1. Colours Overview

2. Color it natural..

3. What are Natural Colours? Natural colors are extracted from a natural source without being chemically modified in any way. The extraction process leads to the concentration of the pigment without changing its natural form. Due to the advances of modern technology it is possible to replace synthetic pigments with natural colors in practically all food applications

4. Why is the market moving to Natural Colors? Consumers consider Natural additives (e.g. colors, flavors etc) as safer and healthier than their synthetic counterpart and prefer them in the foods they eat. Artificial colors have been repeatedly blamed as damaging to health and were recently linked with hyperactivity in children. Major food companies use natural colors in their R&D projects.

5. Which Natural Colors are offered by LycoRed? LycoRed has a wide range of natural colors formulated to suit most food and beverage applications. LycoRed natural colors are based on carotenoids that have scientifically recognized health benefits. Lycopene, carotene and lutein all have health benefits due to their ability to neutralize damaging free radicals.

6. Creating Fantastic Food ….Naturally Lycopene

7. Tomato Composition and LycoRed Products

8. Lyc-O-Mato ® Oleoresin CTC 60Bx ) Tomat-O-Pure (Dehydrated CTC) LycoFibers- Tomato Fibers 0.2-0.3% fats 4-5% soluble solids 0.9-1% proteins 0.5-1% fibers Tomato Composition and LycoRed Products

9. Lycopene Approved as a food color under 95/45/EC which describes purity criteria for additives to be used as colors in foodstuffs. Listed as E160d. Only lycopene extracted from Tomatoes is an approved food color Use in food covered by 94/36/EC and the main applications are listed in Annex V part 2. Tomato lycopene based formulations are offered by LycoRed under Tomat-O-Red ® brand

10. Color Formulations Based on Carotenoids 1.SG formulations for coloring beverages and liquid food products 2.CWD formulations for use in dry premixes/beverages 3.Formulations based on emulsions and micro- emulsions Red formulations SG/CWD are based on tomato lycopene Orange formulations are based on beta-carotene or on lycopene (emulsions and micro-emulsions)

11. EG Tomat-O-Red ® EG Tomat-O-Red ® EG is an oil soluble form of lycopene that complies with E160d Tomat-O-Red ® is a lycopene rich oleoresin produced from the extraction of tomato pulp Similar shade to carotene (both β-carotene and mixed carotene) but more orange. Typical applications are sauces, colorant flavour emulsions which are then applied to water soluble applications

12. Tomat-O-Red ® 2% SG Tomat-O-Red ® 2% SG is a stable suspension of lycopene crystals in glycerol. Both the red color of a ripe tomato and food colored with Tomat-O-Red ® 2% SG is based on lycopene crystals. While in the ripe tomatoes lycopene crystals are rather large, in Tomat-O-Red ® 2% SG they are reduced in size to 0.2 –0.5 µM. The small crystal size improves the coloring effect and stabilizes them in the food product to which the formulation is added. Tomat-O-Red ® 2% SG is heat stable, retains its color across the pH range found in food. It is stable in the presence of other food components including ascorbic acid

13. SG Color Formulation (patented technology)

14. 2% SG Tomat-O-Red ® 2% SG  Tomat-O-Red ® 2% SG gives a cloudy red / orange color  Blue notes within the red are evident in dairy based applications.  Typical dose levels :- 3ppm to 10ppm in beverages or other translucent applications. 10ppm to 30ppm in solid applications

15. Hunter Lab scale for color measurement The L,a,b scale is used for fixing color shade as a single point to indicate both color strength and shade.

16. Tomat-O-Red ® 2% SG Four different color hues achieved by processing Cherry- Red Watermelon- Red Strawberry- Red Orange- Red Color Hue 13-14 5.1-5.9 0.42-0.45 13.5-14.5 7.3-8.0 0.53-0.55 14.4-14.5 9.1-10.1 0.63-0.66 15-16 ~1 Hunter: a b b/a a scale describes red -> green scale b scale describes yellow -> blue scale

17. Tomat-O-Red ® 2% SG

18. Creating Fantastic Food ….Naturally Lycopene – Heat stability test Lycopene dosed at 1% in distilled water and boiled for 20 minutes relative to alternative natural pigments

19. Lycopene – Light and ascorbic acid stability test

20. 10% CWD Tomat-O-Red ® 10% CWD Tomat-O-Red ® 10% CWD is a stable suspension of lycopene crystals that has been dried into a powder format. The CWD powder rapidly disperses in water to release the lycopene crystals into a stable suspension within the application Typical dosages are dry powder mixes (3 – 10ppm), yoghurts (10 – 30ppm) and confectionary (10 – 30ppm)

