6204

FDST 6010

Introduction

Public interest concerning their health with the use of functional foods and dietary supplements has risen in the past few years.  The public is demanding more than a food that is free of unwanted ingredients such as fat; they are also looking for ingredients that improve their overall health (BioGaia, 2004).  Ingredients like probiotics contain beneficial lactic acid bacteria that support the immune system, aid in digestion, and enhance the gastrointestinal system.  Lactic acid bacteria are found naturally within the gastrointestinal tract but can be depleted by stress, antibiotics, or bacterial infections (BioGaia, 2004).  Lactobacillus Reuteri is a beneficial microorganism used to balance the natural microflora of the intestines.  L. Reuteri produces Reutericyclin which inhibits a broad spectrum of harmful bacteria (Ganzle, 2004).   In 2004 research proved that L. Reuteri had a positive effect on the immune system in both adults and children limiting the gastrointestinal infections and even colds by more than half (BioGaia, 2004). 

 

 

 

BioGaia

The biotechnology company BioGaia has developed and produced several products containing the L. Reuteri bacteria within packaging that protects the sensitive bacteria and increases the shelf life (BioGaia, 2004).  LifeTop Straws contain the L. Reuteri within an oil droplet located in the inner part of a polypropene drinking straw.  One hundred milliliters of bacteria is released during consumption of the beverage.  The Reuteri bacteria can be used in dairy products, fruit beverages, baby food, and infant formula (BioGaia, 2004). 

Sales have grown annually by 36% in the biotechnology company BioGaia.   BioGaia allows licenced agreements to use Reuteri receiving royalties from the sales of the finished products (BioGaia, 2004).  As for the LifeTop straws, BioGaia allows the customers to resell the straws in specific markets (BioGaia, 2004).  The gross margin sales for finished products like the LifeTop straws reached 57% in 2004 (BioGaia, 2004).  The probiotic market is growing rapidly as reflected by the BioGaia 86% increased sales rate in 2004 (BioGaia, 2004). 

The Market for Probiotic Foods

 Probiotics and functional foods are both consumed in large amounts in Japan (BioGaia, 2004).  The Asian understanding of the importance of the gastrointestinal tract is not as well accepted in the US; however, the use of probioitcs is believed to be growing fast in the United States (Stanton, 2001).  Expanding the health food industry into the fast food industry would add value to the fast food as well as appeal to the consumers who want a healthier food.  A licensee between BioGaia and McDonalds with the LifeTop Straw and ice-cream and/or frozen yogurt would be a valuable step for McDonalds.  Providing a functional food as a healthy alternative will help to combat the negative publicity associated with fast foods causing Americans to be over weight.  McDonalds would also produce a higher end value product with the simple addition of a straw. 

 

 

Critical Factors

The product compatibility, quality control verifications and stability during manufacturing and storage are important microbiological issues that must be determined.  Lactic acid bacteria are sensitive to pH and temperature within the yogurt.  The LifeTop Straw protects the sensitive lactic acid bacteria which becomes active while drinking the beverage.  The Reuteri culture is already used in ice cream products by Ingman Foods, thus the bacteria are active at colder temperatures and a higher pH.  The Department of Microbiology research at the Swedish University of Agricultural Sciences has studied the L. reuteri genome.  BioGaia is able to understand how the L. reuteri behaves in different environments so they can determine the effects of this probiotic within the gastrointestinal tract In Finland the Reuteri culture is used in ice cream and is produced by Ingman Foods (BioGaia, 2004).      

 

Consumers

To accomplish this goal McDonalds would need to use a product that would appeal to the consumers.  To reach the functional food consumer the health benefit of the LifeTop Straws needs to be stressed through commercials for McDonalds.  Also for the non-functional food consumer, the negative association of bacteria in foods needs to be overcome in commercials that communicate the positive properties associated with the probiotics.  It would also be important to determine which consumers were already buying products containing probiotics.  In one study, the functional food consumer was determined to be older and better educated than the general population.  Also need to determine if the consumer can detect any differences in the product a triangle test needs tobe preformed to see if there is a preference for the product.  Also a 9 point hedonic scale should be used to determine if the differences detected are good or bad.

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Conclusion

The LifeTop straw and McDonald’s ice-cream add a fun and tasty way for children and adults to benefit from probiotics.  The probiotic market will grow exponentially in the United States once consumers begin to benefit from a better immune system and a healthier gastrointestinal tract.  Research needs to continue to study the microflora life in the human gut to better understand the effect the Reuteri culture on the immune system. 

 

 

 

 

 

Reference:

BioGaia.  BioGaia Annual Report.  2004.

Ganzle, Michael, et al.  Characterization of Reutericyclin Produced by Lactobacillus reuteri LTH2584.  Applied and Environmental Microbiology, 2000, 66, 4325-4333. 

Stataon, C., et al. Market Potential for Probiotics. The American Journal of Clinical Nutrition, 2001, 73, 476s-483s.