Leveraging the global oil trends to grow the value of the biscuit categoryP. MARK STAVRO, PHDGlobal Marketing Director, Bunge

+3%

’15

17.9

13.4

4.5

’10

15.3

11.5

3.8

SAVORY SWEET

+0.7

+1.9

Volume (MnMT)

GLOBAL RETAIL BISCUIT SALES

+3%

’15

91.6

67.3

24.2

’10

77.2

58.2

19.0

+5.2

+9.2

Value ($USD Bn)

Retail demand for biscuits showed steady 5 year growth, 2010-2015

Source: Euromonitor

+38

+1

+46

+41/2+14

+3

+24

+1

+537

+7

+4

-1

+38

+1

Retail Savory Biscuit Sales in Volume

Absolute volume change in MnMT

for 2010-15

Per capita change in # servings per person 2010-15

Savory biscuit sales growth is international, greatest in Asia, 2010-15

+62

+11/2

Source: Euromonitor

Retail Sweet Biscuit Sales in Volume

Absolute volume change in MnMT

for 2010-15

Per capita change in # servings per person 2010-15

+33

-11/2

+94

-1

+52

-1+150

+14

+311

+5

+1,249

+71/2

+8

-2

+38

+1

Sweet biscuit sales growth is international, greatest in Asia, 2010-15

Source: Euromonitor

…but what will drive future biscuit growth?

Health & WellnessFlavor Discovery

Snacking Outsourcing of Cooking

Less Processing

Transparency

The 6 global food trends shaping eating in all channels

Oils & Fats Category Biscuits Categories

The oils and biscuit categories are both affected by the same trends

↑Value

Crackers

CookiesCrackers

Wafers

Relationship between categories We grow category value in 2 ways

Creamy Texture Omega-3

↓SatsOrganic

Evolving category content

Knowing the

category value drivers

Snacks

Fresh

Growing oil & fat category value can grow biscuit category value

Category Content Products that meet the same needs &

behaviors

Need: make a cracker

Palm

Canola

Soy

Sun Health Natural Sensory Perform

Knowing category content & value drivers helps us grow category value

Category Value Drivers Guides innovation to step change

category value

Omega-3 non-GMO

Virgin Oils Hi-Oleic

Value Drivers: max user’s experience

Category Content Products that meet the same needs &

behaviors

Need: make a cookie

Palm

Canola

Soy

Sun Health Natural Sensory Perform

Category Value Drivers Guides innovation to step change

category value

Value Drivers: max user’s experience

↓Sats Organic Butter Hi-Oleic

Knowing category content & value drivers helps us grow category value

The oil & fat category value drivers align with the trends

Less Processing TransparencyHealth Flavor Snacking Eating Out

Global Food Trends

Valu

e Dr

iver

s

1995 2000 2005 2010 20150

50

40

30

20

10

Global food oil consumption is dominated by palm and soybean oils

SoybeanCanola

Peanut

OliveCotton

Coconut

ButterLard & TallowSun

Palm

Historical Food Oil Consumption Trend (Mn MT) 2015 (Mn MT)

