NewCom #02. BASF Human Nutrition ezine, November 2013

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2 Connected for success Lead Article Live Newtrition TM Samy Jandali Vice President Human Nutrition North America Ed Gallagher Vice President Human Nutrition Europe As Michael Ceranski explains in our first article, one of the most important things for us is to connect with you for business success, it s the ultimate goal. Effective communication is vital and we believe NewCom has an important role to play in keeping you up-to-date and providing opportunities for you to delve deeper into topics of interest. In this edition: Michael Ceranski presents an essential guide to Live Newtrition TM ; Christine Haupt explains BASF s Nutrition Business, identifies key trends; we examine BASF s food fortification programs and their role in fighting world hunger; our science update puts the spotlight on potential new health benefits for carotenoids; and we highlight regional activities and some of the recent news stories about BASF Human Nutrition. We hope you find NewCom useful for your business. If you d like to find more information, or make that all-important connection, simply click on the contact SET applied Contact sustainability & Imprint Experiencing sustainability News Algae technology Formation of FSE Apocarotenal 2CWD omega-3 Market trends Key Trends Food Fortification Stepping up the fight against hunger Science update Spotlight on Carotenoids Regional reports Asia/Pacific Regional reports North America Sandra Biben Director Human Nutrition Latin America Tina Low Director Human Nutrition Asia Pacific involvement with the Sustainable Brands Conference in London; Julian Mellentin, industry pundit and Editor of New link at the end of each story. We look forward to hearing from you! Regional reports Europe Where to find us Trade show calendar

3 Michael Ceranski, Senior Vice President Human Nutrition, BASF SE talks about Newtrition, BASF s global brand dedicated to the human nutrition market and the new global market initiative, Live Newtrition, both officially launched in May at Vitafoods Europe in Geneva and IFIA Japan in Tokyo. Newtrition We want to do things differently. The symbol is our newly registered brand mark: a circle, the world, where we can serve you globally, regionally and locally; an active person at the centre; and around the figure organic forms, representing food, giving energy for life. We know that brands are amongst your most valuable assets. Newtrition also represents our goal to strengthen your brands and your business. BASF goes food At corporate level, BASF s year strategy - we create chemistry for a sustainable future is based on the assumption that we will have around billion people on the planet by We see food and the satisfaction of increasing demands for food as key to that strategy today and more particularly in the future. That puts Nutrition & Health right at the centre of BASF strategy. Human Nutrition goes future Live Newtrition We re innovative and flexible. What we re doing is consumer-minded, we re talking branded business. We have changed our organisational structure completely from orientation by product lines, to orientation by food, beverages and dietary supplements. Yesterday we thought about ingredients, today we still sell ingredients but our mindset is food, concepts and brands, we Live Newtrition. Specifically, there are four key benefits we can offer to give you added value. Local presence and BASF is present in more than 10 countries, which means you can connect with us anywhere in the world. From a global perspective, it s important to us to make sure your regional and your local needs are met

4 Food is the energy for life, food is culture and culture is local. If you have food business issues to be resolved somewhere in this world, in a particular country, please get into a dialogue with us, we speak your language. With our labs, production sites and affiliates we are part of your local culture, we are there wherever you need us. premium quality Manufacturing excellence is for us an absolute prerequisite, as is delivering premium quality every time. We work in the areas of food, beverages and dietary supplements and we want our diverse and constantly expanding portfolio to be as relevant as possible, so choose from our menu and let s focus on what s most appropriate for you. We provide synthetic ingredients such as vitamins A and E, natural ingredients including omega 3, plant sterols and CLA, vitamin E and antioxidants, colorants both natural and nature identical - as well as processing aids and texture performance systems. Innovation from one company What does this mean for you? As a company, BASF has more than,000 researchers, R&D experts working on 200+ projects at over 70 labs, not all of which are food labs of course. Now, because of the new company strategy, their expertise is available to us in the Human Nutrition unit, for your benefit. We have access to all that power. Take for example micro encapsulation. This technology is an area of strength for BASF, in particular for agricultural products, but that same technology can be used for the food business. Another example is excipients. Used in pharma to increase bioavailability, excipients can also be used to make dietary supplements work even better in the body. BASF is spending nearly 2 billion euro on R&D and this amount is continually increasing even in financially difficult years

