Probi has signed a business development agreement with Viva 5, a U.S. probiotic specialist, granting it license rights within Consumer Healthcare for Probi Digestis® and Probi Defendum® in North America. Probi will work with Viva 5 to further strengthen its commercial position as well as the presence and consumer awareness of the Probi brand in the North American market place. Viva 5 and Probi are already engaged in commercial discussions with select U.S.-based companies.
The value of the US probiotic dietary supplements market is approximately USD 900 million. It is a highly fragmented market where products are sold through several sales channels. The three biggest brands collectively account for approximately 25 percent market share, but the fourth brand is limited to a 3 to 4 percent market share as reported by Euromonitor.
“The agreement between Probi and Viva 5 will be a significant opportunity to exploit the full potential for Probi Digestis and Probi Defendum in the U.S. marketplace. Targeted commercial agreements with a range of companies, each with a strong position in their respective sales channel, is required in order to achieve this. This is where the expertise and commercial network of Viva 5 will play an important role in complementing Probi’s existing partner network. The financial structure of the agreement is transparent and will allow both companies to capture attractive returns,” says Michael Oredsson CEO of Probi.
Viva 5 is a full service partner to the dietary supplement industry with expertise in areas ranging from brand and product development to production and claim support. Viva 5 has a broad customer network ranging from big international players to mid-tier and smaller customers. Product differentiation will play a key role in the market optimization, and in this Viva 5’s local contacts will be critical.
“We are very excited to team up with Probi and are equally impressed with their long history and dedication to high-quality, science-based probiotics. There is clearly a need in the North American market for clinically researched, shelf-stable probiotics and we believe the Probi strains are some of the most extensively documented and efficacious strains in the marketplace. We have received tremendous initial interest from key industry players and we expect to launch several products containing Probi probiotic strains in the North American market in 2013,” says Tony Corey, vice president of Viva 5.