European Commission November 15 -16 2007 Lisbeth Munksgaard

European Commission November 15 -16 2007 Lisbeth Munksgaard 1

Lisbeth Munksgaard cv 2007 Senior Manager, Danisco A/S 2003 Director for Center of Advanced Food Studies 1999 Danish Feed Administration, Head of Section 1990 Nat. Food Administration, Company Authorization 1979 Dairy Scientist, Project Leader 1978 MSc in Food Science Member of the ETP-Food for Life Board 2

Content Presentation of Danisco Innovation in Danisco: Figures and Philosophy Competences Needed for Food Innovation in the European Food Sector Innovation and Legislation Recommendations 3

Presentation of Danisco

Danisco – Key Facts Business: Leading supplier of ingredients and sustainable bio-based solutions Products: Emulsifiers, Stabilisers, Enzymes, Cultures, Protectants, Sweeteners, Sugar. Industries: Food & Feed, Grain Processing, Cleaning & Textiles, Pharma, Plastics etc Turnover: 10, 423 (2006/07). Presence: Flora. Fit™ EUR 2. 7 billion/DKK 20. 3 billion (in 2006/2007). Employees: GRINDAMYL™ 46 countries. 5

A truly global presence Canada Scarborough USA Ardsley, NY Bakersfield, CA Beloit, WI Cedar Rapids, IA Elmsford, NJ Fairfield, NJ Madison, WI New Century Kansas, KS Palo Alto, CA Pine Brook, NJ Rochester, NY St. Joseph, MI St. Louis, MO Terre Haute, IN Thomson, IL Argentina Arroyito Buenos Aires Brazil Pirapozinho São Paolo Chile Pargua Santiago Colombia Bogota Guatemala City Mexico Apatzingán Guadalajara México City Tecoman Tlalnepantla Veracruz Peru Lima Austria Lenzing Probsdorf Vienna Belgium Brugge Louvain-La-Neuve Denmark Brabrand Copenhagen Grindsted Haderslev Holeby Nakskov Nykøbing Tønder Finland Hanko Jämsänkoski Jokioinen Kantvik Kotka Naantali Säkylä Vaasa France Compiègne Dangé Saint Romain Epernon Landerneau Melle Paris Roncq Sassenage Vinay Sales office Innovation centre Production plant Germany Anklam Frankfurt Königslutter Niebüll Croatia Zagreb Australia Sydney Czech Republic Smirice Iceland Reykjavik Estonia Tallinn Italy Granarolo dell'Emilia Milan Hungary Budapest China Anyang Beijing Guangzhou Kunshan Shanghai Wuxi Zhangjiagang Latvia Riga India Haryana Lithuania Kedainiai Panevézys Vilnius Japan Osaka Tokyo Netherlands Leiden Zaandam Norway Bryne Oslo Portugal Faro Spain Barcelona Madrid Valencia Sweden Arlöv Köpingebro Örtofta Poland Olsztyn Poznan Warszawa Romania Bucharest Russia Moscow Serbia and Montenegro Beograd Switzerland Kreuzlingen Malysia Kuala Lumpur Penang New Zealand Auckland Singapore Thailand Bangkok Slovak Republic Bratislava UK Beaminster Lincoln Marlborough Oxfordshire Redhill Stockport Tullibody Wellingborough Korea Seoul Ukraine Kiev Egypt Cairo South Africa Johannesburg Cape Town 6

Danisco inside. . every 2 nd cheese . . every 2 nd ice cream . . every 4 th loaf of bread 7

Innovation in Danisco: Figures and Philosophy 8

Innovation statistics – 2006 8050 technical service requests 1200 customer training activities 400 new ingredient launches 75 proactive concept launches 131 new invention disclosures 65 patent applications with priority Total of 960 patent families And >7000 patents. Ingredients with up to 5 years on the market account for 25% of turnover INN-06/02 9

Our commitment to innovation 4. 3% of annual turnover is invested in innovation (5. 6% in ingredients) Total: DKK 874 million (€ 117 million) in 2006/07 897 employees (FTEs) (July 2007) Research & development 579 (65%) Application & customer service 318 (35%) 10 10

Innovation – agenda 11

Innovation philosophy To have a close dialogue with our customers so our extensive ingredient know-how can be applied in the development of value-adding solutions To assist our food customers in the development of healthy, safe and tasty food To develop new ingredients and solutions that meet the present and future demands of our customers and the consumers To continue our extensive in-house research and development in cooperation with external partners 12

Knowledge development Partnership with other suppliers to the industry Global collaboration with universities 30 global knowledge teams Knowledge development Customer collaboration Global knowledge data systems Consumer and market trends 13

Danisco global R&D centres (579 FTEs) Finland Kantvik Sweden Malmö Denmark Brabrand Grindsted Nakskov UK Redhill Germany Niebüll USA Kansas Madison Palo Alto Vigo The Netherlands Leiden Mexico Tecoman France Dangé St. Romain Melle Paris Singapore 14