5 This makes us one of the most innovative companies in the world, a fact recently confirmed in a study by the Boston Consulting Group. In their 2012 report, they found BASF to be one of the top 25 most innovative companies worldwide. Sustainability We know consumers want more sustainable products. We know you are interested in reducing costs and increasing profit, at the same time as reducing your environmental impact. Is this a contradiction? No, from my many years of experience with BASF we have numerous examples of doing just that, based on a scientific approach. We can show you how to use 50% less water when producing orange juice, save 15% energy in the production of dietary supplements and reduce your carbon footprint by 20% when making bakery products. All this is possible: we can do the analysis, identify hotspots and bring immediate value to your production process. Making a positive contribution Sustainability for us also means making a positive contribution. Very often when interviewing young people for jobs they ask: What are you doing to make the world a better place to live? BASF is a member of the German Food Partnership (GFP), 20 companies who have committed to projects in developing countries. Vitamin A deficiency (VAD) is the leading cause of preventable blindness in children and increases the risk of disease and death from severe infections. As part of a strategic alliance for fortification of oil in staple foods, our participation includes a vitamin A food fortification program, through which 150 million people now have access to edible oils enriched with vitamin A, in a stable form which survives the cooking process

6 Connected for success One of the most important things for us is to connect with you for business success, it s the ultimate goal. Can we together create your next blockbuster, your next double digit growth? Once we mutually agree to focus on a particular project or need, we can dive deep to make it happen. We can connect BASF competencies with suitable ingredients from our portfolio so, if you want to produce a new dietary supplement we can supply you with the vitamin E of course but we can do a lot more. We can look at colors, coatings, excipients, and ways to improve sustainability. We can consider packaging, plastics, paper and print, to make the product more appealing to consumers and to make your company more successful. Newtrition is your access to the source of unlimited opportunities. You can consult and discuss or challenge us; we want to be your genuine partner along the entire nutrition value chain. This is our approach for the future. Connected for success, together with you, we will Live Newtrition. Michael Ceranski Senior Vice President Human Nutrition, BASF SE Contact michael.ceranski@basf.com

7 SET applied sustainability SET Experiencing sustainability What does beer have to do with Crosspure since 20. The booth was sustainability? Participants at the visited by a large number of delegates, Sustainable Brands Conference, London, who were interested to learn how Nov 27-2, 2012, showed a keen interest in BASF s renewable beer filtration and stabilization aid Crosspure. Key account manager Joerg Kress demonstrated in real-time how small amounts of this innovative product clarify unfiltered beer. A tasting beer was provided by our German customer Welde, who has used Crosspure makes production healthier and safer, how it increases production efficiency and creates products with better taste and higher stability. } Joerg Kress and Beatus Schehl, BASF, help attendees experience more sustainable solutions used for beer. 1 2 Read more about Crosspure

8 SET applied sustainability Innovation lab The demonstrations ranged from creating are relevant to defined stakeholders. A BASF was a major sponsor of the Sustainable Brands Conference, hosted by US-based Sustainable Life Media. The 46 attending brand strategists, thought more sustainable salmon and pork products through renewable beer filtration and stabilization to functional barrier packaging solutions. holistic sustainability strategy measures the sustainability performance of specific products along their entire value chain. This is the starting point for charting the }Dive into our new website! leaders, and design innovators represented global brands as well as start-ups, NGOs, and solution providers. In the BASF innovation lab titled Experi- Creating brand value During a break-out session, participants learned about Creating brand value along road-map for improvement and to creating brand value with applied sustainability. BASF is also sponsoring this year s Sustainable Brands Conference in London on Get SET for applied sustainability. ence it: Making Sustainability Tangible, practical case studies let conference the life cycle with BASF, Marks & Spencer and BioMar. One of the key insights 1-1 November. participants experiment and experience was that addressing consumers expec- how BASF optimizes product sustainability in cooperation with its customers. tations is only possible based on a solid understanding of sustainability topics that Contact christine.haupt@basf.com 1 2 Read more about the 2012 event on Facebook Read more about SET, the BASF initiative for applied sustainability Read more about Sustainable Brands London,

