When scaling any business, major challenges include: managing cash flow, hiring and retaining talent, maintaining quality, upgrading systems and infrastructure, scaling processes without losing agility, potential issues with corporate culture as the team grows, and the risk of scaling too early without solidifying product-market fit.
If you’re scaling an FMCG business, you can add a few things to that list. This roundtable discussion explores the nuances of scaling supply chains, the risks involved, and strategies for success.
Meet the experts:
- Phil Peters - Director of Supply Chain Services at YF
- Ros Heathcote - Founder and Managing Director of Borough Broth Ltd
- Udhi Silva - Co-Founder and CEO of Scale 3PL
Check out the video below or visit our supply chain podcast page to listen to the full roundtable.
Is There a Good Time to Scale?
Phil Peters emphasized that growth should be a response to demand rather than an assumption of it. He noted that businesses that succeed are those that have built a viable product and recognized repeat purchases and loyal customers. Phil stated, "If they haven't done that and they're continuing to scale, they're essentially stockpiling a load of risk."
Ros Heathcote shared her experience with Borough Broth, highlighting the challenges of sourcing organic meat and bones from small suppliers. She mentioned that scaling often requires a leap of faith, especially when manufacturing in-house. Ros explained, "It's always chicken and egg when you're scaling…you have to take a bit of a leap of faith." She added, "For me, it's been an 'if you build it, they will come' type principle, which is risky, but if you really believe in what you're doing and you don't go wildl and don't build for 10 times capacity."
Udhi Silva discussed his dual perspective from building Snaffling Pig and Scale 3PL. He advised founders to start small and learn the ropes before scaling. Udhi remarked, "If you launch a business, please do your first hundred orders yourself from home, learn how to do it, learn what happens." He also shared, "I used to be very optimistic. I'm now very pessimistic. I'm now very test and learn."
The Risks of Scaling Too Quickly
Ros warned against the pitfalls of rapid scaling, comparing FMCG to tech, "Brands that scale too quickly often come crashing down just as quickly." She elaborated, "It is a market that you need to establish yourself in slowly and understand and test."
Phil provided examples of different growth strategies, citing Trip and Goodrays. He noted that while fast growth can be appealing, slow and steady growth often leads to more sustainable success. Phil commented, "There are different ways to do it…the vast majority will fail unfortunately." He added, "Do you want to have that kind of 2, 3, 4 year slow failure or do you spend all that money in the first six months, 12 months, try and do something big and bold?"
How Do You Choose the Right Channels?
Phil stressed the importance of determining channel strategy early. He highlighted the opportunities beyond traditional retail, such as out-of-home, convenience, and transport channels. Phil stated, "Opening your eyes to all the other opportunities out there is really key." He added, "Some of the biggest brands you've never heard of are doing an amazing job in that kind of space and aren't even thinking about Tesco or Sainsbury's or Waitrose."
Udhi shared his experience with Snaffling Pig, where diversifying product offerings led to greater success. He advised brands to consider alternative channels that could be more lucrative. Udhi explained, "We created advent calendars, gift jars…we were then entered into the gifting market, which is worth 2 billion pounds a year." He added, "Brands that are all fighting for this retail space, I mean, look at your product offering, maybe there is an easier, not easier, it's not easy, but maybe there's another alternative channel which could be far more lucrative."
How Do You Set Your Supply Chain to Scale?
Udhi emphasized the importance of scalability planning, especially for major events like Dragon's Den appearances. He advised brands to ensure their supply chain is ready to handle increased demand. Udhi remarked, "It's making sure your supply chain is all ironed out and ready to roll should there be a major event in your growth story." He added, "Testing things like if you're going on Dragon's Den, making sure you have enough stock sitting in the system."
Phil discussed the need for flexibility in supply chain planning. He noted that suppliers used at the start may not be suitable as the business scales. Phil stated, "The suppliers that you're using today aren't necessarily the suppliers you're going to use at scale." He added, "Scaling is all about finding that balance. If you grow too slowly, then you miss out on opportunities. If you grow too fast, then you lose control and everything falls over."
Ros shared her experience with a Borough Broth's promotion, which highlighted the need for expertise in warehousing. She realized the importance of outsourcing certain aspects to focus on core competencies. Ros said, "I'm not a warehousing expert and I definitely need to look at potentially outsourcing to a 3PL." She added, "There are points where you realize, okay, this is my expertise. I'm not that passionate about warehousing, so what can we outsource now and is that going to impact our values? No."
How Do You Convince a Buyer You're a Safe Bet?
Ros emphasized the importance of data in proving the concept and engaging buyers. Ros explained, "For me, I went into Sainsbury's and showed them how to practically use the products." She added, "It's just about being really engaging ultimately."
Udhi advised telling a compelling story backed by figures and customer demographics. Udhi remarked, "You've got to tell a story that makes it easy for the buyer to say yes and it resonates with their shopper." He added, "We used to profile three different customer demographics…you've got to tell a story that makes it easy for the buyer to say yes."
