Expert advice from the leader in dairy Ingredients by

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1 Product solutions and support Expert advice from the leader in dairy Ingredients by

2 2 If you are producing new consumer dairy products, or simply improving your current range, you may be asking yourself these questions: DO I HAVE THE RIGHT INGREDIENTS? CAN I MAKE A BETTER PRODUCT?* DO BETTER INGREDIENTS EXIST?? IS MY FORMULATION CORRECT? DO I HAVE THE RIGHT PROCESS/ EQUIPMENT? IS THERE A MORE COST EFFECTIVE WAY? ARE MY PROCESS PARAMETERS CORRECT? And that s where we can help Fonterra has a deep understanding of a broad range of dairy ingredients and the processing requirements for key consumer dairy product applications. Our technical experts can help you choose the right ingredient solution, ensuring you achieve the best product at the right price. We can tailor our ingredients to meet your needs and even commercialise a new ingredient that s right for you. As the world s largest dairy processor, our solutions leverage Fonterra s global dairy expertise with a legacy of 100+ years. Backed by our world class dairy research and innovation centre, and with technical experts around the globe, you can gain access to our proven tools, processes and techniques. *Functionality and/or cost of goods reduction. Whether it is a new product or an extension of your existing range, we can help you with a range of solutions: What we offer > Find the dairy ingredient which best suits your needs > Technical support for pilot plant or commercial scale trials > Formulation and manufacturing costing support > Technology and equipment selection > Process optimisation to improve product characteristics > Commercialisation of new ingredients tailored to your needs > Customisation of a current specification > General and technical bulletins on dairy ingredients, applications and recipes Our Product Solutions and Support offerings are split into four areas: Dairy Application Support Technical Market Servicing New Ingredient Commercialisation Customised Specifications

3 3 Ingredient selection is the key to a successful product but finding the ingredient that gives the best performance at the right price can be diffcult. We possess a deep understanding of ingredients and their processing requirements and this experience, built up from decades of finding solutions, can assist you with your product development or product improvement needs. Dairy Application Support Understanding the critical process conditions for each application also significantly reduces product development time and cost. Our first-hand experience with processing equipment options ensures that the right equipment is selected to meet your needs. TECHNOLOGY EXPERIENCE FOOD SYSTEMS KNOWLEDGE CUSTOMISED MANUFACTURING SOLUTIONS SUCCESSFUL PRODUCT LAUNCH FONTERRA AND 3RD PARTY INGREDIENT KNOWLEDGE Because we have an established track record, we can help you develop consumer dairy products with excellent characteristics and do it quickly and cost effectively. In addition, we can add value to your current products through using the best ingredients, formulations and processing know-how to contain production costs while maintaining product functionality. A customised solution may include any of the following: > Detailed product and needs planning > Formulation cost and margin analysis > Appropriate technology selection > Process optimisation to maximise finished product characteristics > Specialist dairy product packing support > Product quality assurance support > Appropriate manufacturing and quality staff training Case Study DELIVERING COST REDUCTION IN CHOCOLATE A chocolate manufacturer was interested in reducing cost in the manufacture of their chocolate tablets and bar lines. We considered that an alternative dairy ingredient could be used as an effective substitute for the Caramelised Confectionery Powder based on the flavour profile. Our technical team ran a number of trials in conjunction with the customer, blending the alternative dairy ingredient into the customer s milk chocolate and white chocolate. We undertook sensory research to confirm that the alternative dairy ingredient could be substituted for the current Caramelised Confectionery Powder without impacting on the chocolate process or the chocolate properties. This was confirmed by the customer, and has resulted in significant cost savings.

4 4 The technical needs of a product change throughout its life cycle, so continued access to our technical service team ensures you have accurate product expertise to support our ingredients in your application. Our services include Technical Market Servicing > Product, nutritional, technical and application bulletins available for your reference > Ongoing ingredient knowledge and support on ingredient properties, selection of the right solution, and assistance using our ingredients in your plant and applications > Resource dedicated to answering your queries and requests for information and statements. This may include questionaires, specifications, or information on allergens, GMO, Halal and Kosher products. The right ingredient may not exist yet, so we can commercialise a full range of new dairy ingredients to meet your needs, including milk powders, cheese and processed cheese, specialty cream ingredients, protein powders, nutritionals and more! New Ingredient Commercialisation We can help you with > Tailored new ingredient solutions that help you innovate and add value to your products > Full support from concept assessment through to commercial product > Access to our commercialisation expertise > Expert and efficient project management to ensure a smooth and rapid commercialisation Case Study A CULTURE FOR SUCCESS A large global food company were looking to boost sales of their well known brand in Europe by finding a solution that improved the taste and texture in their low fat yoghurt. Our technical team, along with a network of other Fonterra experts, developed a functional ingredient that was capable of delivering body and creamy texture to the yoghurt, as well as excellent taste. This was benchmarked by the customer against competitors solutions, with our solution coming out on top based on superior taste and functionality. We then worked closely with the customers R&D team to take the yoghurt from pilot-scale testing through to full scale manufacture, concluding with the successful re-launch of the customers product. The unique new ingredient that was developed is now being trialed in the customers other brands and markets and they continue to work with our team to ensure these are also successful.

5 5 If you re already using an existing dairy ingredient, we may be able to add additional value by customising it to meet your specific needs to achieve improved taste, texture, functionality and more. Let us work with you to deliver the right solution and improve your current products. Customised Ingredients Ingredients by