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Probi AB

Differentiated Leadership in Probiotics
Introduction – Probiotics

    • Living microorganisms that have positive
      effects on human health
    • Used to be present in food naturally
    • Improves balance between good and
      bad bacteria
    • Health effects far beyond gastrointestinal
      disorders
    • Up to 80% of immune defence in the
      intestinal tract
                                          Elie
                                      Metchnikoff
                                      (1845-1916)
                                       Nobel price in
                                      medicine - 1908




2
Introduction – Probi in a nutshell

    • Pioneer company
       – Leading player in research & development in the field of
         probiotics


    • Patents on well-documented bacteria
       – ProViva the first product outside Japan with product-specific
         health claim
       – Patents in 78 countries concerning 14 patent families


    • Partners: market-leading companies
       – Danone, Kraft, SkåneDairy, Institut Rosell, Merck, Health-
         World/Metagenics
       – Global coverage

3
Probi’s Market Areas

     Functional Food           Dietary Supplements
     Foods enriched with       Nutritionals that are
     ingredients that have     intended to supplement a
     positive health effects   normal diet
     over and above the
     product’s normal
     nutritional value




4
Probi’s research areas

    Gastrointestinal       Immune system       Metabolic Syndrome,
    disorders                                  CVD, diabetes, overweight
                           Probiotics can
                           contribute to       Probiotics can contribute
    Probiotics can
                           maintaining the     to reducing abnormally
    contribute to better
                           defense system in   high inflammation levels
    digestion and
                           balance             and thereby counteract
    nutritional intake,
                                               disease
    counteract symptoms
    of inflammatory
    instestinal diseases




5
Probi’s Functional Food – Probiotic Applications
    Current examples:
    –   Fruit drinks
    –   Fruit shots
    –   Juices 100%
    –   Recovery drinks
    –   Yogurt
    –   Drinking yogurt
    –   Kefir/Sour-milk
    –   Fresh Milk
    –   Cheese
    –   Fresh cheese
    –   Soy
    –   Frozen Foods
    –   Ice Cream
    –   Cereals
    –   Bars
    –   Powdered Beverages
    –   Delivery Solutions

6
Storage stability of probiotics in a fruit drink

    • Application
        – L.plantarum fermented oatmeal is added to the heat treated fruit
          drink.
                   1,00E+09                             4

                   1,00E+08
                                                        3,5

                   1,00E+07
          cfu/ml




                                                                   CFU




                                                              pH
                                                        3
                                                                   pH
                   1,00E+06

                                                        2,5
                   1,00E+05

                   1,00E+04                             2
                              0   30    50    60   75
                                       days



     The storage stability of L.plantarum 299v in a fruit drink with mango stored at 4ºC.


7
Storage stability of probiotics in fruit juice

    • Application
         – Starter culture is added to the heat treated juices

                 1,0E+08



                 1,0E+07
         cfu/g




                 1,0E+06



                 1,0E+05
                           0   2   4   6           8   10   12   14
                                           weeks



    The storage stability of L.plantarum and L.paracasei in orange juice with açerola stored at 4ºC.




8
Partnering model




9
How can Probi support Partner uniqueness and
     success?
     • Robust strains
     • Know-how in stabilizing products
     • Quick testing models for screening of stability and product
       quality testing
     • Knowledge transfer of culture handling
     • Supply contacts for required technology partners
     • Capacity for close collaboration to secure product
       development




10
Functional food – Skånemejerier
     • ProViva containing Lp299v - strong annual growth
       for 15 years in the Nordics
     • ProViva was first in many aspects – probiotics in
       fruit, functional food etc
     • ProViva was not built by massive media investments
       but rather high efficacy
     • ProViva - The Gut Expert




       Source: Skånemejerier, 2009.



