The 'Wellness' Phenomenon: Implications for Global Agri-food Systems

The ‘wellness’ phenomenon is now apparent throughout the world and is associated, inter alia, with: the importance of a balanced diet; recognition of the need for regular exercise; the introduction of workplace fitness programs; and the introduction of new (and alternative) approaches to the treatment of medical ailments. What has gone seemingly unnoticed, however, have been the quite profound changes that are occurring within agrifood chains. The development and sale of health-enhancing (functional) foods is one example. The desire, by consumers, for purchase of ‘clean and green’ foods that come without traces of agri-chemicals, conform to raised standards of animal welfare, and are sourced from sustainable production systems, is another. Two more remarkable changes given the former power and dominance of the food manufacturing sector have been the increased influence the supermarket sector has been able to exert along agri-food supply chains, and the growth of the food service sector. Supermarkets have deliberately moved to ‘own branding’ as a means of increasing profits – something that has ‘squeezed’ the traditional branded products out of market share. The burgeoning food service sector is providing a wide range of options to the traditional activity of home food preparation and consumption. The food manufacturing sector is therefore facing considerable pressure to reconfigure its operations so as to remain competitive within changing power relations up and down the agri-food supply chains. It is here that ‘wellness’ becomes significant: one of the most important responses on the part of established food companies has been to shift the focus of their core activities from the provision of ‘traditional’ branded products to those which profess to provide ‘wellness’ benefits. For example, Nestlé, the largest food company in the world, now markets itself as a 'wellness' company rather than a food manufacturer, with a clear strategy for future growth and development. This involves a wide range of initiatives but, most importantly, the development of strategic alliances between food companies and drug manufacturers, and a convergence in the R&D activities of both groups. This paper analyses the growth of ‘wellness’ firms within the global agri-food sector, highlighting the significance of this development for actors within agri-food chains, and outlining the contradictory tendencies at play in agri-food chain restructuring.