Unlocking The Nutritional Value of Rice Bran
NutraCea
May 4, 2010
Phil Sanders, Vice President of Sales
Jerry Eggenberger, Vice President of Sales
Gits Prabhu, PhD., Technical Consultant
1
Safe Harbor Statement
Forward Looking Statements Safe Harbor - This document and presentation contain
forward-looking statements including, but not limited to, statements regarding the
Company’s anticipated production capacity, revenue and earnings.
Actual results may differ from those projected due to a number of risks and uncertainties,
including, but not limited to, the matters specified in the Company's filings with the
Securities and Exchange Commission.
These statements are made based upon current expectations that are subject to risk and
uncertainty. The Company does not undertake to update forward-looking statements in
this document to reflect actual results, changes in assumptions or changes in other factors
affecting such forward-looking information.
Assumptions and other information that could cause results to differ from those set forth in
the forward-looking information can be found in the Company's filings with the Securities
and Exchange Commission, including the company's most recent periodic report.
2
Company Overview
Company
NutraCea, Inc.
(NTRZ.PK)
Headquarters
Scottsdale, AZ
Business
Engages in the development and distribution
of food and nutraceutical products based upon its unique,
proprietary process that stabilizes rice bran and other
grains.
Mission
Creating value by transforming the world’s underutilized
agricultural resources into nutritional foods and
nutraceuticals.
3
Rice Bran Background
Rice is the primary food source
for over 70% of the world
• Once milled, rice bran quickly becomes rancid and
is unfit for human consumption
• Raw rice bran is mostly sold as animal feed
8 - 10% of the rice kernel contains the majority
of the nutritional value with many health benefits
NutraCea’s foundation is its proprietary technology
to stabilize rice bran
• Approximately 60 million metric tons of raw rice
bran is produced globally as a by-product of the
milling process
• With stabilization, this underutilized resource is
now available for human consumption
4
Stabilizing Rice Bran – Production Process - USA
5
Domestic Operations
Capacity utilization is subject to seasonal variances in supply and availability
6
RBO – Production Process / Defatted Rice Bran (Brazil)
7
International Operations
With rice grown in over 100 countries,
NutraCea had to look globally for the ideal
location to process rice bran oil.
Pelotas is the “heart” of South America’s
rice growing region.
This pristine geographical location enables
us to produce the highest quality rice bran
oil available.
NutraCea has clearly
perfected rice bran oil!
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NutraCea Products
USA:
Stabilized
RiBran
RiBran
RiBran
Rice Bran
100 (Granular – 20mesh)
200 (Fine – 40mesh)
300 (Extra Fine – 60mesh)
RiBalance - Enzyme treated rice bran
RiSolubles - Water dispersible fraction
RiFiber - Insoluble fiber fraction
Brazil:
Defatted Rice Bran
Rice Bran Oil
9
NutraCea Products - Features
All Natural
(Excludes DRB & RBO from Brazil. Hexane extracted.)
Gluten Free
Lactose Free
Hypoallergenic
Low Glycemic Index
Zero Trans Fat
Zero Cholesterol
Not Genetically Modified (Non-GMO)
Nutrient & Antioxidant Rich
10
Quality Assurance
GMP/HACCP Program
American Institute of Baking Audited
Kosher – Orthodox Union Certificate
HALAL Certificate
Extensive QA Testing:
Microbiological
Constituent
Pesticides
Heavy Metals
11
Markets Served
2008 Revenue
2007 Revenue
Human Nutrition
• Food
• Nutraceutical
49%
42%
39%
35%
Animal Nutrition
• Equine Feed
• Companion Pet
Finished Products
3%
• Cereals
• Nutraceutical
17%
2009 Revenue
Humanitarian Aid
• Bulk Ingredient
• Finished Products
2%
13%
20%
53%
27%
12
Human Ingredient
Animal Nutrition
Finished Foods
Humanitarian Aid
Market Segments / Channels of Distribution
Food Ingredients
13
Market Segments / Channels of Distribution
Nutraceuticals
14
Market Segments / Channels of Distribution
Animal Nutrition
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Rice Bran Ingredient Applications
MEAT ENHANCEMENT:
Meat Analogue
Emulsified
Coarse Ground
BAKING:
Pizza Crust
Snack Crackers
RTE Cereals
Breads
Tortillas
NUTRACEUTICALS & SPORTS NUTRITION:
Health Bars
Beverages
Joint Health Supplements
Meal Replacements
Fiber Supplements
Muscle Mass Builder
PASTA
BABY CEREAL
FRYING:
Breading & Batters
(Reduced Oil Uptake)
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NutraCea Products
NutraCea Products
Suggested Use
Benefits
RiSolubles
take 1 scoop per serving and mix
with you choice of beverage twice
daily
nutritional source of soluble fiber,
reduces blood sugar levels, energy
boosting
RiBalance
take two scoops twice daily
in beverage of choice
contains 23% of total dietary fiber,
provides energy
RiFiber
take two scoops twice daily
in beverage of choice
a highly nutritious soluble fiber.
