Processing of seasonal food crops BONDUELLE AGENDA Bonduelle in the world CHALLENGES with vegetables crops PROCESS AUTOMATION Bonduelle Canada approach Off-season strategy: how to find new market Inflavor project

BONDUELLE : une entreprise familiale 150 ans de 1ère transformation agroalimentaire 1853 1926 2009

et celles de nos clients: BONDUELLE, RIEN QUE LE LEGUME, TOUT LE LEGUME Many BRANDS et celles de nos clients: no name

BONDUELLE MISSION BE THE WORLD REFERENCE IN VEGETABLES Well living through vegetable products Our vision

CHALLENGE with vegetables crops Crop Season: May to December: we are working 24 hour per day So, what about spring-winter months?? What product can we process?: every year we have to evaluate market In can: pulse, sauces, patatoes, root vegetables (beet) Frozen: root, patato, dry beans, rice What vegetables is really available during off-season?? Off-season process: -power contract, weather, supply chain,labour Contract with chains: ««booking»» is not a firm order Need to always look at opportunity/new product/new process Technology watch/scanning

Bonduelle strategy on process automation Buy new or used equipments line ««state of the art»»and adapt/up-date them (if possible) exemple bought a 2 year ««state of the art»»Freezing tunnel for one third of the price!!! Use supplier flexibility to test run their equipments before buying Exemple: color sorter supplier accepted to make production run with competitor Winner take the order Try to choose the same automation supplier: expertise, spare parts and inventory are big factor in the sucesss of line automation Strategic plan: on a 3 to 5 years , make plant running full year We need to select/evaluate the right or best technology before implement complete process automation exemple : project Inflavor microwaves dryer Open innovation: ask the world for solutions robotics: exemple of drone that follow fields and crops R-D is the key for success

Color sorter: replace 40 inspection workers

Continous cooker

As Bonduelle innovates in Russia and uses a drone to film one of our field using strip till technique ( an Ecologically Intensive farming ! no herbicide

How important will it be to adopt process automation technologies over the next 5-10 years? Labour shortage (less attractive job/sector) our vegetables sector is lousing «« SKILLED LABOUR»» SEASONAL FOOD SECTOR IS NOT POPULAR for youngster: -long hour, work 7 days a week, LOW SALARY Hard/tough physical job: be 8-9 hour stand up No one want to work ««night shift»» Foreign worker is a temporary solution Cost reduction: must stay competitive on cost/market Health and safety programs/regulation: Bonduelle has «No Injury»» policy for each plant Automation cannot replace everyone or every jobs -sometimes, no solution is found or : too costly or reliable -exemple: cleaning, maintenance, lift Sustained growth: we need new product or way to improve it Increase productivity

Why do we not use more process automation now? Capital investment needed: ROI Cost of the equipment-investment needed How many hours this equipment will really run? Need partnership to share risk Equipment Supplier choice: difficult to find the best Specialist who repairs/program it it time needed to fix/adapt new equipment What are the main barriers to adopting automation technology/new process Evaluation of Cost versus anticipated result Are we making the right choice?? It is going to slow down the line?? Too many probe/detector and if one stop, all the line stop!! Proof of liability: «« new design»» versus ««old way »» of doing it -pepper line: remove corer and install 2 color sorter!!

R-D and Innovation R-D is crucial for development of off-season product for Bonduelle The hability to find new product/new concept for slower period is a major objective to stay in business/not closing the plant Building a strong innovation team: grower, processor, marketing, buyer Need a ««champion»» for every plant department who focus on result Partnership with equipment supplier, research center Government programs: Federal and provincial government have great financial program to help put in place company oriented project (AIP) Target ««blue ocean»» project The ultimate objective is to find process or unique product to run full year From these observations, let see one exemple! The Inflavor project

EnWave/InFlavor Projet Innovation Bonduelle Amériques

Story of Inflavor project HOW THIS PROJECT WAS CHOOSEN BY BONDUELLE?? With R-D and production team, exemple of round table questions raised FROZEN VEGETABLE: COMPLAINT ABOUT TEXTURE AND FLAVOUR (fridge taste and watery!) PROCESS: how can we blanch/cook without water or steam?? Why «« fragile»» vegetable like onions, peppers, tomate are so difficult to freeze?? What vegetable could be process during winter time? Phone call from an USA supplier who claim it could heat corn kernel without any lost: use microwave! The Enwave/Inflavor project was born Risky project : no one has ever think about: partially dried fragile vegetables before freezing under vacuum with microwaves Could be a great business opportunity to run all frozen plant all year long! Can somebody help us put in place R-D program: government AIP (Agri-Innovation Program)

