THE GOODNESS PROJECT

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3 THE GOODNESS PROJECT To live the best life possible, everyone needs to eat and drink well. Add a little physical activity and you ve got the perfect blend. Lion believes that our products can play an important part of a healthy, balanced diet, and set out to make sure what we offer helps people to live better lives. The Goodness Project aims to bring balance to the Lion product portfolio, helping people enjoy more natural goodness everyday, across Australia and New Zealand. This guidebook outlines our beliefs and commitments to the way we develop, communicate and range our dairy and non-alcoholic drinks, taking an honest look at where our products are now and setting some exciting goals for the future!

4 GUIDING PRINCIPLES GOODNESS PROJECT

5 Use scientifically-based nutrient criteria to define the Lion dairy and non-alcoholic drinks portfolio. Promote and advertise responsibly, with particular sensitivity to children and adolescents. Maintain the nutrient integrity of our dairy and juice products. Optimise the composition of our products, without compromising taste and safety. Provide choice to deliver to consumers needs and desires. Provide responsible portion sizes to meet different eating and drinking occasions, and reduce the chance of over-consumption of our products. Ensure our nutrition and health messages are accurate and based on the latest body of scientific evidence. Invest in research into technology, innovation and consumers needs to optimise product development and communication. Invest in consumer education to help promote responsible product choice, as part of a balanced diet and lifestyle. Provide simple, clear and transparent product information to help consumers make educated choices. Provide a workplace that encourages balanced choices and an active lifestyle.

6 At Lion we believe in everyone having access to NATURAL GOODNESS EVERYDAY, because... For both Australia and New Zealand, one in 10 children and three in 10 adults don t have breakfast each morning, before school or work. Over 80% of Australians and 40% of New Zealanders are not getting their recommended daily serves of fruit, from whole fruit* alone. 80% of Australian adults don t get their recommended daily intake of dairy and approximately 60% of New Zealanders don t get enough calcium. Over 60% of adults and 25% of children in Australia and New Zealand are overweight or obese. 35% of energy intake for Australians is coming from discretionary or treat foods. * Australia excludes fruit juice and dried fruit. New Zealand includes dried fruit; excludes fruit juice

7 That dairy is the best way to start everyone s day. A small glass of fruit juice (with no added sugar) can help Australian children and adults achieve their recommended daily intake of fruit. That all afternoon snacks should be a protein-packed milk or yoghurt, or a low GI juice not confectionery or soft drink. In a world where the only drinks at the checkout are milk, water or juice with no added sugar. The best post workout protein boost you can get is plain or flavoured milk. That the best food and drink comes straight from the farm or orchard. When milk costs less than water there is something wrong!

8 AT LION WE COMMIT TO Offering choices that are better for you : Our first choice will be natural, not artificial colours, flavours or sweeteners We will reduce sugar, fat and salt across our portfolio, and never add artificial trans-fats as an ingredient We will not use any artificial colours, flavours or sweeteners; added fructose; or coffee, caffeine and other energy ingredients in our children s products. Making it easy for all to make good choices: By putting healthier products at the front of store where they are easy to find By making sure that our nutrition and product information is easy to see and understand, and our products come in appropriate portion sizes. Making Australian Made our first choice, which means: We will aim to deliver Australian Made fresh dairy products, from Australian dairy farmers We will aim to source our fruit juice from Australian growers.

9 We re proud to say We offer a balanced portfolio of products that make a significant contribution to the nutrient intake of Australian and New Zealanders Our milk, yoghurt and cheeses provide the goodness of calcium as well as high quality dairy protein Our fruit juices (with no added sugar) are a good source of vitamin C.

10 NUTRIENT CRITERIA Lion has produced specific nutrient criteria to guide the development of our products, based upon local and international scientific and government standards, and the science for healthy eating. The nutrient criteria have also been reviewed by independent scientific experts. The nutrient criteria have been designed to optimise the nutrient integrity of products, without compromising taste and safety. THE THREE CATEGORIES ARE: 1. BEST FOR YOU These products can be consumed every day as they have lower levels of fat, sugar, salt and energy; the goodness of dairy or fruit; and may contain a beneficial ingredient like omega-3.

11 2. GOOD FOR YOU These products can be enjoyed every day in balance, as they contain energy, fat, sugar and salt at levels higher than best for you products. 3. TREAT FOR YOU These products can be enjoyed every day in small amounts, keeping within a balanced diet, as they have higher levels of fat, sugar or salt.

