When growth creates leakage: how nutraceutical brands can protect distribution without fixing resale prices

Nutraceutical brands can protect growth, margins and consumer trust by designing controlled distribution systems that manage channel leakage without unlawful resale price fixing

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A nutraceutical brand can spend years building trust through practitioners, specialist retailers and carefully managed direct-to-consumer channels, only to find its products discounted on marketplaces, sold by unknown traders or appearing in territories it never targeted.

What looks at first like a pricing problem is often a distribution problem.

As brands scale, informal routes to market can quickly become porous: wholesale stock moves into unintended channels, international distributors sell beyond agreed territories and third-party listings undercut the brand’s own customer experience.

The issue is not simply lost margin. It is whether the distribution structure has kept pace with the business.

Dr Alexandra von Westernhagen and Carolyn Bane, Partners at Keystone Law, report. 

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