PROBI – FIRST IN PROBIOTICS COMMERCIAL PROFILE · 2 PROBI – FIRST IN PROBIOTICS ... revolutionary fruit drink at the time, developed by Probi in partnership ... THE PROBIOTIC

PROB I – F I R S T IN PROB IOT ICSCOMMERC IA L P ROF I L E

2 PROBI – FIRST IN PROBIOTICS

ROBUST STRAINS FOR STABILITYProduct stability and long shelf-life thanks to robust strains proven to withstand industrial production and supply chain.

WELL-DOCUMENTED AND PATENTED PROBIOTIC STRAINS The foundation of Probi is research and development. Comprehensive clinical studies prove the effects of Probi’s potent probiotic bacteria. Probi currently has more than 100 patents worldwide.

A PARTNERSHIP MODEL WHERE ALL COMPETENCES ARE UTILIZED TO A MAXIMUMProbi has a proven track-record with its long-term partner model that benefits both partners. A model which has been developed together with partners over more than 15 years.

F I VE REASONS FOR PROB I

PROBIOTICS CREATE BENEFITS FOR YOU AND YOUR CUSTOMERS The market for probiotics is large and growing rapidly. Probiotics will increase value, sales and margins. There are significant and perceived health benefits for your customers, thus creating consumer loyalty.

PROBI IS A LEADING PLAYER WITHIN PROBIOTIC RESEARCH AND HAS A LONG HISTORY OF SUCCESSFUL DEVELOPMENTProbi is a leading player in probiotic research and development of effective and well-documented probiotics. The company was founded in 1991 and has a strong history of successful developments within the areas of the gastrointestinal tract, immune system and recovery. Probi’s customers are leading companies in the Functional Food and Consumer Healthcare segments. The company is listed on Nasdaq OMX Stockholm, Small Cap.

Bacteria with no documentation

Probiotics with limited documentation

Probiotics with generic health claims

Probiotics with product-specific health claims

WHY PROBIOTICS?

The World Health Organization defines probiotics as “live micro-organisms which, when administered in sufficient amounts, confer a health benefit on the host”.

The composition of the gastrointestinal microflora is very important to our health. Probiotics help to balance the intestinal flora, which can result in a healthier digestive system and strong immune system.

Elie Metchnikoff (1845-1916) is said to be the father of probiotics and was awarded the Nobel Prize in medicine 1908 for his research concerning the human immune system.

PROBI – FIRST IN PROBIOTICS 3

It is now 20 years since Skånemejerier launched ProViva - a revolutionary fruit drink at the time, developed by Probi in partnership with Skånemejerier. The drink demonstrably helped consumers feel better. ProViva proved a significant milestone in our history.

Probi has managed to transform its research results in IBS and immunity support into a successful business. Following the initial success with ProViva, we launched an entirely new business area in Consumer Healthcare. In recent years, we have refined our business model to also include establishing our proprietary brand Probi® among consumers.

Our operations are international with agreements covering some 40 countries. In parallel with this development, our sales have increased every year, with retained profitability, despite challenges in the form of a weaker economy and more stringent regulatory requirements throughout the industry.

NEW RESEARCH PRESENTS NEW OPPORTUNITIESThe approximately ten quintillion bacteria that colonise every human body, our microbiota, are now one of the most important fields in medical research. Tools for mapping microbiota and their effects

OUR ADVANCES PROV IDE A SOL ID P LAT FORM FOR CONT INUED COMMERC IA L DEVE LOPMENT

are now available, and the health benefits of macrobiotic foods are gradually being identified. As a result, more sophisticated probiotic products will be developed in the future, as well as other types of products that can influence our microbiota. Our focus on research provides real opportunities for participating in this advancement, and we are rigorously monitoring all developments.

CAPACITY FOR CONTINUED ADVANCEMENTWe are working tirelessly toward our long-term objective of being a prominent probiotic company, at an international level, and the capacity to overcome both our long and more short-term challenges is highly favourable. We have consistently demonstrated strong business results and the many years of research behind our products provide strength amid international competition.