Danisco global knowledge teams 15

Danisco global knowledge teams Food science • • • Bakery Beverages Confectionery Culinary Dairy Food protection Frozen desserts Fruit preparations Meat, poultry & seafood Oils & fats 16

Danisco global knowledge teams Food science Products • • • • • Bakery Beverages Confectionery Culinary Dairy Food protection Frozen desserts Fruit preparations Meat, poultry & seafood Oils & fats Antioxidants Cultures Emulsifiers Enzymes Food protectants Sugar Sweeteners Textural ingredients 17

Danisco global knowledge teams (579 FTEs) Food science Products Technologies • • • • • • • • Bakery Beverages Confectionery Culinary Dairy Food protection Frozen desserts Fruit preparations Meat, poultry & seafood Oils & fats Antioxidants Cultures Emulsifiers Enzymes Food protectants Sugar Sweeteners Textural ingredients Advanced analysis Biotechnology Bio-processing Health & nutrition Micro-encapsulation Physical food science Powder technology Probiotics Process modelling Protein stability Sensory analysis Separation technology 18

Innovation: Health & nutrition Screening tools Mission: To develop and document Simulations health-promoting ingredients for the food and feed industry Animal models Ingredients: Litesse® Bifidobacterium 420 Howaru™ Betafin® Ingredients with desirable physiological functions Clinical trials and analyses Enteromix. R research technology for gastrointestinal health - www. enteromix. com 19

Innovation – from molecule to solutions 20 20

Competences Needed for Food Innovation in the European Food Sector 21

Huge global issues in Nutrition 4 bn people affected by malnutrition deserve the chance to develop physically & mentally to get more out of life. 50% of world’s population have blood cholesterol that’s too high. 30% of world’s population have blood pressure that’s too high. 22

ETP Food for Life Hosted by the European Food Drink Organisation CIAA Vision document and Strategic Research Agenda based on sound publicprivate dialog 23

European Technology Platform Food for Life Communication, Training & Technology Transfer Food & Health 1. Ensuring that the healthy choice is the easy choice for consumers, Food Quality & Manufacturing 2. Delivering a healthier diet, Food Safety 3. Delivering quality food products, Food & Consumer Sustainable Food Production 4. Assuring safe foods that consumers can trust, 5. Achieving sustainable food production, Food Chain Management 6. Managing the food chain, Optimising communication, training and technology transfer. 24

The KEY research needs INFANT BRAIN-FUNCTIONS IMMUNE- & INTESTINAL FUNCTIONS life -st METABOLIC-FUNCTIONS ag e ELDERLY 25

Recommendations for the EU regarding innovation Establish a virtual European nutritional research institute in order to combine the European Excellency Specific emphasis to research in biomarkers for validating healthiness Priority to basic research capability in very strong knowledge academies and mechanisms that can foster cross disciplinary research with food and nutritional science 26

Consumer and lifestyle-driven innovation Trends in consumer behaviour and lifestyle inspire product development. Changes in lifestyle are key drivers Urbanisation Health & nutrition Family focus Women in employment Active lifestyle Snacking Industrialisation of foods A ”what’s in it for him/her/them” approach leads to consumer positioning 27

Consumer Science Surface People Say/Think Techniques Interviews Do Use Observations Know Feel Dream Cocreation Knowlegde Explicit Observable Tacit Latent Deep From ”Contextmapping: experiences from practice” Froukje Sleeswijk Visser, et al. 28

European Technology Platform Food for Life Communication, Training & Technology Transfer Food & Health Food Quality & Manufacturing Food Safety Food & Consumer Sustainable Food Production Food Chain Management 29

Recommendations for the EU regarding innovation Priority to education of Msc’s and scientists and post graduate education based on basic research and on strategic research Priority to mechanisms that encourage the flow of employees between the public and the private sector 30

Innovation and Legislation 31

A vision for improving Population Health Population numbers Target population for food industries & public healthcare Healthy Green MR and van der Ouderaa F, Nature Pharmacogenomics - 2003 Target population for pharma industries Unhealthy 32

Recommendations for the EU regarding innovation Encourage harmonization of regulatory systems to prevent grey zone trouble when markets change focus 33

Recommendations for the EU regarding innovation Establish a virtual European nutritional research institute in order to combine the European excellency Priority to basic research capability in very strong knowledge academies and mechanisms that can foster cross disciplinary research with food and nutritional science Priority to education of Msc’s and scientists and post graduate education based on basic research and strategic research Priority to mechanisms that encourage the flow of employees between the public and the private sector Encourage harmonization of regulatory systems to prevent grey zone trouble when markets change focus 34

Thank you for your attention 35 35

Bio-based products Where do food ingredients fit in? BIOTECHNOLOGY STARTED WITH BREAD, CHEESE, BEER & WINE 36