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13 PORTFOLIO AUDIT We ve audited the Lion Dairy and Drinks, and The Daily Drinks Co (to be referred to as Lion Dairy and Drinks ) portfolio to learn where our products fall. Our Goals by 2019: Audit results in 2014 * : 26% BEST FOR YOU 30% TREAT FOR YOU 44% GOOD FOR YOU 30% BEST FOR YOU 50% GOOD FOR YOU 20% TREAT FOR YOU *Based on Sales Volume. Audit excludes cream as we are limited by the definition in the Food Standards Code, which states cream must contain a minimum of 35% fat. Lion will continue to monitor its cream portfolio. Please refer to the Executive Summary for Lion s progress to date at

14 TARGETS and what we are doing to improve

15 Life is better when it is balanced, so we have set ourselves some targets to help us provide a portfolio to meet the health and nutrition needs of Australians. Our intent is to give people options to help them to balance their diet, whilst still having a little fun and indulgent goodness.

16 TARGETS 80% of our product portfolio will meet the BEST and GOOD FOR YOU criteria by REDUCE SUGAR, SODIUM AND FAT Reduce added SUGAR across the portfolio by 10% by 2019 Reduce added SODIUM in our cheese by 5% by 2019 Reduce FAT in our treat category by 10% by 2019 INNOVATE FOR BALANCE 80% of innovation projects will be in the best and good for you categories. MAKE SMALLER PORTION SIZES AVAILABLE ACROSS THE BOARD DAIRY AND JUICE WILL REMAIN OUR NUTRIENT POWERHOUSES All of our best for you dairy products will remain a source of calcium All of our best for you juices will remain a good source of vitamin C. Smaller pack formats will be available in all categories by 2019.

17 LOOKING AFTER OUR CHILDREN All of our children s products: will meet the best and good for you criteria by 2019 will be free from artificial colours or flavours by 2018 will be free of added fructose by 2018 will remain free of artificial sweeteners will not contain any coffee, caffeine or other energy ingredients. CAFFEINE SHOULD BE APPROPRIATE FOR THE AUDIENCE We will not use coffee, caffeine or other energy ingredients in products for primary school children by the end of 2015 We will not recommend or promote coffee products containing more than 80mg of caffeine to high schools, by 2016 We will voluntarily label the caffeine content of all coffee products by 2018 We will not make flavoured dairy beverages containing more than 32mg of caffeine per 100mL or iced-coffee specific branded beverages with more than 200mg caffeine per serve by NO ADDED ARTIFICIAL TRANS FATS We will continue to not add artificial trans fats as an ingredient. EASIER TO UNDERSTAND NUTRITION AND PRODUCT INFORMATION Nutrition and product information will be enhanced by 2019, including the identification of natural versus added ingredient 100% of our retail portfolio will display the Health Star Rating front of pack labelling system by 2018.

18 POSITION STATEMENTS

19 The following pages outline Lion s position on: THE NATURAL GOODNESS OF DAIRY AND FRUIT JUICE SUGARS SWEETENERS FAT AND ARTIFICIAL TRANS-FATS SALT COFFEE, CAFFEINE, OTHER ENERGY INGREDIENTS AND ENERGY DRINKS COLOURS & FLAVOURS PORTION CONTROL CONSUMER FRIENDLY PRODUCT INFORMATION CHILDREN S NUTRITION For further detail please contact nutrition@lionco.com

20 THE NATURAL GOODNESS OF DAIRY AND FRUIT JUICE We commit to providing a balanced portfolio of products that make a significant contribution to the nutrient intake of Australian and New Zealanders. Current research shows: More than 80% of Australians and 40% of New Zealanders are not getting their recommended daily serves of fruit, from whole fruit* alone. 80% of Australian adults don t get their recommended daily intake of dairy, and approximately 60% of New Zealanders don t get enough calcium. We ll ensure that dairy and fruit juice (with no added sugar) remain nutrient powerhouses to help Australians and New Zealanders achieve their dietary recommendations. We commit to maintaining and enhancing the nutrient density of our products, with our best for you dairy products being at least a source of calcium, and our best for you fruit juice products being at least a good source of vitamin C. We will label our products appropriately, and invest in education, to enable consumers to make informed choices about the nutrient quality of our products as part of a balanced diet and lifestyle. * Australia excludes fruit juice and dried fruit. New Zealand includes dried fruit; excludes fruit juice

