Processing And Texture Challenges For Baked Tortilla Chips

Processing and texture challenges forbaked tortilla chipsELENA DE LA PEÑA , PHD, SENIOR ASSOCIATE, GLOBAL APPLICATIONSDECEMBER 6TH 2018Copyright 2018 Ingredion Incorporated. All rights reserved. The INGREDION, INGREDION IDEA LABS, and IDEAS TO SOLUTIONS word marks and any associated logos are1trademarks of Ingredion Incorporated or an Affiliate.

Agenda Overview of the snack market Recent launches on tortilla chips Consumer preference study Case studies:– 1. Enhancing the Processing of Baked TortillaChips– 2. Enhancing the Texture of Baked TortillaChips– 3. Reducing the Breakage of Baked TortillaChips– 4. Using Pulses in Baked Tortilla ChipsCopyright 2018 by Ingredion Incorporated2

Overview of the snack marketCopyright 2018 by Ingredion Incorporated3

Snack volumes and NPD1 of 2North Americamarkets with the highest volumesin snacks214.2%4%CAGR growth of NPD activityin U.S. snack market in the past5 years2The U.S. leads in sales volumeand value, and accounts forgreatest portion of snackactivity2expected annual revenuemarket growth(CAGR 2018–2021)1Sources: 1 Consumer Market Outlook, Statista, 2018. 2 Global Snacks Report, Innova, 2018.Copyright 2018 by Ingredion Incorporated4

Indulgent snacks slightly outpacing healthy snacksHEALTHY SNACKSHEALTHYsales5.3 billionin 201513.7billion sales in 20152.7% Dry fruit snacksNatural cheesesFresh produceSnack barsSnack nuts/seedsYogurtINDULGENTsales8.4 billionin 2015 Bakery snacks (snackcakes, doughnuts, pastries,brownies, cookies) Chocolate candy Meat snacks (beef jerky) Ice cream/frozen desserts Salty snacksgrowthSource: 2015 Full Year - IRI Multi-Outlet Sales ReportCopyright 2018 by Ingredion Incorporated5

Landscape of snack productsSalty snacksCrackersSheeted snacksTortilla chipsExtrudedproductsPretzelsNutsFabricatedpotato chipsCopyright 2018 by Ingredion Incorporated6

IRI 2017 data on tortilla chips category forvolume & salesCategoryPotato ChipsTortilla/Tostada ChipsOther Salted Snacks(no nuts)Cheese SnacksPretzelsReady to eatpopcorn/Caramel CornPork Rinds2017 Sales(M)% Change vs 2017 Volume % Change vsPY(lbs. in .44.11631.7250.714.332.714Copyright 2018 by Ingredion Incorporated7

Recent launches on tortilla chipsCopyright 2018 by Ingredion Incorporated8

SeasoningLate July Snacks Bacon HabaneroClasico Tortilla ChipsWholesome Pantry OrganicPumpkin Spice Tortilla ChipsAl Chipino NY Deli CheeseTortilla ChipsAl Chipino Barbecue Tikka MasalaTortilla ChipsGold Emblem Abound NachoCheese Tortilla ChipsJacksons Honest Salsa FrescaTortilla Chips SlowSource: Innova Market Insights 2018Copyright 2018 by Ingredion Incorporated9

ColorEarth Fare Organic Blue CornTortilla ChipsJacksons Honest Red Corn SproutedTortilla Chips Slow Cooked WithCoconut OilWholesome Pantry Organic WhiteCorn Tortilla ChipsFood Lion Yellow Corn TortillaChipsRW Garcia Mixt Bag Yellow AndBlue Tortilla ChipsQue Pasa Liberty OrganicWhite, Red, and Blue TortillaChipsSource: Innova Market Insights 2018Copyright 2018 by Ingredion Incorporated10

MultigrainLate July Snacks Organic ChiaAnd Quinoa Tortilla ChipsWegmans Multi-Grain RoundTortilla ChipsUtz Gluten Free MultigrainDipping TortillasChia seeds and quinoaseedsWhole oat flour, wholebuckwheat flour, andbuckwheat fiberFlaxseeds, sesame seeds,sunflower seeds, quinoa, corn andbrown riceSource: Innova Market Insights 2018Copyright 2018 by Ingredion Incorporated11

Shape & ThicknessDoritos Dinamita: RolledCorn Tortilla ChipsFresh Thyme FarmersOrganic Blue TriangleTortilla ChipsWegmans 100% White CornBite-Size Round Tortilla ChipsTostitos Baked ScoopsTortilla ChipsFresh Thyme Farmers OrganicWhite Thin Tortilla ChipsEl Sabroso Cantina EspecialThick Tortilla ChipsMission Tortilla StripsTostitos Original FootballShaped Tortilla ChipsSource: Innova Market Insights 2018Copyright 2018 by Ingredion Incorporated12

Corn alternativesBeanitos White Bean Chips SkinnyDippers Hint of LimeBeanfields Sea Salt Bean And RiceChipsQuest Tortilla Style ProteinChips With Ranch FlavorWholesome Pantry Organic SweetPotato Tortilla ChipsWildroots Red Quinoa And ChiaTortilla ChipsThe Real Coconut CoconutFlour Tortilla Chips: BeachBarbequeSource: Innova Market Insights 2018Copyright 2018 by Ingredion Incorporated13