4742191311

96432

Mill

ion

Met

ric To

ns

Source: USDA, PSD Online

The different regions have different oil & fat consumption profiles

SoyCanola

Palm

1584

PalmButter

Soy

955Soy

PalmSun

611

SoyCanola

Palm

831

SunCanola

Palm

333

North America

PalmSoy

Canola

943

South America

China

Europe

ME & Africa

India

Source: USDA, PSD Online

Top 3 oils & fats consumed by region, Mn MT

46194647109125

324325337

479495

1,057

Sun

Palm

Canola

Soybean

ButterOlive

Vegetable

Coconut

HO-Sun

Cotton

Animal

Peanut

HO-Canola

Savory biscuits: palm oil was the most popular oil used globally, 2015

# of savory biscuits launched globally using different oils & fats, 2015

Source: Innova

% of savory biscuits globally using oils & fats in 2015

41931134137139571755822

1,463

4,948

1,840

3,655Butter

Palm

Sun

Canola

Vegetable

Olive

Coconut

OliveCotton

HO-Sun

Peanut

Animal

HO-Canola

# of sweet biscuits launched globally using different oils & fats, 2015

Source: Innova

% of sweet biscuits globally using oils & fats in 2015

Sweet biscuits: palm oil was the most popular oil used globally, 2015

The ranking of the oils & fats category value drivers differ by region

Health

Natural

Sensory

Perform

Key marketing features across each of the oils & fats value drivers

Omega-3

Non-GMO Organic Expeller Pressed Cold Pressed Traceability

Coconut Oil Olive OilVirgin Oils Butter

High-Oleics

Hydro/Trans Sat FatsHeart Health

Heart Health Scale of Fatty Acids

Polyunsaturated

Monounsaturated

Saturated Fat

Trans Fat

Heart health science shows polys the healthiest, trans unhealthy

Source: Innova

Eating seed oils instead of sat fats lowers LDL (bad) cholesterol

-16% -15% -14% -14% -13%-9%

Soy Sun Canola Ricebran Corn Olivevs palm, butter, lard

Source: Innova

The sat fat level of frying oils is lowest for HO-canola and highest for palm

Source: USDA (HO-Canola, Canola, HO-Safflower, HO-Sunflower, Corn, Olive, Soybean, Peanut, Rice Bran, Cottonseed, Palm)

49.345.9

40.8

25.919.716.915.713.812.910.59.99.07.57.46.8

PalmPalm Olein

Palm Super Olein

CottonRice Bran

PeanutSoyOliveCornHO-Soy

HO-Sun

HO-SAF

CanolaHO-Canola

HO-Algal

Seed Oils Palm Oils

Saturated Fat Content (% of Oil)

4.0

3.0

2.0

1.0

0.0’15’10’05

Trans / Hydro FreeOther

6% Share

0.0

3.5

7.0

10.5

14.0

’05 ’10 ’15

7% Share

Trans/hydrogenated free claims on biscuits is growing slowly

2% Share

1% Share

Source: Innova

Savory Biscuits

# of products (x 1,000) # of products (x 1,000)

Sweet Biscuits

# of products launched with claims:

4.0

3.0

2.0

1.0

0.0’15’10’05

Low / Reduced / Less Sat FatOther

2% Share

0.0

3.5

7.0

10.5

14.0

’05 ’10 ’15

0.3% Share

0.6% Share

0.2% Share

Source: Innova

Low/lower sat fat claims on biscuits is a very small share of total

Savory Biscuits

# of products (x 1,000) # of products (x 1,000)

Sweet Biscuits

# of products launched with claims:

4.0

2.0

3.0

0.0

1.0

’10’05 ’15

Other Butter / Coconut Oil

16% Share

3.5

0.0

7.0

10.5

14.0

’10 ’15’05

46% Share

10% Share

34% Share

Source: Innova

Butter/coconut oil claims on biscuits is a large share of total

Savory Biscuits

# of products (x 1,000) # of products (x 1,000)

Sweet Biscuits

# of products launched with claims:

Retail butter consumption is growing globally, replacing margarine

2005 2010 2015

5

1

4

3

2

+14%

-1%

ButterMargarine

-25% +5%

+6% +2%

-6% +11%

+32% +48%

+51% +44%

Source: Euromonitor

2005-15 retail consumer consumption:

Mn

liter

s

Butter

Margarine

Consumer perception doesn’t always match the science

1963 1984 2014

Consumers recently received media that butter is okay for health

…and prior to that they received media that coconut oil is healthy

2011

Coconut Oil

…so the consumer adoption of oils & fats is evolving (US example)

