BioGaia expands in Japan with new probiotics deals

By Gary Scattergood

- Last updated on GMT

BioGaia announced two 'long-term' deals in Japan. ©iStock
BioGaia announced two 'long-term' deals in Japan. ©iStock

Related tags Probiotic

Swedish probiotics supplier BioGaia has signed two major deals in Japan with Nippon Kabaya Ohayo Holdings Inc. 

The first relates to the sales of finished probiotic supplements with Lactobacillus reuteri​, the other for the use of Lactobacillus reuteri​ as ingredient in food. Launches are planned for 2017.  

The first agreement concerns the exclusive rights to sell probiotic supplements with BioGaia’s patented strains of Lactobacillus reuteri​ at drugstores, supermarkets and similar outlets.

Depending on the product category, products will be sold under Kabaya, Ohayo and/or BioGaia brand.

The other agreement is an exclusive license, giving Ohayo Dairy Products the rights to use strains of Lactobacillus reuteri​ in food, such as drinks and dairy products.

“The agreements are long term and include exclusivity fees and minimum royalties over the term of the contracts, which will have a substantial effect on BioGaia’s Japanese business,”​ said the company.

“Due to confidentiality, the amounts of the fees and the royalties cannot be disclosed.”

Trusted partner

Nippon Kabaya Ohayo Holdings Inc. is a privately-owned company with headquarters in Tokyo. It has a group of 13 companies with more than 3,000 employees.

Kabaya Foods and Ohayo Dairy are Japan´s seventh largest confectionery and dairy companies respectively.

“Through these two milestone agreements with Nippon Kabaya Ohayo Holdings Inc. we have secured another trusted partner in the complex Japanese market. In addition to the marketing and sales of our supplements we look forward to the creation of innovative functional foods based on our Lactobacillus reuteri​ strains,”​ said BioGaia managing director Axel Sjöblad.

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