21 DAIRY & FRUIT JUICE... SCOPE Lion s position on the nutrient density of our dairy and juice products. It applies to all products sold under Lion Dairy and Drinks-owned brands. UNDERSTANDING DAIRY AND JUICE GOODNESS The evidence suggests the health of Australians and New Zealanders could benefit from including dairy and fruit juice (with no added sugar), as part of a balanced diet, as well as decreasing the intake of discretionary foods. Dairy The most recent National Nutrition Survey found that Australians consume on average only 1.1 serves of dairy products a day well below the recommended intake of 1.5 to 4 serves a day (depending on the age and gender of the consumer). The impact of this is evident with inadequate amounts of calcium being consumed 73% of Australian females and 51% of males do not meet their calcium requirements (aged >2years),and approximately 60% of New Zealand children and adults have inadequate calcium intakes. Dairy provides a unique package of more than 10 essential nutrients, including high quality protein that contains all of the essential amino acids needed by the body. Milk in particular, is the number one source of calcium in the Australian and New Zealand diet. It is also the largest source of vitamin B12, iodine, riboflavin (vitamin B2), phosphorus and potassium in the diet. The Australian Dietary Guidelines state that consumption of milk, cheese and yoghurt is associated with reduced risk of heart disease, high blood pressure, type 2 diabetes, metabolic syndrome and colorectal cancer. Dairy foods are also associated with healthy weight management and can play a positive role in sport and exercise performance. Fruit juice (with no added sugar) The Australian Dietary Guidelines state a 125mL glass of fruit juice (with no added sugar) can count towards an occasional serve of fruit. The New Zealand Food and Nutrition Guidelines say a 250mL glass of fruit juice (with no added sugar) can contribute to one fruit serve. On average, we need two serves of fruit a day. The CSIRO re-analysis of the 2011/12 National Nutrition Survey found that more than 80% of Australians are not getting their recommended serves of fruit from whole fruit alone*. More than 40% of New Zealanders are also not getting their recommended daily serves of fruit, from whole fruit alone*. When fruit juice is counted towards a serve of fruit, the percentage of Australians reaching their daily fruit serve target doubles (compared to fruit alone), and in some instances increase by up to five times. The CSIRO re-analysis also found that consumers of fruit juice (with no added sugar) have a better diet quality than non-consumers. Fruit juice (with no added sugar) provides valuable nutrients, contributing about 60% of daily vitamin C intakes, and significant amounts of folate (16%), and potassium (14%), to the diet of juice consumers. Fruit juice (with no added sugar) contributed only 1% of dietary energy and 3.5% sugar, among all Australians. In comparison, discretionary (treat) foods contribute 35% to total energy. * Australia excludes fruit juice and dried fruit. New Zealand includes dried fruit; excludes fruit juice. COMMITMENTS --We will maintain the nutrient density of dairy and fruit juice (with no added sugar), so that they continue to make a significant contribution to the diet of Australians and New Zealanders. --We will communicate with consumers about the nutritional benefits of dairy and fruit juice, as part of a balanced diet.

22 SUGARS We commit to providing a balanced portfolio of products that minimises added sugars, while maintaining their nutrient integrity. Our commitment to limit added sugars is based on advice from leading health authorities, such as the World Health Organisation, the Australian Dietary Guidelines and the New Zealand Food and Nutrition Guidelines. The current scientific evidence supports the inclusion of the natural sugars found in milk (lactose) and fruit (fructose, glucose and sucrose), as part of a healthy balanced diet. The evidence for the harmful effects of fructose, particularly when found naturally in whole foods, is not scientifically substantiated we will continue to monitor and evaluate the science. We re committed to offering products naturally sweetened with sugars or lower sugar alternatives, and will not add fructose to our children s products.

23 SUGARS... SCOPE Lion s position on sugars. It applies to all products sold under Lion Dairy and Drinks-owned brands. UNDERSTANDING SUGARS Sugars are increasingly criticised in the media, by public health organisations and health professionals, most commonly for providing excess calories in non-nutrient dense foods. Sugars are a form of carbohydrate, providing energy for your muscles, brain and nervous system to function. Sugars can be naturally present in some foods or may be added to others. Gram for gram, all sugars provide the same energy (kilojoules/calories), but the effect they have on blood glucose (sugar) levels in the body varies and can be measured using the glycaemic index (GI).