11
ProViva – Innovative concepts…
     1994 - Launch of ProViva, world's first probiotic fruit drink
     1999 - Launch of ProViva Active, first probiotic sports/recovery drink
     2002 - Launch of ProViva Yoghurt
     2003 - Launch of ProViva Shot, first ”little bottle” in Sweden...and
             probably first probiotic fruit drink shot in the world!
     2005 - Launch of ProViva - Drinking yoghurt and Sour milk/Kefir
     2008 - Launch of ProViva Female




12
Key learning's from marketing ProViva
     • Taste, fruit, perceived efficacy and innovation has driven
       consumer success
         – Taste is king, efficacy is queen
         – Adopted to modern lifestyle – Convenient, quick etc
         – Affordable and Available
     • Science has built credibility
         – No need to tell consumers ”exactly how”
         – Scientific endorsement
     • Science has been key to scientific community
         – Must have documented science to be accepted
     • Role of media decisive - Can build or destroy brand trust
         – Based on verdict from scientific community
         – Can educate consumers and influence regulators




13
ProViva concept – untapped potential…

                                   • Europe
                                      – Population 700 Million
     • Sweden                         – Potential 3.7 Billion €
        – Population 9.5 Million
        – ProViva sales 80
                                   • US
          Million US $
                                      – Population 300 Million
                                      – Potential 2.5 Billion US $




14
Bravo Friscus

                      The world’s first 100% juice containing
                     probiotics scientifically proven to boost
                     the immune system and to help against
                                                common colds

                         Orange and apple juice with a blend of
                     probiotic bacteria - Lactobacillus plantarum
                      Heal9 and Lactobacillus paracasei 8700:2

                 Probi supports the new probiotic product with
                     unique clinical results demonstrating real
                         effects on common colds and not just
                                      immune markers in blood




15
Skåne Dairy/Probi launched Bravo Friscus in
     September 2009
          – Bravo is the leading juice brand in Nordic
          – Three flavours: Orange (with a dash of açerola) Apple
            (with a dash of cranberry) and Tropical
          – Combination of two patented strains from the Lactobacillus
            plantarum and Lactobacillus paracasei species
          – Prevents colds, shortens cold periods and reduces cold
            symptoms (statistically significant vs. placebo in two
            double-blind studies with a total of 600 individuals)
          – Clinical dose corresponds to approx. 1 glass per day
          – Exceeds clinical results from previous studies (other
            probiotics, echinacea, garlic etc.)
          – 100% fruit juice + effective dose of probiotics is very
            challenging from a stability perspective and requires
            specific technology


16
Target groups - probiotic fruit drinks & juices
     Fruit drinks and juices have unique appeal to very broad consumer
     groups. Consumers also value the perceived health benefits already
     connected to juices, making them excellent vehicles for eg immune
     enhancing probiotics.



                Families         Young adults       Health conscious




17
Probi can add to your market proposition

     •   Reinforce brand profile and functionalities
     •   Attract new consumers
     •   Strengthen consumer loyalty through high perceived efficacy
     •   Add consumer benefits to a very established platform


                               Our Mission

                   Drive additional sales and profit for
                   your brand by adding clear perceived
                    benefits to your consumer offering




18
Probi is leading and driving the probiotic fruit
     category




19
Probi probiotic concepts among the most
     successful and progressive globally!


                                 Successes…
                                              The Future…




     Source: Business Insight, Report
     Feb 2010



20
Probi branded supplements launched in the Nordic
     markets March 2010




21
Probi works with companies wanting to build a
     position as probiotic leaders in their markets
                 France, Belgium, South &
                 Central Americas                          India
                 USA, Australia
                                                           Nordic countries


                                                         Czech Republic, Slovakia
                 Canada
                                                            Spain
                 South Africa
                                   +
                                                            Greece
                  China
                                            Serbia, Montenegro, Croatia,
                 Poland                     Macedonia, Bosnia and
                                            Herzegovina, Albania, Slovenia and
                                            Hungary
22
Probi – Competitive advantages in building added-value