(Contains about 3% TDF)
Rice Bran Oil
for cooking applications
Zero Cholesterol
Zero Trans Fat
Non-GMO
Hypoallergenic
Non-hydrogenated
High flash point for extended life
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NutraCea Ingredients
NutraCea Ingredients
Suggested Use
Benefits
Stabilized Rice Bran (SRB)
Meat extensions, 3:1 water
absorption alternatives to known
allergens, baked goods, processed
foods
Stabilized, all natural process
Defatted Rice Bran (DRB)
Coating and breading systems
Reduced fat content, reduces oil
uptake in the frying process
Crude Rice Bran Oil
Alternative to fish oil, derived
omega 3,6, and 9, plus Gamma
Oryzanol
Rice in antioxidants
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Bran Comparison
BRAN COMPARISON CHART
Nutrient (Values/100g)
Moisture (9g)
Calories (kCal)
Protein (g)
Total Carbohydrates (g)
Total Ash (g)
Total Dietary Fiber (g)
Soluble Fiber (g)
Vitamin E
Tocopherols
Tocotrienols
Vitamin B Complex
B1 (mg)
B2 (mg)
B3 (mg)
B5 (mg)
B6 (mg)
Total Carotenoids
Total Sugars (g)
Gamma Oryzanol
Phytosterols (mg)
Potassium (mg)
Sodium (mg)
Magnesium (mg)
Calcium (mg)
Iron (mg)
Maganese (mg)
Phosphorous (mg)
Zinc (mg)
Choline (mg)
Inositol (mg)
1 NutraCea analyzed values
2 Source: USDA, http://www.usda.gov
Stabilized Rice Bran Corn Bran (2)
Oat Bran (2)
Wheat Bran (2)
6
330
14.5
51
8.5
29
2
4.7
224
8.4
85.6
0.4
79
6.6
246
17.3
66.2
2.9
15.4
10
216
15.6
64.5
5.8
42.8
12
13.6
0.4
1
1.5
2.8
0.3
46.9
4.2
3.2
129.3
8
300
341.1
1573
8
727
40
7.7
25.6
1591
5.5
104.8
1496
0.01
0.1
2.7
0.6
0.2
1.2
0.2
1
1.5
0.2
0.5
0.6
13.6
2.2
1.3
0
1.5
0.4
44
7
64
42
2.8
0.1
72
566
4
235
58
5.4
5.6
734
3.1
1182
2
611
73
10.6
11.5
1013
7.3
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Unlocking The Nutritional Value of Rice Bran
NutraCea
Gits Prabhu, PhD., Technical Consultant
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Numerous benefits of using Rice Bran
•
Multi-functional ingredient for a wide variety of applications including
but not limited to:
•
•
•
•
Functional
•
•
•
•
•
•
•
•
Meat
Batter and breading coatings
Soy, starch, mustard and other ingredient replacement
Cook yield, texture and purge improvement
Non-allergenic – gluten and lactose free
Clean flavor
All natural
Oxidative stability
Antioxidant and vitamin rich
Economical, US origin
USDA approved for meat products
21
Growth of health and wellness foods
•
All natural foods
•
Natural food must contain natural ingredients
•
•
•
No phosphates allowed
No conventional nitrates/nitrites
Limit on some antimicrobial ingredients
22
Food allergens
• Each year, millions of Americans have allergic
reactions to food. Although most food allergies
cause relatively mild and minor symptoms, some
food allergies can cause severe reactions, and
may even be life-threatening.
• There is no cure for food allergies. Strict
avoidance of food allergens — and early
recognition and management of allergic reactions
to food — are important measures to prevent
serious health consequences.