The best part of the Probi story is that so much still remains to be done. We would very much like to discuss these opportunities with you.

Meanwhile, we hope you will enjoy reading this introduction to Probi.

Niklas Brandt, CFO

Gun-Britt Fransson, Vice President

Research & Development

Niklas Bjärum, Vice President

Marketing & Sales

Peter Nählstedt, CEO


WORLD LEADER AND YOUR PARTNER IN PROBIOTICS Probi operates in the global health-products market. The company offers potent and robust probiotics to food, health and pharmaceutical companies. In turn, these offer their customers probiotics in the form of functional food under such brands as ProViva®, GoodBelly® and Golden Circle Healthy Life™, or dietary supplements under such proprietary brands as Bion® and Nature Made®. Probi also offers its proprietary brands, Probi Mage® and Probi Frisk®, in the Nordic markets.

THE PROBIOTIC MARKET IN BRIEFThe global probiotics market is highly heterogeneous, both in terms of the types of products and their health effects. In addition, the level of maturity among different markets varies. Probiotics have a strong position in Japan as a result of a long tradition of use and an advanced regulatory system while the North American market is relatively immature but in rapid development.

BUSINESS AREASProbi’s business is organised into two business areas, Functional Food and Consumer Healthcare:

• Functional FoodProbi’s Functional Food business area develops food that provides beneficial health effects. This takes place in partnership with leading food companies with the aim of commercialising and marketing products with high volume potential.

• Consumer HealthcareThe Consumer Healthcare business area develops, markets and sells Probi® probiotics in partnership with pharmaceutical companies and other companies specialised in probiotics and self-care products, under Probi’s proprietary brand and those of its partners. The regulatory status of the products is either food or consumer pharmaceuticals depending on the market.

SC I ENCE FOR A GOOD L I F E – P ROB I IN BR I E F

VISIONProbi’s vision is to be the world leader in the premium segment for probiotics by providing a top-quality product range, with profound health benefits, in the world’s most important health markets.

MISSIONProbi provides consumers the world over with the opportunity to improve their health through clinically tested, effective probiotics.

BUSINESS CONCEPTTo provide probiotics with well-documented, positive health benefits for leading food and dietary supplement companies.

STRATEGYProbi’s strategic focus is on probiotic-based products, where Probi has world-leading, patented technology. Probi’s growth strategy comprises initiatives in the following areas:

• New marketsMost of Probi’s sales today are still in the Nordic region and the potential for international growth is strong. Markets where Probi has most growth potential include Asia, North America and Eastern Europe. In the North American market, Probi will continue to focus on expanding the number of sales channels.

• New product platformsProbi currently has products in the gastrointestinal health and immune fields. The research strategy is to develop additional clinical platforms and produce products in new indication areas.

• New product formatsThe development strategy in this area focuses on developing new product solutions based on Probi’s existing platforms, Probi Digestis® and Probi Defendum®. One example could be target-group-adapted combination products with probiotics plus vitamins or minerals.

1986Cross functional research begins at Lund University.

1991Probi was founded. Patent application LP299V®, and others.

1994License agreement: Skånemejerier, ProViva.

1998Listing on NGM.

2000Publication of positive results on functional disturbances of the intestine (IBS).

2002Publication of scientific studies in Clinical Nutrition.

2003License agreement with Danone and Institut Rosell. Patent application dealing with new bacterial strains.

2004Listing on the Stockholm Stock Exchange.Development of products together with Danone och Institut Rosell.Development of nutritional products for health care.


Consumer Healthcare:

• Aristo

• BiO-LiFE

• Bringwell

• Ferring

• Health World

• Jarrow Formulas

• Merck

• Metagenics

• Pharmavite

• Proton System

• Sanofi

• Sanum Polska

• USV Ltd.

Functional Food:

• Danone

• H.J. Heinz Australia

• Kraft Foods

• NextFoods

LIST OF SELECTED PARTNERS

2005Institut Roselllaunches the first dietary supplement.

2006Agreement with Metagenics in USA.

2007Agreement with NextFoods. License and distribution agreement with Kraft Foods.

