I think the more usual way of saying this is scaling up, meaning taking a process that works on a small scale, in a lab or a manual production process and making it work in large scale production.

"Chemical Synthesis and Active ingredient scaling-up (it implies modifying the obtaining of a few grams of substance in the laboratory to adapt it to industrial equipment able to produce product quantities of tens or hundreds of kilograms)."
http://en.wikipedia.org/wiki/Almirall

Individual aspects of this project were
addressed in close cooperation with suppliers who provided technical solutions to the challenging
problems encountered in scaling-up a laboratory process.

In this example process we describe the challenges met in scaling-up the production of a
pharmaceutically active substance produced in and isolated from Hansenula. The goal was to scaleup
a process that was successfully developed using laboratory bottle centrifuges to production scale.
In this process there are many problems associated with the varying nature and volume of the product
http://celld.com/documents-adobe/powerfuge-Concentration de ...



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Note added at 34 mins (2011-01-31 13:42:45 GMT)
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The question of reliable suppliers is in a sense the same thing. If you have a product that is being sold in small retail numbers, you need more outlets to make the level of sales to justify the scaling up of production.

Otherwise upscale usually means high end, fancy, luxury, high priced -- that sort of thing.

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Note added at 39 mins (2011-01-31 13:47:49 GMT)
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The meaning is probably something like:

xxx need both new active substances and reliable suppliers for its products in order to scale up experimental substances into efficient and profitiable large scale production and distribution of cosmetic products