1. Andrew Briscoe, CAE President & CEO The Sugar Association August 5, 2014 Key Trends, Challenges and Opportunities for the Food & Beverage Industry

2. The Sugar Association Established in 1943 - U.S. sugar cane and beet growers and processors. Mission All-natural sugar is an important part of a healthy diet and lifestyle. The mission of the Sugar Association is to promote the consumption of sugar through sound scientific principles while maintaining an understanding of the benefits that sugar contributes to the quality of wholesome foods and beverages.

3. The Sugar Association - Primary Objectives The promotion of sugar Responding to the disparagement of sugar Accuracy in labeling to help consumers understand what is sweetening their foods or beverages

4. A Competitive Market

5. 30 Sweeteners in the U.S. Marketplace Caloric Sweeteners Dextrose Glucose Syrup Crystalline Fructose High Fructose Corn Syrup Honey Sugar / Sucrose Molasses Maltodextrin Trehalose Agave Coconut Palm Sugar Rice Syrup Sugar Alcohols/Polyols Sorbitol Mannitol Xylitol Erythritol D-Tagatose Isomalt (Palatinat) Lactitol Maltitol HSH Hydrogenated Starch Hydrolysates, Maltitol Syrups Artificial Sweeteners Saccharin Aspartame Acesulfame-K Sucralose Neotame Alitame Artificial Sweeteners Not Yet Approved By FDA Cyclamates Neohesperidine Thaumatin Alternative Sweeteners Stevia Reb – A (approved by FDA) Monk Fruit

6. Source: USDA. ERS. World Agricultural Outlook Board. World Agricultural Supply and Demand Estimates, Table 16. © The Sugar Association, Inc. July 2011 Total Deliveries of U.S. Sugar, Fiscal Years 1980 – 2009 FY 2010 Deliveries Estimated at 11.106 Million Tons, Raw Value; June 2011 Million Tons, Raw Value Fiscal Year

7. Thousand Short Tons, Raw Value Federal Fiscal Year U.S. Sugar Deliveries for Domestic Food Use Total Deliveries Change From Previous Fiscal Year 9,000 9,750 10,500 11,250 12,000 + 750  750 0 © The Sugar Association, Inc. May 14, 2014 Source Report: USDA. ERS. World Agricultural Outlook Board. World Agricultural Supply and Demand Estimates, 529-16; Accessed May 14, 2014. + 7 200120022003200420052006200720082009201020112012201320142015 + 174 - 390 + 341 + 165 - 271 Estimate Projection - 64 11,212 11,073 11,487 9,678 9,894 9,913 10,506 10,442 10,870 10,184 10,019 9,504 10,000 + 593 + 342 11,700 11,600 + 428 + 113 - 106 - 139 + 414 + 100 23.1 % increase between 2003 – 2015 (1.92% per yr.) + 2,196,000 tons

8. U.S. Population Growth 2012 – 2013 2012 Population 312,780,968 0.73% annual growth between 2012 and 2013. Sugar and Sweeteners Outlook – July 2014: Deliveries for human consumption have totaled 7.675 million STRV through the end of May, about 2.7 percent more than the delivery level for the same period last year.”

9. USDA Caloric Sweetener Total Supply Availability (1970) United States Department of Agriculture. Economic Research Service. Food Consumption, Prices, and Expenditures, 1970 – 97. Statistical Bulletin No. 965. April 1999.

10. USDA Caloric Sweetener Total Supply Availability (2000) United States Department of Agriculture. Economic Research Service. Sugar and Sweetener Situation and Outlook Yearbook. Report SSS-231. May 2001.

12. Trends and Statistics – Calorie Control Council 1986-2010– 187 million Americans (59%) http://www.caloriecontrol.org/usfaves.html 65% of Americans are overweight or obese – Surgeon General 2007

13. Dietary Guidance And, the Challenges of Obesity

14. U.S. Federal Dietary Guidelines 1980- Avoid too much sugar 1985- Avoid too much sugar 1990- Use sugars only in moderation 1995- Choose a diet moderate in sugars 2000- Choose beverages and foods to moderate your intake of sugars 2005- No specific sugars guideline 2010- Reduce intake of calories from added sugars

16. Science And Data Are On Our Side M ajor reviews of the scientific literature confirms sugar intake is not a causative factor in any lifestyle disease, including obesity.

