What’s Wrong with this Picture? Focus on Contract Manufacturing

From the Archives: May 6, 2020

We’ve talked about this before. Possibly the most opaque element of the dietary supplement supply chain is the contract manufacturer.

Arguably, contract manufacturers have the largest role in the production of a dietary supplement, but rarely are they identified to the consumer purchasing the product. Too frequently, consumer inquiries relating to manufacturing and manufacturers are met with a brand response of “that is proprietary information.” It is still standard practice for most brands to not disclose the name of their manufacturer to an inquiring consumer.

When Trust Transparency Center asked executives about this practice, responses focused on the concern of competitors going to that manufacturer and reverse engineering their product.

This is not really a legitimate concern if they’ve got the right manufacturer in the first place. Consumers and retailers have the right to know where, and under what conditions, a product is made. We expect increased demand for this transparency, as our new normal leads to supply chain upheavals that can make product unavailable, and workers increasingly obtain a voice that can contribute to supply chain changes and disruption. Companies that do not exercise transparency in this environment are making a potential asset a liability.

There are at least two hundred dietary supplement contract manufacturers in the United States, yet most of them have limited engagement with the rest of the industry. This is manifested by lack of association involvement and poor engagement with groups such as the American Botanical Council and others providing benchmarking, education and practice guidance. Can you legitimately expect those who shirk these activities, refusing to engage with peers and experts, to be the best and most compliant organizations to work with?

But, the U.S. FDA spends a lot of time and resources on contract manufacturers. Most recently, it unveiled the FDA Data Dashboard, a tool that allows users to see the inspection history between it and a manufacturer.

The most recent widely searched and discussed contract manufacturer is ABH Nature’s Products. The US Department of Justice in cooperation with the FDA recently implemented a recall of all products produced at ABH because of the firm’s refusal to take corrective action for violations referenced in seven inspections occurring over ten years [see below charts for detail].