Phil highlighted the importance of reliability in supply chain management. He noted that buyers prefer partners who can ensure smooth operations. Phil stated, "Buyers don't just list great products…they want partners, not problems." He added, "Supply chain is invisible when it works and a disaster when it doesn't."
What Does a Scale Tech-Stack Look Like?
Phil discussed the importance of having a robust tech stack that integrates forecasting, production planning, and inventory management. He advised early-stage businesses to leverage simple tools and scale up as needed. Phil explained, "Having everything singing from the same hymn sheet makes a lot of sense." He added, "For an early-stage business, you can build something or you can purchase something that runs on Excel or Google Sheets."
Ros shared her experience with Unleashed and Wink reports, emphasizing the value of data in decision-making. She noted that detailed data analysis helps in planning for scale. Ros said, "Every decision's made based on facts and numbers as much as I can." She added, "I also have a daily cashflow, which some people think is nuts, but it just means we're really on top of what's coming in, what's going out."
Udhi discussed the importance of traceability and comprehensive data management. He shared his experience with various systems like Orderwise and Unleashed. Udhi remarked, "Unleashed kind of plugs that gap where you've got that traceability and it helps with 3PLs as well." He added, "You can get lost in it. It totally makes sense for Ros's end of the scale, you are a very ops savvy founder and you are in the detail."
Can Niche Ingredients Block Things Up?
Ros highlighted the challenges of sourcing niche ingredients, especially organic ones. She noted that scalability must be considered during new product development. Ros explained, "We have to really think about scale now when we're doing NPD." She added, "We are never going to be in every supermarket with every SKU that we make."
Phil discussed the importance of good inventory management to handle niche ingredients. He noted that small production cycles can be disrupted by the unavailability of niche ingredients. Phil stated, "Balancing all of those factors is really important." He added, "If you can hold onto six months worth of that niche product that's really expensive and you don't really want that cash tied up on shelf, but it's going to enable you to produce, then you need to find a way to do that."
Going Global & Staying Green: Key Lessons for Growing Brands
Here’s what emerged as essential “musts” and cautionary “don’ts” for brands growing into Europe, the US, and beyond.
Udhi advised brands to ensure their products translate well into new markets and to have a localized supply chain strategy. He shared his experience with Snaffling Pig's challenges post-Brexit. Udhi remarked, "Do it if your brand translates into those territories…don't go into it without having your supply chain in order." He added, "We struggle with Snaffling Pig because we are ‘an antichrist’ regulated product and it's meat and it doesn't travel very well."
Phil emphasized the importance of a localized supply chain strategy. He noted that relying on UK suppliers for international expansion is unlikely to work. Phil stated, "Do localized supply chain strategy…don't rely on your UK suppliers to get product everywhere else." He added,
Ros shared a cautionary tale of early export wins leading to distraction and misaligned strategy. The lesson? Don’t get seduced by international interest before you’ve nailed your core market. Focusing on logistics and regulatory readiness is key. Even powerhouse brands like Liquid Death and RXBAR stumbled when they underestimated the complexity of entering the UK market.
Scaling Sustainably: Smart Logistics Over Silver Bullets
As the panel turned to sustainability, a clear theme emerged: small operational changes can make a big difference, but the road to true sustainability is expensive and complex.
Ros shared how shifting from frozen to chilled storage significantly cut energy use and improved cost-efficiency,“That has reduced our energy usage hugely… especially in the summer.” She also highlighted small but effective packaging tweaks—like using reusable containers—to reduce waste and carbon footprint.
Uhdi stressed that an efficient supply chain often goes hand-in-hand with a greener one. His team encourages brands to fully utilize delivery. “Why send 24 pallets when you should send 26?”. He also shared that demand from eco-conscious clients is growing, especially among B Corps asking for recyclable packaging and low-emission delivery options.
Phil offered a reality check: most brands want to be sustainable but struggle to afford it. “Being sustainable is expensive… there’s not enough help from government.”He added that simply running a lean, well-optimized operation can naturally reduce environmental impact.
Finally, Ros pointed out that public perception often doesn’t match environmental reality. For example, her brand’s flexible plastic packaging is more sustainable than heavier glass jars, but customers often assume otherwise.
In summary
Scaling an FMCG business requires more than ambition—it demands careful planning, strong fundamentals, and operational agility. Our experts agree that growth should be driven by proven demand, not assumptions, with early-stage founders urged to learn the ropes firsthand. Rapid scaling often backfires, so success lies in measured growth, choosing the right sales channels, and building a flexible, resilient supply chain.
Technology and data play a crucial role in forecasting, impressing buyers, and ensuring reliability—because buyers want partners, not problems. Expanding internationally adds complexity, requiring localized supply chains and regulatory readiness.
Sustainability remains a priority, though cost challenges persist; small changes like switching from frozen to chilled storage or improving delivery efficiency can reduce environmental impact without compromising scale. Ultimately, smart growth is about testing, learning, and optimizing—balancing bold ambition with grounded, strategic execution.
