CCM: Junlebao Dairy to Build 1st Probiotics Research Platform in China 09-07-2016

On 27 May, the 11th International Symposium on Lactic Acid Bacteria and Health was held in Shijiazhuang City, Hebei Province. During this, Shijiazhuang Junlebao Dairy Co., Ltd. (Junlebao Dairy), with the Chinese Institute of Food Science and Technology (CIFST), initiated a “Probiotics Plus” strategy and announced their joint establishment of an industry-academia integrated probiotics research platform. This is aimed at advancing industrial applications for probiotics in fields such as food and medical treatment, and promoting the development of a probiotics health industry.

                                                                                    Source: Baidu

“Probiotics Plus” strategy

The probiotics industry is expected to grow strongly, reflecting its status as a pioneer in the domestic food industry's shift towards a focus on “nutritionals & health”. In 2014 global sales of products with probiotics were estimated at USD28.8 billion, the meeting was told, with sales expected to reach USD42 billion this year.

The “Probiotics Plus” strategy, initiated by Junlebao Dairy and CIFST, also involves a range of experts in China and overseas. “This strategy is aimed at promoting the industry's joint action, and combined industry and academic research,” stated Shao Wei, Secretary General of CIFST: “It will meet the public's demand for better health, fit in with the expected changes in industry structure and speed up R&D, innovation and their application for the good of consumers.”

Zhong Yan, CEO of Junlebao Dairy, listed 3 reasons for initiating the "Probiotics Plus" strategy:

Consumers are increasingly demanding healthy lifestyles. Lactic acid bacteria (LAB) and “Probiotics” and “Longevity Bacteria” are widely recognised has having scientific credibility and are sought out by consumers as a result

It is inevitable that the food industry will orient itself towards “nutritionals & health”, and this will be key to the dairy industry as it restructures

There are various probiotic products in China, but few use domestically-developed probiotic strains. The company intends to strategically extend its own business, in doing so taking responsibility for advancing the whole industry's development

Junlebao Dairy: 21 years in the probiotics business

At the symposium, Junlebao Dairy was awarded the prize for “Innovative LAB Industry Product in 2015-2016” for its Purjoy flavoured probiotic yoghurt. Its quality and taste were both spoken highly of by the experts present, supporting the company's leading role in the probiotics industry.   

It has focused on the LAB business since 1995 when it was founded, since when it has accumulated rich knowhow about related technologies, R&D, strain cultivation etc. It has succeeded in developing 3 product ranges - Viable, Purjoy and Le Chang365 (which includes probiotics + prebiotics) - and star products which include Purjoy (yoghurt), Viable (LAB beverage), Jun Chang (LAB beverage) and Kefir (yoghurt).

It is particularly active in the LAB beverage segment, where it takes 3rd place together with Weiquan and Yili, each with sales at about 10% (behind Yakult 37%, Mengniu 22%).

The company has patented its L. paracasei N1115 and accordingly operates across the full probiotic supply chain. On 11 May, CIFST organised experts to assess the L. Paracasei N1115 Functional Research and Industrialisation Project, with its effect on reducing blood fats and enhancing immunity being accepted. “The strain and its products, at internationally advanced level, have bright application prospects,” the experts asserted.

Junlebao Dairy is a regional dairy company located in Hebei Province, founded in 1995. In the Opinions on Accelerating Dairy Industry Development in Hebei Province, its important position in the province is clear: “By 2017, the province will have 2-3 dairy companies including Junlebao Dairy, capable of producing at least 50,000 tonnes of infant formulas per year." Evidently, the company is strongly supported by the government.

This is not surprising, as the company has certainly grown rapidly. In January 2010 when Mengniu acquired the company its turnover was estimated at just USD139.6 million (RMB920 million), however in 2015 its sales exceeded USD910.6 million (RMB6 billion). As a company dedicated to technology innovation, deeply involved in the probiotics business and supported by the government, its prospects appear very promising.


This article comes from Dairy Products China News 1606, CCM


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