# Presentation: 673009

## Joe LutzGeneral Mills, Inc

**Health and Wellness**

**Notes:**
I’d like to start by thanking the organizing committee for inviting me to speak at this conference.

I was challenged to provide some useful insight on biotechnology from the perspective of a large branded food company.

I’ve managed biotech and plant breeding programs within General Mills.  I regularly interact with marketing, product development, supply chain and regulatory groups.  A quite a bit of my work involves business outside of the U.S.

I believe this puts me, not in a unique, but a good position to provide a reasonably objective perspective on biotechnology as it relates to the food industry.  

##  Health Attributes of Oats

- Highest protein content with best essential Amino Acid profile.
- Linked to serum cholesterol reduction.
- Used to moderate the blood glucose levels of people with diabetes.
- Source of antioxidants with nutritional and medical implications.

**Notes:**
I’ll start with the prerequisite brief company overview.  This will touch on the three critical components – Brand Equity, Income (I.e. Sales); and Expense (I.e. Supply Chain expenditures).  Yes, I know, boring stuff.  But it is, after all, the real reason I’m here today.

I then want to get to the backbone of today’s discussion.  I will use a supply chain model to portray biotechnology’s current and potential impact on food industry economics.

The third section suggests research directions for the biotech and seed industry that may be beneficial to food companies.  I’ll also point out some of the challenges in front of us.

Finally, I believe we have some time for Q&A.  I encourage you to ask questions on any biotech/food industry question you have.

## Oat Value Chain Economics:

**Breeding/Genetics**
**Agronomics**

**Seed**

**Growers**

**Milling**

**Elevators**

**CONSUMER**

**Processing**

**Oat Value Chain Economics:**

**Variety**
**Registration**

**Grain Markets**

**Marketing**

**Notes:**
Green curve:  food companies adding value late in the value capture chain through building brand equity through marketing and advertising

Blue curve:  GMI captures more value in the chain through ownership of their own mills and development of proprietary milling processes that add value to flour

Red curve:  captures the most value by taking advantage of building value into seeds through genetics (breeding, marker assisted breeding, genetic engineering).  Requires control of the supply chain to ensure identity preservation of valuable varieties.  GMI is one of few companies that have maintained capacity to control the entire value capture chain.  

## Examples of General MillsHealthy Products Marketing

**Reduce Cholesterol**

**Nutritious**

**Women’s health**

**Performance**

**Soy beverages**

**Examples of General Mills****Healthy Products Marketing**

**Whole **
**Grain**
**Benefits**

**Reduced Sugar**

**Organics**

- Opportunities

##  FDA Health Claim21 CFR 101.18Soluble fiber from certain foods and the risk of coronary heart disease

- Diets that low in saturated fats and cholesterol and that include soluble fiber from whole oat foods may reduce the risk of coronary heart disease.

**Notes:**
I’ll start with the prerequisite brief company overview.  This will touch on the three critical components – Brand Equity, Income (I.e. Sales); and Expense (I.e. Supply Chain expenditures).  Yes, I know, boring stuff.  But it is, after all, the real reason I’m here today.

I then want to get to the backbone of today’s discussion.  I will use a supply chain model to portray biotechnology’s current and potential impact on food industry economics.

The third section suggests research directions for the biotech and seed industry that may be beneficial to food companies.  I’ll also point out some of the challenges in front of us.

Finally, I believe we have some time for Q&A.  I encourage you to ask questions on any biotech/food industry question you have.

##  FDA Health Claim21 CFR 101.18

- The food product shall include one or more of the defined whole oat foods and contain at least .75g of soluble fiber per reference amount.
- The food shall meet the nutrient requirements of a low fat food   (CFR 101.62).

**Notes:**
I’ll start with the prerequisite brief company overview.  This will touch on the three critical components – Brand Equity, Income (I.e. Sales); and Expense (I.e. Supply Chain expenditures).  Yes, I know, boring stuff.  But it is, after all, the real reason I’m here today.

I then want to get to the backbone of today’s discussion.  I will use a supply chain model to portray biotechnology’s current and potential impact on food industry economics.

The third section suggests research directions for the biotech and seed industry that may be beneficial to food companies.  I’ll also point out some of the challenges in front of us.

Finally, I believe we have some time for Q&A.  I encourage you to ask questions on any biotech/food industry question you have.

##  FDA Health Claim21 CFR 101.18Definitions

|  | β-glucan | TDF |
| --- | --- | --- |
| Oat Bran | >5.5% | > 16% |
| Rolled Oats | > 4.0% | > 10% |
| Whole Oat Flour | > 4.0% | > 10% |

**Notes:**
I’ll start with the prerequisite brief company overview.  This will touch on the three critical components – Brand Equity, Income (I.e. Sales); and Expense (I.e. Supply Chain expenditures).  Yes, I know, boring stuff.  But it is, after all, the real reason I’m here today.

I then want to get to the backbone of today’s discussion.  I will use a supply chain model to portray biotechnology’s current and potential impact on food industry economics.

The third section suggests research directions for the biotech and seed industry that may be beneficial to food companies.  I’ll also point out some of the challenges in front of us.

Finally, I believe we have some time for Q&A.  I encourage you to ask questions on any biotech/food industry question you have.

##  FDA Health Claim21 CFR 101.62Low fat

- The food product shall contain less than 3g or less of fat per reference amount.

**Notes:**
I’ll start with the prerequisite brief company overview.  This will touch on the three critical components – Brand Equity, Income (I.e. Sales); and Expense (I.e. Supply Chain expenditures).  Yes, I know, boring stuff.  But it is, after all, the real reason I’m here today.

I then want to get to the backbone of today’s discussion.  I will use a supply chain model to portray biotechnology’s current and potential impact on food industry economics.

The third section suggests research directions for the biotech and seed industry that may be beneficial to food companies.  I’ll also point out some of the challenges in front of us.

Finally, I believe we have some time for Q&A.  I encourage you to ask questions on any biotech/food industry question you have.

## The Ideal Cheerios Oat Crop

| β-glucan | >5.0% |
| --- | --- |
| TDF | > 12.5% |
| Oil | < 7.5% |

**Notes:**
I’ll start with the prerequisite brief company overview.  This will touch on the three critical components – Brand Equity, Income (I.e. Sales); and Expense (I.e. Supply Chain expenditures).  Yes, I know, boring stuff.  But it is, after all, the real reason I’m here today.

I then want to get to the backbone of today’s discussion.  I will use a supply chain model to portray biotechnology’s current and potential impact on food industry economics.

The third section suggests research directions for the biotech and seed industry that may be beneficial to food companies.  I’ll also point out some of the challenges in front of us.

Finally, I believe we have some time for Q&A.  I encourage you to ask questions on any biotech/food industry question you have.