Fruit ingredients remain popular

22008 = 100%

• Fruit ingredients in product launches tracked have shown a healthy growth rate in Europe, +22.0%.

• In 2013, the penetration* of fruit ingredients was 27%.

CAGR: +22.7%

*percentage of new products with fruit ingredients among all product launches tracked.

100%

133%146% 154%

177%

231%

100%

130%155%

170%

204%

265%

0%

50%

100%

150%

200%

250%

300%

2008 2009 2010 2011 2012 2013

Development of fruit ingredient launches in EuropeEurope Globally

Top regional distribution of fruit ingredients in Europe

3

• The United Kingdom (24.9%) sees almost a quarter of all new product launches tracked with fruit ingredients in Western Europe.

United Kingdom, 22.1%

Germany, 14.9%

Netherlands, 8.3%France, 8.2%

Spain, 7.9%

Italy, 4.3%

Belgium, 3.3%

Denmark, 3.0%

Other, 14%

Product launch share of products tracked with fruit ingredients - Western Europe (2013)

Top regional distribution of fruit ingredients in Europe

4

• Russia (16.6%), Hungary (15.8%) and Poland (13.5%) together see over half of all the product launches tracked with fruit ingredients in Eastern Europe.

Russia, 16.6%

Hungary, 15.8%

Poland, 13.5%Ukraine, 8.8%

Macedonia, 4.5%

Czech Republic, 4.3%

Greece, 4.2%

Romania, 3.7%

Bulgaria, 3.5%

Slovenia, 2.9%

Slovakia, 2.9%Estonia, 2.8%

Other, 8.3%

Product launch share of products tracked with fruit ingredients - Eastern Europe (2013)

Top category distribution of fruit ingredients in Europe

5

• The categories with the most product launches tracked with fruit ingredients in 2013 are dairy (13.2%), confectionery (12.7%) and bakery (12.1%).

Bakery, 14%

Confectionery, 13%

Dairy, 13%

Sauces & Seasonings, 10%

Baby Food, 7%

Ready Meals, 7%

Desserts & Ice Cream, 6%

Cereals, 6%

Spreads, 5%

Hot Drinks, 4%

Other category, 8%

Product launch share of products tracked with fruit ingredients - by category (2013)

Top categories of fruit ingredients based on 2013

6

• 47% of all cereal product launches tracked, contain fruit as an ingredient. • The highest average annual growth rate (CAGR) from 2008 to 2013

is tracked for baby food: +38%.

47% 46%

41% 41%

30% 29%

0%

10%

20%

30%

40%

50%

Cereals Spreads Desserts & IceCream

Baby Food Dairy Confectionery

Product launch share of products tracked with fruit ingredients - by category (2013)

CAGR08 - 13 +9% +21% +11% +38% +15% +19%

Product examples with fruit ingredients in Europe

7

Katjes Grun-Ohr Hase: Marshamallows with Fruit Gummies (Germany,Jul 2013)Marshmallows with fruitgummies in a plastic bag.

Ingredients: Apple, elderberry

ConfectioneryFruit Snack for Babies Bakery

Iglo Cocoa Germknodelwith sour heart (Austria,Dec 2013)cocoa yeast dough with a fruity-fresh Vistula heart and crispy cocoa crumbs

Ingredients: Apricot

FruchtBar (Germany, Jan 2014)

Description: 100% organic fruit crispiesfeaturing orange, carrots, apple and mango. The product provides an innovative vege+fruit+grainscombination. The product is also organic and contains no added sugar.

Top fruit types used as ingredients in Europe

5.5%5.6%5.9%6.0%

8.5%10.2%

12.8%14.7%

28.2%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

ApricotRaisinCherryGrape

RaspberryOrange

StrawberryApple

Lemon

Top fruit ingredients in European product launches tracked (2013)

8

• For European product launches tracked with fruit ingredients, lemon is present in 27.4%. This means 1 out of 4 products with fruit as ingredient contains lemon.

• Apple is in a distant second place compared to lemon: +14.7%. • Grape shows the highest average annual growth rate from 2008 to 2013: +24%,

compared to other fruit ingredients in the top 10.

Product examples with fruit ingredients in Europe

9

StrawberryAppleLemon

Bas Bas Dezert na BaziZita sa Sljivom i Limunom: WheatDessert Bar with Plum & Lemon (Serbia, Sep 2013)Wheat based dessert bar with plum and lemon

Ingredients: lemon peel, natural-identical lemon flavor

Frootz Apple High Fruit Buttons (United Kingdom, Sep 2013)Description: Five sachets of high fruit apple sweetened buttons made with apple juice, packed in a cardboard box.

Ingredients: Reconstituted fruit juice from concentrate (76%) (apple, lemon)

Organix Baby Food: Strawberry & Banana Porridge (United Kingdom, Mar 2014)Ingredients: Rice flour 55%, maize flour 36%, banana flakes 6%, freeze dried strawberry powder 3%,

Top health claims

18.4%16.3%

12.2% 11.9%

7.1%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%

20.0%

NoAdditives/Preservatives

Allergy Gluten Free Organic Low Fat

Top 5 passive health claims on product launched tracked with fruit ingredients in Europe (2013)

10

• 18.4% of products with a fruit ingredient carry a no additives/preservatives claim. • Clean label claims (no additives/preservatives and organic) and free from claims

(allergy and gluten free) dominate the top 5 passive health claims.

Health claims product examples in Europe

11

OrganicGluten/ Allergy freeNo Additives/Preservatives

Kiddylicious Apple Crisps (Spain, Mar 2014)Description: Four yummy bags of bite sized crunchy slices of real apple.

Claims/Features: No additives or salt. Whole portion of fruit inside each bag. 1 of your 5 a day.

Beauty Sweeties Fruit Confection: Finest Fruit Confection with 81% Fruit Content, Coenzyme Q10, Aloe Vera, Biotin(Germany, Jan 2014)Claims/Features: 81% fruit content, coenzyme Q10, Aloe Vera and Biotin make these fruit confections unique. Gluten-free. Lactose-free. No gelatine.

Landgarten Schoko Beeren-Mix In Dreierlei Schokolade: Chocolate Berry Mix (Austria, Dec 2013)

Claims/Features: Certified organic.

Ingredients: organic blueberries 3%, organic raspberries 3%, organic strawberries 3%,

Thank you for viewingPresented by Innova Market Insights & Paradise Fruits (www.paradise-fruits.de)