Product Innovation for the Next Decade*

* Past performance is no guarantee of future returns

Friday, March 12, MMXNatural Products Expo West

Anaheim, Calif.TODD RUNESTAD

trunestad@newhope.com

Manufacturers of:• Food and Beverage/Nutraceuticals• Supplements/OTC Pharmaceuticals• Vitamins/Minerals/Herbal Supplements• Natural and Organic Foods• Cosmeceuticals

From:• North America• Europe• Asia

We put the FUN

in FUNctional Ingredients

U.S. Animal Nutrition Sales & Growth: 2001-2013

$2.8 Billion U.S. Animal Nutrition Market$45 Billion Pet Industry

Amazon rainforest

• 300,000,000 hectares

• 1 hectare = biodiversity of all North America

Beyond organics• Eco-Ethical Business: Tilvee isn't just about beautiful skin.

 Tilvee is about making a difference in the world.  We at Tilvee want to set an example of how businesses can be socially & environmentally responsible.  We want to be an educated source of information for our consumers.  We want to people to learn about what ingredients are best suited for their skin and what should be avoided.  Most of all, we want to be connected .  Connected to the farmers who supply our ingredients, to other business doing good in the world in the worked and to our customers.  Together we can be a driving force behind the "green" movement, which ultimately makes the world a better place.

Beyond organics

Who said that?

“Suppliers can use the scorecard to measure how their product packaging helps us achieve, meet or exceed our goals of being supplied 100 percent by renewable energy, creating zero waste and selling environmentally preferable products.” – Matt Kistler, WalMart’s sustainability leader

Mister Natural*

* Not to be confused with Andrew Weil, MD

Mr. Naturals“Politics is not the dominant power. The dominant power is economics.”

“The intention was to change the world. The one area we could bring that about, without major confrontation with the powers that be, was on the food side.”

poll: hippie foods• Homegrown SPROUTS!• Yogurt. Hippie health food 40 years ago, now found in Happy Meals.• Granola? Don't eat the stuff myself. Next 10 years...I think you have to find a hippie

first.• Kombucha • Wheat germ? sounds like something lots of hippies ate in the '70's.• Bulgur was big back in the day. And tofu was relatively new and exotic then, too.• Home brew• Things with weird names. Spelt, quinoa, kefir, borage, kombucha. Things with weird

brand names. Quorn, Tofurkey. Things you would just never think of eating: sauerkraut juice, emu meat, hemp ice cream.

• Freekah• and for what it's worth, I would rather stick needles in my eyes than drink

kombucha• Tulsi tea is going to be the next Coke! Get some NOW at

http://www.organicindiausa.com.• Grape Nuts.• J'ever eat a pine tree?• square meal• We just made granola last night - first time. And it's gooood.• "Kind ganga brownies" would be my input.

FUNCTIONAL INGREDIENTS

Channel: Natural Products Supermarkets >$2MMSource: SPINSscan Natural

Current Period: 52 Weeks Ending 05/16/2009Prior Period: 52 Weeks Ending 05/17/2008

Previous Prior Period: 52 Weeks Ending 05/19/2007Market: Total US

*Sorted based on 52 Weeks Ending 05/16/2009

TOTAL US2008-2009

High Interest Current Dollars Current Units Current Dollars Current Units Current Dollars Current UnitsFISH OIL CONCENTRATE YES $54,374,541 2,686,214 $48,649,074 2,590,803 $38,258,763 2,171,147PROBIOTIC SUPPLEMENT YES $46,649,300 2,633,925 $42,059,868 2,523,104 $35,739,086 2,230,021MULTIPLE VITAMIN - ADULT YES $39,401,926 1,985,690 $41,196,947 2,132,563 $41,342,092 2,204,638CALCIUM YES $30,685,940 2,195,442 $29,132,612 2,222,988 $26,171,939 2,043,825VITAMIN C (NOT ESTER-C) YES $29,269,178 5,095,987 $29,956,838 5,361,177 $29,207,352 5,238,166FLAX SEED AND/OR OIL YES $23,835,353 1,818,913 $25,540,725 2,098,067 $24,592,931 2,034,419PROTEIN - WHEY PROTEIN YES $23,292,292 1,562,881 $22,949,946 1,519,137 $20,282,580 1,331,200CO-ENZYME Q 10 YES $22,408,151 984,086 $22,358,332 928,916 $22,913,053 913,039SOY FOODS YES $14,712,302 1,153,038 $16,076,217 1,387,336 $16,608,075 1,562,589VITAMIN B COMPLEX $14,156,896 1,045,672 $13,780,827 1,049,728 $13,309,323 1,029,962

52 Weeks Ending 05/16/2009 52 Weeks Ending 05/17/2008 52 Weeks Ending 05/19/2007

What’s Hot… Fish oils, probiotics, vitamin D, acai … What’s next?