2008NextFoods launches fruit drinks and Kraft Foods launches müsli bars.

2012Heinz launches immune juice in Australia.Pharmavite launches suppl. in USA.

2009Launch of unique Bravo Friscus 100% juice with strong Immune propositions.

2011Danone acquires ProViva and signs Intl. License agreement with Probi.

2010Launch of supplements under the Probi® brands.


PROBIOTIC MARKETIn 2003, the global market for probiotics amounted to approx. USD 32.5 million, with the dietary supplement market representing about one-tenth of the food market.*

ROBUST GROWTH IN THE PROBIOTICS MARKET CONTINUESAsia is the largest market. Due to the strong population growth and greater prosperity, demand is expected to increase most in Asia in the years ahead, mainly in China and India.

In percentage terms, the US is the fastest growing market. Annual sales of probiotic products in the US market have more than doubled over the past two years. Russia has also grown by between 25-30%. Other major markets with favourable growth include Brazil and Poland, with annual growth exceeding 5% in recent years.

Due to the ban on using health claims in the EU, many players have reduced their marketing campaigns in the EU in recent years.

Food products such as yoghurt and beverages dominate the probiotic market. The market for both probiotic dietary supplements, which account for about 10% of the food market, and probiotic juices is expected to show favourable growth over the coming years. In general, growth of probiotic dietary supplements is considered higher than that of probiotic food products.

MARKET AND TRENDS

*Source: Euromonitor 2014

LIFESTYLE-RELATED DISEASES REACHING EPIDEMIC PROPORTIONSLifestyle-related diseases are rising sharply all over the world and pose one of the greatest threats to human health and development. These include cardiovascular diseases, cancer, chronic respiratory diseases and diabetes, which are responsible for an estimated 35 million deaths annually, or about 60% of all deaths globally.

One of the primary contributors to this development is an unhealthy diet. The World Health Organization (WHO) claims that a large proportion of cardiovascular diseases, stroke and type 2 diabetes could be prevented with a healthier diet, which favours sales of probiotic food and drinks.

The global health trend is strong and the awareness of health factors associated with unhealthy diet is rising. Another strong driver is the rising average income, primarily in certain markets in Asia and South America.


ProViva – building value

ProViva has had great success in Sweden with a population of 9 million reaching sales of USD 100 million. Taking the ProViva concept and introducing it on a larger scale in a pan-European market or in the US market has untapped potential for Probi. Given the same penetration rate, sales could potentially amount to several billions of USD.

PROVIVA – OUR BIGGEST SUCCESS SO FAR

ProViva was launched 1994 in a very successful partnership with the regional and progressive dairy company Skånemejerier. Ever since, the brand has shown a very strong annual growth in the Nordics. ProViva was first in many aspects. It was pioneering with Functional Food in the Nordics, which introduced a whole new category of foods, and the technology of adding company probiotics into a fruit drink was unheard of.

Since then, Skånemejerier/Danone have launched several new line extensions - in yoghurt, products specifically designed for women, as a sports/recovery drink and as a shot.

Although the brand has not been extensively supported by marketing investments, sales growth has been strong and steady. The basis for ProViva’s excellent development is:• Consumers find it tasty, convenient and affordable.• Consumers percieve the functional gastro benefit shortly

after consumption. • Extensive and convincing scientific documentation is

important to the scientific community and authorities.• Our partners have shown a strong determination in

developing the brand and the products.

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LITERS

PRODUCT P LAT FORMS

Probi’s product platforms Probi Digestis® and Probi Defendum® are based on solid clinical data from a large number of clinical trials. They provide a basis for internationally competitive products that are purchased by consumers because they experience significant improvements in their health.

Probi Digestis®: clinical documentation for colon irritabile/IBS (irritable bowel syndrome) based on Lactobacillus plantarum 299v (DSM 9843).

Probi Defendum®: clinical documentation for the prevention and relief of colds and similar infections based on a combination of the bacterial strains Lactobacillus plantarum Heal 9 (DSM 15312) and Lactobacillus paracasei 8700:2 (DSM 13434).


