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Value Added Oat Products. William A. Bonner ConAgra Mills July 23, 2006. Outline. Whole Grain Trends Consumer Trends Conventional Value Add Component Values. Whole Grain Trends. Never strayed from whole grain Practical reasons – oil separation. Whole Grain Trends.

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Value added oat products

Value Added Oat Products

William A. Bonner

ConAgra Mills

July 23, 2006


Outline

Outline

  • Whole Grain Trends

  • Consumer Trends

  • Conventional Value Add

  • Component Values


Whole grain trends

Whole Grain Trends

Never strayed from whole grain

Practical reasons – oil separation


Whole grain trends1

Whole Grain Trends

Wheat – biggest usage in baking Varieties specific to end product

Integrity in finished product

Actual amount labeling

Milk fat example


Whole grain trends2

Whole Grain Trends

Rice – crisped rice to Brown Rice

Corn – corn germ shelf life implications

Barley


Consumer data hot cereal

Consumer Data – Hot Cereal

Year end 2003 – 352,974,560 #

Year end 2004 – 353,750,016

Year end 2005 – 369,195,456

12 Mo 6/18/06 – 370,942,848


Consumer data hot cereal1

Consumer Data – Hot Cereal

% Change year ago

Year end 2003 – (3.1)

Year end 2004 – 0.2

Year end 2005 – 4.4

12 Mo 6/18/06 – 1.0


Consumer data rte cereal

Consumer Data – RTE Cereal

Year end 2003 – 2,223168,000 #

Year end 2004 – 2,169,517,056

Year end 2005 – 2,143,369,472

12 Mo 6/18/06 – 2,131,229,568


Consumer data rte cereal1

Consumer Data – RTE Cereal

% Change year ago

Year end 2003 – (3.3)

Year end 2004 – (2.4)

Year end 2005 – (1.2)

12 Mo 6/18/06 – (1.0)


Consumer data granola bars

Consumer Data – Granola Bars

Year end 2003 – 122,563,944 #

Year end 2004 – 128,589,464

Year end 2005 – 140,274,288

12 Mo 6/18/06 – 142,443,888


Consumer data granola bars1

Consumer Data – Granola Bars

% Change year ago

Year end 2003 – 7.5

Year end 2004 – 4.9

Year end 2005 – 9.1

12 Mo 6/18/06 – 7.1


Value added oat products 1175134

INDUSTRY ENVIRONMENT

CONVENTIONAL OAT MILLING

Consumer Trends

  • Increasingly diverse consumer population creates new eating habits

  • Chewy granola bars and cereal bars in general strong expansion

  • Hot cereal consumption renewed. Indicated growth in Hispanic market

  • Continuing health trends and positive findings for whole grains

  • Glycemic index and diabetes

  • Obesity


Glycemic index

Glycemic Index

Glycemic Indexing is a ranking of foods

based on the effect on blood sugar levels

  • Test foods are compared against glucose solution or white bread on an equal available carbohydrate basis

  • GI <55 is Low GI(compared to glucose solution=100)

  • Applicable for carbohydrate-based foodsCrisped rice cereal, GI = 82

    White bread, GI = 70

    Oatmeal, GI = 58Pasta = 55

Blood Sugar Level

Hours


Conventional value add

Conventional Value Add

  • WOG/SCOG Gruel

  • Flakes

  • Flavored instant oatmeal

  • Precooked – heat & serve

  • Drinks

    • Smoothie/Vegetable based

    • Nutraceutical


Conventional rte value add

Conventional RTE Value Add

  • Whole Grain Product

  • Functionality


Conventional flake value add

Conventional Flake Value Add

  • Coated Oats/Grains

  • Whole grain appearance

  • Bland toasted background note

  • Designed textures


Component value add

Component Value Add

  • Oat Fiber

    • Pure clean insoluble fiber

    • No heart health claim

    • 80 – 90 % TDF

    • Relatively bland

    • Moisture control

    • Best in conventional baked goods

  • Oat Cellulose


Component value add1

Component Value Add

  • Oat Protein –

    • Hydrolyzed – greater solubility than native

    • Hair and skin applications

    • Replace animal derived proteins

    • Fat binding


Component value add2

Component Value Add

  • Oat Oil –

    • Dermatological applications – Linoleic

    • Emulsification

    • Antioxidant

    • Polar, bipolar and non polar lipids


Component value add3

Component Value Add

  • Oat Starch

  • Oat Bran

  • Phytochemical Separations

  • Colloidal Oatmeal


Value added oat products1

Value Added Oat Products

William A. Bonner

ConAgra Mills

July 23, 2006


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