International Pasta Organization
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1 International Pasta Organization Canada s Durum and Pasta Industry Annual Meeting Lisbon, Portugal June 7, 2013 Earl Geddes CEO Cigi
2 Canadian Pasta Industry Current Pasta trends Current industry changes Current challenges Cigi (Canadian International Grains Institute)
3 Current Pasta Trends Companies Consumption New durum varieties
4 Canadian Industry
5 Company Ebro Foods SA Italpasta Ltd Sun-Brite Canning Ltd Maple Leaf Foods Inc Heinz Co, HJ Private Label Source: Euromonitor International, 2013 * Note: Major companies are sorted based on the market share of more than 0.1% * Market share is broken down by company and the figures are based on the aggregated sales of their brands
6 Pasta consumption growth Canada s Pasta Market, Retail Value Sales in US$ Millions Country Dried pasta Chilled/Fresh pasta Canned/preserved pasta Canada s Pasta and Couscous Market, Retail Volume Sales Thousand Tonnes Country Dried pasta Chilled/Fresh pasta Canned/preserved pasta Source for both: Euromonitor International, 2013 *CAGR: compound annual growth rate
7 Canada s Imports of Pasta and Couscous by Top 5 Countries, in US$ Thousands Country CAGR Canada s Exports of Pasta and Couscous by Top 4 Countries, in US$ Thousands Country CAGR Pasta total 270, , % 136,169. (Pasta total) 171, % Couscous 9 2, , % total (Couscous 3, , % United States 188, , % total) Italy 36, , % United States 137, , % China 19, , % Israel % Thailand 8, , % Philippines % South Korea Source for 7,177.3 both: Global 11,792.9 Trade Atlas, 10.4% Statistic Canada, *CAGR: compound annual growth rate United % Kingdom
8 Current Industry Changes Open market for durum New Processing? Multiple suppliers New Products
9 New Products/Processors
10 New Products
11 Industry Challenge
12 Healthy Grains Institute (HGI) Low Gluten Diet HGI Members HGI Objectives
13 Canada s Food Guide - Health Canada recommends six to eight servings of grain based foods daily - 50% of grains based foods should be whole grain - 10% of Canadians are eating enough grains - Whole grains are nutrient-dense foods and a good source of iron, fiber, protein, B vitamins and minerals - Fiber can help curb appetite and achieve sustainable weight loss - Grain based foods lower risk of diabetes, cardiovascular disease and colon cancer.
14 Healthy Grains Institute (HGI) Canadian Pasta Manufacturers Association Canadian National Millers Association Canada Bread, Weston Bakeries, Bakery Association of Canada Grain Growers of Canada
15 HGI Objectives Communicate scientific and medical studies on the importance of wheat and whole grains to human health Encourage influencers to provide legitimate information and tackle myths being advanced in fad diets and books Establish readily available and understandable information through the Healthy Grains Institute Proactively respond to media stories and social media that reinforce misconceptions about wheat gluten.
16 Cigi Pasta Process Pasta Technology Research
17 Cigi Pasta Technology Mill Extrudes Dryer Pulse Facility
18 Cigi s Pasta Technology
19 Three Levels of Extrusion
20 Pasta Processing Dryer Multiple drying cycles to match Commercial reality
21 Pulse Processing Pulse Milling and Flour Utilization Project New products with expanded use of pulse flour
22 Quality Testing in the Analytical Laboratory
23 Cigi Durum Research
24 New Durum Variety Evaluation
25 The End
26
27 No credible Canadian authoritative voice to counter unsupported/damaging health claims and provide truth about wheat grains. In 2011, Americans spent a record $2.6 billion 1 on gluten-free products: 46% thought they were healthier 30% bought them to manage their weight Only 8% to 12% had a gluten intolerance Gluten-free products are made with refined flours/ starches; are low in fibre, protein, iron, B vitamins and other nutrients and often higher in sugar, fat and calories
28
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30 Markets Major Trends Ebro Foods SA was the largest pasta company in Canada in The company s major brand, Catelli, accounted for 29.6% of brand share. The second-largest company was Italpasta Ltd. (Major Brand: Italpasta, 10.1% of brand share) and the third was Sun-Brite Canning Ltd. (Major Brand: Primo, 8.3%). Health and wellness trends have continued to gain traction in 2012, with more grocery retailers carrying gluten-free and whole wheat pastas at premium prices. Chilled/fresh pasta brands, such as Olivier, saw strong sales growth. Chilled/fresh pasta are also marketed as premium products. Canada - Pasta and Couscous Market Share by Major Companies and Private Labels - % Breakdown Company Ebro Foods SA Italpasta Ltd Sun-Brite Canning Ltd Maple Leaf Foods Inc Heinz Co, HJ Barilla Holding SpA Eden Foods Inc Les Aliments O'Sole Mio Inc Private Label
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