-cause mortality among all vegetarians vs. nonvegetarians was 0.88 (95% CI, 0.8-0.97), they wrote. “These results demonstrate an overall association of vegetarian dietary patterns with lower mortality compared with the nonvegetarian dietary pattern. They also demonstrate some associations with lower mortality of the pesco-vegetarian, vegan, and lacto-ovo-vegetarian diets specifically compared with the nonvegetarian diet,” the researchers wrote……. Read Review finds canola has beneficial cholesterol effects A review of 40 directly relevant studies found several health benefits associated with canola oil consumption, including the substantial reduction of total cholesterol and L.D.L. “bad” cholesterol levels. The Canola Council of Canada, Winnipeg, and the U.S. Canola Association, Washington, provided funding for the review, which appears in the June issue of Nutrition Reviews. “The objective of this review was to examine the health benefits of canola oil as a dietary component itself, rather than focus on the effects of individual types of fat in the oil,” said Peter Jones, Ph.D., lead researcher and director of the Richardson Centre for Functional Foods and Nutraceuticals at the University of Manitoba, which conducted the review. “This approach results in practical advice to consumers about including canola oil in the diet.”…. Read New Research Shows Cheese May Prevent Cavities Consuming dairy products is vital to maintaining good overall health, and it's especially important to bone health. But there has been little research about how dairy products affect oral health in particular. However, according to a new study published in the May/June 2013 issue of General Dentistry, the peer-reviewed clinical journal of the Academy of General Dentistry (AGD), consuming cheese and other dairy products may help protect teeth against cavities. The study sampled 68 subjects ranging in age from 12 to 15, and the authors looked at the dental plaque pH in the subjects' mouths before and after they consumed cheese, milk, or sugar-free yogurt. A pH level lower than 5.5 puts a person at risk for tooth erosion,

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which is a process that wears away the enamel (or protective outside layer) of teeth. "The higher the pH level is above 5.5, the lower the chance of developing cavities," explains Vipul Yadav, MDS, lead author of the study. The subjects were assigned into groups randomly. Researchers instructed the first group to eat cheddar cheese, the second group to drink milk, and the third group to eat sugar-free yogurt. …… Read Study questions effectiveness of coffee for weight loss Western Australian researchers hoping to demonstrate improved cardiovascular function among coffee lovers have found that drinking too much of the popular brew may actually be linked to worsening of the metabolic syndrome. The study, published in May 2013 in the Journal of Agricultural and Food Chemistry, by researchers from the Western Australian Institute for Medical Research (WAIMR) and the University of Western Australia’s School of Medicine and Pharmacology looked at a compound known as Chlorogenic Acid (CGA). “Studies have shown that coffee consumption lowers the risk of developing type 2 diabetes,” said Professor Kevin Croft, from the University of Western Australia’s School of Medicine and Pharmacology. “This also included research on decaffeinated coffee, which suggested that the health benefits are from a compound in coffee apart from caffeine,” he said…… Read Back to the Table of Contents

Reviews, Comments, and Opinions

Limited potential seen for the growth of the Chinese dairy industry further There is ''limited potential'' for the Chinese domestic dairy industry to grow, Xie Jianmin of the Chinese Ministry of Agriculture says. China faced strong constraints in terms of environmental protection, the country was lacking water and land resources and labour costs were growing, he said in a recent interview with New Zealand media representatives in Beijing. New Zealand's strong advantage in dairy production had led to investment by Chinese companies, Mr Xie, the ministry's international co-operation director, said. As to whether he expected further Chinese investment in New Zealand, he said it was a market-based decision and companies would have to make their own decisions, according to the investment environment. In China, the agricultural sector faced many challenges, including limited water and land resources and a very large population…… Read Kellogg Company’s annual report Kellogg Company’s annual report is available now….. pdf, 101 pages… Read (A copy of the Q1 presentation is also available…. Pdf, 18 pages… Read) Russian Federation – 6-monthly dairy update Moscow has decreased the 2013 forecast for Russian dairy cow inventories because State support programs for the Russian dairy sector have so far proved insufficient to fully offset the impact that increased feed prices, resulting from the 2012 drought, are having on Russian dairy farms. Given the continued reduction in cow inventories, FAS/Moscow has reduced 2013 forecasts for domestically produced fluid milk (31.6 MMT), cheese (455,000 MT), and non-fat dry milk (NFDM) (55,000 MT). These production decreases have, in turn, led to favorable import conditions for dairy products in 2013, particularly from Belarus.

