Global Market Expansion Services for the food and beverage industry

Business Unit

Performance Materials

Business Line Food & Beverage IndustryEurope

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Market Expansion Services:dedicated to growing business

We help companies to grow their business in new and existing markets. We expand their access to knowledge, their sourcing base, their revenue opportunities, and their market shares. Providing business partners with a comprehensive package of services to reach their individual goals is what we call Market Expansion Services.

Your strategic partnerDKSH is a major Swiss company and the world leader in Market Expansion Services with a focus on Asia. Our four Business Units – Consumer Goods, Healthcare, Performance Materials, and Technology – operate worldwide through an extensive network of experts. Swiss stability un-derpinned by a strong balance sheet has helped us gain our global reputation as a strong, reliable, and long-term partner.

We offer a comprehensive range of ser-vices along the entire value chain: from sourcing, marketing and sales to distribu-tion and aftersales services. Our business partners benefit from our long-standing relationships, local knowledge, and on-the-ground logistics. As a strategic partner we safeguard the business of our partners while always sharing our unique market insights. It is our aim to be a trusted link between suppliers and customers, taking care of the products of our business part-ners as if they were our own.

Business Unit Performance MaterialsDKSH Performance Materials provides Market Expansion Services for specialty chemicals and food ingredients used in the specialty chemicals, food and beverage, pharmaceutical, and personal care indus-tries. Backed by the DKSH global organiza-tion, Performance Materials is dedicated to providing tailor-made solutions for the dis-tribution, sourcing, and application needs of its business partners.

Business Line Food & Beverage IndustryThe Business Line Food & Beverage Industry is part of DKSH’s Business Unit Performance Materials and provides Market Expansion Services for companies that wish to source, supply or develop materials in the bever-age and dairy, confectionary and bakery, food supplements and nutrition, processed food and food service industries. The Busi-ness Line Food & Beverage Industry relies on expert know-how, long-standing rela-tionships and the global DKSH network to deliver innovative solutions that yield out-standing results for our business partners.

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The best of both worlds – yours and ours

Experience and networksDKSH has done business in and with Asia for nearly 150 years. We are truly at home in Asia, where we have become an integral part of many local business environments. And we are no strangers to the rest of the world either: DKSH operates in 35 coun-tries, with 590 business locations in Asia and 20 in Europe and the Americas, and employing over 23,000 specialized staff from 56 nations.

Integrating diverse services We bridge the markets of Europe, Asia, and the Americas and have the ability to adapt to the businesses we serve in any local market. The diversity of industries DKSH is involved in is only matched by the range

of services we perform: from sourcing raw materials to setting up and running flag-ship stores for luxury consumer brands, and from feasibility studies and product devel-opment to the many facets of marketing.

Our more than 180 state-of-the-art distri-bution centers work with the largest Busi-ness Warehouse application of SAP in Asia to help execute, track, and analyze hun-dreds of thousands of business transac-tions every day. The detailed information we gain from this process contributes to the expert knowledge that we use to pro-vide strategic advice to our business part-ners. Offering all these diverse services from a single source is another important aspect of what we call Market Expansion Services.

Experts and entrepreneursIn order to provide deep industry exper-tise for these many fields of business, we are not only organized into four Business Units, but are further specialized into Busi-ness Lines and Industry Clusters, maintain-ing the hands-on and entrepreneurial style of business our company was founded on. DKSH provides a balance between special-ist knowledge of our partners’ industries and a practical business approach that ef-ficiently gets things done.

Locations in theAmericasBrazil 1Chile 1USA 1

Locations in EuropeDenmark 1France 1Germany 2Great Britain 1Italy 1Netherlands 1Norway 1Poland 1Spain 1Switzerland 3

Locations in Asia PacificAustralia 5Brunei 1Cambodia 2China 61Hong Kong 15India 2Indonesia 2Japan 14Korea 4Laos 2Malaysia 66Myanmar 11New Zealand 2Philippines 3Singapore 5Taiwan 7Thailand 218Vietnam 17

DKSH Group

Transaction value:CHF 10 billion (2010)

Over 23,000 specialized staff representing 65 nationalities

Operations in 35 countries

590 business locations in Asia Pacific

20 business locations in Europe and the Americas

Network of more than 5,500 suppliers and over 550,000 customers

Over 180 state-of-the-art distribution centers

Largest Business Warehouse application of SAP in Asia

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Performance Materials

What we doDKSH Performance Materials is a trusted distributor and provider of Market Expan-sion Services for specialty chemicals and food ingredients used in the specialty chemicals, food and beverage, pharma-ceutical, and personal care industries. A leading player in this dynamic growth mar-ket, we achieved Total Sales of CHF 749 million in 2010.