LARGE MARKETOn average adults yearly suffer from 2 to 3 episodes of cold/flu and children from 6 to 10.

CLINICAL EFFECTSProbi has, in three state-of-the-art designed clinical studies (randomized, double-blind, placebo controlled) on a total of 600 subjects, achieved the following clinical effects:• Significant reduction of the incidence of common cold• Significant reduction of the number of sick days• Significant reduction of common

cold symptoms• Stimulates the immune system

FOOD PRODUCT (EG JUICE) • Lactobacillus plantarum 299v (DSM 9843)• Approx. 10 billion CFU/ daily dose at end of shelf-life

- dose 200-250ml• Shelf stability: Chilled drinks 35-75 days (8°C/4°C)

SUPPLEMENT (EG CAPSULES)• Lactobacillus plantarum 299v (DSM 9843)• Approx. 10 billion CFU/ dose at end of shelf-life

- dose 1 capsule/day• Shelf stability: 18-24 months ambient

FOOD PRODUCT (EG JUICE) • Lactobacillus plantarum HEAL9 (DSM 15312) and

Lactobacillus paracasei 8700:2 (DSM 13434) • Approx. 1 billion CFU/ daily dose at end of shelf-life

- dose 200-250ml• Shelf stability: Chilled drinks 35-75 days (8°C/4°C)

SUPPLEMENT (EG CHEWABLE TABLET)• Lactobacillus plantarum HEAL9 (DSM 15312) and

Lactobacillus paracasei 8700:2 (DSM 13434) • Approx. 1 billion CFU/ dose at end of shelf-life

- dose 1 tablet/day• Shelf stability: 18-24 months ambient

LARGE MARKETOn average 20-25% of the population suffer from IBS

CLINICAL EFFECTSLactobacillus plantarum 299v is one of the world’s most researched probiotic (+40 clinical studies) and has demonstrated the broadest health effects ranging from GI disorders to metabolic effects like reduction of risk factors for cardiovascular disease. Probi has, in a number of state-of-the-art designed clinical studies (randomized, double-blind, placebo controlled studies ranging from 40-200 subjects), achieved amongst others the following strong clinical effects in the GI area:

LP299V® clinical studies have shown:• 100% reduction of abdominal pain• 60% normalization of stool frequency• 95% improvement in IBS symptomsOf which:• 45% of subjects experienced complete improvement• 50% of subjects experienced partial improvement• Significant reduction of bloating (and gas formation)• Significant reduction of pain• Significant improvement of overall GI functions


HEALTH WORLD LIMITED, AUSTRALIA

In January 2014, Health World Limited launched Inner Health Immune Booster for Adults, based on Probi Defendum®, on the Australian market. Health World, being Probi’s first partner in the Consumer Healthcare business, has successfully been selling Probi Digestis® for eight years in Australia and New Zealand.

Graeme Joiner, Director of Sales & Marketing: “After years of successful sales and marketing of Probi Digestis®, we are happy to add a new probiotic concept from Probi, Probi Defendum®. In line with Probi’s proven R&D strategy the product has good and solid clinical documentation. We are looking forward to continue the close collaboration with Probi and take part in Probi’s growing probiotic pipline.” Health World is a leading supplier of natural medicines in Australia and New Zealand by providing high quality effective products based on the latest scientific research. Health World ensures product quality, safety and efficacy by strictly analyzing and testing their products on site at their purpose built manufacturing facility in Northgate, Queensland.

BIO-LIFE, MALAYSIA

In November 2013, BiO-LiFE launched PROBI LP299V®, based on Probi Digestis® on the Malaysian market. BiO-LiFE is a growing healthcare subsidiary within DKSH, the leading Market Expansion Service provider with a focus on Asia, giving the opportunity to expand in the region.

John Goebel, General Manager“We are very pleased to partner with Probi, a leading company in probiotic research, for the launch and branding of PROBI LP299V® and bringing a clinically studied and unique product for the treatment of IBS related symptoms to the Malaysian market. We look forward to establishing the PROBI LP299V® brand in Malaysia.” BiO-LiFE Marketing is a growing healthcare subsidiary within DKSH, the leading Market Expansion Services provider with focus on Asia. The first BiO-LiFE branded products were launched in Malaysia in 1990. Since then, the brand has developed a wide range of quality and efficacious products, built on partnering with industry leaders for natural healthcare.