     • Strong clinical documentation to support health claims
     • Robust probiotic strains
        – survive industrial processing
        – long shelf life
        – lower COGS
     • Probi’s knowhow in concept/product development and
       industrialization
     • Consumers experience tangible health benefits when using
       Probi’s probiotics




23
Alliances – Preferred way of building innovation




24
Probi – Commercial success based on innovation
     and science


     Thank you for your attention!
                                         Research




     Niklas Bjärum
     Probi AB                            Patents
     Vice President Marketing & Sales
     e-mail: niklas.bjarum@probi.se
     www.probi.com


                                         Commercialization



25

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Alimentos funcionales niklas_bjarum_probi

  • 2. Introduction – Probiotics • Living microorganisms that have positive effects on human health • Used to be present in food naturally • Improves balance between good and bad bacteria • Health effects far beyond gastrointestinal disorders • Up to 80% of immune defence in the intestinal tract Elie Metchnikoff (1845-1916) Nobel price in medicine - 1908 2
  • 3. Introduction – Probi in a nutshell • Pioneer company – Leading player in research & development in the field of probiotics • Patents on well-documented bacteria – ProViva the first product outside Japan with product-specific health claim – Patents in 78 countries concerning 14 patent families • Partners: market-leading companies – Danone, Kraft, SkåneDairy, Institut Rosell, Merck, Health- World/Metagenics – Global coverage 3
  • 4. Probi’s Market Areas Functional Food Dietary Supplements Foods enriched with Nutritionals that are ingredients that have intended to supplement a positive health effects normal diet over and above the product’s normal nutritional value 4
  • 5. Probi’s research areas Gastrointestinal Immune system Metabolic Syndrome, disorders CVD, diabetes, overweight Probiotics can contribute to Probiotics can contribute Probiotics can maintaining the to reducing abnormally contribute to better defense system in high inflammation levels digestion and balance and thereby counteract nutritional intake, disease counteract symptoms of inflammatory instestinal diseases 5
  • 6. Probi’s Functional Food – Probiotic Applications Current examples: – Fruit drinks – Fruit shots – Juices 100% – Recovery drinks – Yogurt – Drinking yogurt – Kefir/Sour-milk – Fresh Milk – Cheese – Fresh cheese – Soy – Frozen Foods – Ice Cream – Cereals – Bars – Powdered Beverages – Delivery Solutions 6
  • 7. Storage stability of probiotics in a fruit drink • Application – L.plantarum fermented oatmeal is added to the heat treated fruit drink. 1,00E+09 4 1,00E+08 3,5 1,00E+07 cfu/ml CFU pH 3 pH 1,00E+06 2,5 1,00E+05 1,00E+04 2 0 30 50 60 75 days The storage stability of L.plantarum 299v in a fruit drink with mango stored at 4ºC. 7
  • 8. Storage stability of probiotics in fruit juice • Application – Starter culture is added to the heat treated juices 1,0E+08 1,0E+07 cfu/g 1,0E+06 1,0E+05 0 2 4 6 8 10 12 14 weeks The storage stability of L.plantarum and L.paracasei in orange juice with açerola stored at 4ºC. 8
  • 10. How can Probi support Partner uniqueness and success? • Robust strains • Know-how in stabilizing products • Quick testing models for screening of stability and product quality testing • Knowledge transfer of culture handling • Supply contacts for required technology partners • Capacity for close collaboration to secure product development 10
  • 11. Functional food – Skånemejerier • ProViva containing Lp299v - strong annual growth for 15 years in the Nordics • ProViva was first in many aspects – probiotics in fruit, functional food etc • ProViva was not built by massive media investments but rather high efficacy • ProViva - The Gut Expert Source: Skånemejerier, 2009. 11
  • 12. ProViva – Innovative concepts… 1994 - Launch of ProViva, world's first probiotic fruit drink 1999 - Launch of ProViva Active, first probiotic sports/recovery drink 2002 - Launch of ProViva Yoghurt 2003 - Launch of ProViva Shot, first ”little bottle” in Sweden...and probably first probiotic fruit drink shot in the world! 2005 - Launch of ProViva - Drinking yoghurt and Sour milk/Kefir 2008 - Launch of ProViva Female 12
