Crafting Success: The Science Behind Advanced Formulation in Direct Selling

August 1, 2024

Harnessing values, impact and research in supplement development

 

For me the formulation process has three components, and it begins when I ask the hard questions. —Dr. Barrie Tan, Founder and President, American River Nutrition

 

Consumers now demand more validation, credibility, and third-party support; companies that adapt to these needs and communicate complex science effectively will lead the industry.  —Dr. Mark Miller, Chief Innovation Officer, Bella Grace Global

 

In the last five years, the customer in the supplement industry has become a lot more sophisticated and demands more. —Dr. Dan Gubler, Chief Scientific Officer, Three

 

Driving excitement isn’t sustainable—driving passion is.

Within the direct selling channel, there are three key ways to fuel passion: values, impact and finances. Each of the three will have its adherents; a combination of at least two of the three can accelerate success. Field members who identify with all three of these drivers within your company will take the lead in recruiting, selling and retention.

Supplements, which can address all three passion drivers, are a direct selling channel sweet spot and offer an intricate puzzle for executives to solve.

Formulation Options

There are several options when choosing supplements that field members love, share and are loyal to.

Although rates and agreements vary, the options, in order of least to most expensive, are:

  • Purchasing a white label product with a trending ingredient
  • Customizing an existing white label product with a “hero” ingredient
  • Contracting a formulation company or scientist
  • Employing a full-time scientist to formulate

 

Formulation Processes and Priorities

Empirical data aside, formulation processes vary and can be a matter of the philosophy of the individual scientist. Barrie Tan, Ph.D., a formulator who is founder and president of American River Nutrition, has focused on his passion of “making the unknown known” and discovering the benefits of the annatto plant and other lipid-soluble ingredients.

American River Nutrition, with him at the helm leading other scientists, has formulated for legacy companies such as Nutrilite/Amway, Kyani and Integrous Wellness, as well as others that have confidential contracts.

“For me the formulation process has three components, and it begins when I ask the hard questions,” Dr. Tan says. “It is not so much a process as it is me. It is hardwired in my DNA to make the unknowns known. The next component shouldn’t be a surprise—the three Rs: research, research and research. I have four to six scientists that work with me in our in-house lab. They do the research.”

Tan’s final component reveals the most about how personal the process is for him: He believes that his love for the plant kingdom and the time he spends exploring and analyzing to learn its secrets is a spiritual component of the process. Part of that, he says, is figuring out the plant’s smell, its chemistry, and then doing a lot of lab analysis.

When it comes to the formulation process, linking advancing science with product innovations demands a multi-layered approach, according to Mark Miller, Ph.D., chief innovation officer at Bella Grace Global. “Multi-layered” also aptly describes his career. Miller was a medical school professor for three decades, tenured in both basic and clinical sciences (cardiovascular, pharmacology and pediatrics).

With a desire to make a profound difference in therapeutics, Dr. Miller left academia for the natural products industry and began to leverage his bio-medical research discoveries, so formulation processes are a particular passion of his. He has created formulations for several direct selling companies, including AdvoCare, Proceller8, Zurvita, and now Bella Grace Global, and he is passionate about effective formulation processes.

“Firstly, one must keep abreast of scientific publications across numerous areas,” Miller says. “To do this we review, on a daily basis, the latest scientific publications.”

The insights gleaned, he says, are often useful for mechanisms of action and occasionally provide insight for marketing. Networking with ingredient companies, and keeping tabs on formulation industry awards—of which he is a long-standing judge—establishes a position of strength in evaluating ingredient innovations and supporting science.

Dan Gubler, Ph.D., who has worked with other direct sales companies and is now chief scientific officer of Three, offers an excellent analogy regarding formulation. “Right now in the supplement industry we’re all using the same molecules,” he says.

“And if we’re all using the same molecules, then how are we really different from another company? If that’s what you’re doing, you’re really not. But when you discover new molecules and you bring new building blocks to the table, it’s like as kids when you are playing Legos together. If you all have the same Lego pieces, the mountain of creativity is about the same. But if you have the cool castle set or the spaceship set, and your friend doesn’t, you’re able to make the really unique stuff.”