21. CWD Color Formulation

22. Lycopene – benefits Natural EU and FDA approved food color Vegetarian Non GMO Kosher Halal pH stable red color Heat stable red color Ascorbic acid stable red color

23. Target Applications for lycopene (remember - red and cloudy)  Beverages – soft and alcoholic  Fruit preparations  Dairy products (low pH stirred, neutral pH mousses, set yoghurts and milk drinks)  Confectionary  Sauces and ready meals

24. Unsuitable Applications for lycopene Clear products Applications where the fat content is greater than 5- 8% above this point, the red color will shift from red to orange Projects where a direct substitution for an existing natural red is required – to deliver the same shade but at a lower cost

25. Four Colours & Four Flavors – Fortified yogurts, Bing Grae, South Korea (Yoplait, Korea) Coloured with Tomat-O-Red ® 2% SG

26. Pepsi Milkshake (Ben & Jerry’s) Coloured with Tomat-O-Red ® 2% SG (Cherry Red)

27. Naughty by Nature (South Africa) Colored with Tomat-O-Red ® 2% SG - contains 4.5% alcohol

28. Santal fruit drink – (Parmalat Italy) Colored with Tomat-O-Red 10% CWD AF

29. “Toma Toma” alcohol drink (Japan) This product contains 12% alcohol & is coloured with a version of Tomat-O-Red ® 2% SG developed to withstand higher alcohol loadings

30. Tomat-O-Red ® 2% SG in dairy applications

31. Alternative natural red colours E162 Beetroot Extract – technical problem is the very poor heat stability of the betanin pigment. If it is heated over 80ºC for 5 minutes or if it is heated and cooled slowly the color changes from strawberry red to brown. Its color is pH dependant. E163 Anthocyanins – technical problem is that anthocynanins require a low pH to exhibit a red color. As the pH rises the shade goes mauve with a concurrent loss of stability. E120 Carmine is extracted from cochineal insects and subsequently chemically modified (see next slide). The technical problem with the pigment is that it will precipitate under acid conditions. There are indications that carmine causes allergic reactions and its use in foods is under review by health authorities.

32. Carmine Under pressure Of all pigments carmine is under the most consumer pressure and therefore is being removed from existing products and not used in new product developments. Carmine is non vegetarian, no longer natural because of its chemical modification, non kosher, non Halal and has been reported to cause allergic reaction in small section of consumers. Lycopene is a replacement option for carmine with none of the technical limitations of beetroot and anthocyanins.

33. Paprika Under pressure Paprika is a orange pigment permitted in EU as E160c and is used as an oleoresin in many savoury products. The traditional source is India and since the 2005 Sudan I scare which lead to hundreds of products being recalled from UK supermarkets, non-Indian sources are often demanded. Lycopene oleoresin has a similar shade to paprika oleoresin and will formulate in the same way in savory applications.

34. Creating Fantastic Food ….Naturally Beta-Carotene

35. Carotene Approved as a food color under 95/45/EC which describes purity criteria for additives to be used as colors in foodstuffs. Listed as E160a (ii) but declared on pack as E160a Use in food covered by 94/36/EC and is one of the mostly widely used natural colors Offered by LycoRed under Lyc-O-Beta brand

36. Lyc-O-Beta 30% Lyc-O-Beta 30% is an suspension of Beta Carotene in a range of alternative oils to suit specific requirements. Typical applications are beverage compounds, flavor emulsions, yellow fats, cheese, decorations and coatings and chocolate curvatures.

37. Lyc-O-Beta / BetaCote The Lyc-O-Beta range of carotene based products are derived from the fungal source of B. trispora. This is viewed as a natural color because it is derived from a natural source. A parallel range of synthetic carotene formulations are available under the BetaCote brand. BetaCote products are based on Nature Identical carotene which some food manufacturers / retailers do not regard as natural.

