©PureCircle 2016

THE STEVIA Advantage

23rd November 2016

©PureCircle 2016

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Stevia is the first natural-origin, zero-calorie, mainstream sweeter.

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STEVIA IS A PLANT ORIGINALLY FROM SOUTH AMERICA

THE STEVIA LEAF IS NATURALLY SWEET

STEVIA IS A PART OF A WELL BALANCED DIET

Discovered more than 200 years ago

in Paraguay.

Originally used to sweeten

beverages, like tea.

Today PureCircle grows stevia in South America, Africa, China and soon

India.

It is a member of the sunflower family.

It is up to 400 times sweeter than

sugar.

11 main steviol glycosides within

the leaves.

About 3 stevia leaves to replace

25% of the sugar in one can of soda.

400x

Stevia is 0 calories.

PureCircle stevia is Non-GMO.

Sweetens more than 10,000 F&B products

around the world.

Over 5 billion people around the world have

access to stevia products.

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For more information on the

science of stevia, visit

www.globalsteviainstitute.com

• Sign up to newsletter

• Like on Facebook

• Follow on Twitter @steviainstitute

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Context

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So… Sugar today

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Which can lead to this?

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In Europe – the “sweet” debate!

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prop

• Global obesity crisis • Sugar tax

(passed/proposed) • Activist advocacy groups

• Good for me • Good for others • Good for the planet

• Caloric • Non Caloric

Rising Public Health Concerns

Consumers redefine Health & Wellness and

Sustainability Needs

Sweeteners Under Fire

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Impact

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73% 72% 69%

58% 58%

52% 49%

43%

61% 60%

55%

42%

38%

33% 31%

24%

32% 33%

38% 38% 41%

43% 46%

44%

22% 24% 23%

19% 18% 17%

13% 12% 13% 15%

13% 13% 12% 10% 9% 10%

0% 2% 2%

17% 21%

23% 25% 24%

2009 2010 2011 2012 2013 2014 2015 2016 YTD

Europe, High Intensity Sweetener as % of all HIS launches, Food & Beverage

Acesulfame Potassium

Aspartame

Sucralose

Saccharins

Cyclamates

Stevia

Stevia New-Product Launches Increase While Aspartame and Ace-K Launches Decrease, Indicating Sugar Substitutes in Food and Beverage is Shifting

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• Near 25% of new products sweetened with a high intensity sweetener use stevia • Stevia and Aspartame are now equally introduced in NPD in Europe

Source: Mintel GNDP

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50% 50% 49%

45% 44%

39% 37%

42%

49%

41%

36%

31% 29%

23%

45%

40%

50%

45%

51% 50% 52%

0% 0% 0%

8% 9%

16%

23%

2009 2010 2011 2012 2013 2014 2015

UK, High Intensity Sweetener as % of all HIS launches, Food & Beverage

Acesulfame Potassium

Aspartame

Sucralose

Stevia

The proportion of Stevia in new product launches is increasing, as sweetener usage is shifting in most Food & Beverage categories.

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• Aspartame introductions have halved to 23% of HIS introductions in the space of 5 years. • 22% of new products sweetened with a high intensity sweetener use stevia. • Stevia is fastest growing HIS – and currently the only naturally sourced mainstream sweetening option available.

Source: Mintel GNDP

©PureCircle 2016

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60%

55% 55%

50% 52%

45%

41%

32%

41%

36% 36% 34%

36%

30% 27%

12%

22%

14% 14%

22% 25%

21%

29%

45%

40%

48%

53%

36%

28%

44%

28%

23% 24% 27%

31%

27%

19%

23%

19% 17%

0% 1% 3%

22% 22% 19%

26% 27%

2009 2010 2011 2012 2013 2014 2015 2016 YTD

Germany, High Intensity Sweetener as % of all HIS launches, Food & Beverage

Acesulfame Potassium

Aspartame

Sucralose

Saccharins

Cyclamates

Stevia

Stevia New-Product Launches Increase While Aspartame and Ace-K Launches Decrease, Indicating Sugar Substitutes in Food and Beverage is Shifting

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• Sucralose has become sweetener of choice for many launches • 27% of new products sweetened with a high intensity sweetener use stevia • Stevia has overtaken Aspartame in Germany • Stevia is nearing 30% of launches, and is now 3rd sweetener of choice

Source: Mintel GNDP

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68%

52%

56%

61% 59%

47%

38%

30% 29% 26%

30%

13%

34% 36%

43%

51%

47% 44%

11% 10% 12%

8%

3%

10% 8% 12%

10% 9% 6%

9%

0%

6% 8% 7% 8%

19%

2011 2012 2013 2014 2015 2016 YTD

Spain, High Intensity Sweetener as % of all HIS launches, Food & Beverage

Acesulfame Potassium

Aspartame

Sucralose

Saccharins

Cyclamates

Stevia

Stevia New-Product Launches Increase While Aspartame and Ace-K Launches fluctuate, Indicating Sugar Substitutes in Food and Beverage is Shifting

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• Ace K and Sucralose have been holding up, but show a decline over the last 3 years • Nearly 20% of new products sweetened with a high intensity sweetener use stevia • Stevia has overtaken Aspartame in NPD in Spain (a scenario similar to German market)

Source: Mintel GNDP

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Stev

ia a

ide

d a

war

en

ess

(%

)

United Kingdom

All EU markets are experiencing similar awareness growth.

