Dallant NEWS nº2 [ENG]

july 2010 / 2

DALLANT UPDATES EXPANSION OF OUR PRODUCTIVE FACILITIES ENERGY EFFICIENCY PROGRAMME

WE BRING FLAVOUR TO YOUR PRODUCTS AND GIVE E LIFE TO YOUR PROJECTS

NEW PRODUCTS POWDER NATURAL JUICES EMULSIONS WITH NATURAL COLOURING

SECTOR AND MARKETS BRANDS IN A CRISIS PERIOD CALORIES, NUTRITIONAL INFORMATION HIGHLIGHTS

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dallant news DALLANT UPDATES

E X PA N S I O N OF OUR PRODUCTIVE FACILITIES On May 12th the enlargement of the productive facilities at Moleva S.A. was formally opened in El Palau d’Anglesola (Lleida).

This subsidiary company, initially dedicated to the manufacturing of concentrated fruit juices and fruit derivatives, progressively assumes the role of the group’s main productive centre, with capacity to elaborate a wide variety of flavours and nutritive products from fruits and natural raw materials.

The new atomizer can process up to 150kg of evaporated water per hour.

The investment plan, which started two years ago with a total value of 5 million euros has led to a 32% increase of productive floor space, with over 3.000 square metres.

In the same way, the storage space has also increased by the same proportion with special reinforcement in the freezing and controlled temperature areas.

Moleva’s new facilities inauguration.

This expansion comes together with a gradual acquirement and set up of new, more efficient production lines, with a greater automation degree and gifted with the ultimate technology. Thus, Dallant is projected towards the future, helping to achie-

ve the sales growth due to opening new markets.

Among the new investments already made, we can underline the setting up of a new atomizer able to process up to 150 Kg of evaporated water per hour.

This equipment, along with the recently installed new line of emulsions, which has a daily capacity of up to 15000 Kg, enables us to reinforce our vast offer of powdered flavours and atomised juices, as a response to the growing sales of this kind of products.

Thereby, Dallant continues to grow and create jobs, consolidating itself as a leading supplier to the food industry.

dallant news DALLANT UPDATES

ENERGY EFFICIENCY Dallant already includes the concept of Energy Efficiency as a strategy, incorporating it to its systems of continuous improvement.

We come from a society where the little interest in the effects of the use of hydrocarbons and the cost that it has on the environment produced an irrational energy use. Today, due to economic reasons and, above all, to protect the environment and the society in which we live, it is our duty to contribute to the global sustainability.

Energy efficiency is defined as the rational use, the exploitation and the preservation of energy.

That is to say, the efficient use of energy via intelligent saving by trying to generate and use products with better energetic qualities (electricity, heat and light..) but with lower energetic consumption (raw materials, natural energies), contributing to looking after both our planet and social environment.

Dallant’s energy efficiency programme.

In this framework, Dallant already includes Energy Efficiency as a strategy, incorporating it to its systems of continuous improvement. There are two main action lines.

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The improvements in the equipment by acquiring machinery and instruments of lower consumption as well as the design of more

rational and ecological facilities.

In this sense the investments that Dallant has made in the facilities over the last years already follow this criteria.

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The change of the behaviour patterns towards day to day energy use in each job (air conditioning, lighting, computer equipment...)

Therefore, there is a need to be fully aware of the benefits and costs involved as well as a strong compromise both individual and collective.

“The Energy Efficiency programme sets specific objectives as well as follow up and evaluation systems... “

To meet this purpose, Dallant has trained its employees in Energy Efficiency and has elaborated a programme that sets objectives as well as follow up and evaluation systems.

Thanks to the Energy Efficiency programme our company reiterates its compromise with our society, not only by supplying healthy, pleasing products to our consumers but also by contributing to minimise the impact of its activity, in order to favour people and the environment.

Our facilities are designed for a more rational and ecological use.

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dallant news NEW PRODUCTS

POWDER NATURAL JUICES The new atomisation equipment gives Dallant a great versatility and flexibility when it comes to manufacturing microencapsulates, accessing a wide range of ingredients from flavours and encapsulated concentrated juices, to functional ingredients and natural raw materials.

With the aim to increase stability and expiry date of these raw materials, as well as protecting them, controlling their activity and preserving and even promoting their organoleptic features, a great number of substances, generally found in liquid form are now available as solids, allowing the manufacturer to optimise the manufacturing process and maximise the benefits of the final product.

“...there is now an open door to the introduction of new and better ingredients that promote the flavour and the taste. “

n of new and better Thereby, there is now an open door to the introduction ll as the functionality ingredients that promote the flavour and the taste, as well alpable benefit to of a product, providing a greater sensory pleasure and a palpable the consumer’s health. eral series In this framework of new developments, Dallant has several n a wide of powder flavours and new atomised natural juices, in variety of fruit flavours, for its application in multiple sectors such as confectionery, desserts, mousses, dairy products, biscuits, etic and bakery products, bread, refreshing drinks (powdered), dietetic pharmaceutical industry.