9 BASF and NPC join forces to cooperate on algae technology Contact National Prawn Company (Al-Laith, KSA) and BASF (Ludwighafen, Germany) announced the signing of an agreement on 30th June. The collaboration brings together the decade-long experience and unique expertise of both companies: National Prawn Company has developed knowledge and proficiency in designing, building and operating a large system of man-made-lakes especially for the production of high-quality prawns. Furthermore NPC is developing research programs on new algae species and sponsors aquaculture projects around the world. BASF is the global leader in technologies relevant for growing and harvesting algae in open-lake-systems and in further processing the algae biomass into products used in beverages and dietary supplements. The contract signed today once more marks the ability of Saudi Companies to Algae technology Formation of FSE be equal partners with World Class enterprises like BASF. It also shows that we are capable of offering solutions for domestic and global needs. We are looking forward to a long cooperation with BASF, the world s leading chemical company, said NPC`s chairman Sulaiman Bin Abdul Aziz Al Rajhi. The climatic conditions of the Red Sea desert coast line of Western Saudi Arabia meet the environmental needs of seawater algae and promote their growth. News Apocarotenal 2CWD omega-3 With our portfolio in the market segments of food, beverages and dietary supplements we are able to meet and anticipate future needs. At the same time we are constantly trying to enhance nutrition quality and promote technological innovations, said Michael Ceranski, Senior Vice President of BASF`s Human Nutrition business unit. Within these ambitious goals new partnerships like the collaboration with National Prawn Company are fundamental for us: NPC gives us access to more biomass from algae and to use and leverage the all-year nonchanging climate conditions in Saudi- Arabia. Eng. Ahmad Rasheed Al-Ballaa, Managing Director of National Prawn Company, pointed out: We are very pleased and proud that National Prawn Company and BASF have succeeded in establishing this cooperation, bringing together the best of both companies to create a unique aquaculture project. Read more about NPC

10 News Formation of FSE BASF founder member of new Food Supplements group in Europe Contact Algae technology Formation of FSE Food Supplements Europe (FSE) has been created to represent the interests of the European Union s food supplement sector. Formed in March, the organisation states on its website that its membership is committed to ensuring that future EU legislation and policy reflects the important role that this sector plays in the health of consumers. Founding members of FSE are: The Council for Responsible Nutrition UK European Responsible Nutrition Alliance (ERNA) Several national food supplement associations Ingredient suppliers, including BASF, and food supplement makers Apocarotenal 2CWD omega-3 FSE has five primary goals: Create a favourable environment for the recognition of the importance of food supplements for public health Build a European regulatory system that takes into account the special requirements of food supplements based on evidence-based principles. Represent the interests of the food supplement industry as a trusted partner for solutions on regulatory, scientific and technical matters based on knowledge, dialogue and transparency. Engage with all involved in legislation and policy making in Europe in the area of food supplements, including the regulatory and scientific bodies, the political institutions and consumer and industry representatives. Implement a strategic vision for the sector in Europe so that consumers can benefit from safe and high quality products

11 News Apocarotenal 2CWD Drinktec in September offered an exceptional opportunity for BASF to Algae technology Formation of FSE Apocarotenal 2CWD omega-3 launch its latest colorant. As a natureidentical ingredient for beverages, dairy and confectionary, Apocarotenal 2CWD impresses with its clear coloring shades and ph-independent stability. Furthermore, it is free from allergens, and is kosher and halal. This coldwater-dispersible powder formulation offers the option of replacing artificial colorants such as Sunset Yellow on a long-term basis. Contact christine.habicher@basf.com

12 News BASF now a leading player in omega-3 Algae technology Formation of FSE Apocarotenal 2CWD omega-3 With its recent acquisitions of Equateq and DHA (docosahexaenoic acid), omega-3 and PronovaPure. This allows easy ap- Limited, BASF Pharma (Callanish), and supports the health of the heart, brain, bones plication in soft or hard gelatin capsules and Pronova BioPharma ASA, BASF has and eyes. liquid preparations to prevent cardiovascular broadened its range of omega-3 products BASF s omega-3 product range is specifical- and cerebral diseases, the onset of which for the human nutrition and pharmaceuti- ly designed to fit the respective requirements can be affected by EPA and DHA deficiency. cal industries and is now one of the leading of, for instance, pregnant women and their players in the omega-3 market. The proven unborn children, as well as supporting a bal- benefits of omega-3 fatty acids are valuable anced midlife and an active life for the elderly. for consumers at all stages of life. With its The delivery forms range from powders to oils, Contact albert.strube@basf.com constituents EPA (eicosapentaenoic acid) such as Omevital, Dry n-3, Crystalpure

