Born the son of an organic berry farmer, Nature’s Path President and CEO Arran Stephens learned to respect the land at an early age, paving the way for a long and successful future in the organic foods industry and a lifetime of environmental sustainability.
“He taught me, ‘always leave the soil better than you found it,’” Stephens said of father Rupert.
Stephens has, in fact, done just that.
At the age of 23, the younger Stephens opened his first vegetarian restaurant in Vancouver, British Columbia. He and a business partner followed with the opening of Canada’s first large organic supermarket, LifeStream, in 1971. Within six years, the company’s annual sales had grown to $9 million, making it one of Canada’s leading natural food brands. Stephens sold his share of the business in 1981.
In 1985, Stephens and wife Ratana, the company’s chief operating officer, started Nature’s Path in the back of their restaurant. Over the next several years, the company would produce unique products including sprouted organic manna bread and organic and multigrain cereals. By 1989, the company had grown by 800 percent. To keep up with this exponential growth, Stephens built a 54,000 square foot organic processing plant in Delta, B.C.
Since that time, the company has continued to grow and evolve, adding new products to its popular organic line. In 1995, the Stephens family purchased back LifeStream from Kraft.
To keep up with the growing demand, Nature’s Path expanded its production facilities into the United States, adding a 70,000 square foot production facility in Blaine in 1999. The plant has since doubled its size and will add more staff in the fall of 2005.
Now celebrating the company’s 20th anniversary, Nature’s Path sells its products in 30 countries, with its biggest market in the United States. The products are sold in smaller co-ops and organic food stores as well as in Costco, Safeway, Fred Meyer/Kroger, Haggen and Cost Cutter stores. According to Stephens, Nature’s Path cereals are among the top 10 cereals at Costco.
With new products being added regularly, Nature’s Path makes more than 100 products, including breakfast cereals, breads, granola bars, crackers, cookies, waffles, and baking mixes. The company sells its products under three product lines: EnviroKidz and Nature’s Path, which are certified organic (95 percent or more organic ingredients); and LifeStream, which is 70 percent or more organic.

Succeeding in fierce breakfast market
As only one player in a $15 billion a year industry, how does Nature’s Path continue to grow and succeed? How does it compete with the major food giants?
The answer lies in the philosophy of Stephens and his wife. From the beginning, they wanted to improve people’s lives by providing natural, organic foods.
“The company was founded on common sense,” Stephens explained. “And we wanted to turn the world onto eating and living healthy.”
It is with this philosophy that the Stephens’ have done everything, from adding healthy, popular, organic items to the company’s product mix to hiring staff for the company’s production facilities, distribution center and headquarters.
Stephens also believes his company’s success can be attributed to its growing product line. Originally starting out with only a few products, the company’s line has expanded regularly, adding new products to keep up with consumer demand. This includes the addition of baking mixes, power bars, and kid-friendly foods. Utilizing seven food scientists on staff, the company is always thinking ahead to its next new product.
“We have a very active R and D department,” Stephens said.
Stephens said that many of his original competitors were independent, “mom and pop” stores, many of whom were bought out by major competitors. Now Stephens competes with companies like Kellogg’s, General Mills and Kraft.
“The competition is ferocious,” Stephens said.
In spite of that, Nature’s Path has still achieved a 26 percent market share in the natural cereal category. Stephens expects to maintain or increase that market share as the company continues to grow.
Both Stephens and plant manager Jeff Green said that the company’s employees have also significantly contributed to the company’s great success.
“We have a good variety of people,” Stephens said. “They are the foundation of our success.”
“Our managers and staff are a very dedicated group of people. They work well as a team to resolve, improve and perform in a dynamic and growing business,” Green added.

A prosperous path
Stephens is confident that he can maintain the growth of Nature’s Path at a rate of 25 to 30 percent per year, with 10 to 15 percent growth from existing products and 10 to 15 percent from new ones.
To capitalize the company’s expansion efforts, Stephens is adding a gluten-free production line that will only produce gluten-free products. This will allow the company to increase its gluten-free product line by one third and ensure zero contamination from gluten-based ingredients, a growing concern among those with food allergies.
The company will also add a new bar product line to increase its current capacity by 300 to 400 percent, and a new pouching line for packaged mixes. In addition, the company anticipates hiring 25 more employees at its Blaine site.
Despite sidelong glances from major competitors, Stephens is not tempted to go the way of many other organic brands and sell Nature’s Path to a larger company.
“We are not interesting in selling,” Stephens explained. “We are interested in maintaining our course, our vision to be a trusted name for organic foods in every home – social responsibility, environmental sustainability, and financial viability.”