- Growing
consumer demand for healthier
natural and organic options has resulted in anexplosion of new
products offerings, brands and companies strategically catering
to this growing market demographic.
- To support this
robust growth, brands have continued to partner with contract
manufacturers with greater frequency. Due to extensive capital
requirements,
an increasingly stringent regulatory environment and greater
complexities in
formulations marketers are able to reduce debt and operating
costs by
outsourcing their production needs in order to more effectively
allocate resources toward core competencies such as of end‐user
branding activities, sales and marketing
- Contract
manufacturing in the
naturals & organics space is highly fragmented. There are a
number of small or mid‐sized, specialty contract manufacturers
but few that possess comprehensive capabilities.
- Measures such
as New Dietary Ingredients (NDI), Good Manufacturing
Practices (GMP) and Genetically Modified Organisms (GMO) have
resulted in more stringent regulations
- Using contract
manufacturing services
allows a company to focus on its core businesses andthe building
of its brand
vis‐ŕ‐vis marketing and distribution strategies.
- As consumers
have increasingly warmed to private label brands, demand by
retailers for their own private label products, particularly in
the organic and naturals sector, has grown.
- With the
production of most retail brands outsourced due to cost,
logistical and risk
concerns, the growth of private label goods has been a positive
trend for contract manufacturers.
- Due to the lack
of clear regulations, and the excessive amounts of subjective
marketing, it is difficult to determine which dietary supplement
companies are producing quality products, making recommending
companies challenging for healthcare professionals
- Dietary
supplements fall under different guidelines than food and drug
products. Since they are not drugs, supplement companies are not
permitted to make untested health claims. Companies are allowed
to make claims with nutrients that have proven results
- A company that
is marketing dietary supplements is not required to prove that
their products are safe or effective. Instead it is the
responsibility of the U.S. Food and Drug Administration (FDA) to
disprove the company’s claim if the claim has not been
scientifically tested (FDA, 2006).
- The big
question is to determine which dietary supplement companies are
producing quality products
- Consumers save
time and money by making well informed decisions in choosing the
highest quality dietary supplements.
- The guidelines
called Good Manufacturing Practice, or GMP, provide companies
with manufacturing standards to ensure that their products are
not contaminated and maintain a high quality
- Manufacturers
must make sure that product label information is truthful and
not misleading. Under the FDA Final Rule 21 CFR 111, all
domestic and foreign
companies that manufacture, package, label or hold dietary
supplements, including those involved with testing, quality
control, and dietary supplement distribution in the U.S., must
comply with the Dietary Supplement Current Good Manufacturing
Practices (cGMPS) for quality control
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