Multivitamins: More in style than ever

• http://www.cbc.ca/health/story/2010/02/25/youthful-mice.html#

• Ingredients: Flax seed oil, cod liver oil, bioflavonoids, ginseng, ginger root extract, green tea extract, vitamin C, vitamin E, N-acetyl cysteine, rutin, alpha-lipoic acid, carnitine, acetylsalicylic acid, coenzyme Q10, vitamin B6, magnesium, vitamin B1, vitamin B3, glutathione, beta-carotene, manganese, potassium, ginkgo biloba, garlic, melatonin, folic acid, chromium picolinate, vitamin B12, selenium and vitamin D.

2009 Nobel Prize: Medicine• Shoelace tips help you live 5 years longer.• Multivitamin use was associated with longer telomeres — 5.1

per cent longer.• Vitamin D = 5 more years of telomeres• EPA/DHA = 32% less telomere shortening• Each time a cell replicates, the telomeres get shorter.

Once it gets too small, the cell dies.

• Xu Q, et al. Multivitamin use and telomere length in women. Am J Clin Nutr 2009; 89:1857-63.• Richards JB, et al. Higher serum vitamin D concentrations are associated with longer leukocyte telomere length in women. Am J Clin Nutr 2007

Nov;86(5):1420-5.

• Farzaneh-Far R, et al. Association of Marine Omega-3 Fatty Acid Levels With Telomeric Aging in Patients With Coronary Heart Disease. JAMA

2010;303(3):250-257.

Resveratrol: Years to your life

• Yeast: 70% longer• Fruit flies: 33% longer• Fish: 60% longer• Mice: High-fat diet same as none• Middle-aged mice: Lived better

but not longer

It’s all about prevention

Growth categories: • Vision • Bone • Heart • Brain • Sports/Energy/Weight

Condition-specific: Vision

• Study: Carotenoids and antioxidants increase macular density.

• Parisi V, et al. Carotenoids and antioxidants in age-related maculopathy italian study: multifocal electroretinogram modifications after 1 year. Ophthalmology. 2008

Feb;115(2):324-333.e2. • Study: Astaxanthin

protects retina• Nakajima Y, et al. Astaxanthin, a dietary carotenoid,

protects retinal cells against oxidative stress in-vitro and in mice in-vivo. J Pharm Pharmacol. 2008 Oct;60(10):1365-74.

Condition-specific: Eyes

Lutein: in macula and lens. Spinach, broccoli and kale (smoothies). Lutein supps = 63% had sig macular thickening. AREDS: 4,500 60-80 yrs, lutein, zeaxanthin = less ARMD. Antiox and absorb blue light

before it causes harm to photoreceptors. Aleman TS, et al. Macular pigment and lutein supplementation in ABCA4-associated retinal degenerations.

Invest Ophthalmol Vis Sci. 2007 Mar;48(3):1319-29.Kopsell DA, et al. Spinach cultigen variation for tissue carotenoid concentrations influences human serum

carotenoid levels and macular pigment optical density following a 12-week dietary intervention. J Agric Food Chem. 2006 Oct 18;54(21):7998-8005.

Vitamin D

• Cancers• Heart, diabetes, skin• New FDA health claim for bones• T cells, the 'killer cells', would remain

dormant in the absence of Vitamin D.• New IOM RDA revisions RDA May ’10• Everybody’s deficient• 24% lower in winter

Condition-specifics march on

• “In the US cardiovascular health is still tied directly to cholesterol. There is so much more to heart health but the popular press is just starting to highlight this.”

–– Kathy Lund, VP marketing, Bioenergy Life

Science

Heart health repurposing

• From conjunctive heart failure to energy ingredient

Heart health• Vitamin K2 – calcium mover• Sterols – cholesterol• Red yeast rice – statin look-alike• CoQ10 – depleted by statins• Ribose – from heart health to energy• Niacin – best at LDL and HDL both• Low-sodium solutions

Fish oil: all of the above

• Vision: Delay, reduce risk of ARMD • Bone: Calcium needs it. New FDA health claim• Heart: Anti-arrhythmic, platelets, endothelial• Brain: DHA most abundant fat in le fatty brain • Diabetes: Prevent, reverse insulin resistance

• Maki KC, et al. Chronic consumption of rebaudioside A, a steviol glycoside, in men and women with type 2 diabetes mellitus. Food Chem Toxicol. 2008 Jul;46 Suppl 7:S47-53.