To that end, Dr. Gubler developed a specific process to identify and incorporate cutting-edge scientific discoveries into product development. “There are Three Pillars to the process: exploration, curation and absorption,” he says. “There are 600,000 species of plants on the earth, and less than 5% of them have been studied for their bioactive molecules. So as a natural products chemist, I’ve traveled around the world doing research expeditions, studying molecules from plants.

“After the exploration, we take the molecules that we’ve discovered along with other molecules that are known in the industry, and we curate them kind of like a Michelin-star chef would, in a unique manner,” Gubler says.

“And then the third pillar: absorption. The most powerful molecule on the planet is of no use unless it’s absorbed. Curcumin’s a great example. A great molecule, with great properties, but not soluble in the body because it’s hydrophobic—meaning it’s afraid of water. And that’s a problem because the body’s 60% water. Alone, the body sweeps curcumin out and it doesn’t get into the cells. So we use many different cellular absorption technologies to ensure that the new molecules we’ve discovered in our curated formulations then actually get into the cell. Exploration, curation, and absorption: I believe this is a unique process in the industry.”

Technology and Formulation

Miller is enthusiastic about the impact technology has made on formulation. “[Because of technology], options for delivery systems continue to expand,” he says.

“Gummies are an example, where it has morphed from vitamins for kids into products for all age groups. We chose the gel format for Bella Grace’s flagship product, the Elixir, because it allows us to effectively manage large ingredient volumes. The gel format also allows us a more effective means to blend diverse ingredients with potentially conflicting physico-chemical characteristics. As for marketing, the gel formulation is a product that is easy to share, a critical feature in social selling.”

Miller notes that technology also plays a role on the ingredient side. “Astaxanthin is normally an oil, or lipid-based biochemical, making it a challenge for drinks, gels and regular capsules. Advanced technology to convert it into a water-soluble form greatly expands its application in product development.

“Similarly, advances in bioavailability have led to enhanced marketing, as ingredients can be delivered in a smaller physical volume whilst still achieving meaningful blood levels,” he adds. “Curcumin from turmeric is a great example of that. Normally the bioavailability of curcuminoids is abysmally low but by using phytosomes or liposomes as ‘Trojan Horse’ approaches, one can greatly enhance absorption.”

Gubler observes that supplement customers have grown significantly more sophisticated over the past five years, demanding higher quality and more advanced products. This shift coincides with rapid technological advancements, particularly in the field of epigenetics.

With 20,000 genes controlling millions of chemical reactions in the body, these genes regulate critical systems such as circulation, gut health, bone health, joint health, and lung health. Understanding and leveraging these genetic “switches” has become increasingly important for meeting the evolving needs and expectations of consumers, he says.

Technology has allowed a greater understanding of the epigenome, which is how genes are expressed in real time.

He continues, “So the epigenome can be influenced by poor diet, lack of sleep, lack of exercise, stress, anxiety, pollution, even social interactions. One thing we’re studying and working on at Three is supplements that can regulate the epigene and have shown that these can do this by proof of principle clinical study. I’m grateful for forward-thinking business people that realize that you really do need clinical studies.”

Collaborative Efforts

Another factor the direct selling channel benefits from in formulation is collaboration of its scientists (employees, contract and otherwise) with the broader scientific community.

Tan specifically pursues continued connection and collaboration with scientists with whom he already has established relationships because he trusts their acumen, scholarship, and research and development skills. “Some are lifelong professional relationships,” he says. “I met some of them when they were graduate students who later became professors. I have collaborated with the University of Massachusetts, Purdue University, Texas Tech University, Georgia State University, University of Wisconsin, and University of Missouri, Kansas City, among others.”

He continues, “Another collaboration we do is with the U.S. government’s AFRRI, the Armed Forces Radiobiology Research Institute, because one of the primary ingredients we use protects people from radiation damage. These collaborations occur because of the unique expertise that either we or they naturally can provide.”

