A bold reinvention turned supply chain risk into a thriving, consumer-led business.
From Partner to Cut Out of the Picture
A UK-based, owner-managed SME supplying premium fresh produce to a national grocery retailer faced an unexpected blow in late 2022. Without warning, the retailer rebranded the SME’s flagship product under its own label, cutting the business out of the supply chain it had built and nurtured.
The retailer also poached the SME’s trusted growers and packers, stripping the company of both market share and margin. With litigation financially out of reach, the SME had two options: accept the loss or reinvent its business.
“They weren’t just hurt. They were gutted. But that emotion became fuel. This was a chance to stop playing support and start leading as a brand-led manufacturer.”
The Pivot: From Fresh Produce to Functional Beverages
With guidance from a UKBA Manufacturing & Supply Chain consultant, the SME paused firefighting and assessed its true strengths:
- Decades of expertise in fresh produce sourcing.
- Clean-label credentials trusted by consumers.
- Agile, small-batch production capability.
The opportunity? To pivot from supplying commodity produce to creating high-value nutrient drinks and smoothies, leveraging their sourcing expertise to develop ready-to-drink products that couldn’t be easily replicated.
Strategy: Regain Control from Field to Fridge
Over 20 weeks, with UKBA’s support, the SME transformed its business model:
- In-House Bottling and Process Control
- Installed a compact high-pressure processing (HPP) line to produce cold-pressed smoothies on-site.
- Claimed R&D Tax Credits to offset investment.
- Upgraded the Quality Management System (QMS) to meet regulatory standards.
- Shifted from co-packing dependency to full ownership of production and process IP.
- Securing the Supply Chain
- Rebuilt grower relationships with exclusive forward contracts and Service Level Agreements (SLAs) focused on quality and availability.
- Introduced IP protections for recipes and packaging.
- Partnered with smaller suppliers and co-ops to build ethical sourcing stories.
- Distinctive, Health-Led Products
- Developed nutrient-rich beverages fortified with botanicals, plant proteins and gut-health ingredients.
- Emphasised provenance, regenerative agriculture and transparency to prevent white-label copying.
- Direct Sales and Brand Ownership
- Launched a branded direct-to-consumer eCommerce platform.
- Built partnerships with fitness chains, health food stores and wellness cafés—bypassing supermarket dominance.
- Secured a national subscription delivery partner for recurring revenue.
Results: From Dependency to Brand Leadership
In just seven months, the SME achieved:
- Launch of a three-product nutrient drink range under its own brand.
- Distribution in 120+ health and fitness outlets.
- 80% reduction in reliance on contract packers.
- 20% year-on-year revenue growth.
- Doubled profitability through higher margins and retained IP.
“We went from being a quiet supplier on a small shelf to the brand consumers trust. We now control the supply chain and the customer experience, because we designed it that way,” says the co-founder.
Lessons for Owner-Managers
Dependency on large buyers or co-packers is risky. One unexpected move can erase your margin and control overnight. The best defence? Move up the value chain:
- Own your product.
- Own your process.
- Own your customer relationships.
This isn’t just good business. It’s how trust and long-term value are built.
“If your customer controls the process, they don’t just buy from you, they own you. The way out is to own your brand,” says the UKBA Consultant
Ready to Pivot?
UK Business Advisors helps SMEs build resilient supply chains, launch new products, and regain independence. Let’s talk about how we can help you own your next chapter.