NUTRIFOODS LTD

Laval Square, 50435, Montreal

Global Consulting, Bogota

Dear GC Team,
Nutrifoods Ltd is a Canada-based company specialised in the development and distribution of functional
foods and drinks. In fact, our company started up fifteen years ago as a spin off from a University-based
research team whose work of nutrigenomics and nutraceutics is well known around the world.

International reports indicate that the percentage of the world’s adults (i.e. those aged 20 and over)
classed as either overweight or obese increased from 23% in 1980 to 34% in 2008, which equates to
approximately 1.46 billion people. More recent data suggests that around 30% of the global population
now falls into the obese/ overweight category, or around 2.1 billion people. Approximately 35 million
people worldwide are believed to suffer from dementia at present, a figure expected to increase to more
than 65 million by 2030 and then exceed 100 million by 2050.

The global functional foods market was worth an estimated USD43.27bn in 2013. This figure has
increased in value terms by 26.7% compared with 2009, and continues to demonstrate annual growth in
excess of the world food industry as a whole. During the period between 2009 and 2013, growth has
been most apparent within the Australian and US markets – for example, sales in Australia rose by more
than a third, whilst the US market expanded by more than 29%. As a result, its share of the global
industry increased slightly from 37.3% to 38.1%. The world functional food and drinks market is led by
energy/mood enhancing products, sales of which were worth USD16.56bn in 2013. This figure compares
with USD16bn and USD13.75bn for the gut health and heart health sectors respectively.

Dairy foods account for the largest percentage of the global market for food and beverages making
specific functional health claims. In 2013, this sector was worth an estimated USD15.25bn, equivalent to
more than a third (35%) of the overall market. For example, just over a quarter (26%) of UK consumers
purchase functional foods at least once a week, whilst an additional 3% buy them on a daily basis.

Some of the market’s largest suppliers include the likes of Danone, Nestlé, PepsiCo, Coca-Cola and
Unilever, many of which tend to have their own particular areas of strength.

Different reports focus upon a number of product sectors that are on the rise in the functional foods and
drinks sector: major examples of these include bakery goods, dairy products, confectionery, cereal
products, snacks, fats and oils, soya products and soft drinks. These make claims the following health
outcomes: • Anti-ageing • Bone health • Energy/mood enhancing • Gut health • Heart/cardiovascular
health • Immune function • Weight management.

We’d like to hire you in order to have an analytic report from you about the feasibility of investing in an
operation in Latin America. We’d like to know about the probability of our products replacing current
consumption of soft drinks and snacks, what the needs and implications of changing food consumption
habits are, and the feasibility of a change in public policy related to food quality and public health in the
Latin America zone.