Global reachWe are active in 24 countries, with 69 lo-cations and 17 sourcing offices worldwide that draw from over 70 markets, giving us a network of unrivalled scope and depth. With a vast and constantly growing global distribution footprint, we offer tailored services that create new distribution op-

portunities for chemical producers. We provide reliable sourcing around the globe and instant access to markets, managing the entire supply chain of our business partners. With our long-standing experi-ence and relationships, we support our customers’ businesses of every size. We speak the local languages and understand the local business environments.

A constantly growing networkWe continually invest to further increase our geographic reach with prime focus on Asia, Europe, and North America. In these markets, we have been expanding our product and services portfolio for the industries we work in. Likewise, we invest in our people and have been increasing the number of sales and technical service

experts through organic growth and ac-quisitions.

One-stop shopFor multinational suppliers, we offer a complete service package that covers the whole of Asia, increasing our business partners‘ efficiency while reducing time required and transaction costs. With the market insight gained from 4,000 suppli-ers and 20,000 customers worldwide, we have the expertise to know exactly what matters in each application or product.

Business Unit Performance Materials

Transaction value:CHF 749 million (2010)

1,000 specialized staff

Operations in 24 countries

55 business locations in Asia Pacific

14 business locations in Europe and the Americas

Network of more than 4,000 suppliers and over 20,000 customers

17 sourcing offices worldwide

19 innovation centers worldwide

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Select reliable suppliers based on factory audits and evaluation of the main qualitative and economic parameters

Define product specifications in compliance with sales market regula-tions and customer requirements, and identify and implement amendments to meet regulations

Inhouse quality control and guaran-teed best practice for logistic opera-tions

Negotiate the best purchasing and selling conditions

Teams of experts scout for new trends and launches all over the world

Application and formulation labo-ratories work on new concepts and formulations, and on improving exist-ing products

Co-operation with universities and in-dustry associations to deliver unique developments

Run our own state-of-the-art custommanufacturing facility

Scout, screen and manage third partytoll manufacturers

Quality management, SEQRA, REACH,ISO, cGMP audit, change control

Business Line Food & Beverage Industry

Who we areThe Business Line Food & Beverage Indus-try provides concepts, formulations, and ingredients to manufacturers in the food and beverage industry, ranging from food raw materials to functional ingredients and institutional products. With our innovative ideas and solutions we help our business partners to develop new products and ap-plications, while providing responsible and traceable sourcing of ingredients through our comprehensive global network. With currently 850 suppliers and 1,600 cus-tomers, we deal with all sizes of business partners at all corporate levels, contrib-uting applications know-how that is rec-ognized throughout the industry. Having

built decades’ worth of relationships in key innovator markets in Asia, Business Line Food & Beverage Industry helps its business partners to stay a step ahead of the competition. Our dedicated team of 510 experts working from 30 offices in 21 countries offers the full range of Market Expansions Services, covering the entire value chain in combination with vertical industry know-how. Our food technolo-gists, nutritionists, chemists and market-ing specialists have the expertise to handle all technological, quality management and regulatory issues, thereby ensuring the high degree of customization in the ser-vices and products we offer.

What we do and how we do itBeyond merely sourcing materials, we pro-vide formulations and food ingredients such as natural colors, flavors and flavoring systems, emulsifiers, thickeners, stabilizers, sweeteners, taste enhancers, preservatives and processed raw materials like frozen seafood, fruit purees and concentrates, dehydrated seasoning blends, spices and plant extracts. Food & Beverage Industry provides ingredients and fresh ideas that have the power to make products stand out in a crowded market place. Using the latest ingredient technology and applica-tion know-how, we also command a glob-al sourcing network to reliably identify po-tential savings for our business partners.

Sourcing Research and development Manufacturing

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Deep insight, knowledge and control of supply chains

Expertise in logistic processes

Just-in-time solutions

As part of Business Unit Perfor-mance Materials, we profit from global DKSH synergies and infrastructures.

With 850 suppliers and 1,600 customers worldwide, we also have our own network and the local relationships and experts in place to address every challenge.

And while our strong scientific background enables us to support entrepreneurs in de-veloping their products from concept to commercialization, we also offer excellent-quality custom manufacturing.

