Navigating the Supply Outlook of Vitamin A and E in an Era of Global Energy Uncertainty

As the situation in the Gulf continues to evolve, we recognize growing concerns across the industry regarding potential impacts on vitamin availability and pricing.

At a macro level, any disruption to global energy markets has far reaching consequences. Vitamin production, like much of the chemical industry, is highly energy dependent, and shifts in oil and gas dynamics can significantly influence both cost structures and supply stability.

Raw material sourcing is also a critical factor. Synthetic vitamin E, vitamin A palmitate, and beta carotene are particularly exposed due to their reliance on citral, a petroleum derived intermediate essential as a key starting molecule for their synthesis, as well as the cost of energy in the production and distribution of ingredients and finished product. This creates a compounded risk when oil is under both supply and cost pressures which currently exist.

We are also seeing early market signals suggesting potential tightening conditions. There are indications that some major producers may already be facing supply challenges and are showing hesitancy around longer term pricing commitments.

At Vernon Walden, we want to provide clarity and reassurance:

We currently maintain strong availability from existing productionOur redundancy in sources and overall supply chain management continues to provide reliable access to key raw materialsOur United States based production and inventory helps mitigate overseas logistics risksWe have very long term and well established relationships with most major global producers of the pure actives, supporting supply continuity.

As a result, we are confident in our ability to support near term demand with competitive pricing and are well positioned to accommodate increased needs from both existing and new partners.

At the same time, we are actively monitoring developments, not only in the Gulf, but also broader factors such as tariffs and trade policy shifts. Should conditions escalate, or if there are sustained increases in oil prices, the broader market likely will experience availability constraints and there could be significant upward pressure on pricing.

In anticipation of this, we are proactively building inventory and securing additional raw materials to help ensure uninterrupted supply for our customers.

We remain committed to transparency and will continue to share timely updates as the situation evolves.

If you have questions about supply, planning, or forward coverage, we welcome the conversation.