24 SUGARS... Added sugars The World Health Organisation (WHO), the Australian Dietary Guidelines and the New Zealand Food and Nutrition Guidelines all recommend limiting added sugars. The WHO specifically recommends less than 10% of a person s total daily energy intake should come from free sugars sugars added to foods, plus sugars naturally present in honey and fruit juices. In 2015, the UK Scientific Advisory Committee on Nutrition Carbohydrates and Health, recommended that the average population intake of free sugars should be less than 5% of total daily energy intake (>2 year olds), to help lower the risk of dental caries. In Australia and New Zealand, added sugars are most commonly consumed in the form of sucrose (or table sugar ) which has a medium GI=65. In contrast, fructose and lactose, the natural sugars found in fruit and dairy respectively, are both low GI producing a gradual release of the glucose into the blood. Compared to other sugars, lactose also contributes least to dental decay. Fructose Evidence suggesting that fructose may harm health mainly comes from the United States, where high fructose corn syrup is the main sugar used in sugar-sweetened beverages and processed foods. Fructose is metabolised differently in the body to other sugars. While other sugars are metabolised by all the cells in the body, fructose is broken down mainly in the liver. Because of this it is has been proposed that instead of being used as an energy source all fructose is immediately converted to fat, triggering insulin resistance. Insulin resistance is believed to be one of the risk factors for type 2 diabetes, obesity, cardiovascular disease and some cancers. However, the majority of this evidence is based on studies with animals or humans consuming very high amounts of added fructose up to 60% of energy in animals, or over 100g a day in humans. Roughly a third to a half of all fructose consumed is converted to glucose and used by the body as energy, and only 1 3% of ingested fructose is converted to blood fats in humans. While data on free sugar intakes in Australia and New Zealand are not available, added sugar consumption is estimated to be <10% of energy for adults.

25 SUGARS... Small to moderate amounts (<50g per day) of added fructose may assist with the management of body weight, blood glucose and blood pressure. However, larger amounts (>50g per day) of added fructose may raise blood fats, and very large amounts (>100g per day) of added fructose will contribute to weight gain due to the extra kilojoules. In Australia, people rarely consume pure fructose. Total fructose consumption has been in decline since the 1970s and is currently about 10% of energy (~56g for men and 45g for women, each day). The added fructose mainly comes from sucrose or table sugar (which is 50% glucose and 50% fructose). In New Zealand, total fructose consumption is about 4% of energy (~23g for men and 19g for women, each day). It is important to note, because fructose from whole fruit is accompanied by other sugars, as well as fibre and a range of other nutrients (including vitamin C and other antioxidants), it is thought to behave differently to added fructose. Note: the fructose in fruit juice is typically not accompanied by dietary fibre but contains other beneficial nutrients. Sugar-sweetened beverages There is some evidence that sugar-sweetened beverages, such as soft drinks, increase the risk of weight gain in children and adults, as was concluded by the evidence reviews for the Australian Dietary Guidelines and WHO. However, more research is needed to reach a definitive conclusion. COMMITMENTS --We ll reduce added sugars across our product portfolio by 10% by We ll not add fructose to our children s products by We ll educate consumers on the natural sugars found in our fruit juice and dairy products.

26 SWEETENERS We commit to providing a balanced portfolio of products to meet people s different health and wellness needs. Current scientific evidence shows that permitted sweeteners are safe. Our recommendations however, reflect consumer and public health concerns we will continue to monitor and evaluate the science. We ll invest in research and innovation to provide natural alternatives as the first choice. We ll not use artificial sweeteners in our products for children under 12.

27 SWEETENERS... SCOPE Lion s position on sweeteners. It applies to all products sold under Lion Dairy and Drinks-owned brands. UNDERSTANDING SWEETENERS Food Standards Australia New Zealand (FSANZ) has reviewed a wide range of sweeteners for their safety and application, and approved them for use in Australia and New Zealand. Health benefits There is insufficient scientific evidence to determine if sweeteners benefit body weight or blood sugar levels. However, we do know if sweeteners replace added sugar, it can reduce the overall amount of energy in a product. This can assist weight loss and maintenance, as long as consumers do not compensate for the amount of energy reduced. A number of sweeteners are also associated with a decreased risk in dental cavities or tooth erosion. Sa fety Recent reviews by health bodies, including FSANZ, the European Food Safety Authority, and the US Food and Drug Administration, found approved natural and artificial sweeteners safe at their respective Acceptable Daily Intake levels. Sugar alcohol sweeteners (e.g. xylitol, sorbitol), are recommended at the minimum levels only, due to their gastrointestinal side effects. Limited scientific evidence is available on children and sweeteners. Most Australian school canteen criteria do not allow artificially sweetened products. Likewise, a number of public health bodies do not recommend artificial sweeteners due to the lack of evidence on the safety in children. There s also concern that artificially sweetened beverages may replace more nutritious drinks, like juice and milk. These conflicting public health messages are causing consumers to question the safety of artificial sweeteners. Natural alternatives There are a number of natural sweeteners available on the market. It is important however, that these ingredients are carefully considered because natural is not legally defined in Australia or New Zealand. COMMITMENTS --We ll continue to manufacture products for children under 12 years that are free of artificial sweeteners.