Our profound market insight and overview are the reasons why we can effectively scout for trends with long-term potential in products and technology, creating new markets and business opportunities that outlast short-lived fashions. We offer a unique mix of competencies that go be-yond sourcing, distribution and logistics, adding value every step of the way by concerning ourselves with what matters most to our business partners. We strive

for long-term partnerships and regularly organize technical and scientific semi-nars and training courses, while making a point of open collaboration. Along with this come technical assistance, logistics, warehousing and distribution, quality as-surance, finance and insurance, project consulting and our food application and formulation laboratories. Market Expan-sion Services from DKSH means covering the entire value chain of our industry on a global scale.

The Business Line Food & Beverage Indus-try is organized into four Industry Clusters in order to focus expert knowledge and cater to specific industry needs:

Beverage & Dairy•Confectionary & Bakery •Food Supplements & Nutrition•Processed Food & Food Service•

Each Industry Cluster offers the complete array of Market Expansion Services, utiliz-ing the global networks and synergies of DKSH while also understanding local busi-ness environments and local regulatory challenges. To better serve the needs of our business partners who require cus-tom manufacturing, we also run our own state-of-the-art production facility located in the Philippines.

Marketing and sales

Develop market access strategies and turn ideas into success

Create new markets by providing new concepts and ideas for specific applications

New marketing ideas for existing ingredients in accordance with local regulations

Handle import regulations and regulatory affairs through close con-tacts with national and international regulators

Distribution

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Industry Cluster Beverage & Dairy

The Industry Cluster Beverage & Dairy sources and supplies a wide range of tech-nical and innovative raw materials and additives for all kinds of beverages and dairy formulations. We actively scout for the latest developments around the globe, using DKSH‘s strong Asian roots to spot trends and suppliers in the region, focus-ing on flavors and innovative ingredients with scientifically proven health benefits.

Our global sourcing team enables us the access to excellent ingredients, whilst our application and formulation laboratories contribute customized ideas that help seize trends including heart health and choles-terol reduction, anti-ageing, strengthening of the immune system, weight manage-ment, skin health and beauty, as well as natural nutrition. In short: We combine industry know-how with local market needs of our customers, while building up the business of our sup-pliers.

Healthy fiber sourcing and production We produce and distribute soluble, func-tional beta-glucan (BG) “GlucagelTM”. Im-portant facts attributed to “GlucagelTM”:

Positive opinion issued by EFSA•The consumption of 3 g/day may con-•tribute to maintaining a healthy level of cholesterol Patented natural process•Easy to formulate in foods and bever-•agesFull traceability of process•

Technological raw materialsWe provide a range of raw materials es-sential to the composition of your prod-ucts, including:

Hydrocolloids•All types and their blends –Gum acacia (gum arabic) –

Natural colors • Soy products: •

Concentrates –Isolates –Proteins –Lecithins –

Sweeteners: •Aspartame –Acesulfam K –Saccharin –Sodium/calcium cyclamate –Sucralose –Thaumatine –Stevia –

Natural healthy add-onsNaturalness and health are major industry trends. We offer many extracts that focus on the development of these trends, and which can be employed by the beverage and dairy industry, including:

Anthocyanes•Bioflavonoids•Natural plant extracts (e.g. acerola, •guarana)Prebiotic fibers (incl. inulin and FOS)•Super-fruit extracts (incl. acai, goji)•

Active ingredients for functional and energy productsWe offer a broad portfolio of active in-gredients, sourced through DKSH-audited global manufacturers, including:

Amino acids (full range)•Beta-Gluacans from barley •(Barley balanceTM and GlucagelTM) Coenzyme Q10 (solubilized)•Curcurmin•DHA/EPA•Glucuronolactone•L-Carnitine•Natural caffeine from guarana and •green teaProbiotic fibers including inuline and •FOSTaurine•Wellmune (Novel Foods)•

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Industry Cluster Confectionary & Bakery

The Industry Cluster Confectionary & Bak-ery combines new product concepts and ingredient technology with full technical, quality, regulatory, and scientific support. We source, deliver, and develop innovative ingredients and solutions for the confec-tionary and bakery industry.

We have the capability and vertical exper-tise that covers the entire value chain from formulation, technical application services, and manufacturing to warehousing and logistics. We have a strong track record of introducing successful new products whilst supporting our business partners with technical seminars as well as extensive cus-tomer training and education programs. Our technical expertise and global pres-ence assures our business partners’ access to the newest high-technology ingredi-ents. This enables them to move into new premium markets to take advantage of changing customer trends, and gives them an edge over the competition.