PROBIOTIC FACTS

No scientific studies exist that show any risks in conjunction with the consumption of lactobacilli. Lactic acid bacteria have been used for thousands of years for lactic fermentation of food. The method is a way of preserving food and is used all over the world.

Most scientists agree that probiotic microorganisms used must fulfill certain requirements.To be called probiotic, these microorganisms should:1. be safe 2. have a high rate of survival in the products in which they

are used3. have a high rate of survival in the gastrointestinal tract4. be able to adhere to the intestinal mucosa5. demonstrate clinically proven beneficial health effects


SE L ECTED PRODUCTS

100% JUICEBravo Friscus, launched in 2009, was a major research breakthrough. It was one of the first 100% juices in the world to contain active bacteria cultures. The unique formula of probiotic bacteria – Lactobacillus plantarum HEAL 9 and Lactobacillus paracasei 8700:2, forming Probi Defendum® – supports the body’s natural defences. Golden Circle Healthy Life™ Fruit Juice with Probiotic Cultures, based on Probi Defendum®, is the first of its kind in Australia.

FRUIT DRINKSThe ProViva fruit drink, launched in 1994, is one of the most successful probiotic food products in the world. Lactobacillus plantarum 299v has extensive clinical documentation in the gastro field. In November 2003, ProViva was the first probiotic product outside Japan to receive official approval from an authoritative body (the Swedish Nutrition Foundation) to be marketed with a product-specific health claim. ProViva, as well as GoodBelly fruit drinks, are based on Probi Digestis®.

ACTIVE RECOVERY DRINKClinical trials have shown that ProViva Active increases the body’s antioxidative capacity, protecting the cells from free radicals formed in the body during physical exercise. The nutritional profile is adopted to replenish energy levels and support recovery after sports. ProViva Active is based on Probi Digestis®, containing the Lactobacillus plantarum 299v strain.

SOUR MILKProViva sourmilk has a unique creamy consistency and contains only 0.5% fat. It has the same concentration of Lactobacillus plantarum 299v as the fruit drinks.

SHOTProViva Shot is a more concentrated ProViva fruit drink that was launched in 2003. As the name implies, the product should be consumed in one shot a day. The concentration of bacteria is five times higher than in the fruit drinks. ProViva Shot is a convenient way to start a new and healthy habit.

PROVIVA50ProViva50 contains 50% less sugar compared to juices and other fruit drinks. ProViva50 has no added sugar – the sugar comes from the fruit’s natural sugar and a small amount of stevia has been added.

SHOT PLUSGoodBelly was launched in 2008 in the US by NextFoods. The drink is essentially the same as the ProViva drink sold in Scandinavia, but has a flavor profile and nutritional formula adapted to the US market. GoodBelly Plus is a probiotic fruit drink that in a single shot provides a large amount of essential nutrients with a high dose of Lactobacillus plantarum 299v.

STRAIGHT SHOTGoodBelly StraightShot is a gently flavored dairy-free oatmilk with 20 billion live and active probiotic cultures per serving, and no added sugar.

BIGSHOT 50GoodBelly BigShot 50 contains 50 billion live probiotic bacteria per shot and is targeted towards consumers with special needs or experiencing digestive flare-ups. The product has a high concentration of bacteria, but is sufficiently mild for daily consumption.


PROBI’S 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• Tablets• Capsules• Sachets

READ MORE ABOUT:

ProViva at proviva.comGoodBelly at goodbelly.comProbi Mage® and Probi Frisk® at bringwell.com*

*Distributed and marketed by Bringwell.

VEGGIE DRINKGoodBelly veggie drink offers a combination of carrots and ginger. Carrot Ginger is gluten-free and fortified with 20 billion live and active probiotic cultures per serving.

COCONUT WATERGoodBelly fermented probiotic coconut water is made with a gluten-free, non-GMO oat flour.