38. Lyc-O-Beta 2% SG Lyc-O-Beta 2% SG uses the same patented technology applied to Lycopene to produce a stable suspension of carotene crystals in glycerol. The shade of the formulation in application is more red / orange than typical carotene emulsions. Typical applications beverages, fruit preparations, sugar confectionary, sauces, dairy products, ready meals

39. Lyc-O-Beta 10% CWD Lyc-O-Beta 10% CWD uses the same patented technology applied to Lycopene to the powdered dispersion of carotene crystals. The shade of the formulation in application is more red / orange than commodity 10% carotene powders on the market. Typical applications are as for the Lyc-O-Beta 2% SG but where the customer requires a powder

40. Lyc-O-Beta 1% CWS Lyc-O-Beta 1% CWS is a prepared from a stable carotene emulsion. The impact on the shade of the formulation in application to give a more yellow option than the 10% CWD or 2% SG. The slide on the next page illustrates the shade differences in a clear beverage (pH 3.5). All samples are prepared to demonstrate 10ppm of β-carotene.

41. Lyc-O-Beta formulation shades

42. Target Applications for Lyc-O-Beta  Beverages – soft and alcoholic  Beverage and flavour compounds  Yellow Fats  Extruded cereals  Cheeses  Fruit preparations  Confectionary  Dairy products  Desserts  Baked goods  Ready meals  Sauces

43. Creating Fantastic Food ….Naturally Lutein

44. Approved as a food color under 95/45/EC which describes purity criteria for additives to be used as colors in foodstuffs. Listed as E161b and manufactured under LycoRed’s carotenoid extraction and formulation patent Use in food covered by 94/36/EC and gives an egg yellow shade. Offered by LycoRed under Lyc-O- Lutein brand

45. Lyc-O-Lutein 2% SG and 10% CWD Lyc-O-Lutein 2% SG and 10% CWD use the same patented technology applied to Lycopene and carotene described earlier. The shade of the formulations in application are slightly more orange egg yellow to typical lutein emulsions. A comparison is shown on the next slide with the shade of Lyc-O-Beta formulations.

46. Beta-Carotene & Lyc-O-Lutein

48. Target Applications for Lyc-O-Lutein  Beverages – soft and alcoholic  Beverage and flavour compounds  Fruit preparations  Confectionary  Dairy products  Desserts  Baked goods  Sauces

49. Color range for Carotenoids Formulations Tomat-O-Red ® Lyc-O- BetaLyc-O- LuteinFormula/Carotenoid Cherry to Orange Red Carrot orangeYellow2% SG strawberryCarrot orangeYellow10% CWD ---Yellow---1% CWS

50. SWOT – LycoRed Natural Colours Analysis based on supply of LycoRed natural colors into food industry Consideration of competitor activity, market trends and legislative situation.

51. Strengths Reputation Unique product with patent protection Extractor of lycopene – not a trader Investment in R&D Pro-active legislation work Fundamental understanding of product

52. Weaknesses Limited color options available to customers LycoRed not seen as a color company and not involved in color projects early enough. Unique shade of red – direct substitution of carmine is not possible

53. Opportunities Trends – Natural, Health, major companies going back to the primary extractors Increasing consumer recognition of lycopene, lutein and carotene for their health benefits LycoRed is known as for Lycopene Only heat stable, vegetarian pigment that gives a red colorant all pHs

54. Threats Alternative, niche, cheaper red colors Supplier / product rationalization by customers Current trend towards clear colored final products as an indication of quality.

55. Competitor Activity - Lycopene Only Tomato lycopene is permitted as a coloring the EU under E160d. In US only Tomato lycopene is listed as color approved for use in human food under 21 CFR 73.585 Suppliers of synthetic or fungal lycopene can not offer it for use as a food color.

56. Competitor Activity – color suppliers A number of (natural) color suppliers exist who offer the range of pigments legally available for use in food. Natural colors have different features and are selected to be application suitable. They will push manufacturers towards beetroot, anthocyanins or carmine and help them resolve and issues that arise. Key issue is for LycoRed is to be seen as a color supplier so we are involved in color projects during the NPD process.

57. USPs Patent protected lycopene extraction and formulation Unique color formulations giving unique color shades Proven commitment to supporting clinical research on lycopene and the emerging legislation on health claims Fundamental scientific understanding of lycopene and Carotenoid color formulations.

58. Support Available Product recommendation and rapid sampling Trouble shooting advise and availability of technical team to attend trials In house applications work and support for stability trials Preparation of demonstration samples in suitable bases to speed up initial development work.

59. Contact details Dr. Andrew Kendrick International Technical Development Manager LycoRed Limited Mobile phone : 00 44 7880556973 Andrew.kendrick@eu.lycored.com Mr. Roee Nir Sales and Products Manager, Carotenoids LycoRed LTD. Direct: +972-8-6296073 Mobile: +972-524-313-516 roee@lycored.comwww.lycored.com