  • 13. Key learning's from marketing ProViva • Taste, fruit, perceived efficacy and innovation has driven consumer success – Taste is king, efficacy is queen – Adopted to modern lifestyle – Convenient, quick etc – Affordable and Available • Science has built credibility – No need to tell consumers ”exactly how” – Scientific endorsement • Science has been key to scientific community – Must have documented science to be accepted • Role of media decisive - Can build or destroy brand trust – Based on verdict from scientific community – Can educate consumers and influence regulators 13
  • 14. ProViva concept – untapped potential… • Europe – Population 700 Million • Sweden – Potential 3.7 Billion € – Population 9.5 Million – ProViva sales 80 • US Million US $ – Population 300 Million – Potential 2.5 Billion US $ 14
  • 15. Bravo Friscus The world’s first 100% juice containing probiotics scientifically proven to boost the immune system and to help against common colds Orange and apple juice with a blend of probiotic bacteria - Lactobacillus plantarum Heal9 and Lactobacillus paracasei 8700:2 Probi supports the new probiotic product with unique clinical results demonstrating real effects on common colds and not just immune markers in blood 15
  • 16. Skåne Dairy/Probi launched Bravo Friscus in September 2009 – Bravo is the leading juice brand in Nordic – Three flavours: Orange (with a dash of açerola) Apple (with a dash of cranberry) and Tropical – Combination of two patented strains from the Lactobacillus plantarum and Lactobacillus paracasei species – Prevents colds, shortens cold periods and reduces cold symptoms (statistically significant vs. placebo in two double-blind studies with a total of 600 individuals) – Clinical dose corresponds to approx. 1 glass per day – Exceeds clinical results from previous studies (other probiotics, echinacea, garlic etc.) – 100% fruit juice + effective dose of probiotics is very challenging from a stability perspective and requires specific technology 16
  • 17. Target groups - probiotic fruit drinks & juices Fruit drinks and juices have unique appeal to very broad consumer groups. Consumers also value the perceived health benefits already connected to juices, making them excellent vehicles for eg immune enhancing probiotics. Families Young adults Health conscious 17
  • 18. Probi can add to your market proposition • Reinforce brand profile and functionalities • Attract new consumers • Strengthen consumer loyalty through high perceived efficacy • Add consumer benefits to a very established platform Our Mission Drive additional sales and profit for your brand by adding clear perceived benefits to your consumer offering 18
  • 19. Probi is leading and driving the probiotic fruit category 19
  • 20. Probi probiotic concepts among the most successful and progressive globally! Successes… The Future… Source: Business Insight, Report Feb 2010 20
  • 21. Probi branded supplements launched in the Nordic markets March 2010 21
  • 22. Probi works with companies wanting to build a position as probiotic leaders in their markets France, Belgium, South & Central Americas India USA, Australia Nordic countries Czech Republic, Slovakia Canada Spain South Africa + Greece China Serbia, Montenegro, Croatia, Poland Macedonia, Bosnia and Herzegovina, Albania, Slovenia and Hungary 22
  • 23. Probi – Competitive advantages in building added-value • Strong clinical documentation to support health claims • Robust probiotic strains – survive industrial processing – long shelf life – lower COGS • Probi’s knowhow in concept/product development and industrialization • Consumers experience tangible health benefits when using Probi’s probiotics 23
  • 24. Alliances – Preferred way of building innovation 24
  • 25. Probi – Commercial success based on innovation and science Thank you for your attention! Research Niklas Bjärum Probi AB Patents Vice President Marketing & Sales e-mail: niklas.bjarum@probi.se www.probi.com Commercialization 25