28 FAT AND ARTIFICIAL TRANS-FATS We commit to providing a balanced portfolio of products with fat levels appropriate for consumers of different life-stages. Our fat and trans-fats targets are based on advice from leading international and national authorities, such as the World Health Organisation. They aim to help people achieve no more than 35% of their total daily energy from fat and no more than 1% from trans-fats. We ll monitor the science on saturated fat in dairy, as a growing body of evidence suggests that not all types of saturated fats have a negative health effect. We ll also not add artificial trans-fats as an ingredient to any of our products.

29 FATS... SCOPE Lion s position on total fats and trans-fats. This position will not address saturated fat individually except to monitor the scientific evidence as the proportion of saturated fat to total fat in dairy remains constant (i.e. reducing total fat will reduce saturated fat). This position applies to all food and beverages sold under Lion Dairy and Drinks-owned brands. UNDERSTANDING FATS Total fats Fat is an important part of a healthy diet, providing essential fatty acids and fat soluble vitamins. Dietary Guidelines from the World Health Organisation (WHO), Australian National Health and Medical Research Council (NHMRC) and New Zealand Health Ministry (NZHM) recommend restricting total fat intake to between 20-35% of a person s daily energy intake. However, there appears to be a shift in focus from restricting total fat, to the importance of the type of fat. For example, emerging evidence is showing a neutral or beneficial association between dairy fat and chronic disease (except cancer, where the evidence is varied). This is supported by a 2014 scientific literature review (meta-analysis) that found there was no relationship between low intakes of ruminant trans-fats and cardiovascular risk factors. Conversely, artificial trans-fats are produced during food processing and are not naturally present in foods. The WHO and Heart Foundation therefore recommend avoiding their use. A number of regions (Denmark, states within America) are also taking regulatory action to remove artificial trans-fats from their food supply. COMMITMENTS --We ll reduce total fat in our treat products by 10% by We will continue to not add artificial trans-fats as an ingredient to our products. Saturated fats Due to the assumption that all saturated fats are associated with cardiovascular disease, the WHO, NHMRC and NZHM recommend an intake of less than 10% of a person s daily energy intake. The Australian and New Zealand Dietary Guidelines also recommend people from the age of two years, choose mostly reduced-fat dairy. A growing body of scientific evidence, however, shows no link (or possibly a beneficial link) between the fat in dairy and the overall risk of cardiovascular disease. Tra ns -fats Due to an increased risk of cardiovascular disease, public health bodies recommend limiting daily intake of trans-fats to less than 1% of a person s daily energy intake or as low as possible. Currently, mean intake of trans-fats in Australia and New Zealand are % of total daily energy intake. Trace amounts of ruminant (meaning, sheep or cow) trans-fats are found naturally in dairy. The WHO acknowledges that ruminant trans-fats can t be removed entirely from the diet, but due to the low intake in most populations, they aren t considered a significant risk factor for cardiovascular disease.

30 SALT We commit to providing a balanced portfolio of products with minimal added sodium (salt) content, while maintaining the nutrient integrity and safety of the product. Our commitment to limiting added sodium is based on advice from leading health authorities, such as the World Health Organisation, the Australian Dietary Guidelines and the New Zealand Food and Nutrition Guidelines. We ll offer lower sodium cheeses, and aim to meet the Australian Food Health Dialogue sodium targets for our relevant cheese categories. We ll explore ways to reduce sodium, while maintaining the safety and taste of our products.

31 SALT... SCOPE Lion s position on sodium. It applies to all products sold under Lion Dairy and Drinks-owned brands. UNDERSTANDING SODIUM (SALT) Salt is a mineral found naturally in many foods and beverages and is made up of two essential elements, sodium and chloride. Salt can also be added to foods to enhance flavour and act as a preservative. Around 75% of the sodium in our diet comes from processed foods. The body needs sodium for a variety of essential functions, such as maintaining water balance, blood pressure, and muscle and nerve function. However, 30% of Australian adults and one in five New Zealanders have high blood pressure, and there s increasing concern about the effect of a high dietary salt intake on blood pressure and cardiovascular risk. There s also concern that children are consuming the same amount of sodium as adults. Australian and New Zealand adults should consume no more than 2,300mg of sodium per day. This equates to 1½ teaspoons, or 6 grams of salt. The World Health Organisation suggests that to prevent chronic disease adults should consume less than 1,600mg of sodium, or 1 teaspoon (4g) of salt, per day. In Australia, the Food Health Dialogue has been established to target sodium reformulation in a number of food and beverage products, including cheese. Lion supports the cheese reformulation targets established in conjunction with government and the food industry (2013), and will aim to meet the target of no more than 710mg sodium/100g for our relevant cheese categories. COMMITMENTS --We ll reduce added sodium across our cheese by 5% by 2019 without affecting taste or safety. --We ll aim to meet the Food Health Dialogue sodium targets for our relevant cheese categories, with a maximum of 710mg sodium per 100g.

