Healthier Ingredient Development Scheme

The Healthier Ingredients Development Scheme encourages the use of healthier ingredients by the food service industry. The HIDS covers both oil and grain staples, mainly rice and noodles, as well as sugar-sweetened beverages, sauces and desserts. The scheme encourages food manufacturers to innovate and develop a wider variety of healthier ingredients and products suited to local tastes, as well as supports the industry in promoting the uptake of healthier ingredients in Singapore’s food service.

Funding

HIDS will fund up to 80% of total qualifying project investment, and scheme participants will co-pay 20% of the remaining project cost. There will be an overall cap of $500,000 across the three supportable categories. Scheme participants have the flexibility to utilise the $500,000 across the three supportable categories. Scheme participants do not have to apply for all three supportable categories.

Scheme Coverage

There are three supportable categories under HIDS, namely:

• Product Development, Packaging & Certification

Under this component, scheme participants will be supported to conduct innovations and developments of the healthier ingredient/product to be sold in Singapore. Examples include, but are not limited to, developing healthier cooking oil blends with better frying durability, developing noodles with higher wholegrain percentage, and re-formulating lower-sugar beverages using functional sugars (e.g. allulose).

• Marketing & Publicity

HIDS encourages and supports continuous efforts made by scheme participants to market the healthier ingredient/product to F&B operators in Singapore, so as to increase their receptiveness towards healthier ingredients. Supportable items include, but are not limited to, product sampling, advertising, and cost of designing and printing marketing collaterals.

• Trade Promotion

Trade promotion will be supported to recognise scheme participants’ active engagements to increase receptivity of Singapore’s F&B operators towards the healthier ingredient/product. Examples of trade promotion include, but are not limited to, trade discount, bulk purchase rebates, and customer loyalty benefits.

Supportable Activities

Product Development, Packaging & Certification Category

Supportable Activities

•  Cost of raw ingredients for R&D (e.g. wholegrain flour, functional sugar)
• R&D manpower costs (e.g. salary)
• Engage external consultants to assist with R&D (e.g. FIRC)
•  Packaging design (e.g. artwork, extend shelf-life)
• Taste tests (e.g. sensory)
•  Lab tests and certification (e.g. low GI tests, NIP tests)
•  Special equipment for R&D (e.g. food texture tester)
•  Trial production run (e.g. small batch for sampling, quality control)

Non-Supportable Activities

• Production costs (e.g. actual mass production)
• Machinery (e.g. production machine, packing machine)
• Non-related lab tests and certification (e.g. GMO, pesticide free, sustainability)

Marketing & Publicity Category

Supportable Activities

• Non-Tactical Advertising (all mediums are supported, e.g. print, digital, social media, radio, TV, vehicle wraps)
• Sampling (e.g. samples packs, booths, outsourced promoters, delivery) for trade and/or at trade premises (e.g. retailers, supermarkets, F&B outlets)
• Marketing collaterals for trade (e.g. flyers, posters, brochures, videos)
• Listing/Processing fees
• Engage external marketing & PR consultant/agency
• Engage brand ambassadors/influencers
• Trade shows (e.g. booth space, design, construction and set-up)
• Trade memberships (e.g. SMFA, RAS, culinary institution)
• Premiums and contests for trade customers

Non-Supportable Activities

• Tactical Advertising (e.g. with messaging of consumer discounts, free gifts)
• Sampling at roadshows, community, charity events (i.e. not targeted at trade)
• Marketing staff salary and/or sales incentives
• Premiums and contests for consumers
• Hardware costs (iPads, LCD panels)
• Operational costs and overheads (e.g. electricity, rental, manpower, logistics)

Trade Promotion Category

Supportable Activities

*Trade discount (e.g. up to 10% discount off selling price) with 10% cap or max $0.25/kg for Healthier Oil OR
*Bulk purchase rebate (e.g. buy 10 get 1 free, buy 10kg rice get 1kg rice free) with 10% cap
• Trade customer loyalty programme (e.g. drinks dispensers, display shelves, rice cookers for regular purchase of healthier ingredients)

*NOTE: Grant applicants must choose either trade discount or bulk purchase rebate to administer to any one customer.

Non-Supportable Activities

• Direct discounts to consumers
• Premiums to consumers
• Operational costs and overheads (e.g. electricity, rental, manpower, logistics)

Eligibility

The Applicant (“Company”) must fulfill the following conditions:

• Applicant must be a business entity registered with ACRA as a sole-proprietorship, partnership or company and physically present in Singapore.

• Applicant must intend to import healthier ingredient/product into the Singapore market, or intend to manufacture it within Singapore.

• Applicant must intend to supply healthier ingredient/product directly or indirectly to qualifying F&B and/or retail outlets in Singapore.

• Applicant must intend to supply healthier ingredient/product which meet the Healthier Choice Symbol nutritional technical specifications.

• Applicant must have been in business for at least 3 years.

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