The primary objective of this study was to investigate the survival rate of three species of encapsulated bacteria (Propionibacterium acidipropionicici, Propionibacterium freudenreichii, and Propionibacterium thoenii) in model solutions designed to simulate the acidity levels found within the human gastrointestinal tract. The capsules were prepared by extrusion from gelatin and sodium alginate in a 1:1 ratio on a laboratory encapsulator. The use of gelatin and sodium alginate was found to provide optimum characteristics suitable for encapsulation of live bacteria. Three strains of Propionibacterium asidirgorionici, Propionibacterium freudenreichii, and Propionibacterium thoenii were subjected to in vitro assay to evaluate their probiotic potential. The final cell survival rate of P. freudenreichii was 105 CFU/mL, indicating that this probiotic is sensitive to acidic medium. The viability of encapsulated probiotics was studied in a model medium simulating the gastrointestinal tract. It was found that alginate−gelatin capsules could provide protection to P. freudenreichii from gastric acid and lead to high levels of viable bacteria released in the intestine. Practical application: Encapsulation of Propionibacterium freudenreichii into alginate−gelatin capsules produced capsules capable of delivering live probiotic bacteria into the intestine.