17. Institute of Medicine Food and Nutrition Board’s Macronutrients Report September 5, 2002 “Based on the data available on dental caries, behavior, cancer, risk of obesity and risk of hyperlipidemia, there is insufficient evidence to set a UL for total or added sugars.” However, they go on to say, “Although a UL is not set for sugars, a maximal intake level of 25 percent of less of energy from added sugars is suggested based on the decreased intake of some micronutrients of American subpopulations exceeding this level.”

18. March 2010 expert report to the European Food Safety Authority reaffirmed past conclusions: “Available data do not allow the setting of an UL for total or added sugars, neither an accepted intake (AI) nor a recommended intake range.” Scientific opinion of the panel on dietetic products, nutrition and allergies on a request from the EC on population reference intakes on carbohydrates and dietary fibre (March 2009)

19. 1970 – 23.73 Teaspoons 2012 – 24.69 Teaspoons Sugars Consumption Has Not Increased Dramatically

20. Loss  Adjusted Per Capita Availability 1 Calories Available 1970  2009 Change Relative Share Commodity Group 1970 2009 1970 2009 Fats and Oils41159618518.9%23.0% Grains43261918719.9%23.9% Sugar and Sweeteners4024403818.5%17.0% Meat, Eggs and Nuts4634731021.3%18.2% Vegetables125118-75.8%4.5% Fruits7087173.2%3.4% Dairy267261-612.3%10.1% Total2,1692,594425 1 Available at http://www.ers.usda.gov/data/foodconsumption/FoodGuideSpreadsheets.htm; last update: February 1, 2011.

21. Promoting Sugar

22. Key Messages Sugar is all natural Just 15 calories per teaspoon Is an important ingredient that has been used safely for over 2000 years And it is a sweetener you can pronounce

23. The Sugar Association Website

24. Use Social Media to Amplify the Message

25. Feature Member Websites on Facebook and Twitter

26. YouTube Video

28. Jones Soda Announces Switch to Sugar 11-29-06 Wall St. Journal – “A Soda Maker, Touting Health, Moves to Sugar” PICK-A-POP CASE OF JONES SODA

29. Pepsi Announces Plans for “Made With Real Sugar” Products 4-8-14

30. 2000 © The Sugar Association, Inc. April 5, 2011 Source: USDA. Economic Research Service, Briefing Room. Sugar and Sweetener Yearbook Tables: Excel (.xls) Spreadsheets, Table 20a. http://www.ers.usda.gov/briefing/sugar/Data/data.htm. Last ERS Update: February 7, 2011.http://www.ers.usda.gov/briefing/sugar/Data/data.htm 200120022003200420052006 450 Calendar Year 270 90 Thousand Short Tons, Refined Value 168 158 189 214 242 228 237 2007 312 US Sucrose Deliveries to Beverage Sector, Calendar Years 2000 – 2010 20082009 341 351 2010 422 4 year growth = + 194,000 strv = + 85.1 %

31. Threats and Opportunities for Sugar Consumption in the U.S.

32. Overview of Major Challenges 29 Other Sweeteners in the U.S. Marketplace- Key competitors spending $80M+ on advertising their products Challenges of Obesity – Sugar Being Targeted 2015 U. S. Federal Dietary Guidelines FDA Food Labeling – Nutrition Facts Panel Proposed Rule re “Added Sugars” Subcategory Global Initiatives – WHO Guidance on Sugars - recommendation to limit free sugars intake to 5% - 10% of calories Inaccurate Media Reports, Academics Selling Books

33. Added Sugars Labeling

34. Efforts to Limit Free Sugars to 5 to 10% of Calories

35. Inaccurate Media Reports Academics Selling Books Challenge: How to respond without bringing more attention to the misinformation

36. Tools to Confront Challenges, Misinformation and Threats Submit science based comments and petitions Write letters to USDA and HHS Secretaries Meetings with regulatory agency officials Congressional help / support PR – engaging the media and social media audiences Participating in Food and Beverage Industry Alliances / Coalitions Build our E-commerce Web Pages to support all natural sugar-based products