vertical integration

Shortening the supply chain [NEXT Forecast 2017]

Vertical integration enables brands, especially those in challenged product categories, to achieve deep levels of trust and transparency by owning every piece of their supply chains.

The following is an excerpt from the NEXT Forecast, an insider’s guide to where the natural products market is now—and where it’s headed. Drawing from proprietary data sets, expert interviews, in-market case studies and the Natural Products Expos, the NEXT Forecast is the industry’s leading source of forward-looking insights. Learn about this and many other in-market trends laddering up to dominant macro forces in this report.

They don’t call it a supply chain for no reason: With just one broken link, the entire system that delivers a trustable product to the market can be damaged. This is why more companies are investing in vertical integration and developing strong partnerships throughout the supply chain to achieve a level of trust and transparency.

  • Take Blue Evolution Foods. This company is building its own responsible supply chain by working with regional coastal communities to grow high-quality seaweeds and preserve local marine resources. Then it subtly incorporates this nutrient-packed ingredient into everyday foods we heart—think marinara, rotini, and mac-and-cheese.
  • Pea protein supplier World Food Processing’s seed-to-product approach has become a model for responsible supply-chain management. Based at a U.S. organic facility, World Food Processing provides farmer partners with the seed technology and testing and traceability mechanisms that ensure the highest quality plant-based protein products reach consumers. With questions and concerns around "clean" protein growing in recent years, such efforts can help redefine an important supplement category.

NEXT Forecast 2017 opportunity

Companies that own their own supply chains can build out businesses that allow them to supply to other finished product companies, thereby bringing about greater market change.


Get the full NEXT Forecast to see how 14 macro forces will shape the future of the natural products industry.
nextforecast.com | Order now

 

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