13 Market trends Key Trends Julian Mellentin, Editor many companies tell us they do. In the next When people can feel the benefit being Naturality Energy Fruits & vegetables Dairy Seniors Healthy snacking Packaging innovation and premiumisation of New Nutrition Business, examines the key trends driving strategy in the business of foods, beverages, nutrition and health. In our annual analysis of key trends we attempt to identify, rank and forecast the most important trends, using a methodology that takes into account information of many types from science through to the few pages we look more closely at trends 1-5 but before we begin, here are two significant pointers: Look beyond consumer research for ideas If you wait for consumers to tell you what to do you will mostly be disappointed. Useful though consumer research is, it is also good at failing to spot the issues that matter to only a small group of people perhaps less than 20% of consumers. Counter-intui- offered to them, they see that they are getting value for money. All consumers top concerns relate to problems where delivering a tangible effect is critical for product credibility. Digestive health consumer from a wide range of sourc- tively, it is they who are often the best initial Weight management Immunity es. The focus is on those trends that are the underlying key drivers for our industry target for new product concepts. not fads or short-term developments. Feel the benefit This long-term focus enables companies Offering a benefit the consumer can feel to formulate their plans, innovation and has become even more important and ef- strategy around our trends analysis, as fective in a tough economic environment. 1 /

14 Market trends Key Trend 1 The biggest trend Naturality As the biggest trend, naturality also over- What natural means to consumers There are two broad categories of natu- Naturally healthy needs no health claims laps with and influences most other ral as defined by consumer perceptions: Understandably, companies worry about trends. It is the biggest trend in most Western markets and quite a few markets in Asia. However it has nothing to do with whether the word natural appears on the label or in advertising. Natural is something defined in the mind of the consumer, not by technical or regulatory definitions. And natural for many people also means healthy. 1. Natural meaning fewer and simpler ingredients: Foods that are freefrom artificial colours, preservatives or additives. 2. Natural meaning naturally functional : Rule number one in the current market the message that a food or food ingredient has a natural and intrinsic health benefit is one of the most per- what health claims they can make for their products. But the good news is they don t need to. Perceived health benefits from naturally healthy ingredients is an easy concept for both consumers and the media to understand. Naturally functional needs no health claims, for when consumers can draw their own conclusions, no health claim is needed. suasive that people can hear. < 2 / 6 Key Trend

15 Key Trend 2 Energy A new golden era? Feel the benefit advantage: Energy drinks deliver a benefit that is immediately effective and detectable and this benefit explains much of their global success. Category defined by beverages: The energy drinks market is one of the biggest success stories of the functional food revolution that began in Japan in the 150s. Top-5 consumer need: Lack of energy is a key consumer interest for stressed executives, for harassed mothers, for older people who want to stay active, or for anyone struggling to get through a sleepy afternoon in the office. New opportunities with fruit, dairy and naturalness : Because of the focus in the West at least of the brands in the established energy drink category on males aged 1-24, there remains a wealth of untapped opportunities to develop new product formats. Super-premium, super-convenient concentrated dose: Shots are creating a new category in the US and the UK. The shot format has still Market trends a huge potential to be fulfilled, primarily from creating brands and concepts with better appeal to older consumers and particularly women. Recession-proof: Growth barely paused in the depths of the economic downturn. Overlaps with: Key Trend 1: Naturality and Key Trend 3: Fruits and vegetables < 3 / 6 Key Trend

16 Market trends Key Trend 3 Fruits & vegetables Key Trend 4 Dairy Fruit has a natural advantage Dairy s natural advantage Science is increasingly uncovering ben- New fruit-and-vegetable-based brands usually sell at premium prices. When fruit is available as a convenient snack or drink, consumers perceive it as something valuable. Fruit and vegetables offer a wealth of opportunities to overlap with other trends, lending their strong naturally healthy image to products. In a world in which health claims are becoming fewer and the demand for substantiation is increasing, fruit and vegetables have the advantage of an existing strong association with health in the mind of the consumer. efits in relation to digestive health, immunity, satiety, sports recovery, glucose uptake and insulin response, energy and mood. This research will only add to the appeal of fruit. Overlaps with: Key Trend 1: Naturality, Key Trend 2: Energy and Key Trend : Immunity. Dairy has the benefit of a strong naturally healthy image in consumers minds and has become a credible category for health messages. The relatively low cost of dairy ingredients, huge flexibility of dairy in terms of product formats and flavours along with the strong focus on innovation of many dairy companies has helped dairy to become the most active segment of the nutrition and health market. Dairy is a credible carrier of a number of benefits and emerging science is improving dairy s image even further, and changing the bad image of dairy fat. Could the next decade bring the realisation that low- or no-fat dairy products have been a huge mistake? The massive success of the Greek yoghurt category in the US illustrates how there are still a wealth of untapped opportunities to create new dairy propositions, even in developed markets. Overlaps with: Key Trend 1: Naturality, Key Trend 2: Energy, Key Trend 5: Seniors, Key Trend 7: Packaging innovation and premiumisation, Key Trend : Digestive health, Key Trend : Weight management and Key Trend : Immunity. Key Trend 3 Key Trend 4 < 4 /