Bella Grace Global also is enthusiastic about the network Miller collaborates with, grown from his professorship at three U.S. medical schools, contract formulation, manufacturing colleagues and his relationships throughout his tenure in network marketing.

Tan adds that some collaborations can help you become more fruitful on a tighter timeline. “Sometimes we need research to be done faster. So we work with contract research organizations, ‘CROs.’ We might fund in-depth research to prove nutritional benefits and for the scientific veracity,” he says.

“Particularly useful is our university collaborations. They’re most fruitful because of the decades of professional association. I’ve watched their research, their publication and their study, how they do this in depth, and in so doing that gives me the most fruitful return because they were asked ‘the deep question,’ and they don’t have to start from square one because I’ve known them all these years.”

Miller values his long-term partnership with AstaReal, a global leader in the astaxanthin industry. With 36 years of experience,
AstaReal has conducted over 70 clinical trials and numerous preclinical research studies on natural astaxanthin—an antioxidant—highlighting its immense biological significance.

This extensive scientific support makes AstaReal a crucial collaborator for Bella Grace, he says. Before his current role at Bella Grace, Miller served as AstaReal’s Global Ambassador, where he lectured worldwide on the health benefits of astaxanthin.

Overcoming Regulatory Challenges

Regulatory challenges are endemic to the direct sales channel, and formulating is no exception.

International regulations can mean adjusting formulas to achieve compliance in certain regions or markets. Miller says Bella Grace faced that situation when they expanded into Australia in early 2024.

“Our Weight Management product BellaTrim contains the branded ingredient ChromaxÒ (chromium picolinate) that is approved for use at 200mcg in the USA but only 50 mcg in Australia. For product registration (which is required in Australia) we needed to reformulate for that country’s specific needs. Whilst cumbersome, expensive and demanding, these reformulation efforts are part of business when managing a global audience.”

The adage “It’s a relationship business” extends to compliance as well, according to Gubler.  Navigating regulatory requirements involves building a collaborative relationship with regulatory agencies to ensure the technology is utilized in a compliant manner.

This process often involves a back-and-forth exchange, negotiating until a balance is struck that adheres to regulations while maintaining the uniqueness and power of the technology. This approach enables companies to secure patents and create exclusive, unique formulations.

Consumer Insight and Feedback

Unfortunately, Tan says, no matter what consumer trends might be, you cannot force a nutrient to work just because the market calls for it. “A company will ask, ‘Can you just try to make it this way?” he says. “If I bluff my way, I probably would be able to get that done, but that is just not me. So I have to say, ‘I’m sorry, I don’t have data to show that. That market would be fantastic, but this just won’t work.’”

Tan has seen three trends driven by consumer feedback that are strong right now. “I think consumer demand is highest in cardiovascular health, healthy aging, and addressing inflammation and oxidation.”

Direct Selling’s Biggest Opportunities in Formulating

For Tan, the opportunities and challenges are those that are universal to the direct selling channel. “I see the biggest challenge is the message: to communicate what the ingredient or product does in the simplest manner. And I see the story as the biggest opportunity.”

Having worked within the direct sales space for decades now, Tan knows that there’s a huge risk in credibility and in Federal Trade Commission compliance with having representatives try to communicate in-depth science verbally or on social media. That has to be shared through synopsis of studies—and having representatives instead share a clear and simple story.

Miller highlights that the primary challenge for direct selling companies is incorporating solid science into their products due to a lack of skilled personnel with credible scientific and medical experience. This gap has led to a market filled with ineffective “Me Too” products, he says. Miller emphasizes that understanding the core biomedical problem is essential for developing meaningful solutions.

Historically, direct selling companies have excelled in promotion, leadership development, and marketing. However, with consumers now demanding more validation, credibility, and third-party support, companies must adapt by effectively communicating complex science in an understandable way. By doing so, they can innovate and distinguish their products, leading to stronger customer retention and industry leadership.

Jenna Lang Warford is a Social Selling News Contributor.

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