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Domestically produced butter (210,000 MT) and whole milk powder (WMP) (65,000 MT) production is forecast to remain unchanged given the continued availability of imported Belarusian fluid milk….. pdf, 16 pages… Read China food and health industry update China Updates is a service provided by U.S.-China Health Products Association. Stories in this Issue:

Health Food for Students

Jiaduobao in the “Hot Seat”

Amway to Build New Facility

Jiuzhitang’ s Business Thwarted

Chinese Dairy Firm Preparing for Listing

China’s FDA Withdraws Approvals

Police Seize Counterfeit Amway

China’s Dairy Enterprises Vie with Foreign

Chairman of CHCA: China’s Health Industry is Rising

Dali Group Launches New Functional Beverage

Function of Collagen Falls in Dispute

CCTV: Fake Foreign Formula New Bay Bay Severely Affects Children’s Growth ………. Pdf, 8 pages…. Read Tetra Pak Dairy Update – Flavoured milk Today, white milk accounts for roughly 70% of LDP consumption. Tetra Pak research shows that white milk is heavily consumed by children aged 3-12, after which milk consumption

starts decreasing with age. Moreover, a majority of milk consumption happens during breakfast and then tapers off as the day progresses. In this context, flavoured milk can be an excellent vehicle to drive consumption from an early age through adolescence and into adulthood, according to Tetra Pak. It can

help expand consumption occasions beyond breakfast, serving as a snack, energiser or meal accompaniment. And it can help dairy companies find the ‘sweet spot’ encompassing both health and taste. Consumption of flavoured milk globally remains low relative to white milk, carbonated soft drinks and fruit-flavoured still drinks, further highlighting its growth potential, according to Tetra Pak. In 2012, the average person globally consumed 32.7 litres of white milk, compared to 2.7 litres of flavoured milk, Tetra Pak figures show. Average per capita consumption of carbonated soft drinks was 32.7 litres, 12.4 litres for fruit- flavoured still drinks and 6.3 litres for tea-based drinks…….. Pdf, 22 pages… 22 pages… Read

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Publications in the digital format (e-magazines)

Brand Packaging May/June 2013

Brand Innovators 2013 Annual look at the personalities influencing brand packaging today. Can Package Design Be Too Simplistic? Simple packaging is great, but success depends on he elements present. Getting to the Root: 2013 Claim Trends Claims are popping up everywhere on packaging, and brands are using them to educate. Brand Champions - A Retrospective Packaging design has evolved over the last 40 years, but it always remains a brand's anchor ……. Read

Prepared Foods June 2013

Liquid Art Unique beverage formulations elevate mere thirst-slaking to creative imbibing experiences. Processors are using ingredients — such as fruit extracts and concentrates, botanical and floral extracts, and even dairy and dairy-analog bases — to make next-generation smoothies, fruit-based drinks and trendy carbonated beverages. Hitting the Shelves Prepared Foods profiles new retail cookies, crackers and snack bars; profiles top-selling cracker brands; and reviews global cookie and cracker product and industry trends. Gorging on Gluten-free Gluten-free foods have enjoyed rapid growth, and the pace shows little signs of slowing. …….. Read

Asia Food Journal May/June 2013

The China Dilemma So you think the recent horsemeat scandal in the UK was the biggest thing that had rattled the food manufacturing and supply chain so far? Not really. Tackling Food Safety Together Beverly Postma writes about creating an environment that provides people in Asia sufficient access to safe and nutritious food. Meat of the Future Could lab-grown meat soon be the solution to the world’s food crisis?

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Making a “Sexy” Margarine Anders Molbak Jensen details the manufacture of a margarine spread with only 10% fat. Driving Food Innovation Koen Van Praet discusses how the world’s changing eating habits are driving food innovation. …… Read

Progressive Grocer May 2013

IDDBA 2013 DAIRY-DELI-BAKE Working the Room Star-studded Cast A Closer Look at 2013 Cake Challenge Contestants New Products Retail Meal Solutions: The Next Generation SPECIAL SECTION Natural Products: Animal Pragmatism Grooming Trends: Looking Sharp Brain Food The Supplier Side MINTEL GLOBAL NEW PRODUCTS DATABASE CATEGORY INSIGHT Salty Snacks, Meat Snacks and Popcorn FRONT END Nielsen's Shelf Stoppers /Spotlight ALL'S WELLNESS Part of the Process FOOD, BEVERAGE & NONFOOD PRODUCTS What' s Next CANDY The Peak of Confection REFRIGERATED / FROZEN DAIRY Moo-ving More Milk ……. Read

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Agricultural Commodity Prices Updates

This Section is regularly updated. Please let us know if you would like us to monitor a specific commodity.