17 Market trends Key Trend 5 Seniors Ageing populations are here now even in Asia-Pacific Older consumers attractions include: They are an ideal target market for sci- There are many ways of reaching them other than simply the regular supermarket. Opportunity: Of all the trends, targeting ence-based companies. They want some- Their numbers are surging now and will the needs of older consumers presents thing that actually works. be for the next 30 years, not just in the by far the most opportunities to create When they commit to a brand they be- West but in most Asian countries, too. new products and generate sales growth. come very loyal customers with very Growth markets: cardiovascular, bones high repeat purchase rates of 0%. and joints, cognitive, vision, immunity, di- The opportunities for innovation for gestive health, hyperglycemia and many seniors can be found in: more. 1. Ingredients that provide better nutrition Overlaps with: Key Trend 2: Energy, Key and/or solve problems Trend 3: Fruit & vegetables, Key Trend 4: 2. Ingredients and technologies that make Dairy, Key Trend 6: Healthy snacking, good nutrition more available Key Trend 7: Packaging innovation and 3. New formats, tastes and textures that They are a low-volume but high-value premiumisation, Key Trend : Digestive improve patient compliance market. They are willing to pay premium health, Key Trend : Weight manage- 4. New benefit platforms prices for products that they believe de- ment, Key Trend : Immunity 5. New ways of branding and positioning liver relevant benefits. < 5 / 6 Key Trend

18 Key Trend 5 Seniors Market trends Demographics of Europe mean in future food & health market = senior nutrition Growth markets: cardiovascular, bones and joints, cognitive, vision, immunity, digestive health, hyperglycemia and many more Percentage of population aged age group 65+ age group 60 Look out for the next edition of NewCom for more about key trends 6-. % of population (Fcst) (Fcst) (Fcst) (Fcst) (Fcst) (Fcst) (Fcst) 2030 (Fcst) EU average (27 countries) Germany UK France Italy Spain Portugal Sweden Source: EUROSTAT (official statistical body of the European Union) Contact andreas.appelhagen@basf.com Key Trend 5 < 6 /

19 Food Fortification Stepping up the fight against hunger The German Ministry for Economic Cooperation and Development (BMZ), the Bill & Melinda Gates Foundation and German companies plan to step up their cooperation in the fight against world hunger and to improve food and nutrition security. Their goal is to increase agricultural productivity for smallholder farmers, and to improve nutritional and economic outcomes for their families. A total of over 0 million euros is to be made available. Of this, about 20 million euros will be provided by the BMZ and around 20 million euros by the Bill & Melinda Gates Foundation. German and international businesses have indicated their intention to match this amount with further funding of about 40 million euros. (GFP). This was the outcome of a meeting that took place in Berlin in January between BMZ Minister Dirk Niebel, Bill Gates Bill Gates (left) and Michael Heinz (right), member of the board of executive directors of BASF in Berlin on January 2, 2013 Two projects with highly visible BASF and top German business representatives, commitments have been launched in the among them Michael Heinz, member of the context of the German Food Partnership board of executive directors of BASF

20 Food Fortification Two key projects BASF will participate in two key projects implementing partners comprise private brella of the German Ministry for Economic to improve the value chains of selected sector participants of the GFP in the fields Cooperation and Development (BMZ), agricultural products in the context of the of fertilizers and plant protection, irriga- making concerted efforts to promote agri- German Food Partnership (GFP). tion systems, agricultural engineering and culture and the the food industry in emerg- The objective of the African Oilseed Alli- analysis, as well as food processing tech- ing and developing economies. ance is to strengthen the local oil industry nology. of up to five African countries by improv- In both projects, BASF will contribute with ing the quality of seeds, cultivation and its fortification and plant protection ex- harvesting methods as well as processing, pertise. The projects are currently in their including the fortification of edible oil. The design phase and will be implemented over second project, the Asian German Better 5 to 7 years.the GFP is a voluntary alliance Rice Initiative focuses on the improve- of around 35 German and European busi- Contact andreas.bluethner@basf.com ment of rice value chains. The project s nesses and associations, under the um- 1 2 Read more about Food Fortification

