LC Omega-3 Oils: Delivery Systems for Food and Supplement Applications Ernesto Hernandez, Ph.D. Omega Protein Houston,

1. LC Omega-3 Oils: Delivery Systems for Food and Supplement Applications Ernesto Hernandez, Ph.D. Omega Protein Houston, TX www.omegapure.com R&DA. Fall 2010 Meeting. “New Military Challenges” , Incline Village, NV, Oct. 25-27, 2010.

2. Presentation Outline • Background on healthy oils • Processing and Stabilizing Omega-3s • Delivery Systems for Omega-3. Foods and Supplements • Outlook for the future

3. Role of Fats in Nutrition • Lipids are a major source of storage energy • Important precursors in the body's metabolic processes • Essential components of cell membranes and other biological structures • Play important roles in absorption of fat-soluble nutrients i.e., vitamins A, D, E, and K and carotenoids • Fats and oils are important in processing, quality, and in the organoleptic and texture properties of food products • Source of essential fatty acids (omega-3 and omega-6)

4. Composition of Vegetable Oils

5. Fatty Acid Composition of Omega-3 Oils

6. Why Omega-3?

7. Clinical Studies with LC Omega 3s High Triglycerides High blood pressure Infant mental & visual development Secondary CVD Primary CVD Rheumatoid Arthritis Asthma Inflammation: GI tract Neurologic disordersa Depression Bipolar disorder New lipid bioactives from EPA/DHA: Protectins and Resolvins 22

8. Types of Long-Chain Omega-3 DHA (docosahexaenoic acid) EPA (eicosapentaenoic acid) • Reduces inflammation • Reduces occurrence of secondary heart attacks • Supports immune system • Promotes blood flow • Allows for nutrient transport through cellular membranes 22 • Necessary for brain and eye development • Promotes cell turnover • Supports healthy development of blood cells and vessels • Protects cells

9. Alpha-Linolenic Acid (ALA) Flaxseed, soy, canola Many sources of ALA contain elevated amounts of n-6 Although ALA has its own unique health benefits, conversion to EPA & DHA is inefficient (~1%)* Long-Chain Omega-3 Short-Chain Omega-3 • Fish oils EPA & DHA • Algal oils DHA • Krill Oils EPA and DHA • Excellent Bio-availability 22 • * Sheila M. Innis, PhD., Child and Family Research Institute, Nutrition Research Program, “Omega-3 Fatty Acids Maternal and Infant Nutrition” March 7, 2008

10. EPA and DHA Fish oil Preformed EPA and DHA Readily incorporated into blood plasma Deficient in the Western diet Linoleic acid Soybean, corn, vegetable oils Impede short chain omega-3 elongation Compete for same enzymes Overly abundant in Western diets Omega-6:Omega-3 Ratio Long-Chain Omega-3 Omega-6

11. Fish Oil Refining, Purifying and Stabilization

12. Production of OmegaPure® Contaminants: Pesticides Herbicides PCBs, Dioxins, Furans, PBDEs, Ffa’s, carboxylics Free fatty acids Protein residue Hydratable matter Color Peroxides Metals Some contaminants Residual soaps Higher melting fraction Chill proofs the oil Odor and flavor

13. Antioxidant Systems for Fish Oil Primary antioxidants: Tocopherols Rosemary extracts • BHA, BHT, TBHQ Secondary antioxidants: Ascorbyl palmitate Citric acid EDTA

14. Oxidative Stability of Edible Oils

15. Omega 3 from Supplements or from Fortified Foods?

16. Marine-based Omega- 3 oils in 2008 • World production is approx 1 million tons, approx 10% goes to omega 3 ingredients. • Global consumption of omega 3 ingredients, 71,452 MT • North America consumption of omega 3s 26,948 MT (2008), • projected at 50,388 MT (2013) • Dietary supplements 74.5% • Functional foods and beverages a 13.8 % • Animal feed 9.6 % • Infant nutrition 1.7 % • Pharma 0.4 % (Frost & Sullivan )(2008)

17. Market Description Supplements: 30%- EPA/DHA Fish Oil 77.3 % 40-55% EPA/DHA Concentrate 11.3 % 60-75% EPA/DHA Concentrate 1.4 % 85-95% EPA/DHA Concentrate 2.9 % Others 7.1 % (Frost & Sullivan )(2008) 20 kg of crude oil to make 1 kg of 90% EPA/DHA concentrate