Product groupsCultures of bacteria used as baking •improvers Dairy proteins•Dietary fibers (soluble, insoluble):•

Arabic gum –Barley beta glucans –Inuline and FOS –Rice bran fiber –

Dried fruits•Emulsifiers/stabilizers•Flavor enhancers •Functional ingredients•

Dietary Fibers –Omega-3 and -6 (fish and plant –origin) Plant extractsProbiotics –

Glazors / bakery fillings •Hydrocolloids•Infused dried berries•IQF fruits and berries•Lactic acid bacteria•Natural colors•Natural flavors•

Minerals•Non-GMO soy derivatives•

Flours –Lecithin –Proteins –

Plant extracts •Preservatives/processing aids / •sweetenersProbiotics•Salt substitutes•Special nuts•Sugar substitutes•

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Industry Cluster Food Supplements & Nutrition

The Industry Cluster Food Supplements & Nutrition offers sourcing, concepts and applications for the health ingredients, sports nutrition, food supplements, and infant formulae industries. Our high performance ingredients and additives cover the anti- ageing, energy and weight management, immune system and gut health, and well-ness and cardiovascular health areas.

We specialize in concepts and ideas backed by scientific research and clinical trials, suggesting the right ingredients for the right development. Converting global trends locally, we help develop innovative products and ingredient applications. With our highly specialized and experienced staff we com-mand deep industry vertical expertise that enables us to meet the evolving needs of our customers, whilst creating opportunities for our suppliers.

Product groups Anti-ageingA broad range of special ingredients for ef-fective protection against oxidation dam-age of cells, skin and eyes:

Acerola extract (natural vitamin C)•Alpha lipoic acid (also solubilisates)•CoQ10 (also solubilisates)•Goji berry and extracts•Green tea extracts•Lutein and zeaxanthin•Lycopene Polyphenols from natural •extractsVitamins•

Energy and weight managementProven solutions to high perform on en-ergy, satiety and fat metabolism:

Alpha lipoic acid (also solubilisates)•

Amino acids and taurine•Barley beta glucan and other soluble •and insoluble fibresCatechins (high EGCg), capsaicin•Garcinia cambogia (high HCA)•Glucomannan•Guarana and ginseng extract•HMB calcium•L-Carnitines•Omega-3 (also from vegetable origin)•

Immune system and gut healthThe science supports our ingredient to maintain an healthy digestive system and build up our natural defences:

Barley beta glucan, psyllium, and other •viscous dietary fibresDairy protein concentrates rich in •lactoferrinGoji berries•Prebiotic fibres•Probiotics •Vitamin C•Yeast derived glucopolysaccharide•

Targeted health and wellnessAncient remedies and new discoveries to prevent specific health diseases

Black Cohosh, Isoflavones, St. John’s •Wort and other botanical extractsChondroitin, glucosamine and •hyaluronic acidDHA•L-Carnitine•L-Theanine•Non GMO lecithins and derivatives•

Cardiovascular healthNutraceuticals from nature that could play a positive influence on our cardiovascular health:

Barley beta glucan and other dietary •fibresGamma oryzanol•Green tea catechins, resveratol, and •other natural antioxidantsL-Carnitines •Non GMO lecithins•Omega-3 fatty acids•Phytosterol esters•

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Industry Cluster Processed Food & Food Service

We are a pioneer in seafood sourced from South East Asia, with a special focus on Vietnam. We operate our own sourc-ing team in Ho Chi Minh City in order to guarantee the highest standards of qual-ity and to ensure compliance with qual-ity requirements set by the major retail and food service companies in Europe. We strive to offer seafood from sustain-able sources and have made consider-able investments in order to comply with international sustainability standards, such as “Friend of the Sea“, „organic aquaculture,“ and “GlobalG.A.P“.

Product groupsWe offer a variety of shellfish, natural fish, and bespoke dishes, with value added ac-companiments for our customer’s brands. We have a long history in trading with Asia and we are pioneers in marketing Pan-gasius from Vietnam, on which we have built our business. Thanks to our highly specialized technical, quality assurance, and logistics specialists, we are in full con-trol of the supply chain from processor to customer.

Our main productsCrustaceans (farmed and wild catch)•Fish products (farmed and wild catch)•Value-added items•Molluscs•Cephalopods•Pelagic fish•

Product development We pride ourselves in producing prepared seafood dishes and sauces, working with either a customer brief or a recipe created by our innovative developers for retail or foodservice end use. For these dishes we use our own sourced and customer-approved seafood, together with natural ingredients.The safety of the seafood we supply begins with the selection of our suppliers, regular audits, and on-going collaboration to cre-ate and develop a lasting working partner-ship. Approach to quality and safety

We are meticulous about the quality of products we source for our customers. We manage dedicated sourcing teams, who are active in their sourcing regions. This enables us to ensure the safety of the prod-ucts we supply, to guarantee the highest possible standards, and to comply with the quality requirements as set by the major re-tail, foodservice companies and regulatory bodies in Europe. We strive to offer sea-food from sustainable sources to comply with international sustainability standards. This effort is backed by strong ethics, tech-nical knowledge and enforcement.