PROBIOTIC GASTRO/IBS CAPSULEProbi’s Gastro product is positioned against IBS (Irritable Bowel Syndrome) symptoms like abdominal pain, bloating, constipation, flatulence, etc. One example is Probi’s own brand, Probi Mage®.

PROBIOTIC IMMUNE TABLETProbi has developed a probiotic chewable tablet to reduce negative effects associated with colds and flues. Until now no effective treatment to fight viruses has been available. One product example that fulfills this demand is Probi’s own brand, Probi Frisk®.


BENEFIT FROM A WELL-PROVEN PARTNER MODELProbi has a proven track-record with its long-term partner model designed to benefit both parties.

Probi offers licenses and sell finished products to companies that produce, distribute and sell functional foods and/or dietary supplements.

Probi grants licenses for its technology to food companies, usually in the form of a royalty on the customers´ sales of products. In the case of Consumer Healthcare, Probi usually sells finished goods in bulk.Probi’s customers, according to their specific preference, then package these locally. This model guarantees high probiotic stability and minimizes time-to-market.

In some cases, Probi offers exclusivity to customers against special compensation, such as down payments.

We offer our partners expertise in probiotic research and development, and contribute in-depth competence in areas such as science, product development, industrialization and regulatory support as well as marketing.

DOCUMENTED BENEFICIAL HEALTH EFFECTS AND LONG SURVIVALThe demand for products that fall into the zone between traditional foods and pharmaceuticals is extensive. The common denominator for these products is their beneficial health effects.

To obtain an optimal effect from probiotics, it is essential for a bacterium to survive the food manufacturing process, the product’s shelf-life and yet colonize in the GI tract. A number of factors limit the bacteria’s survival and product shelf-life: heat, water activity (for dry applications) and the existence of antibacterial components in the finished product.

A PARTNER THROUGHOUT THE PROCESS

Probi develops and sells probiotics in two areas: Functional Food and Consumer Healthcare.

In the area of Functional Food, probiotic concepts exist for a number of ordinary foodstuffs, and new concepts are being developed continuously.

Interest in foods with specific health-promoting characteristics over and above their nutritional value has increased markedly in recent years. This increased demand has led major food manufacturers to start establishing wide ranges of probiotic products. It is however difficult for probiotics to survive in all types of food. Probi’s probiotics have both documented beneficial health effects and survive for an extended period of time in a variety of foods, including fruit drinks, cereals and müsli bars.

Probi’s probiotics are primarily used in chilled food products. Product categories that have been successfully enriched with Probi’s probiotics are juices, fruit drinks, yoghurt and ice cream, but also ambient products such as breakfast cereals and bars. Probi has a strong position in technically difficult applications thanks to its robust and effective bacteria.

In the area of Consumer Healthcare, Probi offers solutions for all of the most common applications, including capsules and tablets.

“At Probi, we support our customers with know-how to ensure and check the survival of probiotics during the manufacturing processes. This ensures that customers obtain the optimal effect of Probi’s probiotics in their products.”

A ONE-STOP SHOP OFFER

• Global market knowledge• Broad R&D expertise• Microbiology• Nutrition• Application and product developement • Medicine• Regulatory• Strong know-how in demanding applications


R&D – THE HEART OF PROBIThe foundation and heart of Probi is research and development. That is why we can state that our probiotic bacteria are potent and have a validated effect.

As Probi was founded by microbiologists and surgeons, it is in the company’s heart that the results rest on prominent basic and applied research. This has affected Probi’s culture and work method during the entire life time of the company – and so it will remain.

The R&D organization’s work is carried out in a similar way of that of the pharmaceutical industry and the basic research is continuously carried out at Lund University by a team funded by Probi. Further R&D is then performed by Probi and the pre-clinical and clinical development is continued under the full control of the company. Larger clinical trials are often performed in cooperation with well-known CRO’s. At Probi, we focus on specific health issues where probiotics have a positive impact and we also take the responsibility for product safety.

Clinical and product development usually takes at least three years from concept to finished product. To ensure that the scientific results are turned into products, Probi has a dedicated product development department responsible for preparing external production of various products.

