LUND, Sweden--()--Regulatory News:
Probi (STO:PROB) and US food company NextFoods are strengthening their partnership on the North American market through a revised agreement which will run until 2020, with an option of further extension. This involves closer collaboration, a higher level of royalties for Probi starting from 1 July 2014, and prominent placement on GoodBelly® packaging and in advertising of the Probi Digestis® brand.
”The revised agreement is a clear indication from NextFoods that they will continue promoting products based on Probi’s technology. NextFoods believes the addition of the Probi Digestis®ingredient brand will represent a seal of quality. During 2012, sales of the GoodBelly®range increased by just over 20 percent, and we believe that there is scope for the brand to grow strongly in the US market”, says Probi’s CEO, Michael Oredsson.
Probi entered into a licensing agreement with NextFoods in 2007. The revised agreement will apply with immediate effect, and gives Probi higher royalties from 1 July 2014, as well as clear exposure of its ingredient brand on packaging and in advertising in one of the most exciting markets in the world. Probi has received minimum royalty payments from NextFoods between 2007 and 2012. This arrangement has been replaced with an exit fee in the revised agreement, which will be paid to Probi if NextFoods terminates the agreement prior to 2020. NextFoods’ objective for the period until 2020 is for sales to exceed the level that corresponds with Probi’s minimum royalty under the previous agreement.
”We are pleased that there is a revised agreement in place which means that we can develop our partnership over the longer term. GoodBelly continues to be the leader in probiotic juice in the US and Probi is a key partner. We have an aggressive plan to guide consumers to an upgraded juice option. and should see sales of GoodBelly in the US grow significantly over the next few years¨, says Alan Murray, CEO of NextFoods.
This information is in a category which should be made public by Probi AB under the provisions of the Securities Market Act and/or the Financial Instruments Trading Act.
Probi is a leading player in probiotic research and development of effective and well-documented probiotics. The research areas are: the gastrointestinal tract, immune system, metabolic syndrome and stress and recovery. Probi’s customers are leading companies in the Functional Food and Consumer Healthcare segments. Total income for 2012 was MSEK 100.4. Probi’s share is listed on Nasdaq OMX Stockholm, Small Cap. Probi has approximately 5,000 shareholders. Read more on www.probi.se.
NextFoods is based in Boulder, Colorado. The company develops and markets healthy foods under the GoodBelly® brand, based on Probi’s probiotic Lp299v® (Probi Digestis®). NextFoods was founded by Steve Demos, an entrepreneur who focuses on health foods. Steve Demos previously founded the food products company, WhiteWave, whose Silk soya milk is the bestselling soya milk in the world.
This information was brought to you by Cision http://news.cision.com