Securing Supply Chains: A Milanese Startup Pioneers Local Production of Herbal Supplements
The COVID-19 pandemic exposed critical vulnerabilities in the supply chain for food supplements, prompting Milan-based startup Nip Tech to pursue a novel solution: localized, vertical farming of medicinal herbs.Founder Glauco Isella, previously successful with juice and extract company Babasucco, experienced firsthand the disruption when international trade restrictions halted the import of key active ingredients, primarily sourced from India and China.
This wasn’t an isolated incident. Geopolitical instability – including events like the Red Sea crisis – has repeatedly threatened the availability and price stability of these essential raw materials, with approximately 75% of Europe’s supply originating from China and India, and the remainder from Africa and South America. These imported ingredients, derived from plants like Ashwagandha, Tarassaco, and Centella, are then processed into supplements, cosmetics, and pharmaceuticals in European hubs like Milan and Pisa.
Recognizing the fragility of this system,Nip Tech explored the potential of a “zero kilometer” production model. “From seed to finished product in a single facility would be ideal for the sector,” Isella explained, building on the success of their existing vertical farm.
To realize this vision, Nip Tech assembled a team of experts – an agronomist, biochemist, biologist, and pharmacist – and collaborated with the Universities of Parma and Pavia to assess the feasibility of a vertical farm dedicated to active ingredient production. The resulting process prioritizes ecological sustainability, utilizing enzymatic extraction to isolate active compounds without relying on chemical solvents.
This innovative approach combines multiple technologies to create a scalable and reproducible system. Beyond reducing transportation costs and environmental impact, Nip Tech’s method demonstrably improves efficiency. Testing revealed significantly higher assimilation rates, active ingredient concentrations up to ten times greater than standard methods, and extraction times reduced by a factor of twelve. Overall production timelines were also halved.
Nip Tech is now actively patenting its extraction process for each individual raw material,encompassing both the software and industrial procedures involved.The company recently secured its frist patent for the extraction of Verbascum (mullein) active ingredients, marking a meaningful step towards a more resilient and localized supply chain for the herbal supplement industry.