Source: PureCircle Insights Group

France Germany

Poland Italy Spain

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21%

36%

26%

11%

6%

21%

34%

27%

11%

7%

Very concerned Somewhat concerned Neutral Not very concerned Not at all concerned

Sugar Artificial sweeteners

How concerned are you about the amount of sugar and artificial sweeteners in the food and beverage products you, personally, consume?

Question Type: Scaled Single Matrix | Total Respondents: 1017 | Jul 11, 2015

In UK, sweeteners play a significant role when deciding what foods and beverages to consume. Avoiding artificial is also one of the key concerns.

57% are concerned about their sugar intake (top 2 box)

55% are concerned about their artificial sweeteners intake

(top 2 box)

Concern for sugar & artificial sweeteners, UK

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Overall, consumers prefer natural sweeteners. Those aware of stevia view it more positively than other mainstream sweetener options.

Q: What is your overall impression of each of the following sweeteners?

Sweetener Impression Among Aware Consumers, UK

3%

5%

9%

6%

8%

9%

8%

12%

31%

9%

13%

10%

22%

23%

17%

30%

21%

37%

30%

45%

27%

44%

44%

44%

35%

36%

22%

22%

18%

24%

13%

12%

12%

10%

20%

4%

28%

8%

23%

5%

4%

3%

4%

7%

1%

8%

11%

7%

10%

8%

15%

13%

4%

5%

Aspartame

Sucralose

Acesulfame-K

Fructose

Glucose

SteviolGlycosides

Stevia

Sugar

Honey

Very positive Somewhat positive Neither positive nor negative

Somewhat negative Very negative Don't know

- Sucralose carries less positives than negatives, as most artificial sweeteners. - Stevia information increases positives significantly vs. “steviol glycosides”

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While Stevia’s natural origin is appealing

Natural origin, like sugar, gives stevia positive attributes in the mind of the consumer.

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Market

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Some recent launches in UK

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BIG BRAND EXAMPLES CATEGORY INNOVATION

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Stevia Adoption

After early adoption by major F&B manufacturers, penetration of big brands continues & in more diverse categories.

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Global New-Product Launches with Stevia, 2009-2015

# o

f la

un

ches

2009 2010 2011 2012 2013 2014 2015

477

636

1162

1843

2276

2558

280

5-year CAGR 32%

+31%

+26%

+56%

+117%

+73%

MEA

APAC

LATAM

NTAM

Europe

Source: Mintel GNDP

• over 10,000 launches,

• of which >70% in last 30 months (2.5y)

Growth in stevia products has remained strong over the past 5 years, across all regions.

Beverage

43%

Food

57%

2016, as from last night @22.43: 3,333 launches (+30%)

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Europe is an active stevia market, across most its territories.

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• Europe has seen 2,733 stevia launches since EU approval 5 years ago (2016 to 22/11). • Germany is the most active market, followed by UK and France. • But in “launches per capita”, Netherlands is the most active in the region.

0

20

40

60

80

100

120

2011 2012 2013 2014 2015 2016

EU stevia launches by country

Germany

UK

France

Spain

Netherlands

Norway

Finland

Poland

Belgium

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Stevia’s penetration of geographies and products

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86 products

27 countries

Stevia’s geographic and category penetration have grown rapidly over the past 5 years.

Over 5 billion customers worldwide now have regulatory access to stevia

4 products

3 countries

CSDs – Colas CSDs – Lemon / Lime RTD Teas Yogurt

(spoonable / drinkable)

20

10

2

01

5

25 products

14 countries

1 product

1 country

392 products

43 countries

19 products

4 countries

420 products

32 countries

19 products

3 countries

©PureCircle 2016

Reformulated standard

Adult enhanced water New adult soft drink

Natural positioning

There is more to it than meets the eye… UK example.

20 facings on this fixture contain stevia… … of course, more are in active development … … but ALL (main soft drinks) have launched in other markets, under their main brand.

Special edition

Mainstream Cola

Juicy water

source: PureCircle Insights Group / Mintel GNPD 2016

Sparkling flavoured water

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Stevia is contributing to the growth of a strong, cross category, better for you offering for the whole family, led by some of the most trusted brands in the industry.

source: PureCircle Insights Group 2016

Natural Origin Indulgence Everyday Consumption Whole Family

©PureCircle 2016

Stevia is a unique platform, bringing together the positive attributes of zero calorie, naturally sourced, ‘sweet taste’.

