BioGaia and Nestlé Collaborate to Sell BioGaia Protectis Drops in Australia
17 Mar 2017 --- BioGaia has announced that its global collaboration with Nestlé has been extended, with the company signing an agreement with Nestlé Australia Ltd for the exclusive rights to sell BioGaia Protectis drops in Australia from 2017.
The product will be co-branded under the BioGaia and Nestlé brands.
“This exclusive agreement represents another positive development in the global partnership between Nestlé and BioGaia,” says Angela Lu, Business Executive Officer, Nestlé Infant Nutrition Oceania.
“The product is a natural extension to our existing portfolio, and further strengthens our nutritional offering across the crucial first 1000 days of an infant’s life.”
“This launch signifies the beginning of what we are sure will be a long and successful partnership.”
“We have had a collaboration with Nestlé since 2008, and this started in the infant formula field,” Axel Sjöblad, Managing Director of BioGaia AB tells NutritionInsight.
“This is a global agreement now that we have with them today, which is of course very good for Biogia, as we can benefit from a phenomenal global organization in many countries.”
“However, this new agreement that we have now signed in Australia is a local agreement that is more commercial, and focuses on our probiotic drops for the treatment of colic.”
Sjöblad explains that the launch is the first time the company has used the Biogia brand name in Australia.
“We have tried before, but not under own brand. For us this is a big step, and with the support of the nestle organization we can support the Biogia brand in this new territory.”
Entering a new market comes with new challenges, one that in this case, Sjöblad identifies as regulation.
“We can say that a big challenge, in general, is regulation,” he states.
“The challenge is that we cannot make claims, and that is, of course, a pity because we have unique benefits and we cannot claim it.”
However, the company has been tactical in how they can overcome the restrictions in the new market.
“The way we will overcome this, and what has been the underlining driver of Biogia’s success so far, is that we use a medical marketing model where we communicate through the medical professionals,” explains Sjöblad.
“So the medical professionals look at the clinical studies we have made, as we have always conducted these at the same level as if it was drug trials.”
“So we have extremely good clinical data, and this is used in the communication with medical professionals, and they in turn can recommend to the consumer, or this is instance the mother or father if they have a child with colic, them to go to the pharmacy and buy the drops.”
“The medical marketing model has been our way to reach out even if we cannot claim officially the benefit the product.”
BioGaia says that the Asia Pacific region, with Australia as one of its top markets, is one of the largest international probiotic markets and analysts have predicted that this region will retain its leading position in upcoming years.
According to Innova Market Insights, probiotic products in Australasia are on the rise, with probiotic product launches in the baby and toddler market rising by 10% from 2015 to 2016. The general dairy sector also saw a 14% rise in probiotic product launches during the same time period.
BioGaia Probiotic Drops, as the product will be called in Australia, are planned to be launched mid 2017. Today the drops are sold in 70 countries worldwide.
by Hannah Gardiner