• Feher J, et al. Improvement of visual functions and fundus alterations in early age-related macular degeneration treated with a combination of acetyl-L-carnitine, n-3 fatty acids, and coenzyme Q10. Ophthalmologica. 2005 May-Jun;219(3):154-66.

• Seddon JM, et al. Cigarette smoking, fish consumption, omega-3 fatty acid intake, and associations with age-related macular degeneration: the US Twin Study of Age-Related Macular Degeneration. Arch Ophthalmol. 2006 Jul;124(7):995-1001.

• Tully AM, et al. Low serum cholesteryl ester-docosahexaenoic acid levels in Alzheimer's disease: a case-control study. Br J Nutr. 2003 Apr;89(4):483-9.

And speaking of the life aquatic…

• Krill more effective than fish oil for diabetes• Inflammation: CRP levels cut 19%, 30%, after 7, 14 d• Skin: 50% more hydrated, hair and skin tone• Cancer: 2g/day 50% cut skin cancer in chronic mice• Astaxanthin content• Phospholipids: brain; 3x absorption of DHA/EPA• 50% annual growth last year, expected this year, too

• Bunea R, et al. Evaluation of the effects of Neptune Krill Oil on the clinical course of hyperlipidemia. Altern Med Rev 2004 Dec;9(4):420-8.• Deutsch L. Evaluation of the effect of Neptune Krill Oil on chronic inflammation and arthritic symptoms. J Am Coll Nutr 2007;26(1):39-48.

Eat your bugs…more than yogurt…

Jeff D Leach, Paleobiotics Lab…talking about

prebiotics…“We need microbiologists jumping on Oprah’s couch about the different types of fiber all Americans should be eating.”

Pre…what? • “In some cases

consumers may not know the difference between prebiotics and probiotics and may purchase one rather than the other, but they are buying into the health messaging.”

• Frost & Sullivan/ NutraIngredients May 2009

Benefits:• Weight loss• Vitamin/mineral

absorption• Reduce infant

infections• Improve gut and

immune health in elderly

• Blood-sugar regulation

From FDA Raids to FDA Praise…Stevia

• PureCircle sees full year profit up 420 percent

• Sees 420 percent growth in FY profit

• FY sales of Reb A up 130 percent

• Sees 85 percent growth in FY sales

• PureVia Reb A is being tested by 100 F&B brands

• Trend for second decade: HFCS redux

The fat of America: 460,000 circus elephants

açai Superfruit or super hype?

“I find it funny. Generally, when you have açaí here, you take a nap. There, it’s an energy drink.” – Letícia Galvão, psychologist from Belém, Brazil, in the heartland of açai production

Next-gen superfruits

Favorite adaptogen quote: “Rhodiola rosea, folks. Write this down on a chalkboard 100 times, and tell everybody.

Rhodiola rosea is the most profound medicine in our healing pharmacy. It enhances the mind, reduces stress, improves memory, banishes depression, eradicates anxiety, promotes a

great night’s sleep, and makes you feel like a billion bucks. Everybody can benefit from a

daily dose of approximately 400mg of Rhodiola rosea extract. Everybody.” –Chris Kilham

Next generation of superfruits

• GAC—70X more lycopene that tomatoes• Indian gooseberry/Amla – reduces

cholesterol• Lychee, liver protecting properties• Acerola—20X more vitamin C than citrus• Seabuckthorn—antioxidants and

omega-3s –6,7,9• Maqui berry—very high in antioxidants• Baobob

Miracle Berry Taste Test

•Fermented algae: nutritional profile:

•Plant sterols•Phospholipids & omegas•Rich source of tocotrienols / tocopherols•Significant levels of various B vitamins•Non-allergenic / gluten-free•Excellent natural stability•25% fewer calories•75% fewer fat & sats•No cholesterol•Fiber, protein•Better color, flavor than trad chlorella

The 4 pillars

Low salt

• Sodium the next trans fat• NYC regulations

Clean labels

• Vegetable juices• Whey

Make half your grains whole

• Freekeh