Executive roundtable: added value

The consumer today is more knowledgeable than ever about the safety and health characteristics of the food they purchase. They actively seek out the ingredients that add nutritional value or that they understand to have the potential to provide long-term health benefits. Andrew Fordyce, General Manager of Novozymes and Ian Lucas, Executive Vice President, Global Marketing, Ocean Nutrition Canada Ltd join us to discuss how the component ingredients in our food today can raise the bar on food safety, quality and health, the demands and requirements on those ingredients and the trends in this growing market today.

FS. There has clearly been a much greater emphasis on improving food safety and quality in the past five years. What role do you think your own company has played in raising standards?

AF. At Novozymes, our vision is to help society use biological-based solutions to strike a positive balance between the desire for a better standard of living, a healthier environment and successful business. We believe that increasing the focus on food safety and quality naturally supports us in achieving of this vision, as it is a fundamental need of society to have confidence in the safety and health of our food supply.

Novozymes openly endorses the need for a strict and transparent approval process for food ingredients and processing aids, and we fully support continuous improvement in food safety and quality. We contribute to raising standards by our commitment to food safety and our open involvement and engagement with stakeholders regarding safety issues. Our commitment to safety and quality is demonstrated through our implementation of strict GMP standards and our ISO-9000/14000 certified quality management system in our food product development and manufacturing. Furthermore, to positively influence continuous improvement in safety and quality standards and their implementation, we actively work with our customers, regulatory authorities at the EU member states and EFSA, and industry associations such as AMFEP.

Novozymes believes that by both committing to the highest food safety standards, and openly working with stakeholders on improvements in safety standards we help to raise standards in general.

IL. Ocean Nutrition Canada Limited has set the global quality standards for the purest form of Omega-3 fish oil ingredients. Our ingredients have FDA notified GRAS (Generally Recognised As Safe) status, while our MEG-3 brand Omega-3 fish oil ingredients are the first and only fish oil ingredients to be verified by the United States Pharmacopeia (USP). The USP is considered to be the most rigorous quality assurance standard in the world and is the quality reference for the Food and Drug Administration (FDA).

We have developed a consumer brand, for our ingredient, which food manufacturers are putting on their packaging to let consumers know that they can trust the source of Omega-3 ingredients. Consumers are getting the purest form of fish oil as well as the two important forms of Omega-3, EPA and DHA. EPA and DHA both contribute to heart health and normal growth and development. The MEG-3 brand is an innovation that helps consumers know they have the highest quality ingredients in their food products. The ability of the consumer to know source of the ingredient is an important step in improving quality standards, since they can look for the purest, most trusted source of Omega-3 on the market. The MEG-3 brand therefore gives our customers a source of differentiation and us the competitive advantage.

FS. What trends have you seen in recent years in demand for your products and services, and what in particular do you think the drivers have been for this?

AF. Novozymes has seen increased demand for food and feed enzyme products that focus on improving the healthiness of food as well as toward products that reduce the costs involved in industrial manufacturing of these quality food products. There are two key consumer-based drivers behind these demand trends. These are the consumer’s desire for more high quality convenience foods, and an increase in society on food as one of the keys to good health. A further related driver is the need of food manufacturers for safe, reliable and cost-effective food ingredient technologies to help meet evolving consumer needs, increased regulatory demands and to thrive in a highly competitive marketplace where cost is critical.

These consumer trends have driven the demand for enzymes in applications such as production technology for trans-fatty acid free fats, increased extraction of health-related fruit and vegetable components, such as antioxidants in juice, and enzyme processing of baby foods and nutritional supplements to increase protein availability, improve flavour and reduce allergenicity.

Manufacturers’ need for food quality and safety improvements along with cost savings have driven the demand for enzymes in a wide range of applications. A good example of the safety factor is the use of enzymes in animal feed to increase feed mineral availability but avoid food safety risks associated with mineral supplements from animal sources such as bone meal. On the cost side, Novozymes has seen good development in demand in areas where enzymes can reduce the need for costly chemical additives in industrial food production, such as emulsifiers in bread. Demand is also strong in areas where enzymes increase processed food yield by getting more of the goodness and functionality out of food raw materials – for example, more juice from apples, higher cheese yields from milk, reduced loss of bread due to staling, and improved emulsification performance from egg yolks.