Sugar Stevia Artificial NNS Natural

origin Non-Caloric

Full flavour

From nature

Social

Happy

Less Calories

A Healthier Option

Everyday consumption

Safe for entire family

Source: PureCircle Insights Group

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What to do?

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Reformulations: Portfolio re-position, better control, long term benefits.

« net » reduction

- Less sweet, or - Flavour Modulation work = accepted, only to a certain % level

«artificial sweetener» reduction

- Diet, Zero positioning. - Using traditional HIS, = segmenting, some consumers actively avoid

«natural origin» reduction

- Cal moderation, indulgence - New choice of sweet = everyday positioning, whole family, kids

Sugar reduction

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Government pressure • From Soda Tax in France to Sugar Levy in UK • Spain is now advertising for Sugar reduction

Portugal (expected for March 17) : The Portuguese government has recently announced plans to ban products with high sugar, salt and/or fat content (including beverages) sold in vending machines located in healthcare facilities

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UK sugar tax: manufacturers are already reformulating, others unsure which route to take – many consumers avoid artificials

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Why stevia fits

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PureCircle’s unique supply chain control: from seedling to sweetener

Ensuring quality through

vertical integration

TASTE

CONSISTENCY

SCALE

CAPACITY

TRACEABILITY

TESTING

Great products

Applications

Extraction & Purification

Harvesting

Plant Breeding & Agronomy Program 1

2

3

4

5

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To enable next phase growth : Stevia from the leaf

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Stevia Expertise From Seed to Leaf

The science of naturally developing

new stevia leaf varieties with more of the best tasting steviol glycosides.

Sustainable Expansion for Commercial Viability

Growing and scaling the best stevia

varieties to support food and beverage needs.

We combine our science and passion for understanding stevia to produce the best tasting steviol glycosides

Our suite of technical services designed to

reduce development time and

improve in-market success

SCIENCE & RESEARCH SCALING NATURALLY FARMERS

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Our PureCircle Stevia Agronomy Program was created to fully understand the performance of

the stevia leaf and provide commercial scale.

Our Commitments

Livelihood + Community Enhancement

The commitment to grow high-

quality stevia leaf while contributing positively to the

farming communities.

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PureCircle farmers in the Meru area

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- Small farms base with diverse commercial cultures (tea, coffee, stevia..), also food crops for own / local consumption (sugar cane, peas, bananas etc.)

- Very positive impact locally, with spontaneous comments form farmers, on price, payment terms, revenue and harvest frequency (stevia generates a more regular cash income than other crops).

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Copyright © Global Stevia Institute 2014. All Rights Reserved.

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PureCircle people – Technical Advisors

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My name is Jecinta Mwendawa,

My work is to supervise and advise farmers on how they farm, how they take care of their nursery, irrigate... Each week I have 94 farmers , each day I make sure I have attended to 18 or 19 farmers. What makes me happy is when I visit my farmers like those I started with have now money, they have harvested 3 times. Others have bought cows, have built houses, educated their children, they are always happy when they see me, when I go home I feel grateful

PureCircle operates a unique network of technical advisors, whose

role is to act as agronomists – advising and sharing best practise, ensuring PureCircle agricultural standards & policy are met. But also, critically, they are responsible for finding new farmers willing to partner for the long term – securing new leaf volume and ensuring the growth in demand for stevia is met, for the shared benefit of our entire supply chain – starting with the farmer.

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PureCircle at the forefront of leaf supply diversification.

Burundi

CAR

Malawi

Mozambique

Rwanda

Swaziland

Tanzania

Uganda

Zambia

Ecuador

Guatemala

Mexico

Nicaragua

India

Macedonia

Romania

Turkey

USA

Beyond current agricultural operations in Kenya and Paraguay, actively pursuing stevia plantation development with local partners in:

PureCircle 2020 Plans: Tens of thousands of hectares, yielding thousands

of metric tons of novel glycosides.

AFRICA LATIN AMERICA

OTHER REGIONS

ON-GOING TESTS AND ACTUAL PLANTATIONS

OTHER REGIONS

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Vertical integration allows us to take sustainability to the next level

LOWEST CARBON FOOTPRINT

30-80% Less carbon than the next stevia sweetener or other natural sweeteners

At least

92% Less water than other natural sweeteners

Source: PureCircle lifecycle assessment FY2011

HOW WE GROW IT

LOWEST WATER FOOTPRINT LOWEST LAND FOOTPRINT

1/5 the land of cane sugar

uses

Size of Delaware = Amount of stevia needed to replace 20% of today’s sugar consumption

KgCo2-e/kg SE* Comparative Carbon Footprints

Liters/Kg SE* Comparative Water Footprints

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©PureCircle 2016

Thank you.

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