32 COFFEE, CAFFEINE, OTHER ENERGY INGREDIENTS AND ENERGY DRINKS We commit to providing a balanced portfolio of products that enables people to consume coffee, caffeine and other energy ingredients responsibly. Our commitments are based on scientific opinion from local and international authorities, and we will continue to monitor and evaluate the science. We ll abide by the school canteen criteria for coffee, caffeine and other energy ingredients, in addition to not using these ingredients in products for children under 12. We ll commit to not producing dairy beverages with more than 32mg of caffeine per 100mL, or iced-coffee specific branded beverages with more than 200mg caffeine per serve. We will also voluntarily label the caffeine content of all coffee products. We ll only use energy ingredients in appropriate adult products only, at a minimal level to deliver a health effect. We ll not manufacture, sell and/or distribute empty calorie energy drinks.

33 CAFFEINE... SCOPE Lion s position on coffee, caffeine (excluding chocolate and tea, but not tea extract), other energy ingredients (such as ginseng, taurine) and energy drinks. This is over-and-above the Food Standards Code s (Code) legal requirements. It applies to all products sold under Lion Dairy and Drinks-owned brands. UNDERSTANDING COFFEE, CAFFEINE, ENERGY INGREDIENTS AND ENERGY DRINKS Caffeine occurs naturally in foods such as coffee, tea, cocoa and guarana, and can also be added to food and beverages, such as kola-type soft drinks and energy drinks. The main dietary sources of caffeine for Australian and New Zealand adults are tea and coffee. For Australian children the main sources are chocolate (2-3yrs), soft drinks (4-13yrs) and coffee (14-16yrs) and for New Zealand children the major contributors are tea, soft drink and biscuits. Caffeine has a long history as a safe mild stimulant. Acting on the brain and nervous system, it increases the speed of messages to and from the brain, making the user feel more alert and awake. Currently, there s no upper limit for caffeine intake in Australia or New Zealand. Individual sensitivity to caffeine varies. In 2015, the European Food Safety Authority Scientific Opinion on the Safety of Caffeine, provided advice on a safe daily intake level for caffeine from all sources for the general population and any specific subgroups: --A single dose of up to 200mg caffeine is safe for adults, and unlikely to cause changes in blood pressure, hydration, exercise or alcohol intoxication --A habitual daily caffeine intake of up to 400mg is also considered safe for adults except for pregnant women. --Habitual, daily caffeine intakes of up to 200mg per day by pregnant women are considered safe. The same is true for lactating women. --For children and adolescents there is insufficient evidence with the authors concluding that 3mg/kg body weight/ day is safe for this age group mg/single serve is safe when consumed less than two hours prior to physical exercise. Community concerns about caffeinated and energy products, in particular their effects on children, continues. In Australia, there is clear regulation around the use of caffeine in energy drinks and kola-type beverages. Energy drinks may contain a maximum of 32mg of caffeine per 100mL, and kola beverages a maximum of 14.5mg of caffeine per 100mL. Clear labelling requirements are associated with both. There are however, no specific regulations in the Food Standards Code in regards to the caffeine content of coffeecontaining dairy beverages for adults. COMMITMENTS --We ll abide by the national and state schools canteen criteria for coffee, coffee style products and energy ingredients/drinks. --In addition: A) We will not use coffee, caffeine or other energy ingredients in products for children under the age of 12 (primary schools), by the end of 2015 (excluding chocolate and tea, but not tea-extract) B) If not specified, we won t recommend or promote coffee products with more than 80mg caffeine per serve to adolescents years old (high schools), by We ll voluntarily label the caffeine content of all coffee products by 2018, with additional labelling requirements for higher caffeine levels. --We won t produce dairy beverages containing more than 32mg of caffeine per 100mL (equivalent concentration to a cup of instant coffee) or iced-coffee specific branded beverages with more than 200mg caffeine per serve by We ll follow the Australian Food and Grocery Councils Guiding Principles for Serving Size refer to the Portion Size Position for further detail.

