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August 01, 2015

News in Brief

News in Brief, August 2015

Click here to order the August 2015 issue in which this article appeared or click here to download it to your mobile device.

Annual Report Shows Oriflame’s Comprehensive Approach to Sustainability


Throughout 2014, Luxembourg-based Oriflame made major strides toward sustainability in its core business operations. The beauty brand recently provided a window into its progress with the release of its annual Sustainability Report.

Environmental sustainability and corporate citizenship have been an integral part of Oriflame’s nearly 50-year history. The brand has laid out its current strategy in a five-year plan that specifies 14 goals and 36 commitments—all aimed at developing successful people, great products and a thriving planet.

In 2014, 67 percent of electricity used at Oriflame’s manufacturing sites came from renewable sources. Total CO2 emissions decreased by 5 percent, and the company obtained GreenPalm certificates covering 100 percent of its palm oil consumption. Product packaging was 93 percent certified by the Forest Stewardship Council, and 93 percent of all catalogue paper was also credibly certified.

As the No. 11 direct selling company in the world, according to the DSN Global 100, with annual revenue of $1.68 billion, Oriflame has drawn global recognition for its efforts. Last year, the company received the “Sustainable Standard Setter” award from the Rainforest Alliance, as well as a spot on the “A List” in the CDP Climate Performance Leadership Index 2014.

Oriflame’s products have also earned kudos, such as the 2014 Eco Beauty Award from the CEW Beauty Awards (Cosmetic Executive Women) for its pioneering Ecobeauty products. The cross-category range is the first of its kind in the industry focusing on sustainability in each step of the production process.

dōTERRA Completes Second Phase of Utah Headquarters

dōTERRA headquarters in Pleasant Grove, UtahdōTERRA headquarters in Pleasant Grove, Utah

Essential oil seller dōTERRA International has nearly doubled the size of its corporate headquarters with a newly completed Product Center. With the additional warehouse and office space, dōTERRA’s headquarters now covers 383,000 square feet and houses 1,400 employees.

The Utah campus, created with architectural firm VCBO and Jacobsen Construction, has already earned awards for both partners. Utah Construction and Design magazine recognized VCBO for Most Outstanding Project in the Commercial/Office category, and The Associated General Contractors awarded Jacobsen the Best Corporate Project prize for the State of Utah.

The completion of the facility brings all of dōTERRA’s departments together at one location. “This allows us to collaborate, work together, and increase productivity across multiple departments, and also allows us to continually build great relationships between departments,” said Director of Human Resources, Mark Ringger, who oversaw the project.

The innovative design and construction has increased efficiency for the company, with the Product Center currently processing more than 30,000 essential oil will call orders every month.

Department of Defense Recognizes Melaleuca as a Patriotic Employer

Melaleuca CEO Frank VanderSloot accepts the Patriotic Employer Award.Melaleuca CEO Frank VanderSloot accepts the Patriotic Employer Award.

The U.S. Department of Defense recently presented the Patriotic Employer Award to Melaleuca CEO Frank VanderSloot in appreciation of the company’s extraordinary support of American soldiers.

The Department of Defense’s Employer Support of the Guard and Reserve (ESGR) selected Melaleuca for the award after learning how the company supported Army Specialist Nathan Johnson while he served on active-duty orders for two years. Specialist Johnson, a nine-year Melaleuca employee who works as a senior web analyst, is returning to active-duty service again in August.

At the presentation of the award, Johnson praised Melaleuca’s military-friendly culture and patriotic values. He emphasized the connection he felt while he was away, the support he and his wife received, and the free Melaleuca products that came every month. Melaleuca also ensured that he experienced a smooth transition back to the company following his tour of duty.

“I didn’t have to worry about loads of paperwork or fight for hours to get things done,” said Johnson. “All those potential sources of stress were avoided, because Melaleuca took care of it for me.”

Nerium Hits the Ground in South Korea with New Brand Center

NeriumLeft to right: Nerium Chief Field Officer, Mark Smith; General Manager of Korea, BJ Choi; President of International, Roy Truett; and Chief Networking Officer, Dennis Windsor.

Nerium International has a new home in South Korea, where the anti-aging company opened its first Asian market in June. To support the region’s nascent salesforce, the company has established its newest Brand Center in the South Korean capital of Seoul. The Brand Center will showcase Nerium’s Optimera skincare line, which includes an Age-Defying Night Cream and Day Cream. In addition to serving consumers, the 8,500-square-foot space will offer training, tools and other resources for brand partners.

“Asia-Pacific is one of the most important regions for relationship marketing,” Nerium President of International, Roy Truett, said in a statement. “We have a large Korean base of Brand Partners in the U.S., and we are thrilled to bring our winning combination of opportunity and cutting-edge, proprietary products into a country that we feel is a leader in the skincare industry.”

Belcorp CEO Honored for Social Sustainability Work

Eduardo BelmontEduardo Belmont

During this year’s Latin Trade Symposium, Belcorp CEO Eduardo Belmont will be one of six corporate leaders to receive a 2015 BRAVO Business Award honoring excellence and leadership in Latin America and the Caribbean.

