Finnish Valio to supply Dannon's probiotic LGG
agreement with the Dannon Company for use of its technology and
proprietary probiotic culture Lactobacillus GG (LGG), as the
North American dairy giant fills its probiotic pipeline with
additional products.
The Dannon Company recently announced the expansion of its portfolio in the United States following the success its Activia yogurt. The new probiotic-delivering products for 2007 are Activia Light nonfat yogurt, DanActive dairy drink and Danimals with LGG.
The deal is a significant score for a player that until now has been outside of the American market - thereby potentially signalling opportunities for new players to edge into this rapidly growing ingredient market.
If Activia's performance in its first year in the US is an accurate indication, Dannon's new probiotic delivery products may also strike gold. Since Activia's launch in January 2006, it surpassed $100m in retail grocery sales in the US, as customers warmed to the 'friendly bacteria' concept.
Valio introduced products with LGG for the first time in 1990 in Finland and has been marketing a wide range of probiotic products under the Valio Gefilus brand in Finland, Sweden, Russia, Estonia, Latvia and Lithuania.
Valio said it also licensed rights to LGG to more than 15 dairy companies around the world.
"The properties of LGG are described in more than 350 scientific publications and the probiotic benefits are well documented," said Valio's research director and senior vice president, Tiina Mattila-Sandholm. "Moreover, LGG is consumed by millions of consumers in Europe, Asia, Australia and Latin America with great success already for more than ten years."