34 COLOURS & FLAVOURS We commit to providing a balanced portfolio of products to meet people s health and wellness needs. Current scientific evidence supports the safety of permitted colours and flavours. Our commitments, however, reflect current consumer and public health concerns we will continue to monitor and evaluate the science. We ll invest in research and innovation to provide natural alternatives as the first choice. We ll not use artificial colours or flavours in our products for children under 12.

35 COLOURS & FLAVOURS... SCOPE Lion s position on colours and flavours. It applies to all products sold under Lion Dairy and Drinks-owned brands. UNDERSTANDING COLOURS & FLAVOURS Food Standards Australia New Zealand (FSANZ) has reviewed a number of colours and flavours for their safety and application, and approved them for use in Australia and New Zealand. Colours Artificial food colours (AFCs), in particular, are under increased scrutiny for their effect on children s behaviour. In 2007, a contentious study linked six AFCs (commonly referred to as the Southampton Six) with hyperactivity in children. This study was reviewed by a number of government bodies, including FSANZ, the New Zealand Ministry of Primary Industries, the US Food and Drug Administration and the European Food Safety Authority. They all concluded that due to the study s limitations, its results were not relevant to the general population. This is consistent with a 2012 scientific literature review (meta-analysis), which reported the evidence on AFCs is weak but too substantial to dismiss. It is also asserted that AFCs as part of a balanced diet don t pose a safety concern for children but some additives can cause behavioural changes and, if so, children should avoid them. Consumer & public health concern Consumers are concerned about food additives and as a result are looking for products that are natural or with clean labels. Food industry is responding to these concerns, with a number of manufacturers committing to the removal of artificial colours and flavours from their portfolio. Major retailers are also moving towards ranging products with no artificial flavours and colours. Public health bodies, including the Food Intolerance Network, Centre for Science in the Public Interest and the UK Food Standards Agency, support removing artificial colours, and in Europe all foods containing additives from the 2007 study must carry a warning statement. Natural alternatives There are a number of natural colours and flavours available on the market. It is important however, that these ingredients are carefully considered because natural is not legally defined in Australia or New Zealand. COMMITMENTS --We ll commit to not using artificial colours or flavours in products targeting children under 12 years, by For adults, our first choice will be natural, not artificial colours or flavours. There s limited studies on the safety of colours in adults. Public health and government bodies state that for most adults, food containing AFCs are safe as part of a healthy, varied diet. However, there are some extremely rare cases where sensitive individuals may react to AFCs and should avoid eating them. Flavours There are minimal studies on flavours and their safety in both children and adults.

36 PORTION CONTROL We commit to providing a balanced portfolio of products with different portion sizes to meet people s energy and nutrition needs and different eating occasions, without encouraging overconsumption. These recommendations are based on advice from leading international and national authorities, such as the Australian Dietary Guidelines and the New Zealand Food and Nutrition Guidelines, to help achieve and maintain a healthy weight. We commit to making smaller portion sizes available across our portfolio. We ll continue to follow the Australian Food and Grocery Councils Guiding Principles for Serving Size, whereby a 600mL beverage or less is a single serve, and greater than 600mL is a bulk pack.

37 PORTION CONTROL... SCOPE Lion s position on responsible portion sizes. It applies to all products sold under Lion Dairy and Drinks-owned brands. UNDERSTANDING PORTION SIZE With the rising rates of obesity, and increasing levels of scientific evidence linking portion size and body weight, the Australian Dietary Guidelines and the New Zealand Food and Nutrition Guidelines have made recommendations to achieve and maintain a healthy weight. These dietary and lifestyle modifications include portion size. Appropriate portion sizes are important for energy balance but people often don t know how much energy they need in a day, what constitutes an appropriate portion size, or how to read a food label. As a result, many people are unaware that they re over-consuming energy or kilojoules. School canteen criteria have led the way in portion control, recommending maximum portion sizes for products, including flavoured milk and juices. The food industry has a responsibility to offer consumers a range of individual portion sizes that help to balance nutrient and energy density, along with communication on what is a serve size. This needs to be accompanied by education on the amount of energy a person should consume, with how much the body burns or uses. COMMITMENTS --We ll ensure all of our best for you products do not exceed 10% of an adult s average daily energy intake (based on 8700kJ), per serve. --We ll ensure our products come in appropriate portion sizes with smaller portion sizes available across the portfolio by We will improve the communication on what is an individual portion and serve size, to better help inform and educate consumers.

