The recent Business Leader Forum series organized by NutraIngredients+ provided an insightful platform where senior operations executives from Pharmavite, Nature’s Way, and Thorne shared their perspectives on the operational, regulatory, and technological challenges faced by the dietary supplement industry.
Key topics included tariffs, supply chain volatility, talent retention, the complexity of omnichannel operations, and the expanding influence of artificial intelligence throughout the value chain.
Tariffs: A Constant Concern
Executives agreed that tariffs have evolved from occasional disruptions to a permanent aspect of global supply chains.
Lee Tsukroff, CFO and COO of Thorne, emphasized that trade duties are now incorporated into daily sourcing decisions, necessitating a more comprehensive and proactive planning approach. Instead of merely pursuing short-term cost savings that could jeopardize quality, Thorne prioritizes long-term supplier relationships and product integrity, even amidst rising tariff challenges.
“Tariffs influence our daily business operations,” Tsukroff noted. “They add cost pressures and complexity, but they’re part of the evolving global supply chain landscape.”
For Pharmavite, strategic tariff planning initiated as early as 2019 helped the company manage recent fluctuations. However, Ray Gosselin, Pharmavite’s EVP and COO, highlighted the difficulties posed by constantly changing tariff regulations, which require careful scrutiny of exemptions, classifications, and geopolitical shifts.
“We believe that good health should be accessible to everyone, so in response to these significant cost challenges, our initial focus has been on enhancing productivity to alleviate financial pressure,” Gosselin stated. “Quality, purity, potency, and efficacy of raw materials remain our top priorities, discouraging us from taking a transactional approach with suppliers.”
Christine Greer, Senior Vice President of Operations and Supply Chain at Nature’s Way, remarked that while investments in resilience during the COVID-19 pandemic improved response times, they did not eliminate the inherent complexities that come with such adjustments.
Nature’s Way continues to depend on the robust risk management strategies developed during past global trade disruptions, along with the insight into pricing and sourcing challenges as an importer of record.
The executives also pointed out that supply constraints, driven by compromised shipping lanes and energy market fragility, affect not just ingredient availability but also other critical inputs, such as the petrochemicals used in packaging materials.
“We are experiencing pressures, particularly with botanicals, but the broader issue lies in the geopolitical landscape. A substantial portion of global energy flows through the Hormuz Strait,” Greer explained. “This creates a ripple effect impacting everything from fuel to petrochemical supplies, creating challenges that extend beyond mere ingredient sourcing.”
Navigating Scale, Regulation, and Talent Retention
As the dietary supplement sector expands, executives acknowledged that scale presents both opportunities and risks.
Tsukroff from Thorne highlighted the importance of maintaining rigorous standards and adaptability during rapid growth, particularly as production volumes and channel complexities increase.
“The real challenge lies not in growth itself but in maintaining oversight and discipline across the business,” he noted.
To protect against operational drift, the executives emphasized the importance of talent development, stringent processes, supplier redundancy, and proactive planning. They also addressed the challenges presented by an increasingly fragmented regulatory landscape.
“We are witnessing a growing array of state regulations that arrive rapidly and inconsistently, necessitating significant investment and planning to manage any associated risks,” Gosselin explained, citing extended producer responsibility (EPR) laws for plastics as a significant example.
Greer from Nature’s Way also pointed out the need to balance current operations with future innovation. She highlighted the dual challenge of advancing new product development while adhering to strict quality standards and managing evolving regulatory demands. The company relies on its talented team’s cross-functional expertise and the importance of enhancing workforce capabilities.
“The key focus has shifted toward retention and capability-building,” she said, noting some improvement in the availability of skilled labor. “Our goal is to foster productive, stable workforces while developing future leaders through better resources, clear standards, and robust leadership.”
Gosselin and Tsukroff also underscored the significance of investing in long-term talent development and engaging communities in which their businesses operate.
Navigating Omnichannel Complexity and Embracing AI
With consumer demand spreading across various channels—including practitioners, direct-to-consumer, e-commerce, and retail—all three companies reported growing segmentation within their supply chain operations.
Nature’s Way is enhancing its distribution capabilities and optimizing inventory positioning to accommodate diverse fulfillment requirements, moving towards a more adaptable operational model. Meanwhile, Pharmavite’s omnichannel strategy has accelerated feedback and innovation cycles, increasing the demands on supply chain responsiveness.
Gosselin stated that managing varied promotional, inventory, and service models across multiple channels has become a fundamental competency.
“Each channel operates distinctly regarding its supply chain, inventory strategies, and promotional tactics. Thus, having agility within our supply chain to navigate this variety is vital, and we have not found that to be particularly challenging,” he said. “The feedback from different channels has proven fascinating and has significantly expedited the pace of innovation and consumer insight.”
For Thorne, the transition from practitioner-focused channels to direct-to-consumer and selective retail has necessitated careful planning. Tsukroff described ongoing investments in automation, order fulfillment technologies, and demand planning capabilities to support expansion while preserving brand integrity and product consistency across various channels.
Regarding the integration of artificial intelligence into operations, the panelists presented it as a rapidly emerging tool for enhancing agility rather than replacing human talent.
In addition to launching its AI-driven personalized wellness advisor—designed to connect decades of clinical insights directly with consumers—Thorne is also examining AI applications in manufacturing and productivity enhancements.
“We view AI across the supply chain not as a replacement for talent but as a means to attain insights faster. Speed is a critical asset, enabling us to execute tasks more efficiently and effectively,” he said.
Pharmavite has leveraged AI to integrate various data sources—from quality control to maintenance and process capabilities—unlocking deeper insights that facilitate higher-value decision-making. Nature’s Way is prioritizing practical AI applications in forecasting, inventory optimization, scenario planning, and predictive maintenance.
As Greer pointed out, AI’s true value lies in its capacity to improve the speed and quality of decisions at scale “to operate smarter, quicker, and more efficiently” while keeping human leadership at the forefront.
Business Leaders Forum 2026
The April 29 session of the NI+ Business Leaders Forum brought together key operational leaders Ray Gosselin of Pharmavite, Christine Greer of Nature’s Way, and Lee Tsukroff of Thorne. They explored avenues for strengthening supply chains, enhancing distribution, and optimizing e-commerce performance in light of macroeconomic pressures. You can watch the complete webinar on demand here.
In conclusion, addressing the multifaceted challenges in the dietary supplement industry requires strategic planning, effective talent management, and the integration of advanced technologies like AI. As companies adapt to shifting regulations and evolving consumer demands, their commitment to quality and integrity remains crucial for long-term success.
