Nutrition Industry Executive magazine sat down with Mark A. LeDoux, chairman and chief executive officer, Natural Alternatives International, Carlsbad, CA, www.nai-online.com. Here’s what he had to say…
NIE: What is the one top issue facing the dietary supplement industry right now, and why?
LeDoux: The enduring challenge in our industry is two-fold.
First the logistical concerns associated with the supply chain remain formidable. Materials and containers, not to mention truckers and difficulties securing freight modules also are in short supply and often out of place from where they used to be easily accessible.
Second, the lack of labor and capital goods associated with the manufacturing and packaging of consumer goods remain a significant challenge. It is likely that raw material shortages along with packaging component challenges, such as lack of aluminum for heat inducted seals on individual packages, will continue to impact supply chains at least until the second quarter of 2022.
NIE: Many (if not most) Americans are arguably very tired hearing about COVID-19 and are weary of the disruptions and changes it has caused in everyday life.
LeDoux: This is very much the case and is exacerbated by a variety of factors such as lack of adequate testing and variable treatments.
NIE: What temporary or permanent changes has your organization made in response to the crisis?
LeDoux: Given that we operate under cGMP (current good manufacturing practice) requirements espoused by the FDA (U.S. Food and Drug Administration)and meet various international standards for production integrity, we have added personal hygiene requirements, personal spacing and other measures to secure the health and welfare of our employees, while also assuring product potency integrity.
NIE: In a related note, are there supply-chain disruptions that continue to plague the industry, and have these disruptions caused changes in formulations or shipment policies?
LeDoux: Given the fact that many of the starting raw materials are produced overseas and that ports remain clogged with undelivered goods due to transportation logistical issues, several key ingredients have remained in short supply, with additional raw material supply issues arising almost daily, prompting many companies to seek alternative materials to produce products in high demand.
The problem here is that in some cases, economic adulteration of herbal compounds has further complicated the situation when companies unwisely elect to use materials that have not been properly tested under the requirements of current federal regulations. This can easily lead to breaching consumer confidence when products fail potency and label claim disclosures.
Remaining true to quality standards/requirements in raw material sourcing or formulation should never change, despite supply chain issues, or the integrity of the industry is at risk.
NIE: In what category have there been the most changes and advances, and why?
LeDoux: The deployment of robotics in highly repetitive functions is a trend which I believe is here to stay. Likewise, upgrading of processing equipment to higher quality and throughput devices which allow for CIP (Clean-in-place) regimens will continue for those companies who have adequate financial resources and capabilities.
The lack of labor in many regions of the country has forced these decisions upon responsible manufacturing companies, and wage rates will continue to rise for talented individuals who see this industry as the growth opportunity that it is.
NIE: Sustainable sourcing, eco-conscious packaging and an increased demand for plant-based alternatives are trends that have been spiking for some time. Your thoughts?
LeDoux: With the cost of materials soaring and their availability spotty at best, the concern over packaging materials has also become mission critical. While alternative forms of packaging have merit, often the real issues remain availability and cost.
Ultimately, the consumer will make the determination on what packaging products they will endorse and adoption by the producers will follow. Current raw material supply chain issues are exacerbated by the increasing consumer demand for specific ingredients, such as plant-based or sustainably sourced materials.
As the industry faces current supply chain impacts due to COVID-19, it also needs to consider the ever-increasing demand for environmentally and socio-economically friendly ingredients and shift to accommodate these demands in the future.
NIE: There appears to be a new wave of natural brands being acquired by global corporations. If true, what implications—if any—does this pose to the heart and soul of the natural products industry?
LeDoux: This trend will most likely continue given the unprecedented demand for natural products in the dietary supplement field. With the myriad of published and peer-reviewed scientific articles extolling the bona fide value to human health of [select nutrients and botanicals], consumers have elected to become more proactive in providing their families with nutrients to help foster beneficial immune function.
That said, financial performance of companies has attracted the attention of multi-national companies and investors as never before, and I predict this trend will certainly gain additional momentum in the next several years.
The key is going to be ensuring the focus at these companies remains quality and integrity.
NIE: What is the single-biggest contribution your company or organization made to advancing the natural products industry in 2021?
LeDoux: We continue to lead by example wherever possible. Our commitment to product integrity and excellence is evidenced by our wholehearted support of the Supplement Safety Compliance Initiative (SSCI) and our continued involvement with the Natural Products Association (NPA).
Interfacing with Congressional members and regulatory agencies is time- and resource-consuming but is also very much an investment in our collective futures.