38 CONSUMER FRIENDLY PRODUCT INFORMATION We commit to providing a balanced portfolio of products with easy to use and understand nutrition product information to help consumers make more informed choices. We commit to advertising responsibly, with particular sensitivity to children and adolescents abiding by the Australian Food and Grocery Councils Responsible Marketing to Children s Initiative. We ll base our nutrition and health messages on the latest scientific evidence, and continue to research the best ways to educate our consumers on balancing their diet and lifestyle through the products they consume.

39 PRODUCT INFORMATION... SCOPE Lion s position on delivering nutrition product information (both on, and beyond the product label) to consumers, to help them make more informed choices. Our commitments are over-and-above the Food Standards Code s legal requirements. It applies to all products sold under Lion Dairy and Drinks-owned brands. UNDERSTANDING PRODUCT INFORMATION Food labels provide information to help consumers with their food and beverage choices, outlining what s in a product and how to handle it safely. This information is regulated in Australia and New Zealand by Food Standards Australia New Zealand (FSANZ). Consumer laws also ensure product labels don t mislead, deceive or misinform the consumer. According to a 2011 systematic review on labelling, the prevalence of self-reported label use is generally high, however there is mixed evidence on the ease of interpreting labels. Personal characteristics associated with a higher understanding of labels included frequent use, youth, higher education, motivation and higher income. Barriers to using and understanding food labels included lack of motivation, lack of time, a sense of mistrust and confusion by elements such as what is a serve, as well as added and inherent nutrients. Research shows that consumers pay most attention to nutrients they wish to avoid, for example sugars, fat and energy (kilojoules or calories). The use of colour, listing serves in household terms and labelling added nutrients may also assist consumers with the interpretation of nutrition information. Locally and internationally, government, consumer groups and industry have implemented a variety of schemes to improve the availability and comprehension of product information, either on or beyond the product label. Voluntary front of pack labelling, such as the government Health Star Rating (HSR), is an example of the food industry working collaboratively with government and health organisations to help people make more informed, healthier food choices. Lion is proud to be adopting the HSR system across our portfolio, along with additional information on energy, by The new food labelling system is similar to energy ratings used on white goods and aims to give consumers at-a-glance nutritional information by indicating the overall healthiness of a product within its food category. COMMITMENTS --100% of our retail portfolio will display the Health Star Rating front of pack labelling system by Nutrition and product information will be enhanced by 2019, including the identification of natural versus added ingredients.

40 CHILDHOOD NUTRITION (6 MONTHS to 12 YEARS) We commit to providing a balanced portfolio of products to help with children s healthy growth and development. Our commitments are based on advice from leading international and national authorities, such as the World Health Organisation, the Australian Dietary Guidelines, the New Zealand Food and Nutrition Guidelines and Australian and New Zealand national and state-based school canteen guidelines. We ll maintain the nutrient integrity of children s products, providing appropriate levels of energy, fat, sugar and salt. We won t use any artificial colours, flavours or sweeteners; added fructose; or coffee, caffeine or other energy ingredients in our products for children under 12 years. We commit to advertising responsibly to children, following the Australian Food and Grocery Councils Responsible Children s Marketing Initiative.

41 CHILDHOOD NUTRITION... SCOPE Lion s position is about responsibly developing and promoting products for children from 6 months to under 12 years. It applies to all children s products sold under Lion Dairy and Drinks-owned brands. UNDERSTANDING CHILDREN S NUTRITION Childhood is a time of rapid growth and development, and optimal nutrition is essential. Children need fat and carbohydrate for energy, protein for muscle growth and repair, calcium and vitamin D for growing bones and teeth, iron for proper blood cell formation and zinc for optimal physical development. Australians and New Zealanders are currently eating an excess of energy-dense and relatively nutrient-poor foods, posing greater risk of lifestyle related disease. There s growing awareness that a balanced diet can help reduce the risk of serious health problems later in life. As a result, nutrition criteria tailored to children, such as School Canteen policies and criteria, have become more stringent. COMMITMENTS All of our children s products will: --meet the Best and Good for you criteria by 2019: We ll reduce added sugar across the portfolio by 10% We ll reduce added sodium in our cheese by 5% We ll reduce fat in our treat category by 10% --Be free from artificial colours or flavours by Remain free of artificial sweeteners. --Be free of added fructose by provide portion sizes for the different stages of childhood to promote responsible consumption by We ll not use coffee, caffeine or other energy ingredients in products for children under the age of 12 (primary schools), by the end of 2015 (excluding chocolate and tea, but not tea-extract). It is widely accepted that food companies can and should play an important role in promoting a healthy diet and lifestyle to children, including initiatives like the Australian Food and Grocery Councils Responsible Children s Marketing Initiative.

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43 THE GOODNESS PROJECT

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