Launching a health and nutrition business – what you need to know

What can you tell us about your company?

Viridian Nutrition was founded in Northamptonshire in December 1999. We focus on the principles of purity of ingredients, community support, and organic and green business practices.

From 24 original products, our range has expanded to more than 200 formulated supplements, from vitamins and minerals, to botanicals and nutritional oils. High-quality ingredients are sourced from around the world, while all the manufacturing is done here in the UK.

We educate, supply and support more than 800 specialist independent health food stores in the UK and Ireland, and export to 20 overseas countries.

I‘m the original founder and still 100pc shareholder. I fell in love with the natural products movement while working in a health food store aged 21. I then worked in children’s and health magazines before becoming editor of Natural Food Trader, then entering the vitamin sector. We’re a passionate and uncompromising company with a very committed, long-standing team.

What separates the health food and nutrition sector from others?

At the heart of our business is our route to market: we decided from the start that we would only allow the range to be sold through specialist independent health food stores.

These stores dedicate themselves to education, ensuring that the right supplement is given to the right person and for the right reasons. There’s a wealth of qualifications and experience in these stores; staff share information based on a bedrock of compelling research.

This isn’t a sector driven by brash marketing, it’s one that has one foot in ancient traditions, and the other in the universities and research departments of responsible suppliers.

We’ve chosen to supply direct to stores, rather than using wholesalers, which gives us control over where the product appears on the shelf, ensuring that our range is backed up by the appropriate knowledge. Our greatest investments are in qualified in-house technical staff, education tours, and experienced field sales staff.

What’s the biggest challenge about launching a business in this sector?

The regulatory framework in the food supplements industry has been challenging over the past 20 years, with countless major directives and regulations coming within the UK and from Europe. These cover claims; herbals, vitamins and minerals; sports nutrition; labelling; maximum permitted levels; advisory statements; food additives; novel foods and more.

Standards are high and for the smaller start-up, it can be daunting. However, for companies that invest and make the effort to do it right, it can be rewarding – the natural products sector has experienced strong growth over the past 30 years, which has attracted considerable competition and investment.

In fact, there are now very few privately-owned, large-range supplement companies in the UK, as giant pharmaceutical companies have bought out many of the original founders.

The industry is mature and many brands that made their name in the specialist independent stores have migrated to the mass market, becoming household names via the supermarkets. We chose to remain exclusively within the specialist health store marketplace, which has worked for us, because it means that we can build strong relationships with our customers

What one top tip would you give to someone thinking of launching a company in this space?

Ask 1,001 questions of your suppliers – your ingredients will only be as good as the quality of your questions. Then be transparent with staff and customers.

What are some good sources of advice for those looking to start up in your sector?

Join and support all the trade associations; it’s an investment in the future of the sector. We’re currently a member, supporter or patron of: the British Independent Retailers Association; Living Wage Foundation; Consumers for Health Choice; Health Food Institute
(HFI); Health Food Manufacturers’ Association; Irish Association of Health Stores; Irish Health Trade Association; National Association of Health Stores (NAHS); Northamptonshire Chamber of Commerce; Organic Trade Board; and Soil Association.

Personally, I’m on the committee of both the HFI and NAHS. These organisations are a great source of industry data, regulatory information, support and comradery. The primary trade magazines – Natural Products, Health Food Business and Better Retailing – can help keep you up to date.

What trends, behaviours or technologies are going to change this industry in the coming years?

With so much political uncertainty, two things that are predictable are the declining ability of the NHS to meet public health needs, and the ageing demographic – both of which have positive implications for natural products and the specialist stores that understand and provide them.

Key trends to look out for are: products and services aimed at the “mega-elderly” (the over-80s) and brands that understand the needs of the “woman in the middle” (women caring for their children and their elderly parents).

The internet has been a threat and an asset to the industry. On the downside, there are thousands of companies offering cheap products with questionable quality, selling fads and gimmicks for weight loss, anti-ageing and the rest, which has the potential to damage the reputation of the entire sector.

On the upside, people are now empowered with immediate access to unlimited information. Internet sales will reach a ceiling and I predict a renaissance of the high street. Our company will continue to steer an ethical course, investing in research-based innovation, reinforcing our core principle to provide pure and honest supplements that work.

Cheryl Thallon is founder of Viridian Nutrition and will be speaking at the British Chambers of Commerce's annual conference on 28 February, for which Small Business Connect is a promotional partner – find out more here