Spotlight On: Nature’s Path

Despite increased competition, family-run Nature’s Path remains a leading organic food company. 

Arran Stephens has not deviated from his plan, first established about 30 years ago.

That may be why Nature’s Path, the company he founded in 1985, has managed to double its revenue to more than $300 million annually over the last five years, becoming among the top organic food companies in North America; this done despite growing competition and a more complex marketplace.

But is anyone really surprised at Nature’s Path’s success? With a broad assortment of products and a great reputation as a leader in organic merchandise, the Vancouver, B.C., Canada-based company has been on a roll practically since Stephens and his wife Ratana started the company with Manna Bread, a baked bread, 30 years ago.

Stephens, for his part, says that his commitment to maintaining the company’s goals comes from being part of a family of farmers and gardeners – who knew how to stick to their goal.

“My dad inspired me to do my part to leave the earth in better shape than I found it,” he says. “We are a family-owned business with the mission to be known as a trusted name for quality organic foods in every home. We started with a mission to be a socially responsible company, to be environmentally sustainable and to be financially viable; and we have not deviated from that one bit. Now, we are the number one brand of organic breakfast products in the country.”

Today, Nature’s Path offers about 125 different products, all of them certified organic and non-GMO. Those products range from its well-known cereal line to granola bars and toaster waffles to Que Pasa, a stone-ground tortilla chips and salsas line. The company is now moving into the so-called superfoods, including Qi’a and flax products.

Assortment may be great but it is clear from the start that Stephens is putting his reputation on the line with each and every consumer purchase of a Nature’s Path product.  The company does its own manufacturing, in facilities in Wisconsin, Washington state and Vancouver, that he calls “state-of-the-art.” Those plants move products to more than 40,000 retailers across the country, including most major chains, a bevy of independent retailers and even the U.S. military.

“We know the deal,” he adds. “If our retail customers don’t make a profit they are not going to stock our products. Therefore, it is extremely important for us to make our business relationship with them a win-win situation.”

To do so, Stephens says that Nature’s Path is investing in more new plants and equipment, as well as farmland and research and development. “We see the sky as the limit,” he says. “We have a staff of four scientists who are charged with bringing new products to market. Our goal is to introduce between 15 and 20 items a year. We know that not all of them are going to make it, but that will allow us to cull out the weak ones and run strongly with the ones that do work. It will allow us to grow.”

The end result, he says, will be products that taste great, are priced right and packaged beautifully to spur consumer trial.

But even as Nature’s Path gains more exposure through tremendous word-of-mouth support, Stephens is aware of the changing state of the category and how the competition is biting at his heels. “For so many years we relied on word-of-mouth to build our awareness,” he says. “Now, we are doing print media and some TV. We are investing a lot of time with social media, including Facebook and Twitter.”

Stephens also makes it clear that Nature’s Path is going to stay an independent, family-owned company. “Most organic companies sold out to big companies over the years,” he says. “I get an offer just about every week asking if I want to cash out. We are not for sale. Right now, we are focusing on becoming a more diversified company and we hope to double our annual sales again over the next five years. This is a real adventure for us and I love the fact that we made a difference.”