Therefore, Dallant offers rs nd better product ts and new and products ves its competitiv veness improves competitiveness and service in order ervice ord der ea grea ater to give greater t added value to its customers. mers.

dallant news NEW PRODUCTS

EMULSIONS WITH NATURAL COLOURING New range of emulsions for application in soft drinks.

In response to a new European legislation on food additives and specially colourings (CE1333/2008) to be applied as of July 2010, Dallant presents to its customers a new range of emulsions for application in soft drinks.

Consumer health is one of the main pillars of Dallant’s new product development. These new products clearly prove this purpose, as the technical solution goes way beyond the almost obligatory substitution of synthetic azoic colourings for other natural ingredients, due to the fact that they not only give colour but also b bring a recognised functionality. th offered solution not only manages to avoid certain Accordingly, the th final product’s labelling, but also allows manufacturers warnings on the to add posit positive health claims and consider the option of repositioning the drink.

In this sense, s as an example, new orange references are now available, availab in which beta carotenes have been used.

These These ingredients in are antioxidants and precursors of Vitamin Vitamin A, beneficial to the skin, eye health, mucous membrane membra and bones.

In the same way, new lemon emulsions have been formulated with lutein, a vegetable pigment with eye health properties

T This new portfolio covers the m nge main taste and flavour range i most soft drinks, whilst hilst in k ptic keeping the organoleptic p se properties that characterise Da e Dallant’s emulsions, whose hig evaluation and market high recog recognition makes us as i this market segment. leaders in

Consumer’s health is one of the main pillars of Dallant’s new product development.

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dallant news SECTOR AND MARKETS

BRANDS IN A CRISIS PERIOD The current turbulent economic environment has dramatically changed the scenery for brands and consumer products, and above all, consumer behaviour when buying.

The availability of less money leads to a greater rationalisation when it comes to purchasing.

Consumers (more women than men) have stopped impulse buying and now thoroughly plan, analyse and objectivise what goes into the shopping trolley. In this context the price/quality issue becomes more relevant than ever in decision making.

As a result, private label brands earned a market share of up to 33% of the total food market (according to Kantar Worldpanel data) a level which seems to have stabilised, should we take into account markets such as Great Britain and France, where private label brands have been developing for a longer period.

However, according to other sources (Nielsen and Millward Brown), manufacturers’ brands may recover ground, if they haven’t already begun to do so. This is due to the fact that even now, price is not the only important thing.

During crisis periods, only those who are capable of keeping to classical values, such as health, family, friendship and work, are able to connect with the consumer.

People are now going back to basics, to what is essential, to the origins.

Now, consumers appreciate what is instinctive, vital and authentic, that

can be reflected in a direct, clear and honest communication. It is not time for subtleties, subterfuges or interpretations.

dallant news SECTOR AND MARKETS

Source: El PaĂ­s

In this context, manufacturers’ brands have an advantage, as they have always created emotional bonds with the consumer, therefore they just need now to reorientate and focus in this direction.

However, in a recent study (Ipsos Marketing) carried out in 23 countries, 80% of consumers hold a good opinion of private label brands, as they perceive that they meet the aforementioned basic values.

Therefore, it can be shown that going beyond rationality, brands that awaken feelings are the ones that create value in the consumer’s mind and deeply influence them when deciding what to purchase.

There is a need then to differentiate within the basic dimensions and both kinds of brands can achieve this goal.

As a result, at a time of crisis, competitors become the best incentive to get closer to the consumer.

private labels Private label brands earned a market share of up to 33% of the total food market (according to Kantar Worldpanel data) a level which seems to have stabilised, should we take into account markets such as Great Britain and France, where private label brands have been developing for a longer period.

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dallant news SECTOR AND MARKETS

CALORIES, NUTRITIONAL INFORMATION HIGHLIGHTS Manufacturers are sure about it: of all the nutritional information, the one that consumers value most is that relative to energy, the number of calories in food.

july 2010 / 2

According to this positioning, they are now proposing – via the European association, the Confederation des industries Algro- Alimentaires de l’UE (CIAA) – not take any notice of the present system, in which the number of calories is shown per 100 grams, in favour of another in which the quantities would refer to a portion. This will mean that in some product categories calories will be the main claim, even beyond weight or content. This trend has been widely present in the United States for years, while in Spain can now be seen in the “light” and “zero” soft drinks.

DALLANT, S.A. FLAVOURS FOR THE FOOD INDUSTRY Ctra. Laureà Miró, 392 08980 Sant Feliu de Llobregat Barcelona (España) Tel. +34 936 859 880 Fax +34 936 660 726 E-mail: dallant@dallant.com www.dallant.com