Supply chain, regulation and growing strong partnerships
That said, there were unique challenges ahead for FIGHT—and the industry at large—as the health and wellness space was in the spotlight for consumers seeking ways to support their immune health in the face of the COVID-19 outbreak. Gasparoli recalls: “The demand for every component related to immune-health products skyrocketed. Lead times for materials increased and overall there were shortages of simple ones like corrugated paper. Setting up a completely new brand in this situation was complete madness! We had to pivot multiple times from our initial plan and be agile and flexible to make sure we were able to deliver our final product on time. Everyone wanted more and more products, so the environment was really challenging as each supplier was filled with multiple requests. We have managed to stay on top of demand thanks to the solid, trusted partnership that we have established with our suppliers when building the brand.”
The importance of partnerships and flexibility was echoed across businesses. Jörg Büttinghaus, vice president of sales, Kappa Bioscience, cribbed from the Beatles that ‘the love you take is equal to the love you make,’ adding: “We avoid opportunistic relationships. We go through crises together. That is why we rely on strategic partnerships at eye level and understanding for our partners. Change management and flexibility are daily business. In 2020, we might even grow faster than the market. The reasons lie in the most internal production possible with highly qualified employees and state-of-the-art technology. The foundation is a strict and stringent quality regime and trusting cooperation.”
Trusting cooperation in many cases was also backed up with a ‘trust but verify’ approach, as Li cited concerns with adulteration that became more prevalent in 2020, particularly in the immune health category. “We’ve been able to combat any concerns of that with strict quality testing on all our ingredients, while also utilising our close relationships with local growers to maintain a steady supply through the year,” she says. “Being a global organisation with a robust supply chain, we are used to being very agile and adaptable due to unforeseen circumstances. The health supplement industry brings on a lot of quick moving trends and while the past year was an unusual exception, our supply chain and manufacturing were able to adjust forecasting for areas which we anticipated for, mainly around immune health ingredients. We took proactive measures with existing customers while also forecasting for new business.”
Similarly, Indena reported the only major challenges to be related to logistic congestion of deliveries. “The situation created by the COVID-19 pandemic has been and is a big challenge for all the companies and in particular for those who have a complex supply chain with a global extension,” she says. “On the other side, Indena can count on a consolidated and strategic management of its supply chains based on long-term and reliable relationships with its suppliers. Moreover, strong stock management in terms of starting materials and intermediates and its financial solidity has allowed us to be confident in the continuity of its production and provision.”
The value of solid partnerships have been emphasised through ongoing supply chain and manufacturing challenges
Other firms, such as Lallemand, stepped up existing safety protocols to proactively stay ahead of health considerations for its team members, and deliver on its business priorities. Maillard recalls: “In addition to [our] standard strict hygiene procedures which have always been in place in its cGMP facilities, Lallemand Health Solutions implemented adequate preventive measures to follow new recommendations from global and local authorities of all countries. Dedicated teams and provisions to employee backups have been detailed to ensure continuity of critical activities. Risk assessments have been prepared to ensure availability of teams and raw material. We secured additional inventory, covering a safety stock to prevent and avoid production disruption. Based on our contingency plan, we minimised the impact, guarantee business continuity, and met clients’ needs.”
Another challenge cited earlier by Foreman is the issue of responsible claims. “Products that stimulate the immune system should be labelled as ‘short term use,’ and those for long term use should be labelled that they may take several days to begin working and need to be taken daily to remain effective,” he reiterates, urging companies to develop and market products that are proven safe and effective.
Volker Schehlmann, managing director, analyze & realize GmbH (a&r), concurs that this is a challenge that presents an opportunity. “Brands in the natural healthcare space need to maintain consumer trust through a combination of regulatory compliance, transparency, and scientifically substantiated solutions,” he says. “And to accelerate innovation in this field, companies must understand the role ingredients have in supporting immune health, all without misleading the consumer. When it comes to claims, there are several vitamins and minerals with approved generic claims for normal immune function. Another option of claim communication is the use of pending claims. Brands can make use of these pending claims if they comply with the conditions of use, but the claim still needs to be substantiated by scientistic data.”
Mattern points out the requirements in Europe are among the strictest in the world. “Per the governing legislation around dietary supplements, products cannot claim to ‘prevent, cure, or treat’ any disease,” he says. “It's a big challenge to get a new health claim accepted. Although this is a major hurdle for companies in our industry, we must not forget the reason for this much exigence: protecting the consumer.”
When developing Fighter Shots, Szymanowska says she sought to develop claims and marketing materials that were grounded in the science. “Research and scientifically-backed claims must be fully investigated before claiming any kind of health benefit through a health product,” she says. In addition, she rightly points out: “Every consumer has a unique immune system and unique needs; therefore, it is difficult to promote health benefits with full certainty.”