1. Gluten-Free Certification Program

2. Setting The Stage 9.0 MM Canadians are gluten free 1% have celiac disease with only 5% diagnosed 6% have gluten- sensitivity 22% are gluten avoiders for non medical reasons

3. The Facts There are an estimated 2,300,000 Canadians requiring gluten-free products for medical reasons 300,000 suffer from celiac disease, Approximately 2,000,000 suffer from some level of gluten sensitivity. Celiac disease is on the rise - It is 4x more common today than is was in the 1950s. It is expected to double every 15 years. 71% of consumers buy at least some gluten-free food/beverage products & 51% will continue to purchase. Gluten-Free Consumer inquires are the second most requested ingredient question for retailers & food service establishments. The “Halo” Group: Family members and those seeking a gluten-free diet for its perceived health benefits adds approximately 7,000,000 to the total number of Canadians looking to buy gluten-free products.

4. The Facts – Who is Our Consumer  What they didn’t realize was that Andrew wasn’t the only one who would have to get over feeling different. “I felt like one of those people who think that nothing you do is good enough for my kid,” Nettie says. From family meals at the holidays to play dates with friends, food is the heart of their social interactions, and when the food changed, so did everything else.  They replaced all the pots, pans, colanders and utensils, which were too contaminated to use. Next came a new toaster and mixer and rolling pin and a once-in-a-lifetime cleaning of the oven. “I couldn’t get rid of my grandmother’s cast iron skillet, though,” Nettie says.  They endured their first holiday season of saying no to Christmas cookies, and the first visit to relatives in Louisiana where Martinez had to explain that Andrew and Danny couldn’t eat the gumbo, no matter how little flour the cook put in the roux.

5. The Facts  The cost of buying certified gluten-free foods is astronomical, especially to such a savvy, budget conscious shopper: o $3.50 for a baguette (“They are good, but not that good,” she reports), $5 for six flour tortillas (“that’s why we always have corn tortillas”), o $6 for oatmeal that used to cost $2 (“we don’t eat as much oatmeal anymore”), o the tiniest loaves of bread you’ve ever seen for $6. That’s enough bread for one round of the homemade lunches she makes for the kids every day.

6. The Facts  Martinez says that gluten-free icons and labeling help tremendously, but sometimes you still can’t be sure. Last year, she purchased what she thought was gluten-free rice mix from Zatarain’s. When she discovered it contained orzo pasta made with wheat, she contacted the company and got coupons for three free boxes.

7. The Facts

8. The Facts Reasons for Gluten -Free Consumption 100% 39% Digestive Health 31% Nutritional Value 25% Lose Weight 5% “Treat” Celiac Disease

9. The Facts Gluten-Free More Trend than Fad Understanding the focus on digestion is shedding insights into what some have called a fad and others a trend in the ongoing growth of the gluten-free market.

10. Market Growth The 2013 market for Gluten-Free products in Canada is currently estimated to be $90.0 million Reports show a 10% (CAGR) growth of gluten- free sales until 2018 with a value of $145.2 million in Canada According to the researchers, the growth is fueled by an increase in celiac disease and food allergy awareness & diagnosis. Also the gluten- free avoider consumer segments perceive gluten-free foods as healthier i.e. no GMO, no preservatives, heath food store heritage *Source: MarketsandMarkets

11. Key Market Research Findings *Source: Google Trends 2013

12. Key Market Research Findings *Source: Google Trends 2013

13. Key Market Research Findings *Source: Google Trends 2013

14. Key Market Research Findings  Major drivers for gluten-free products are health benefits & general interest in healthy eating  The winning imperative for the gluten-free products industry is new product development  High price of gluten-free products have restricted the growth of the market  However, consumers have to serve this GF diet as there is no alternative  Private label brands will cause a significant growth of the GF market revenue  The global gluten-free food products market is dominated by US companies *Source: MarketandMarkets 2013

15. The Facts The US market is the fastest and largest growing gluten-free market in the world. Canada represents about 4% of world dollar volume, but is growing at parallel rates to the US. Region201120122013 e2018 pCAGR% 2013-2018 U.S. $ Billions 1,768.91,942.32,141.13,548.710.6 Canada $ Millions 74.582.290.0145.29.8

16. The Facts Canada Gluten Free Food Market By Revenue Type2013 e $ million 2018 p $ million CAGR % (2013-2018) GF Bakery & Confectionary 40.164.910.1 GF breakfast Cereals 5.48.08.3 GF Snacks16.427.010.4 GF baking Mixes & Flours 12.820.59.9 GF Meat & Poultry 9.114.49.5 Other GF Foods7.110.58.0 Total90.9145.29.8

17. The Facts Gluten Free Market Revenue By Retail Format 2013 Canada $ Million 2013 Canada % 2013 US $ Million 2013 US % Stand Alone Natural10.811.9237.011.1 Natural Chains16.317.9358.216.7 Grocery48.553.41,030.948.2 Mass7.78.5236.311.0 Club4.54.976.83.6 Drug0.1 21.41.0 Other3.03.3180.58.4 Total90.9100.02,141.1100.0

18. Competitive Landscape New product launches have been the most widely used strategy in this market. Partnerships and collaboration of the business entities is the second most sought after growth strategy. 75% New products 7% Expansion 12% Agreements 6% Mergers & Acquisitions

19. Competitive Landscape Key Brands Boulder Brands 58% Dominos Pizza 8% Dr. Schar 6% Jovial Foods 5% Bob’s Red Mill 8% Kellogg 5%

20. Gluten Certification Programs Observations:  Consumers have in the past relied upon the natural channel to provide certified brands of gluten-free products.  Does this suggest the move into grocery & more mainstream supports the need for GFCP mark?  Recent industry workshop on certification programs suggests consumers lack trust in the food industry (i.e. Rice & Arsenic).  The use of a mark like GFCP builds confidence in brands.  Certification of gluten-free products leads to more consistency and consumer confidence.

21. Program Benefits FeatureWSGATBenefit GFCP has CCA endorsement – only Canadian program One clear endorsed message Process not just ingredient driven program Safety for consumer, protection for manufacturers Ensures a brand is safeCreates trust Provides a differentiatorAdds value to your brand Access CCA data basesTargeted marketing opportunities across North America Simple story for consumers to comprehend Visual and addresses language issues Access to GFCP marketing programs Targeted and cost effective reach of the gluten-free target audience across North America

22. Summary  The gluten-free category in dynamic growth appears to be a strong trend not just a fad.  GFCP is the only Canadian program endorsed by the CCA in Canada.  Market research confirms the effectiveness of the mark on brands and higher trial and purchase intent scores with consumers.  The GFCP is a cost effective way to build trust between your brand and consumers.  You are part of a program directing the development of the gluten-free market and food industry’s future.

23. Thank-you www.glutenfreecertification.ca Twitter.com/glutenfreecert Facebook.com/glutenfreecert Marketing Tricia Ryan 1-866-817-0952 Tricia@allergencontrolgroup.ca