Probi AB

Differentiated Leadership in Probiotics

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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 Elie

MetchnikoffMetchnikoff

(1845(1845--1916)1916)Nobel price in

medicine - 1908

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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

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Probi’s Market Areas

Functional Food

Foods enriched with ingredients that havepositive health effectsover and above the product’s normal nutritional value

Dietary Supplements

Nutritionals that are intended to supplement a normal diet

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Probi’s research areas

Gastrointestinaldisorders

Probiotics cancontribute to betterdigestion and nutritional intake, counteract symptoms of inflammatoryinstestinal diseases

Immune system

Probiotics cancontribute to maintaining the defense system in balance

Metabolic Syndrome, CVD, diabetes, overweight

Probiotics can contributeto reducing abnormallyhigh inflammation levelsand thereby counteractdisease

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Probi’s Functional Food – Probiotic Applications

– 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

Current examples:

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Storage stability of probiotics in a fruit drink

• Application

– L.plantarum fermented oatmeal is added to the heat treated fruit drink.

1,00E+04

1,00E+05

1,00E+06

1,00E+07

1,00E+08

1,00E+09

0 30 50 60 75

days

cfu

/ml

2

2,5

3

3,5

4

pH

CFU

pH

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

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Storage stability of probiotics in fruit juice

• Application

– Starter culture is added to the heat treated juices

1,0E+05

1,0E+06

1,0E+07

1,0E+08

0 2 4 6 8 10 12 14

weeks

cfu

/g

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

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Partnering model

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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

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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.

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ProViva – Innovative concepts…

1994 - Launch of ProViva, world's first probiotic fruit drink1999 - Launch of ProViva Active, first probiotic sports/recovery drink2002 - 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/Kefir2008 - Launch of ProViva Female

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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

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ProViva concept – untapped potential…

• Sweden

– Population 9.5 Million

– ProViva sales 80 Million US $

• US

– Population 300 Million

– Potential 2.5 Billion US $

• Europe

– Population 700 Million

– Potential 3.7 Billion €

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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

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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

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Target groups - probiotic fruit drinks & juices

Families Young adults Health conscious

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.

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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

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Probi is leading and driving the probiotic fruit category

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Probi probiotic concepts among the most successful and progressive globally!

Successes…

The Future…

Source: Business Insight, ReportFeb 2010

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Probi branded supplements launched in the Nordic markets March 2010

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Probi works with companies wanting to build a position as probiotic leaders in their markets

South Africa

France, Belgium, South &Central Americas

USA, Australia

Greece

India

PolandSerbia, Montenegro, Croatia, Macedonia, Bosnia and Herzegovina, Albania, Slovenia and

Hungary

China

+

Czech Republic, Slovakia

Nordic countries

Canada

Spain

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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

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Alliances – Preferred way of building innovation

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Probi – Commercial success based on innovation and science

Research

Patents

Commercialization

Niklas BjärumProbi ABVice President Marketing & Salese-mail: niklas.bjarum@probi.sewww.probi.com

Thank you for your attention!