Nellson’s Supply Chain Strengths Help Brands Navigate Current ChallengesAugust 2021
(August 26, 2021) Anaheim, CA – Nellson, LLC (Nellson), a leading North American manufacturer of branded and private label nutritional bars and functional powder solutions, recently shared insight into current supply chain challenges, and ways in which they are helping brands navigate current pandemic-related challenges. Many factors, such as ingredient availability, delayed shipping, and shifting consumer demand for healthier foods have driven the food ingredient market into a frenzy. Key ingredients are in short supply, making it difficult for brands to get products manufactured and on store shelves. As brands scramble to find new resources in a volatile market, co-manufacturers like Nellson with a strong supply chain foundation can help them find solutions to overcome these formidable challenges.
For example, in the food industry, inulin and protein are two ingredients that have both undergone supply chain shortages caused by the pandemic and increasing global demand. These shortages have presented challenges for manufacturers, including the heightened pressure on price, availability, and contract cancellations. In some cases, lack of supply is driving brands to consider reformulation efforts. Additionally, extended lead times are requiring extreme adjustments to supply planning and forecasting.
“These are very challenging times,” said Francis Rinfret, Vice President Global Supply Chain and Client Interface of Nellson. “Extremely demanding supply chain situations across the market and around the world are causing food and beverage brands to struggle to manage their promotional volumes and to assure tighter distribution practices.”
Rinfret added, “At Nellson, we are proud of our ability to provide our customers with options and increased leverage in sourcing. Our brand partners benefit from our large volume and footprint, our extensive strategic procurement knowledge, and our solid network of market contacts. Being proactive is key, as we anticipate the next hurdle and find creative solutions to counter it before it happens. We are working closer than ever—and communicating frequently—with suppliers regarding longer-term visibility of requirements, so they can in turn, plan and anticipate.”
“The longer a brand partner can commit to providing hard demand visibility, the better,” said Jack Spallone, VP Corporate Procurement of Nellson. “The more variables we can solve for, the fewer opportunities there will be for unforeseen issues. Since the paradigm has shifted in terms of raw material availability and supplier reliability, we know it is more important than ever to adhere to finished good order volumes and corresponding promise dates. We all understand that in today’s environment, making frequent changes after an order has been placed has downstream effects that can often create greater service issues.”
Rinfret followed with, “We have demonstrated a partnership with customers at both ends of the supply chain, exposing them to as much intel as possible. This allows Nellson to proactively provide demand and supply plans at a longer range and to consolidate the strength of our deep network and level-load channels, to avoid peaks and valleys.”
In addition to ingredient availability challenges, shifting consumer demand for healthier foods has added another layer of complexity to the supply chain equation. The pandemic has altered the way consumers view their personal health and has driven many to seek food and beverages to support their immune system. Mintel recently reported 25% of consumers are eating more immune-boosting foods as a direct result of the pandemic, and this percentage jumps to 36% among millennial consumers. The events of the past year have increased consumers’ desire to support their own health, resulting in higher demand for key ingredients including inulin and protein.
“Our supply chain strengths can help brand partners source ingredients that are in short supply, such as inulin and protein. By employing a Design-to-Value philosophy and investing in world-class Supplier Relationship Management, we can provide economies of scale with specific supplier-partners. In turn, this confers benefits to Nellson and our customers,” said Spallone. “The buying power and strategic customer response from our suppliers to us and then to our end customers, puts all of our stakeholders in a better position. These relationships are curated and tested through competitive RFPs, as well as constant evaluation of new source opportunities and a Supplier performance/KPI program.”
Rinfret concluded, “Nellson’s large bi-coastal footprint and volume buying power, along with our extensive procurement knowledge and solid market contacts, allow our team to support our brand partners with creative strategic sourcing solutions. We are here to ensure brands get their products to the shelves, even during these incredibly challenging times.”
Nellson supports brand partners through all stages of the production process with strategic sourcing, continuous improvement and risk management to ensure your next nutrition product is a success. Find out how Nellson can help with your next winning bar and powder project by visiting www.NellsonLLC.com.
Nellson, the leading full-service nutritional bar and powder provider in North America, is based in Anaheim, California with production locations in California, Utah, and Quebec. Founded in 1962, Nellson has over 55 years of diversified expertise in nutrition platforms for bars and powders, serving the sports performance, health and wellness, weight management, and medical nutrition market segments. Nellson offers formulation expertise, quality assurance, regulatory support, flexible production, and sales and marketing support.
About Kohlberg & Company
Kohlberg & Company is a leading private equity firm headquartered in Mount Kisco, New York. Since its inception in 1987, Kohlberg has organized nine private equity funds, through which it has raised over $11 billion of committed equity capital. Over its 33-year history, Kohlberg has completed 85 platform investments and nearly 200 add-on acquisitions, with an aggregate transaction value in excess of $30 billion. For more information, please visit www.kohlberg.com.