IL. The demand for food products containing the MEG-3 brand Omega-3 ingredient from fish oil is at a tipping point into the mainstream mass consumer markets right now. There is a convergence of factors contributing to this.

To begin with, there is a true nutritional need; while experts such as the International Society For the Study of Fats and Lipids (ISSFAL) recommend that people consume 500mg of EPA and DHA per day, current consumption in Western diets is only about 100mg per day. People today are not eating as much fish in their diets as we have in previous times.

In addition, there are over 8000 scientific papers that demonstrate the health benefits of EPA and DHA from fish oil; the only nutrient with more evidence for health benefits is calcium. Because of this scientific evidence, there is a positive regulatory environment. For example, the UK government appointed Scientific Advisory Committee on Nutrition (SACN) has recommended specific weekly consumption levels for oily fish in order to boost intakes of long chain Omega-3 fatty acids for improved cardiovascular health. In addition, a Scientific Panel of the European Food Safety Authority (EFSA) has endorsed nutrient content claims for Omega-3 fatty acids in foods.

This abundance of scientific research has also created a constant flow of media attention, resulting in high consumer awareness. Over 60 percent of mass consumers are aware of Omega-3 and 80 percent of consumers associate the health benefits with fish oil.

However, the most important convergence factor is that there has been a technology breakthrough. This new technology means that fish oil can be included in every day common foods without affecting the taste or smell of the foods. The race has been on in research and development for over 15 years to find a way to put EPA and DHA into foods without affecting taste or smell. The problem is that these long chain polyunsaturated fatty acids are very unstable and easily oxidize in food when exposed to air, creating off flavours and tastes.

Ocean Nutrition Canada has developed and patented a revolutionary form of micro-encapsulation technology, now branded as Powder-loc, which has a unique double gelatin shell that protects the fish oil from oxidation. The result is that consumers can now get the health benefits of Eicosapentaenoic acid (EPA) and Docosahexaenoic acid (DHA) from fish oil in foods they eat every day, such as dairy products, breads, confectionary products and orange juice. In other words, people can now get the goodness of fish without the fish, in foods they love to eat every day.

The MEG-3 brand Omega-3 ingredient will be in over two billion servings of food in the European and global markets this year. It has been commercialised in 10 different types of foods in 12 countries and with major food companies around the globe currently formulating future product launches, this is just the tipping point.

FS. In what areas of your business do you predict you will see greater demand for in the future and why?

AF. Novozymes believes that we will continue to see growth in enzyme applications that promote an improvement in food quality and health. As an example, we see future demand coming from enzymes that are used to reduce potentially dangerous by-products in food, such as acrylamide.

Another area that will drive growth are applications using enzymes to contribute to sustainable and affordable food production by increasing food yields, decreasing energy requirements, reducing waste, and reducing the need for food additives.

IL. We expect tremendous growth in the area of foods containing our patented MEG-3 brand Omega-3 food ingredient. The reason for this is that there is a major nutritional need for EPA and DHA from fish oil. People are simply not eating as much fish in their diets as they should. Now, food staples such as breads, dairy and orange juice can now contain the goodness of fish, without the taste or smell of fish. The result is convenience for consumers leading to improved nutrition and health.

FS. How have food and beverage ingredients developed in the past decade – for example, in better addressing the specific needs of the customer? What do you consider to be the most significant developments or achievements in your own company?

AF. Increasing understanding of food chemistry, human and animal nutrition, and ingredient technology have allowed ingredients, additives and processing aids to become more targeted at specific technical needs, more focused on nutrition and safety, and more cost-effective in producing high quality, healthy and safe foods.

Novozymes’ contribution in food ingredients has been our ability to find and economically produce sustainable solutions to help address society’s food needs. These solutions make use of the infinite variety and precise functionality available in nature’s technology toolbox – enzymes. We believe we have only touched the surface when it comes to the potential offered by enzymes in helping to achieve high quality, safe and cost-effective food production.

