Consumer Staples

<h2 style="text-align: justify;"><span style="font-size: 12pt;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?</span></h2><p style="text-align: justify;">I spent thirty-two years with The Coca-Cola Company as an analytical chemist supporting product development and ingredient research. My specialty is helping product developers, ingredient researchers, and other company stakeholders achieve their project goals. &nbsp;I provide consultation on analytical chemistry and other technical areas, consistently guiding cross-functional teams to success. &nbsp;I do this by understanding what they need, given my knowledge and experience, as well as my project management and problem-solving skills.<br>I have a proven track record of outsourcing general inquiries and stability studies to external laboratories, as well as consulting on competitive product analysis, formula validation, method development, and research support. I am driven by a sense of personal accountability and committed to creating a culture of excellence, quality, service, and profitability. I am successful because of my ability to stay focused on what will deliver the needed results.&nbsp;</p><h2 style="text-align: justify;">&nbsp;</h2><h2 style="text-align: justify;"><br><span style="font-size: 12pt;">Q2. What are the major product innovation trends shaping the F&amp;B industry today&mdash;are they more consumer-driven, tech-enabled, or regulatory-led?</span></h2><p style="text-align: justify;">I see the primary trend as "clean label," where people are looking for products without artificial ingredients that contain recognizable or trending natural ingredients, often considered good for you.</p><h2 style="text-align: justify;">&nbsp;</h2><h2 style="text-align: justify;"><br><span style="font-size: 12pt;">Q3. How is the industry's approach to sustainability evolving&mdash;especially in packaging, water usage, and carbon footprint reduction?</span></h2><p style="text-align: justify;">This aligns with the "clean label" trend mentioned above, where consumers want to know that products are made with as minimal impact as possible. The problem is that current supply chains have been optimized to use inputs, such as packaging and energy from petroleum products, that do not align with this desire. Therefore, it can be done on a small scale and for premium products. It will take time to rework supply chains at scale, keeping in mind that the decisions of the majority of consumers are still driven by price.</p><h2 style="text-align: justify;">&nbsp;</h2><h2 style="text-align: justify;"><br><span style="font-size: 12pt;">Q4. Are there specific demographic segments (e.g., Gen Z, urban millennials, aging populations) driving innovation in new formats or delivery models?</span></h2><p style="text-align: justify;">I see two separate trends that are related but distinct. The first is the "clean label" trend mentioned above, which appears to be driven primarily by younger generations. The second is the search for ingredients and foods that will help with the effects of aging, such as "anti-aging diet," "healthy longevity," or "longevity diet." Though this is related to "clean label" ingredients, it also encompasses ingredients that are purported to reduce the effects of aging, such as fatty fish and olive oil.</p><h2 style="text-align: justify;">&nbsp;</h2><h2 style="text-align: justify;"><br><span style="font-size: 12pt;">Q5. What role is technology (e.g., AI, precision fermentation, food safety sensors) playing in transforming product development and quality assurance?</span></h2><p style="text-align: justify;">For R&amp;D, there is considerable work to incorporate new technologies, but people remain at the center of innovation. This will change as people learn to incorporate these new technologies more effectively. However, technologies are making dramatic improvements in quality assurance and the supply chain. These include reducing costs in the supply chain through automation, sensors to identify contamination or verify the correct ingredient is being used, and AI/ML software to process enormous amounts of data and identify trends in, as well as root causes of, product issues, as well as ways to prevent them.</p><h2 style="text-align: justify;">&nbsp;</h2><h2 style="text-align: justify;"><br><span style="font-size: 12pt;">Q6. How would you describe the current size and growth outlook of the health &amp; wellness segment within the broader F&amp;B industry?</span></h2><p style="text-align: justify;">Although the health and wellness segment is relatively small, it is both the most profitable and fastest-growing segment. Therefore, this is the segment where innovation is focused the most. As with all innovations, the initial market breadth will be limited due to costs; however, these costs will decrease, and the product will eventually expand into the broader market.</p><h2 style="text-align: justify;">&nbsp;</h2><h2 style="text-align: justify;"><br><span style="font-size: 12pt;">Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?</span></h2><p style="text-align: justify;">Too many companies, especially startups, work to perfect their product with their vision without input from the consumer. What are you doing to ensure that what you plan to deliver meets the consumer's needs at a price they are willing to pay?</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>