|Business Strategy Dominates Nutraceutical Trends|
|Copyright 2013 by Virgo Publishing.|
|Posted on: 10/18/2011|
Regulatory issues might have dominated the talk at SupplySide West 2011,and the state of the economy might be pushing suppliers and manufacturers to new creative business solutions, but nutraceutical companies are doing more than just surviving, as evidenced by the trends seen on the show floor. Some companies were expanding operations and facilities, while others were continuing to forge key partnerships to capitalize on synergies. Other companies sought out certifications to differentiate their brand and products from the competition, and many suppliers honed their benefits message and effort.
Whether the looming threat of extensive new dietary ingredient notification (NDIN) requirements or simply the streamlining of business often seen in tough economic times, there was no flood of new ingredients and not much in the way of next-big-thing reveals at the show. Instead, companies focused on new ways to improve their existing business and products. One common method was establishing partnerships for any number of benefits, including preparing for GMP (good manufacturing practice) inspection; reaching new or wider markets; synergizing strengths such as distribution, research, product development and marketing; and developing new ingredients.
At the show, Lonza announced a new worldwide partnership with Lipogen for the exclusive rights to sell, under the Lonza brand, phosphatidylserine (PS) and PS-based formulations in dietary supplements, medical foods, and food and beverages. This affords Lonza a quicker avenue to a new ingredient and market for its portfolio, while opening up Lipogen to wider distribution. Similarly, the idea of partnering to better compete in the global marketplace fueled the pairing of Ocean Spray with Artemis International. The duo showcased its latest cranberry powders designed to bring color, flavor and health benefits to products such as confections and dry-mix beverages. Artemis brings the nutraceutical expertise, while Ocean Spray delivers global experience in the food arena.
There were many other partnerships announced for repping various ingredients, but one interesting collaboration that stood out was between a manufacturer, an ingredient supplier and a research center—Reliv International Inc., Soy Labs LLC and the Missouri Plant Science Center (MPSC) announced a joint R&D partnership that will give Reliv greater access to the latest soy and plant biotechnology research, while offering Soy Labs a ready-made market for its ingredients. Other university-based research resources could also become involved in this collaboration in the future.
Reaching new numbers and markets was also the goal behind many expansion efforts announced and highlighted at SupplySide West. Heartland Flax expanded its manufacturing plant to include contract packaging and new blending abilities; Icelandirect reported a new 43,000-square-foot GMP-compliant facility will more than double capacity; and BIO-CAT Inc. recently expanded its operations, including adding production capacity, increasing custom blending capability, adding powder and liquid packing, expanding its refrigerated storage and warehouse, and upgrading its in-house research and testing laboratory. Likewise, Lonza said it is opening a new vitamin B3 facility in Nansh, China; Golden Omega announced early work on its production facility in Chile, which will be built to FDA pharmaceutical standards and use state-of-the-art technology to make ultra-refined concentrates without fish odor or flavor; and DKSH reported buying Tiger Chemicals Co to expand its market presence in Australia and gain market access to New Zealand. EPAX AS talked to its booth visitors about the company’s recent restructuring, as well as its newly acquired plants that will help it double its Aeslund, Norway production capacity by the end of this year and serve a wider range of customers.
All-American Pharmaceutical also announced major new expansion of its facilities, but its new Informed-Choice certification—which signifies FDA GMP compliance and its products are regularly tested for any ingredients appear on the World Anti-Doping Agency (WADA) prohibited substance list—was one example of how companies were turning to key certifications to lift their products above the crowd. Also in the sports realm, PJ Noyes was Certified for Sport by NSF. Other certifications include Neptune Technologies & Bioressources’ certification from NSF International that its products conformed with ISO 14021 (Environmental labels and declaration) and FTC Guides for the Use of Environmental Marketing Claims. Similarly, Det Norske Veritas (DNV) confirmed Bergstrom Nutrition meets ISO 22000 certification requirements as well as meeting additional requirements set by the Global Food Safety Initiative (GFSI) related to food safety management systems. And representing a common method of GMP preparation, AIDP gained GMP certification through NSF. On the functional product front, Aker Biomarine’s received a letter of no objection from FDA for its Superba® krill ingredient. And PGP International’s contract packaging facility recently obtained kosher and organic certifications through the Orthodox Union and the Minnesota Crop Improvement Association.
In the end, there were some new ingredients showcased at booths such as Ecuadorian Rainforest, but the news and trends from most of the floor were the business moves that placed companies in better strategic positions to enter new markets and boost the appeal of their existing business strengths and products.