1. Plant products for healthier, high quality foods
Pierre Broun
Nestlé R&D Center Tours

2. Outline Nestlé and Global trends
Nestlé / Food industry procurement requirements
The importance of sustainability
Quality and benefits of plant raw materials
Translating plant science and working together

3. Nestlé and Agriculture
Nestlé is a major consumer of
plant raw materials
Grains
Milk
Coffee
Cocoa
Fruit and Vegetable
Sugar
Oils
Nestlé buys around 12% of the world’s
coffee and cocoa

4. Procurement at Nestlé Raw materials breakdown Raw Materials
Services & Indirect Materials (S&IM)
Raw Materials
Packaging Materials
Raw materials breakdown

5. World groceries exports (2007)
Source: Worldmapper
Groceries include sugar, honey, cocoa, chocolate, tea, mate, coffee (a tea-like drink) and spices. Almost half of this category, when
measured in US$, is oils from vegetables and meats. Net exports including commodities tend to come from more southern latitudes (2007).

6. World groceries imports (2007)
Source: Worldmapper
62% of all territories have net grocery imports, which means that the remaining 38% meet their demands (2007).
Net exports tend to come from more southern latitudes: Asia Pacific and South America. There are however anomalies such as the United
States, Canada and France. Further, Southern Africa has neither large net imports, nor large net exports.The highest value of net grocery
imports is to Japan. Imports to Japan are one and a half times the value of those to the second largest importer, China. Further,the population
of China is ten times larger than Japan. So, per person living there, Japan imports (net) sixteen times more groceries than China.

7. Outlook: World Population 2050E
Source: Worldmapper
By 2050 it is estimated that the earth's human population will be 9.07 billion. 62% of the people will live in Africa, Southern Asia and
Eastern Asia - numerically this is the same as if all the world's current population lived just in these regions.
All numbers shown here are estimates - estimates are never perfect.

8. Are we living in unusual times?

9. Long term commodity prices
Source FAO - USDA

10. Commodity price volatility reflects turbulent times
Source: IFCN

11. Procurement concerns of food industry
Pressure on raw material prices and sustainability of supply: shrinking arable land, increasing needs of growing population, competition from non-food crops
Soaring demand in emerging countries, especially BRIC
Increasing consumer demand for sustainable agriculture, environmental protection
Increasing demand for high-end or functional raw mats (e.g. premium coffee)
Increasingly diverse consumer segments: geographies, age, diets, socio-economic status

12. Contrasted consumer segments
More health benefits
Less environmental impact
Premium quality
More « natural »
Older consumers
Affordable, light, nutritious products
More traditional ingredients
Local recipes
Younger consumers

13. Different product segments
Luxury
High end, exceptional quality
for occasional indulgence
Excellent quality / health benefit for
differentiated product
Convenient, frequent consumption
Nutritious, affordable
Premium
Mainstream products
Popular Positioned Products

14. Plant raw material requirements
Reliable supply
Sustainability
Safety
Consistent, high quality
Process-friendliness
Required or desired quantitative attributes
Required or
desired qualitative
attributes

15. Reliability of supply: climate change (will) affect(s) raw material sourcing: e.g. coffee
Arabica Robusta
Optimum temperature (yearly average) ° C ° C
Optimal rainfall mm mm
Growth optimum m m
Climate change is gradually changing the coffee producing landscape
e.g. Temperature dependency of Ugandan coffee production
Right: +2C increases

16. Sustainability: agriculture weighs strongly on water consumption in Life Cycle Analyses

17. CO2 footprint: Life Cycle Analyses further highlight the strong contribution of agriculture

18. Ingredient quality is compatible with sustainability and should not be compromised
Quality can mean :
Safety
Ingredient impact on final product: taste, color, texture
Nutritional value
Processability, shelf life

19. Custom-made varieties can build a robust competitive advantage
Variability
Original
population
Selection of superior individuals
Preferred « Bernardo »
basil for Buitoni pesto
Successive selection cycles

20. Nestlé major health benefit focus areas
Protection
Digestive Comfort
Healthy Recovery
Weight Management
Performance
Growth & Development
Skin Health & Beauty
Healthy Ageing

21. Translating food product requirements into plant science objectives (and vice versa)
Food objectives
Safety
Sensory experience
Health benefit
Processability
Naturalness
Economic, social, environmental sustainability
Plant science objectives
No toxicity at and after harvest
Rich in taste and aroma precursors
High in health-beneficial compounds
Stability, extractability through transformation
Weigh GM vs non-GM solutions
Higher productivity
Higher abiotic stress resistance

22. How can this translation take place
Two or three-way collaborations between academia, seed and food companies
Public support for fully integrated projects until proof of concept
Aim for proof of concept at pilot scale
Consider the entire product life cycle
Select for maintaining or improving quality while building sustainability
Understand the consumer and the constraints of the supply chain

23. Creating Shared Value through plant innovation
Sustainable supply
Sustainable farming
Industry
benefits
Producer
benefits
Price
Quality label
Quality
Traceability
Identity preservation
Preferred commercial link
Consumer
benefits
Consistent and superior products