Probi intends to continue being a pioneer in probiotics by launching new products addressing important health needs. We will achieve this by increasing the pace of research and product development. Probi is renowned throughout the industry for delivering clinical data of the highest quality through its international collaborations.

PROB I R&D

Probi continuously focuses on gastro health and on the immune system. Currently, active research is conducted within the following focus areas:• Disorders of the stomach and gastrointestinal tract• The immune system• The metabolic syndrome (including cardiovascular

disease, type 2 diabetes and obesity)• Stress and recovery (including nutrient uptake)

OVER A HUNDRED PATENTS WORLDWIDE

Patents are very important, both for Probi’s scientific renown and for allowing commercialsation through licensing. Probi has patents protecting its core probiotic strains and their health properties. The patent portfolio is monitored and analyzed regularly and Probi currently has over a hundred patents worldwide.

GUN-BRITT FRANSSON ON PROBI’S RESEARCH AND DEVELOPMENT STRATEGY

”The research strategy is based on Probi having a research portfolio with both long and short-term projects and a balanced level of risk. Recently, an inventory of new product areas was implemented to identify areas where Probi’s probiotics are considered to provide health benefits and to have major commercial potential. Probi used the results to produce a clinical research programme for the coming years. This programme includes broadening the documentation for existing products to also include children.

In addition, Probi focuses on improving existing products and developing new product matrices.”

Gun-Britt FranssonVice President Research & Development

OUR SUCCESSFUL IMMUNE STUDIES

Probi’s successful common cold study in Berlin generated world-class results. In 2009 the first product based on the research was launched. The product – a fruit juice called Bravo Friscus – contains a combination of two probiotic strains that regulate the immune system, resulting in reduced cold symptoms and shortened cold periods. The clinical findings surpass results from previous competitive studies. Cold symptoms among trial recipients of Probi’s product fell by 34 per cent compared with the placebo group. Also, the length of the cold periods were significantly reduced among people who received Probi’s product: (5.6 days as opposed to 6.7 days for the placebo group).

In a previous study with the same combination of probiotic strains, it has been statistically proven that the strain combination reduces the risk of getting a cold as well as the number of days with cold symptoms. Probi’s product contains a combination of two probiotic strains, one Lactobacillus plantarum and one Lactobacillus paracasei. Probi has been unable to identify any current product on the world market that can match these results. This has provided Probi with the impetus and a chewable tablet was launched for the first time at the end of 2009 beginning of 2010 together with the Nordic health care company Bringwell. The successful clinical development has broadened Probi’s scope and opened up a new global market for Probi with an estimated value of about SEK 40 billion.


After a few days Bengt Jeppsson realised that he may have removed too much of his own intestine. As a surgical professor he should have known better, but the probiotics project – where he was the “guinea pig” – was so exciting that he got carried away….and that’s just the beginning of the Probi story.

It all began when Surgery Professor Stig Bengmark observed the high frequency of infection among patients who had undergone large liver or pancreas operations. The most common postoperative treatment was to give patients large doses of antibiotics to prevent infection. Stig Bengmark’s idea was to strengthen the intestinal mucosa with a new and improved nutrient solution, thus preventing harmful intestinal bacteria from leaking into the rest of the body. This idea marked the start of a partnership with some of the other key people behind Probi.

This led to a completely new type of nutrient solution with a probiotic bacterial strain that had been used to ferment an oat-based drink. Oats contain betaglucans and certain lipids, which could have been the properties that strengthened the intestinal wall, but the team gradually became more and more convinced that the key to strengthening the mucosa lay in this newly discovered bacterial strain.

BACTERIA – FROM SUPPORTING ROLE TO LEADING PLAYERThe difficulty lay in finding a nutrient solution that was similar to real food, contained a high degree of roughage and had the right consistency to pass through a thin tube. Stig Bengmark contacted food technologist Kåre Larsson, who was a prominent surface and lipid chemist with an interest in grains – particularly oats. Oats were already recognised as a suitable base for nutrient solutions. The idea of using bacteria came from a method of fermenting an oat-based soup to make the mixture thinner.