18. Ethyl Ester Concentrates of EPA/DHA • Ethyl ester concentrates (84%) of EPA/DHA are currently prescribed for • hypertriglyceridemia • Clinical trials for mixed dyslipidemia • Ethyl esters of EPA/DHA are approved as a pharmaceutical and supplements • Used in food in the EU • Ethyl esters have become a major player in the pharmaceuticals and supplements market (over 1 billion dollars for each segment) Generic pharma EEs concentrates coming up fast Key Lovaza patents will run out in 2012

19. Retail Sales of Omega-3 Enhanced Products Million U.S. Dollar * These numbers include ALA, EPA, and DHA Source: Source: “Omega Fatty Acids: Trends in the Worldwide Food and Beverage Markets, 2nd Edition.” Packaged Facts. www.packagedfacts.com. January 2009

20. Considerations • Defined Health Benefit • Sustainable Ingredient • Kosher • Vegetarian • Allergens • Convenience • Consumer acceptance • Omega-3 to Omega-6 Ratio • Economics • Shelf life

21. Delivery Systems • Oil • Concentrates • Powder • Seed and Oil Blends • Inclusions

22. Pros and Cons Straight Oil • Pro: • Good choice for traditional shelf life/par baked products: • Room Temperature- Weeks • Refrigerated- Months • Frozen- Years • Most economical • Clean label • Con: • Many bakeries unable/unwilling to handle frozen oil • Not appropriate for shelf stable products (years) • Depending on product, dispersion of oil may be challenging • High cost for concentrates

23. Pros and Cons Powder • Pro: • Provides added protection from oxidation • Depending on technology may be best option for extended shelf life products • Handling/storage is less challenging (requires refrigeration) • Con: • Additional processing/ingredients add significant cost • Complex label • Depending on encapsulating material may impart unwanted flavors or require allergen labeling • Look for products with low free oil

24. Pros and Cons Fortified Inclusion • Pro: • Provides added protection from oxidation • Oil contained in flour or fat matrix decreasing reactive surface area • Customized for size, flavor and color • Easy to measure • Handling/storage is less challenging (requires refrigeration) • Con: • Relatively complex label • May not be desirable in homogeneous products • Relatively low EPA & DHA load

25. Pros and Cons Milled Flax & Oil Blend • Pro: • Provides added protection from oxidation • Best Handling/storage characteristics (refrigeration not required) • May be staged • Provides EPA, DHA and ALA • Clean label • Cost offset by increased yields & additional functional attributes • Con: • Relatively low EPA and DHA load • May not be desirable in fine crumb/light products

26. Process Recommendations • Minimize time at temperature • Add ingredient as close to end of process as possible • Blend oil with other fats/oils to insure even distribution • Minimize air incorporation • Add chelators to help retard oxidation • Encapsulate mineral premixes

27. OmegaPure Menhaden Oil ® • 1st with direct GRAS approval (21 CFR 184.1472) • Vertically integrated (supply and traceability) • Harvested in U.S. waters • Clean label (single species) • Certified Kosher by the Orthodox Union • Sustainable • Equal balance of EPA and DHA

28. MeadowPure® UltraGrad™ Patent-pending combination of MeadowPure™ flaxseed and OmegaPure® fish oil - containing all three forms of Omega-3 – ALA, EPA, and DHA Superior stability in processed foods and beverages Excellent clean flavor Allowable Nutrient Content and Structure Function claims for ALA, EPA, and DHA Omega 3 Free flowing powder; ambient storage

29. Situation Assessment Summary One the fastest growing areas for health and wellness promotion and disease prevention Government recommendations (RDA’s) not here yet Food companies slow to fortify (cost, no RDI) Global standards for human use (CODEX) coming soon Omega-3 concentrates are expected to swiftly move into the pharmaceutical market in the next couple of years. Pharmaceuticals and supplements are expected to be the largest applications for omega-3 concentrates in the next 5 to 10 years. Frost and Sullivan, 2009. Nutritional armor. Major application for omega-3 EPA and DHA fatty acids.

30. Thank you!