21 Spotlight on Carotenoids Foods and beverages with anti-aging properties are still of great interest to contribute to an optimal inflammatory balance. Science update oxidation in the vascular wall. Such oxidative processes damage the blood vessels consumers in addition to a healthy diet However the reality is that common prob- and contribute greatly to the progression of and active lifestyle. More and more peo- lems like cardiovascular diseases are atherosclerotic plaques that lead to various ple are becoming aware of the importance global health issues that have led to con- cardiovascular impairments. of staying healthy both to maintain the siderable public health concerns in devel- best possible quality of life in later oped countries. The search for There is growing evidence that lycopene, years and in order to be pro- potentially promising health lutein and other carotenoids have signifi- active about their well- ingredients to combat these cant protective effects and make essential being. Increased worldwide issues there- contributions to maintaining general health life expectancy fore continues. and wellbeing. These carotenoids have reinforces the In addition to the over- anti-oxidant activity, both directly due to desire of older adults to slow the aging whelming preventive properties of omega their role as scavengers of Reactive Oxy- process and to reverse or prevent some 3 fatty acids, researchers have recently gen Species (ROS) and indirectly through of the natural consequences of aging. found additional beneficial effects of vita- the augmentation of nitric oxide (NO). The Over the last decade, an increasing min K and carotenoids in the slowing down progression of aging and atherosclerosis amount of medical research has focused of vascular aging and the maintenance by ROS is due to the depletion of vascu- on the role of inflammation in aging and of vessel flexibility. After a long period of lar NO. Unlike the case of endothelium disease. Human bodies tend to over-pro- silence, carotenoids appear to be back on injury, a normal vascular structure is char- duce inflammatory chemicals as a result the stage. acterized by high NO bioavailability. The of diet and lifestyle. At the same time, It is widely accepted that the develop- increase in flow-mediated dilatation and people don t get enough of the nutrients ment of atherosclerotic lesions is the main reduced inflammation improves endothelial that naturally reduce inflammation. Fight- manifestation of vascular aging. It is the function, decreases atherosclerotic pro- Contact tamara.rausch@basf.com ing the signs of aging means including health ingredients in the daily diet that result of a state of heightened oxidative stress characterized by lipid and protein cesses, and results in the retardation of vascular aging

22 Regional reports Asia/Pacific 2013 Newtrition TM Research Grants BASF presented Newtrition TM Asia Research Grants to eight scientists at a grant program ceremony held in Singapore in April. The program provides a scientific platform for researchers to connect, collaborate and promote the awareness of food ingredients throughout Asia and the grants recognize the scientists work in advancing heart health research. The 2013 BASF grant program targets China, Indonesia, Singapore and India. Consumers in these emerging economies are experiencing rapidly changing lifestyles, due in part to technology replacing labor and to increasingly westernized diets. These changes are resulting in an increasing rate of cardiovascular disease, causing a growing public health risk. Plant sterols, which can be found naturally in vegetable oils, legumes, nuts and grains, are one option to meet this growing health risk. They lower LDL cholesterol levels and help to block the absorption of dietary cholesterol into the bloodstream. While plant sterols have been used extensively in Europe and the United States, awareness and research in Asia is still very limited, said Tina Low, Director, BASF Human Nutrition, Asia Pacific. By focusing this year s grant on Asian countries, BASF hopes to generate more research on the health benefits of plant sterols. The researchers winning proposals were selected based on a review for scientific merit conducted by BASF s Scientific Advisory Committee, composed of scientists from academia, government and industry. Each researcher received a grant of 25,000 in local currency to fund a 12-month study. Researchers will present their findings at the 2014 grant program ceremony

23 Asia/Pacific 2013 Newtrition TM Research Grants Regional reports The recipients of the 2013 Newtrition TM Asia Research Grants, including two Young Investigator awards, are: The Asia Newtrition TM Research Grant Program shows how an industry leader like BASF can work together with the scientific community to advance public health throughout Asia and beyond, said David Cai, PhD, Scientific and Regulatory Affairs, BASF Human Nutrition, Asia Pacific. Through these new research initiatives, we aim to lower cholesterol levels and thus foster heart healthy lifestyles. We know that many Asians are not getting enough plant sterols in their diets, so we hope to support research into supplementation. Contact Dr. Stephen F. Burns // Nanyang Technological University, Singapore Combined effects of dietary plant sterol supplementation and exercise on postprandial triglyceride responses Dr. Wai Mun Loke // Nanyang Polytechnic, Singapore Effects of pure dietary phytosterols on inflammation and lipid peroxidation in vivo Prof. Seeram Ramakrishna // National University of Singapore, Singapore Encapsulation of plant sterols/stanols in starch and protein matrix Dr. Nancy Dewi Yuliana // Bogor Agricultural University, Indonesia Anticancer activity of sterols- rich artificial rice in Balb/c mice Dr. Sandhya Narasimhan // Madras Diabetes Research Foundation, India Dietary phytosterol supplementation and their effects on inflammatory status: an intervention trial study among... Dr. Lihua Song // Shanghai Jiaotong University, China The effects of phytosterol on high fat diet induced non-alcoholic fatty liver disease (NAFLD) Ruirong Pan // Affiliated Hospital of Jiangsu University, China A survey on intake of plant sterols by patients of type 2 diabetes and its complications, Young Investigator Grant Dr. Shuang Rong // Chinese Center for Disease Control and Prevention, China Study on the protective effect of PS-ALA on age associated memory impairment in rats, Young Investigator Grant Read more about Research Grants