Consumer preference studyCopyright 2018 by Ingredion Incorporated14

Consumer preference study Year of the study:– 2018 Number of people asked:– 520Participant profileAge18-3435-5455 GenderMaleFemaleNumber of childrenNone1 ChildRaceWhiteNon-whiteHousehold IncomeLess than 50K 50K – less than 100K 100 plusCopyright 2018 by Ingredion Incorporated%31402949516931782448341715

Top textural atributes in tortilla chips In tortilla chips crispiness is keyand crunch comes in a closesecond. Thinner tortilla chips are 54%more popular than thick ones. The same number ofconsumers want a quiet snapwhile eating as want a loudsnap with every bite.Copyright 2018 by Ingredion Incorporated16

Simply loved snacks Most consumers (59%) read the ingredients listbefore buying a bag of tortilla chips. For 80% ofconsumers, that ingredient list is at leastsomewhat important in their purchasingdecisions Tortilla chip consumers generally prefer cleanlabel products, and more than half are willing tosacrifice texture to keep labels cleanTortilla chip consumers associate “cleanlabel” with: “Real ingredients” “No preservatives” “No additives” “An all-natural product”Copyright 2018 by Ingredion Incorporated17

Snacking habits Virtually all consumers (95%) eat theirtortilla chips at home, and more than twothirds eat them with a dip or spread.More than half (55%) of consumers reallylike their current tortilla chips, and only 15%prioritize price when making a purchasedecision –the rest just want a great eatingexperience.Copyright 2018 by Ingredion Incorporated18

More snacking, less breakage For most consumers (84%), findingunbroken tortilla chips when they open abag is at least somewhat important. Justover half, however, think some brands oftortilla chips are more likely to break thanothers.Half of tortilla chip consumers always find atleast some broken chips in the bag. However,the breakage is usually less that a quarter ofthe total package.Copyright 2018 by Ingredion Incorporated19

Baked versus fried tortilla chipsCopyright 2018 by Ingredion Incorporated20

What is a tortilla chip? Typically derived from corn masa, which is made by gently cooking corn in the presenceof lime, or Ca(OH)2 and stone grinding– Fresh masa can be immediately made into tortilla products– Can be dried to flour at various particle sizes Traditional chips are formed by masa dough and then sheeted thinly (typically 1 mm).– Fried chips are toasted prior to frying to reduce moisture and develop flavor/color– Oil content typically 20-25% of final chip– Seasoned with salt or other flavors Baked tortilla chips offer nutritional benefits– Products are toasted and then dried to approximately 2% moisture– Approximately 5-10% oil sprayed on to adhere salt/seasoning– Significantly less fat than traditional fried tortilla chipsCopyright 2018 by Ingredion Incorporated21

Differences Between Baked versus Fried TortillaChips While baked tortilla chips have significantbenefits from a nutritional standpoint, there arechallenges from a texture standpoint Baked tortilla chips are very different fromtraditional fried tortilla chips in these mainattributes:– Volume of Sound– Dissolvability– Moistne 100%90%80%% of stsWhole ChipsFines Ability to increase chip retention viaformulationCopyright 2018 by Ingredion Incorporated35

Case study 4: Using Pulses in Baked TortillaChipsCopyright 2018 by Ingredion Incorporated36

What are pulses?Pulses are the dried seeds ofplants in the legume family.They include: Peas Beans Lentils ChickpeasCopyright 2018 by Ingredion Incorporated37

What’s so good about Pulses?High inproteinHigh indietary fiberRich in minerals(iron, zinc,phosphorus)Source ofB vitaminsand folic acidENRICHMENT BENEFITSCopyright 2018 by Ingredion Incorporated38

Sustainability benefits of pulsesReduce emissions andsubsequent climate changesLower water footprintSoil health promotionSource: www.pulses.org, Pulse Canada, PETACopyright 2018 by Ingredion Incorporated39

Health Institutions are endorsing pulsesMany respected health institutions are recommending thereduction of animal based products and the increase of plantbased foods, including pulses.PlantProtein American Heart AssociationAcademy of Nutrition and DieteticsAmerican Institute for Cancer ResearchWorld Health OrganizationFDA/Dietary Guidelines BoardFood and Agricultural OrganizationCopyright 2018 by Ingredion Incorporated40

Manufacturers are launching with pulses andadditional plant based protein sourcesPulsesSource: GNPD, 2017Copyright 2018 by Ingredion Incorporated41

Pulse chip recipeIngredientTrue %Chickpea flour32.36Faba bean protein concentrate32.36Water26.21Oil5.18Tapioca starch3.24Salt0.65TOTAL100 Excellent sheeting no tearing and stickinessduring sheeting Increased protein and fiber content of thechipCopyright 2018 by Ingredion Incorporated42

Key Takeaways The consumption of snacks in general, and of tortilla chips in particular is growingsteadily every year Tortilla chips can be found in many flavors, colors, shapes, made out of a wide varietyof ingredients, and can be cooked by frying or baking Baked tortilla chips have significant lower fat content that fried tortilla chips, buttheir processing, texture, and post cooking breakage and can be a challenge Selecting the right type of starch is key to improve the processing, help to reach theright texture, and reduce the breaking of the baked tortilla chips Pulse flours and proteins can be used to create baked tortilla chips alternatives thatprovide enhanced nutritional valueCopyright 2018 by Ingredion Incorporated43

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Tortilla Chips Utz Gluten Free Multigrain Dipping Tortillas Flaxseeds, sesame seeds, sunflower seeds, quinoa, corn and brown rice Chia seeds and quinoa seeds Whole oat flour, whole . While baked tortilla chips have sign