Today Shortening Alternatives without Trans Fat

Basic Trans Fat

Basic Palm

OilBasic Blends

Palm/Seed OilsSpecial Blends

Seed Oils

Special Blends Palm/Seed Oils

Specialty Low Sats

Sats 30% 50% 30-35% 30-35% 30-35% 20-25%

Trans 30% 0% 0% 0% 0% 0%

Functionality

Technology PH None Physical Blend EIE Blend EIE Blend Blends + Structuring

But, as long as there is demand to lower sats, there are solutions

• Virgin

• Simply filtered

•Traceability

•Non-GMO

•Organic

UnrefinedSeed Selection

•Expeller pressed

•Cold pressed

Extraction Refining

• Functionality

•Color

• Flavor

How ‘natural’ is expressed for oils & fats

Traceability examples for retail oils

Lesiur Teutoberger Breckenholme Just Oil Hillfarm Oils

3.0

2.0

1.0

0.0’15’10’05

non-GMOOther

7% Share

Life Oil Solio Fulinmen SonyashnaSoy Canola Corn Sun

Non-GMO is growing in global retail oils, as seen by new launches

# of products (x 1,000)

Source: Innova

2.0

3.0

4.0

0.0

1.0

’05 ’10 ’15

Other non-GMO

5% Share

3.5

7.0

0.0

14.0

10.5

’15’05 ’10

4% Share

Source: Innova

Savory Biscuits

# of products (x 1,000) # of products (x 1,000)

Sweet Biscuits

# of products launched with claims:

Non-GMO is small but growing in share in global retail biscuits

3.0

2.0

1.0

0.0’15’10’05

OrganicOther

18% Share

Sprouts Groovy Food

Canola Hemp

Bertolli

Olive Avocado Sesame

Sagra GoOrganic

Source: Innova

Organic is growing in global retail oils, as seen by new launches

# of products (x 1,000)

2.0

3.0

4.0

0.0

1.0

’05 ’10 ’15

Other Organic

14% Share

3.5

7.0

0.0

14.0

10.5

’15’05 ’10

8% Share

Organic is significant and growing in share in global retail biscuits

Source: Innova

Savory Biscuits

# of products (x 1,000) # of products (x 1,000)

Sweet Biscuits

# of products launched with claims:

2.0

1.0

0.0’15’10’05

PressedOther

24% Share

Pressed non-olive oils are key & growing in share in global retail

Hain Sunright Walter Rau Health 1st

Expeller Pressed

Cold Pressed

First Pressed

First Cold Pressed

MeridianCold

Pressed

Source: Innova

# of products (x 1,000)

1.0

0.0

0.5

1.5

’15’10’05

PressedOther

9% Share

Pressed non-olive oils are key & growing in share in US retail chips

Source: Innova

# of products (x 1,000)

4.0

3.0

2.0

1.0

0.0’15’10’05

PressedOther

2% Share

0.0

3.5

7.0

10.5

14.0

’05 ’10 ’15

1% Share

Source: Innova

Savory Biscuits

# of products (x 1,000) # of products (x 1,000)

Sweet Biscuits

# of products launched with claims:

Pressed oil is small but growing in share in global retail biscuits

Pressed oils used in various biscuits

Source: Innova

Sustainable palm oil, small, starting to grow in global retail biscuits

0.0

1.0

3.0

2.0

4.0

’15’10’05

Sustainable PalmOther

0.6% Share

14.0

10.5

7.0

3.5

0.0’05 ’10 ’15

0.7% Share

Savory Biscuits

# of products (x 1,000) # of products (x 1,000)

Sweet Biscuits

# of products launched with claims:

Source: Innova

Sustainable palm oil example in US crackers

Source: Innova

Sustainable palm oil example in Germany cookies

Source: Innova

2.0

1.0

0.0

3.0

’15’10’05

PressedOther

31% Share

Virgin oils are key & growing in share in global retail

Hain Bell Plantation San PiedroVirgin

CoconutVirgin

PeanutVirgin

Avocado

VernoilaiseVirgin

Walnut

Source: Innova

4.0

3.0

2.0

1.0

0.0’15’10’05

VirginOther

5% Share

0.0

3.5

7.0

10.5

14.0

’05 ’10 ’15

0.5% share

Virgin oils are small, growing in share in global retail savory biscuits

0% share

2% share

Savory Biscuits

# of products (x 1,000) # of products (x 1,000)

Sweet Biscuits

# of products launched with claims:

Source: Innova

The oxidative stability of oils is best for HO-Sun and palm oil

Source: USDA (HO-Canola, Canola, HO-Safflower, HO-Sunflower, Corn, Olive, Soybean, Peanut, Rice Bran, Cottonseed, Palm)

3,588

1,8871,664

7,2746,672

6,130

4,5324,2813,8722,892

2,2471,8741,839872

HO-Sun

Rice Bran

HO-Algal

Palm Olein

PalmCottonCanolaHO-Canola

Olive HO-Saff

Palm Super Olein

Peanut SoybeanCorn

Seed Oils Palm Oils

Oxidative Stability of Various Oils

4.0

3.0

2.0

1.0

0.0’15’10’05

High OleicOther

2% Share

0.0

3.5

7.0

10.5

14.0

’05 ’10 ’15

2% share

High oleic oils are small, growing in share in global retail biscuits

0% share

0% share

Savory Biscuits

# of products (x 1,000) # of products (x 1,000)

Sweet Biscuits

# of products launched with claims:

Source: Innova

Oils, price, functionality, health

Palm

Partial Hydro

Soy

HO-Canola

Price

Func

tiona

lity

Canola

Sunflower

OliveHO-Sun

Cotton

Peanut

Palm

Partial Hydro

Soy

HO-Canola

Health

Canola

Sunflower

OliveHO-Sun

Cotton

Peanut

Health

Natural

Sensory

Perform

Healthy Snacking Clean Label Clear Label Indulgence

• Lower sats shortenings

• Cold pressed oils • Low contaminant oils

• Natural antioxidants

• Sustainable palm• Traceable seed oils• Algae oil

• Virgin oils

• Non-GMO, organic

• High oleic oils

• Butter• Confection fat

Leveraging the oils & fats value drivers to deliver on the biscuit trends