24 North America Making Live Newtrition TM a reality Choice Consumers in North America demand it as they become savvier in their Listening to your needs How do we know what to offer and why? First, we listen closely to learn about Regional reports dient form such as an omega-3 powder for the best results from the ideation stage to the store shelf. purchasing decisions. They closely ex- your unmet needs. We then combine amine labels to identify what colorants this knowledge with market trends data Collaboration with IFSH and ingredients are and education. At the Collaborating with the best of the best in foods and beve- two largest industry both inside and outside BASF drives the rages. Clean labels trade shows in NA, success of Newtrition. Recently, BASF can make or break a we help bring in ex- announced that we have joined the Ins- sale. BASF offers a perts to explain how titute for Food Safety and Health (IFSH) broad range of natu- science, regulatory to collaborate on nutrition research and ral, nature-like and changes, and market food safety projects. IFSH, a unique synthetic options so trends are shaping research consortium, builds on the vital our customers can deliver products that consumers lifestyle and purchasing ha- work of the National Center for Food Sa- resonate with specific market segments. bits. The sum of these parts is what ma- fety and Technology (NCFST), the Uni- For example, to appeal to parents in kes Live Newtrition a reality. First and ted States Food and Drug Administration search of healthy foods for their family, foremost, great taste and health must (FDA), and the food industry. natural colors produced from BASF s be synonymous. Thanks to our applica- extensive carotenoids portfolio can be tions experts in BASF s Tarrytown, NY used to create a child s favorite meal. kitchen, we can identify the right ingre

25 North America Making Live Newtrition TM a reality Contact laura.troha@basf.com Regional reports Supplementary benefits BASF does what no one else can when it comes to expertise in dietary supplements. Our teams with decades of experience in both the pharmaceutical and human nutrition markets collaborate to deliver innovative supplement forms that appeal to regional preferences. From making it a slower, controlled release to improved bioavailability, we have a solution to meet growing demands for more effective supplements. pliance remains a challenge. We offer concepts to make taking supplements easy and convenient. Our technical specialists help consumers Live Newtrition by creating easy-to-dissolve products with effective taste masking. Dietary supplements containing our omega-3 fish oil continue to be recognized by the International Taste & Quality Institute with a coveted Superior Taste Award. Whether it s a multivitamin, specialty vitamin or product targeting a specific health condition, we help our customers create successful products to reflect the upward Convenience and taste Sixty-eight percent of U.S. adults take dietary supplements according to a survey commissioned by the Council for Responsible Nutrition (CRN). But comtrend in dietary supplement consumption in North America. BASF is committed to working hard to support consumer confidence with safe, quality and effective supplements

26 Regional reports Europe BASF takes Live Newtrition to emerging markets Scope for growth Middle East region Here the market is currently dominated by performance ingredients but the functional ingredients sector is growing fast enhancing its warehousing and distribution network. Welcome to our kitchen! A vital element in BASF s Live Newtrition Moscow, where BASF won the award for best newcomer. We ll be back at these and many other trade shows next year, so please come and meet the team! whereas the majority of end consumer market initiative is the opening of a new The 3 main sub-regions of Russia and CIS Africa Turkey and Middle East, comprise 1 countries with a products in the functional area are imported. An emerging middle class will drive growth for packaged food production kitchen lab in Istanbul, Turkey, in the fourth quarter of Offering support, service and training for customers and population of ca. 1.4 bn with taste, texture and shelf life all key distributors, the facility will cater for all Growth of the food market is expected to be more than 3.5 % per year in the next 12 years ingredients for success. Turkey, Egypt, Iran and parts of the Arabic peninsula will drive mid-long term functional ingredients food applications but will have a particular focus on bakery, dairy and desserts. With a total ingredients market of 1.1 bn, estimated CAGR is 3.5% growth because of their faster orientation towards western lifestyles. Double First Continuing the company s quest for market development opportunities in emerg- Meeting local needs ing European markets, we participated As part of the program to meet food in two trade shows for the first time this customer needs by strengthening our year with a booth at Gulfood in Dubai presence in emerging regions, BASF is in February and in March, FI Russia in 1 2 Read more about Tonalin