23
Symptoms of allergic reactions
• Symptoms of food allergies typically appear from
within a few minutes to two hours after a person
has eaten the food
• Allergic reactions can include:
•
•
•
•
•
•
•
•
•
•
Hives
Flushed skin or rash
Tingling or itchy sensation in the mouth
Face, tongue, or lip swelling
Vomiting and/or diarrhea
Abdominal cramps
Coughing or wheezing
Dizziness and/or lightheadedness
Swelling of the throat and vocal cords
Difficulty breathing
• Loss of consciousness
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Food allergens
Soybeans
• Isolates, concentrates,
flour
Milk
• Whey isolates,
concentrates, powder,
non-fat dry milk
Wheat
Eggs
• Egg albumin
Fish
• Bass, flounder, cod
Crustacean shellfish
• Crab, lobster, shrimp
Tree nuts
• Almonds, walnuts,
pecans
Peanuts
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Food allergens
Gluten Intolerance
• ½ of one percent of the worlds population suffers from Celiac Disease
• 15% of the worlds population is gluten intolerant, and would benefit from a
gluten free diet
• Performance Limiting Symptoms *include (but are not limited to):
• Fatigue
• Gastrointestinal distress
• Headaches
• Weight loss/gain
• Inability to concentrate
• Moodiness/depression
• Bone/joint/muscle pain
• Currently, the only known way to treat the condition is by eliminating gluten
from the diet
*Note – Taken from ”Gluten Freedom”
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US labeling of allergens
ALLERGEN INGREDIENT:
ISOLATED SOY PROTEIN
27
Rice Bran – USDA/FSIS approval letter
FINISHED PRODUCT
LABEL READS:
RICE BRAN
June 23, 2008 USDA FSIS
approved as a binder in
comminuted meat and poultry
products that permit the use
of ingredients of this type (eg.
sausage, nugget shaped
chicken patties, meatballs,
meatloaf and meat patties.
28
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Application – Beef hot dogs
• Meat replacement
•
Replacement of 3% beef 90’s and beef 50’s with 3% RiBran 100
• Mustard replacement
•
Replacement of 1.5% mustard with 3% RiBran 100
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Hot dog - Texture
1000.00
885.73
900.00
807.69
800.00
713.32
700.00
677.72
661.86
722.16
600.00
500.00
400.00
300.00
200.00
100.00
0.00
Control
3% RiBran 100 Replacing
Mustard
Exterior
Interior
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3% RiBran 100 Replacing
Meat
Hot dog - Purge
4.00
3.47
3.50
3.11
3.00
2.88
2.84
2.75
2.43
2.50
%
2.91
2.44
2.39
2.00
1.50
1.00
0.50
0.00
Week 4
Control
Week 8
Week 12
3% RiBran 100 replacing Mustard 40
3% RiBran 100 replacing Meat
31
Hot dog – Freeze-thaw purge
3.50
3.25
3.00
2.73
2.35
% Purge
2.50
2.00
1.50
1.00
0.50
0.00
Control
3% RiBran 100 replacing
Mustard 40
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3% RiBran 100 replacing
Meat
Frying application – Reduction in oil uptake
• Replacement of wheat flour
•
•
5% - 20% replacement of wheat flour
Predust, batter, breading
33
Frying application – Percent fat reduction
0.00
5% DRB
-5.00
10% DRB
15% DRB
20% DRB
-3.79
-10.00
%
-10.91
-13.08
-15.00
-14.36
-16.38
-20.00
-21.73
-22.12
-25.00
-27.87
-30.00
Par Fried Fat Difference from Control (% )
Fully Cooked Fat Difference From Control (% )
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Frying application – Nutritional panel
Control
5% DRB
10% DRB
35
15% DRB
20% DRB
Unlocking The Nutritional Value Of Rice Bran
• Rice bran provides an increase cook yield, improves
texture, reduces purge and provides freeze-thaw stability
in meat products
• Rice bran can replace other ingredients such as soy
protein or mustard while providing significant cost
savings
• Defatted rice bran provides a reduction in oil uptake
resulting in a healthier products with lower fat and lower
calories
36
RiBran Product Data Sheet
37
NutraCea Advantage -Summary
• Abundant raw rice bran produced globally...only NutraCea has
technology to stabilize for human consumption with a
ONE YEAR SHELF LIFE GUARANTEE
• USDA approved for inclusion of emulsified and coarse ground meats
• Rice Bran Products are extremely versatile...meat inclusion, baking, pasta,
baby cereal and nutraceutical applications
• Rice Bran Products (excluding DRB & RBO) are (all natural, gluten free,
hypoallergenic with zero trans fat)
• Low cost highly functional ingredient that increases your margins and
makes healthier products
• Owns the Largest RBO Facility in South America – crude and refined RBO
and value add products
• NutraCea understands the commitment to product quality, which
means high quality ingredients for your products
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First Book on Stabilized Rice Bran
Executive Advisor to NutraCea, Henk
Hoogenkamp, author of many food
ingredient publications, authors his
latest book dedicated to the education
and endless possibilities for the use of
stabilized rice bran to enhance
various applications.
Together, Hoogenkamp and NutraCea
continue to explore markets and
applications for which rice bran is a
natural fit.
39
Contact Information
Phil Sanders, Vice President of Sales
6720 N. Scottsdale Road, Suite 390
Scottsdale, AZ 85253
Phone:
Cell:
eMail:
812.944.8443
812.202.9489
psanders@nutracea.com
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Unlocking The Nutritional Value of Rice Bran
Thank You!
Phil Sanders, Vice President of Sales
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