Icelandirect expands CDMO footprint with SOMA LABS solid dosage acquisition

"We understand the value this brings to our customers’ existing supply chain needs by allowing them to spend less time on managing multiple vendors and more time on marketing of their products," said Brandon Miller, CEO of Icelandirect.
"We understand the value this brings to our customers’ existing supply chain needs by allowing them to spend less time on managing multiple vendors and more time on marketing of their products," said Brandon Miller, CEO of Icelandirect. (Getty Images)

Icelandirect’s solid dose manufacturing acquisition pushes the company’s established focus beyond lipid-based formulations and softgels.

The deal will allow Icelandirect to compete for programs spanning multiple delivery systems across human and pet supplements.

Prior to the acquisition, Icelandirect’s footprint centered on lipid-based formulations, particularly omega-3s and marine-derived ingredients, as well as softgel delivery systems.

“For years, we have been known as a leader in lipid and softgel supplement sourcing, formulation, manufacturing and packaging,” Brandon Miller, CEO of Icelandirect, told NutraIngredients. That focus positioned the company in categories such as heart health, brain health and pet nutrition, but left gaps in solid dosage formats as customer demand expanded, he explained.

The acquisition was intended to address those gaps. Icelandirect can now support powders, capsules, tablets and chewables alongside its existing liquid formats, enabling brands to consolidate manufacturing with fewer partners, Miller said.

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“We understand the value this brings to our customers’ existing supply chain needs by allowing them to spend less time on managing multiple vendors and more time on marketing of their products,” he added.

Solid dosage expansion targets key market gaps

Within the expanded portfolio, Icelandirect identified tablets and chewables as areas where brands continue to face formulation and manufacturing challenges.

“The biggest need we see in the marketplace is more reliable CDMO’s that can produce high quality tablets and chewable that deliver higher dosages of active ingredients and still have a great taste and mouth feel,” Miller said.

SOMA LABS brings more than two decades of experience in solid dosage manufacturing, complementing Icelandirect’s strengths in liquids and lipid-based systems.

“Of all the acquisitions we looked at, Soma Labs stood out because of their commitment to quality and their long-standing tenure in the industry,” he said, noting that much of the staff has remained with the company for more than a decade.

He added that operational consistency and established procedures were key factors in the decision.

Broader format offering supports consolidated manufacturing models

The acquisition expands Icelandirect’s product range across both human and pet supplements, matching demand for fewer, more capable CDMO partners.

“These new offerings allow us to take a brand from ingredient and formula all the way through to finished, shelf-ready product — in more formats, at greater scale, and with the quality standards our customers have come to expect from Icelandirect,” Miller said in Icelandirect’s press release.

Miller added that the deal will “more than double the existing offerings for both pet and human turnkey solutions.”

The company will operate a dual-hub model, with SOMA LABS focused on powder-based formats and Icelandirect’s existing facility handling liquid production.

“SOMA LABS will operate as an integrated division of Icelandirect, with its New Jersey facility remaining fully operational,” Icelandirect’s press release stated.

The move takes place as brands look to reduce the number of manufacturing partners they manage as they expand across formats.

“The majority of our customer base at Icelandirect also offer powdered based products like capsules and tablets,” Miller said, adding that many brands are actively consolidating CDMO relationships.

The deal also extends Icelandirect’s lipid and softgel expertise to SOMA LABS’ existing customers.