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Sharing success

Sharing successReliability, commitment, and flexibility to fulfill the needs of our business partners adds up to real solutions for a global econ-omy.

ChallengeNon-GM (genetically modified) soy lecithin is an important emulsifier for the chocolate industry that is increasingly hard to find to-day. It is particularly challenging to deliver the desired non-GM quality in sufficient quantities, and on time, to the production plants of customers all over the world.

ApproachOur answer to this shortage, and the at-tached logistical problems, was to establish

a strong relationship with a specialized Indian producer and to leverage our ad-vantage as a global provider of Market Expansion Services. Thanks to our global networks, we can offer stable and reliable sourcing for our customers’ production sites all across the globe. Our ability to guarantee after-sales support and cus-tomer service wherever needed is a further aspect of our partnership approach.

ResultDuring the recent negotiation of a new contract with a key customer (one of the world’s leading manufacturers of high-quality cocoa and chocolate), we closed a deal to supply lecithin to production sites in France, Belgium, Poland, Malaysia, Sin-

gapore, China, Canada, and the USA. This was made possible by the fact that we can guarantee supply and service to all ofthese locations. Two of the largest players in the market now rely on our uninterrupted, worldwide on-time delivery of on-spec non-GM soy lecithin.

Our long-standing relationships and mar-ket insight, combined with our global net-work and innovative approach to sourcing, enable us to turn challenges into opportu-nities and contribute to the ongoing suc-cess of our business partners.

Food innovation center Europe

DKSH’s European food innovation center, located in Lyon (France), offers exciting op-portunities and benefits to customers and suppliers as well as to the DKSH Food & Beverage Industry team.

The innovation center provides product solutions to business partners as well as in-depth application expertise, and performs essential basic tests and product trials with customers and suppliers. It is also a place for customers to test applications, suppli-ers to show new applications, and it allows us to exchange knowledge and present in-novations.

The center allows the DKSH Food & Bever-age Industry team to get to know ingredi-ents much better in terms of formulations in end products. This actively supports our sales teams through letting them bring the latest knowledge to you and provide you with first product prototypes.

The cooperation between our 7 DKSH food innovation centers worldwide offers exciting joint trend scouting and product development opportunities.

Main areas of applicationBeverage and dairy industry•Confectionary and bakery industry•

Solution providerIn-depth raw material application •expertise Turning raw materials into product •ideas Picking up trends fast and translating •them into innovative products

Activities of the innovation centerGeneral support for sales representatives in the food and beverage industry:

Developing formulas through •Tests with ingredients (e.g. pH, solu- –bility, stability)Creating new products, new proto- –types

Examples of formulation include •Adding value to products through –the use of functional ingredientsTexture improvement –

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Contacts and offices

DenmarkDKSH NordicP.O. Box 343Teglporten 2, 2nd Floor3460 BirkerødDenmarkPhone +45 4921 4441beverages.nordic@dksh.comdairy.nordic@dksh.com

FranceDKSH France S.A.1475, Quai du RhôneP.O. Box 26601702 Miribel CedexFrancePhone +33 4 7855 7873

beverages.fr@dksh.comdairy.fr@dksh.com

GermanyDKSH GmbH Baumwall 320459 HamburgGermanyPhone +49 40 3737 3412beverages.de@dksh.comdairy.de@dksh.com

Great BritainDKSH Great Britain Ltd.Wellington House, 3rd Floor68 Wimbledon Hill RoadLondon SW19 7PA United KingdomPhone +44 208 879 5500beverages.gb@dksh.comdairy.gb@dksh.com

ItalyDKSH Italia S.r.l.Via Polidoro da Caravaggio 3320156 MilanItalyPhone +39 02 3070 1822

beverages.it@dksh.comdairy.it@dksh.com

SwitzerlandDKSH Switzerland Ltd.Wiesenstrasse 8P.O. Box 8888034 Zurich SwitzerlandPhone +41 44 386 7330beverages.ch@dksh.com dairy.ch@dksh.com

DKSH Holding Ltd.Wiesenstrasse 8, P.O. Box 888, 8034 Zurich, SwitzerlandPhone +41 44 386 72 09, Fax +41 44 386 72 14www.dksh.com