Sources: CME Daily Dairy Report, International Grains Council, Global Dairy Trade, International Cocoa Organization , NASDAQ, Indexmundi, USDA, World Bank, CLAL

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Webinars Worldwide

Webinars or Web seminars often provide a free or cost-effect way of enhancing knowledge or help stay on top of market trends and opportunities. This Section is regularly updated. Please recommend a webinar to Functional Foods Weekly

Date What Presenter Timing* Price

June 12 Probiotics, Prebiotics, and the Host Microbiome: The Science of Translation….. Read

NYAS 7:45AM ET (US)

USD85

June 12 Packaging Innovation vs. Sustainability: Friends or Foes?..... Read

Esko 10 AM ET (US)

Free

June 19 Delivering the Right Dose: Why Form Matters…. Read

Nutraceuticals World

2 PM ET Free

* For your local time, please check the US Time Zones or US Live time (for US based seminars) and then use the Time Zone Converter

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Conferences & Meetings Worldwide

This Section is regularly updated. Please recommend a conference to Functional Foods Weekly When What Where

2013 Jun 11-12 Dietary Supplement GMP Seminar…. Read Salt Lake City, US Jun 11-12 5th International Workshop on Cold Chain Management….. Read Bonn, Germany Jun 12-13 SNACKEX 2013….. Read Gothenburg, Sweden Jun 13-14 Dietary Supplement Labeling Seminar…… Read Salt Lake City, US Jun18 Emerging technologies to enhance food quality, shelf life and nutrition -

keeping up with the trends! (Free Event)…… Read Glasgow, UK

Jun 25-27 Food ingredients (Fi) Asia-China, Health ingredients (Hi) & Natural ingredients (Ni) China...... Read

Shanghai, China

Jun 26-28 Fi Philippines….. Read Manila, Philippines Jul 13-17 IFT Annual Meeting & Food Expo 2013 Chicago, US Jul 14-16 46

th AIFST Conference............ Read Brisbane, Australia

Jul 23-25 Global Food Safety & Quality Compliance…. Aug 6-8 Fi and Hi South America…… Read Sao Paulo, Brazil Aug 11-15 10th Pangborn Sensory Science Symposium...... Read Rio de Janeiro, Brazil Aug 18-23 59th International Congress of Meat Science and Technology…… Read Izmir, Turkey Aug 20-22 14th International Conference of FFC - Second International Symposium

of ASFFBC: Functional Foods and Bioactive Compounds in the Management of Chronic Inflammation: Science and Practical Application….. Read

Los Angeles, US

Aug 26-29 13th International NUTRITION & DIAGNOSTICS Conference……. Read Olomouc, Czech Republic Sep16-20 Drinktec........ Read Munich, Germany Sep 1-6 European high pressure research group international meeting

(EHPRG51)……. Read London, UK

Sep 3-4 Tech Transfer Summit (TTS) Australia 2013….. Read Melbourne, Australia

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Sep 5-6 Physical Principles of Lipids in Food Products and Health….. Read Leeds, UK Sep 9-11 13th ASEAN Food Conference 2013...... Read Singapore Sep 11-13 Food Ingredients Asia...... Read Thailand, Bangkok Sep 11-13 8

th NIZO Dairy Conference..... Read Papendal, The

Netherlands Sep 15-18 Prepared Foods' 2013 New Products Conference…… Read San Diego, US Sep 15-20 IUNS 20

th International Congress of Nutrition..... Read Granada, Spain

Sep16-20 Drinktec........ Read Munich, Germany Sep 24-26 Big Pharma vs Functional Food….. Read Sutton Coldfield, UK Sep 25 The Organic Summit….. Read Baltimore, US Oct 1-3 10th International Symposium -Milk Genomics and Human Health…..

Read Davis, US

Oct 3-5 Fi and Hi India…… Read Mumbai, India Oct 5-9 ANUGA- Taste the Future……. Read Cologne, Germany Oct 7-8 2013 International Conference on Food and Agricultural Sciences (ICFAS

2013)….. Read Melaka, Malaysia

Oct 9-11 Health Ingredients, Japan….. Read Tokyo, Japan Oct 12-14 1st Annual World Congress of Nutrition & Health (WCNH-2013)…… Read Dalian, China Oct 21-23 BRANDPACKAGING's 11th Annual Packaging That Sells Conference……

Read Chicago, US

Oct 22-24 Food Structures, Digestion and Health………. Read Melbourne, Australia Oct 31-Sep01 Tech Transfer Summit (TTS) Asia 2013…….. Read Singapore Nov 3-6 International Dairy Show 2013……. Read Chicago, US Nov 12-15 EFFoST Annual Meeting: Bio-based Technologies in the Context of

European Food Innovation Systems……. Read Bologna, Italy

Nov 18-19 Flavorcon 2013…… Read Atlantic City, US Nov 19-21 Fi Europe……. Read Frankfurt, Germany Nov 24-26 17th World Congress on Clinical Nutrition and 7th International Congress

on Cardiovascular Diseases….. Read Sofia, Bulgaria

2014

Mar 5-6 Nutracon 2014…. Read Anaheim, US Mar 30-Apr2 Food Structure and Functionality Forum Symposium

from Molecules to Functionality….. Read Amsterdam, The Netherlands

Aug 17-20 6th International Symposium on Fruit and Vegetables for Human Health…… Read

Brisbane, Australia

Aug 17-20 29th International Horticultural Congress….. Read Brisbane, Australia Aug 17-20 WOCMAP (World Congress on Aromatic and Medicinal Plants)….. Read Brisbane, Australia Aug 17-21 IUFoST 17th World Congress of Food Science & Technology…. Read Montreal, Canada

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