27 Europe Tonalin enhances Reduxin Light in Russia Regional reports Partnership discussions between BASF and Promo-Med have reached a successful conclusion. Promo-Med foresaw the benefits of using BASF s Tonalin brand on their Reduxin light product, rather than simply stating that it contains CLA and BASF granted non-exclusive rights to use the Tonalin brand in Russia. Reduxin light has already shown tremendous success in the Russian weight-reduction segment but, since the Tonalin brand was introduced, sales showed a 63% increase in December 2012 over the previous month (Source: Drug store monitoring group) Contact sarah.a.schmidt@basf.com Read more about Reduxin Light

28 We look forward to meeting you at one of these trade shows Where to find us Moscow Las Vegas Geneva New Orleans Tokyo Shanghai Dubai Jakarta São Paulo Food Ingredients China March 25-27, 2014 Shanghai, China IFIA Japan May -11, 2014 Tokyo, Japan Food Ingredients Asia September 24-26, 2014 Jakarta, Indonesia Ingredients Russia March 1-21, 2014 Moscow, Russia IFT June 21-24, 2014 New Orleans, USA Supply Side West October -, 2014 Las Vegas, USA Vitafoods May 6-, 2014 Geneva, Switzerland FISA/HI/CPHI August 5-7, 2014 São Paulo, Brazil Gulfood November -11, 2014 Dubai, UAE

29 Contact Imprint Contact North America BASF Corporation Human Nutrition, North America 0 Park Avenue Florham Park, New Jersey 0732, USA Phone: human-nutrition-north-america@basf.com Europe, Africa, West Asia BASF SE Human Nutrition 6623 Lampertheim Germany Phone: human-nutrition-europe@basf.com Global Headquarters BASF SE Human Nutrition 6623 Lampertheim Germany Phone: newtrition@basf.com Asia / Pacific BASF East Asia Reg. Headq. Ltd. Human Nutrition, Asia / Pacific 45th Floor Jardine House No. 1 Connaught Place Central Hong Kong, China Phone: human-nutrition-asia-pacific@basf.com Latin America BASF S.A. Human Nutrition, South America Av. Das Nações Unidas, / th floor Torre Crystal São Paulo SP , Brazil Phone: human-nutrition-south-america@basf.com Suscribe ezine andreas.bais@basf.com

30 NewCom #01 BASF Human Nutrition ezine, June 2012 Contact Imprint Imprint Disclaimer This document, or any answers or information provided herein by BASF, does not constitute a legally binding obligation of BASF. While the descriptions, designs, data, and information contained herein are presented in good faith and believed to be accurate, they are provided for your guidance only. Because many factors may affect processing or application/use, we recommend that you make tests to determine the suitability of a product for your particular purpose prior to use. It does not relieve our customers of the obligation to perform a full inspection of the products upon delivery or any other obligation. The claims and supporting data provided in this publication have not been evaluated for compliance with any jurisdiction s regulatory requirements and the results reported may not be generally true under other conditions or in other matrices. Users must evaluate what claims and information are appropriate and comply with a jurisdiction s regulatory requirements. NO WARRANTIES OF ANY KIND, EITHER EX- PRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PAR- TICULAR PURPOSE, ARE MADE REGARDING PRODUCTS DESCRIBED OR DESIGNS, DATA, OR INFORMATION SET FORTH, OR THAT THE PRO- DUCTS, DESIGNS, DATA, OR INFORMATION MAY BE USED WITHOUT INFRINGING THE INTELLEC- TUAL PROPERTY RIGHTS OF OTHERS. IN NO CASE SHALL THE DESCRIPTIONS, INFORMATI- ON, DATA, OR DESIGNS PROVIDED BE CONSI- DERED A PART OF OUR TERMS AND CONDI- TIONS OF SALE Blueline 21. Juni 2013 BASF SE Ludwigshafen Germany Copyright BASF 2013 System Requirements This PDF requires Adobe Acrobat Reader, Version 7 or higher.