The agreement gives Institut Rosell, part of the Lallemand group, the right to use Probi's patented bacteria Lp299v in capsules and sachets, for sale in Europe and North America. It also gives Probi access to the Canadian firm's well established distribution channels and sales organisation in the dietary supplements market.
The collaboration follows an agreement earlier this year between Probi and French dairy products manufacturer Danone for use in functional foods.
But Per Bengtsson, CEO of Probi, said the new deal offers the biggest financial impact on Probi. "It leads to good earning opportunities and we don't have to face thesignificant investment and risks that usually comes with commercialisation," he said.
Institut Rosell is the largest supplier of probiotic dietary supplements in the USA and Europe, offering rapid penetration of the supplement market for the Probi bacteria.
The market for dietary supplements is currently growing at 5 per cent annually, with a turnover of approximately $25 billion globally. The segment of dietary supplements containing probiotics is growing faster however, at 10 per cent annually, with a turnover of about $250 million.
Probi suggests that quality demands regarding probiotics are also increasing, and that its extensive clinical research will meet this need.
The Lallemand Group, with headquarters in Montreal and Toulouse, claims to be one of the world's three largest players on the probiotics market, both in manufacturing and marketing probiotics.