IL. Our most significant development has been the MEG-3 brand healthy food ingredient with our patented Powder-loc micro-encapsulation technology. This breakthrough technology has enabled our company to become a global leader in Omega-3 food ingredients from fish oil.

This technology enables people to improve the nutrition of their diet through the foods they commonly eat every day in a convenient way. This results in improved nutrition for families as well as better value for food companies marketing to consumers.

FS. How does the regulatory landscape impact your business – either by way of your own need to demonstrate commitment to quality and standards or your customer’s demands for compliance?

AF. Novozymes believes that a scientifically-based, transparent and well-balanced regulatory landscape is critical to both securing the safety of the food supply, and providing a stable business environment in the food industry. An effective regulatory environment is important for the food industry to maintain high quality and safety, thus giving consumers confidence that the food they buy is safe. Novozymes therefore invests significantly in adhering to high quality and safety standards and we openly communicate this to both support the industry, and to satisfy our customers’ need for confidence in their suppliers.

IL. The regulatory landscape is extremely important for several reasons. With large volumes of scientific backing and data to demonstrate the positive health benefits of EPA and DHA from fish oil, regulatory environments are increasingly supporting health claims related to the benefits associated with EPA and DHA from fish oil. For example, in the US there is a qualified heart health claim for both food products and dietary supplement products containing EPA and DHA from fish oil. This positive regulatory environment is a real enabler for food manufacturers who want to communicate the health benefits to their consumers and gain a source of differentiation from their competitors.

Ultimately it is the consumer who benefits most from the positive regulatory environment, because information about the health benefits of EPA and DHA from fish oil is now more available. For example, we have developed a consumer education website (www.meg-3.com), which has helped many companies communicate the health benefits of the MEG-3 brand food ingredient to consumers interested in the differentiating health benefits of their products.

FS. In what areas are you focusing your R&D? Looking forward, do you have any particular strategies or objectives for the next few years?

AF. Novozymes is focused on three broad areas for our R&D efforts in food enzymes: increasing food quality, aiding in making food healthier, and creating solutions that reduce costs and increase sustainability in food production.

The company is investing strongly in developing new products for the food and beverage industry. This is motivated by our strong record of success, and our continuing belief that by working with our customers, we can develop safe and innovative enzyme solutions that help strike the balance between better lives, better environment and better business.

IL. Ocean Nutrition Canada Limited has over 45 research scientists on staff including 11 PhDs. We are researching new forms of biologically active ingredients from the marine environment and hope to have many important, new ingredients for human nutrition in the years to come.

One of the advantages of working with Ocean Nutrition Canada is that our research pipeline can become a new product development pipeline for our customers. This is enabling our customers to create competitive advantages in their markets for their next generation of products.

Key to our innovation is our expertise in lipid chemistry. Our patented Powder-Loc micro-encapsulation technology also provides a means for inclusion of numerous other forms of food ingredients into food products without affecting their taste or smell. We are researching new ingredient solutions for our customers using these core competencies and hope to continue to create value for our customers.

Our corporate tagline is ‘Wellness Through Innovation’ and we invite companies to speak to us about our future innovations so we can help them with their new product development needs.

Andrew Fordyce

Fordyce is Marketing Director for Novozymes A/S, and General Manager of Novozymes Switzerland AG, and is responsible for Novozymes Global Cereal Food Enzyme Business. He has worked in the foods industry for seven years, with substantial experience in business strategy, food ingredient marketing, product innovation and lifecycle management, and market communication.


Ian Lucas
Lucas has over 20 years’ experience in marketing and sales in the life sciences area. Prior to joining Ocean Nutrition Canada Limited, he worked for large multinational pharmaceutical companies including G.D. Searle (Monsanto), Pharmacia Corporation, and Phizer Corporation. Since joining Ocean Nutrition Canada in 2003, Lucas has developed nutritional ingredient global marketing expertise in the area of omega-3 fatty acids in human health for both dietary supplement and healthy food ingredients. He leads the development of Ocean Nutrition's consumer branded ingredient strategy, MEG-3, and is also responsible for pipeline and operational marketing.