In FLAVOR HIGHLIGHTS Project Inflavor/Enwave objectives: Create a new line of partially dry frozen vegetables: We remove 10 to 30 % of water in weight Dry vegetable at 20 to 35°C under microwave vacuum equipment This is the big difference compared to all others dryer Watery vegetables: onions, peppers, mushroom, squash, tomato, cucumbers, spinach More flavor, more firm texture, better nutritive value Close to fresh when used/cooked in Food service/end users No drip/water release when tawed/used in product formulation Targeting RTE bacti level with different hurdle technology/barrier: reduced blanching process, water/gazeous ozone, natural bactericide (Listeria) Low speed line : 0.5-0.6 ton per hour(phase No 2) Next generation of Cryogenic freezing tunnel (nitrogen) $ 5 millions budget project for 2 years

Fresh dominates frozen vegetable usage in restaurants product Fresh Frozen Green Peppers   Red Peppers Other Peppers   Red Onions White Onions Mushrooms Vegetable Mix  The majority of operators interviewed are primarily using fresh vegetables in their restaurants. Most operators said that they only had minimal or seasonal use for frozen vegetables. Mushrooms, green and red peppers and a vegetable mixes are the most common frozen vegetables operators say they are currently using. The chart above shows the propensity for operators to use fresh vs. frozen vegetables, in general. Q: Which of the following vegetables do you currently use in your operation?

The decision to use fresh vs The decision to use fresh vs. frozen produce is a balancing act between quality and price “There is a stigma associated with using a frozen product. If the quality and the cost of fresh and frozen are similar, you pick fresh. What is the benefit of using frozen?” “The vast majority of consumers prefer fresh. From their perception, fresh equals quality. That’s why we’d rather get as much from the fields as possible than compromise our standards by using frozen.” Fresh produce is generally considered to be superior in quality vs. frozen. Many operators view their ability to source and use fresh produce as a point of differentiation vs. competitors and like to promote their use of fresh, local produce on their menus as it is typically perceived as being high quality. “The quality is more important than the price. I want what is going to look and taste the best.” “Quality is why we are on fresh now. To change to a frozen product, the quality would have to be there. Then, it would be all about what it is going to cost me.” “Our guests perception of fresh product, is better quality.” Frozen produce typically carries a negative connotation Q: Why aren’t you using/buying any frozen vegetables for use in your operation?

Operators generally had positive perceptions of inFlavor products “Product quality of the onions is over the top, I’m honestly a little embarrassed that I haven’t recommended them to my culinary team. I would like to see the spec on them.” “The crunch is great, but the flavour of the vegetable is not there. If I had a blindfold on, it would be very hard to say that that was a pepper.” After tasting each of the inFlavor products, operators largely expressed positive perceptions of the inFlavor products. The individual varietals (onions, mushrooms and peppers) seemed to resonate best, followed by the blends. The biggest overarching critique regarding the inFlavor line was that the vegetables were lacking flavour. Operators also expect to pay more for frozen, pre-cut vegetables vs. fresh. “Really good colouring, not mushy. As far as Bonduelle goes, I think they have a superior line. As far as product quality, I haven’t seen anything as good as this.” “It does not taste like it had previously been frozen. It has a good bite to it, very crunchy. Great quality and color.” Water content Colour Visual appearance Texture Shelf-life Ready-to-cook Custom spec Flavour Perceived price “The flavour seems diluted.” “They taste pretty fresh, pretty crispy.” “From a colour, texture and flavour standpoint, they are quite good. Not mushy.” Operators think highly of the colour, texture, visual appeal and lack of water content linked to inFlavor products Q: What is your initial reaction to this product? Q: After trying the inFlavor vegetables, does this change your perception of them in any way? Better, the same, or worse? How so?

Inflavor/Dehydrofrozen vegetables -Process using a microwave under vacuum to remove moisture in the product for concentrating flavour and enhancing the colour -Currently: 2 shifts of 10 hrs during peak season (peppers) -Principal vegetables processed: Peppers, Onions, Mushrooms

Installation at Ste-Martine’s plant

frozen tomato

mushroom

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