Kåre Larsson thus brought together Stig Bengmark and Professor Nils Molin, who worked with all forms of industrial fermentation processes.

”This project contained interesting microbiological, food technological and medical features. We were lucky because resources and expertise were available close by and everyone involved was enthusiastic,” says Kåre Larsson.

Parallel to these trials with oats, an extensive study was carried out to isolate the lactobacilli that were best suited to industrial processes, and that could also adhere to, and survive in, the intestinal mucosa after they were eaten. This also raised the question of what they could achieve – whether they had any beneficial health effects.

This was the reason why Bengt Jeppsson and a number of colleagues swallowed the preparations containing various probiotic candidates. In the weeks that followed, biopsies were taken from various locations

I T S TARTED WI TH A V I S ION TO SAVE L I VES

in their intestines to see whether any probiotic candidates had established themselves in their intestinal microflora.

The trials identified two strains of the Lactobacillus plantarum species with beneficial properties and after further trials, an oat-based soup fermented with the Lactobacillus plantarum 299v bacterium was produced – which is the active bacterium today in Probi’s products for gastrointestinal health.

Tests on both patients and healthy individuals demonstrated that the oat-based bacteria had obvious beneficial effects on intestinal health and general well-being.

The leading scientists in this project with the fermented probiotic drink were Professor Nils Molin, Göran Molin, Siv Ahrné and Clas Lönner. They remain partners to Probi today.

FOOD OR DRUG?The greatest issue was whether the oat-based drink was a drug or something else. Probi was founded in 1991, but with no definitive decision regarding the company’s commercial focus.

In 1992, after a contact with Skånemejerier’s development department which luckily was positive, a joint project was initiated to investigate the market potential.

Luck is one of the factors behind Probi – but there are at least two more factors behind the success; the passion and conviction behind all of Probi’s research.

“Our collaboration between many fields of expertise such as microbiologists, surgeons, marketing specialists and food technologists has been totally unique,” says Clas Lönner.

“This company has produced some excellent research. We’ve made some wise and well-informed decisions along the way but also dared to take risks and test entirely new methods,” says Siv Ahrné.

Göran MolinBengt Jeppsson


MARKETING & SALES – CONSUMER HEALTHCAREJohan Wahlqvist, Director Marketing & Sales Phone: +46 46 286 89 27E-mail: [email protected]

MARKETING & SALES – FUNCTIONAL FOOD Ingvar Wirfelt , Director Marketing & Sales Phone: +46 46 286 89 65E-mail: [email protected]

MARKETING & SALES – REGIONAL DIRECTOR EMEAMichael Møller Jensen, Regional Director Marketing & Sales Phone: +46 76 336 87 11E-mail: [email protected]

RESEARCH AND DEVELOPMENTNiklas Larsson, PhD Research DirectorPhone +46 46 286 89 21E-mail: [email protected]

APPLICATION DEVELOPMENT AND PRODUCTIONKerstin Holmgren, Director Production & Application DevelopmentPhone +46 46 286 89 72E-mail: [email protected]

CONTACT AND MORE INFORMAT ION

VISITING ADDRESS:Sölvegatan 41ALund, Sweden

POSTAL ADDRESS:Probi ABIdeon Gamma 1223 70 Lund, Sweden

TELEPHONE:+46 46 286 89 20

FAX:+46 46 286 89 28

E-MAIL:[email protected]@probi.se

WEBSITE:www.probi.com

POSTAL ADDRESS: PROBI ABIDEON GAMMA 1 223 70 LUND, SWEDEN

VIS IT ING ADDRESS:SÖLVEGATAN 41ALUND, SWEDEN

TEL +46 46 286 89 20 FAX +46 46 286 89 28

PROBI@PROBI .SE WWW.PROBI .COM

PROBI – FIRST IN PROBIOTICS COMMERCIAL PROFILE · 2 PROBI – FIRST IN PROBIOTICS ... revolutionary fruit drink at the time, developed by Probi in partnership ... THE PROBIOTIC

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