Latin Trade Group, the organization behind the symposium, has named Belmont the recipient of its Social Sustainability CEO of the Year award. According to the judges, the award honors Belcorp foremost “for improving the lives of hundreds of thousands of families through the support of more than 1 million female beauty consultants.” The panel commended the beauty and personal-care brand, which has reached $1.4 billion in annual revenue, for “committed action” on behalf of employees, consumers, suppliers, the community and the environment.

The BRAVO nomination process takes place through the group’s magazine, Latin Trade, where readers nominate individuals across the public and private sector. The magazine’s editorial team consults with past honorees, international business executives, and government and academic leaders to narrow the list of candidates.

Latin Trade Group is partnering with outlets such as CNN, The Financial Times and PR Newswire to present its annual one-day conference, followed by the 21st BRAVO Business Awards, a black-tie gala recognizing the BRAVO winners. This year’s event will take place Oct. 29 in Miami.

Avon Sells UK Skincare Brand to Walgreens

Liz EarleProducts on display at a Liz Earle store on England’s Isle of Wight.

Avon announced in July that pharmacy giant Walgreens Boots Alliance has acquired the Liz Earle retail brand for approximately $215 million.

In a statement, Avon CEO Sheri McCoy noted the transaction has “immediate benefits” for Avon and that “Liz Earle is the perfect fit for Walgreens Boots Alliance where it already has a strong presence in its retail stores.”

Avon acquired Liz Earle in 2010, just months before acquiring Silpada Designs, the direct selling jewelry brand that Avon divested in July 2013. Unlike Silpada, Liz Earle operated as a standalone business from Avon’s core direct selling business. Last year, the skincare brand accounted for 1 percent of Avon’s consolidated revenue and adjusted operating profit and 3 percent of its EMEA (Europe, Middle East & Africe) revenue and adjusted operating profit.

Avon’s latest turnaround measure follows a disappointing 2014, which reported a net loss of $331 million on an 11 percent revenue decrease for the year. The company said it will use the proceeds from the Liz Earle sale in its planned redemption of $250 million, 2.375 percent notes due in March 2016.

Stream Connects Soldiers to Loved Ones with a Million Free Minutes


Stream has jumpstarted its newest charitable partnership by donating more than 1 million minutes of free talk time through Cell Phones for Soldiers. The family-run nonprofit supplies calling cards and cell phones to active-duty military members and veterans.

The donation resulted from Stream’s first associate promotion in support of Cell Phones for Soldiers. After launching the partnership in May, the home services provider said it would donate 1,000 minutes of international talk time for each new mobile customer signed on throughout the month.

“Stream helps people get connected with its Mobile Services, and now they are helping our organization provide a lifeline for America’s bravest,” Robbie Bergquist, Co-Founder of Cell Phones for Soldiers, said in a statement. “We are extremely grateful to Stream and its Associates for their support.”

Bergquist and his sister, Brittany, founded the national nonprofit in 2004, when they were just 12 and 13 years old. Since then, Cell Phones for Soldiers has provided more than 200 million minutes of talk time and nearly 12 million recycled cell phones to service members. Dallas-based Stream said it plans to support the organization on an ongoing basis through various promotions with its associates.

Natural Health Trends Joins Russell Indexes

Personal-care and wellness company Natural Health Trends Corp. recently announced its inclusion on the Russell Global Index, the Russell 3000 Index and the Russell Microcap Index. The comprehensive set of equity indexes, reconstituted annually, captures the 3,000 largest U.S. stocks and ranks them by total market capitalization. Dallas-based NHTC joined the Russell indexes at the end of June.

“Inclusion in the Russell indexes is a significant milestone for us following our revenue and profit growth in the last few years,” Chris Sharng, Natural Health Trend Corp. President, said in a statement. “As we continue to execute on our growth strategy, we believe our membership will help facilitate efforts to raise our profile in the financial community, broaden our shareholder base and improve liquidity.”

US Market Boosts Quarterly Sales at Immunotec Inc.

Quebec-based Immunotec Inc. saw steady revenue growth in its second quarter, primarily on the strength of the company’s U.S. sales. For the quarter ended April 30, 2015, revenue was up 4.8 percent to $16.2 million. The nutrition company posted a net profit of $243,664, a 60 percent decrease from the second quarter of 2014. Adjusted EBITDA amounted to $1.1 million or 7 percent of revenue, compared to 7.4 percent a year ago.

“The recent volatility in currencies is causing businesses worldwide to review their supply chain strategies,” CFO Patrick Montpetit noted in the company’s release. “Subsequent to the end of April, we secured additional financing to support strengthening our supply chain.”

Judge Dismisses Solavei Case against Stream


A Dallas District Court judge has dismissed Solavei’s trade-secrets case against Dallas-based competitor Stream. Judge Craig Smith of the 192nd District Court dismissed with prejudice the lawsuit alleging that Stream had launched its mobile services using proprietary technology and information from Seattle-based Solavei.

Stream, an energy company that has expanded into other everyday services, launched Mobile Services by Stream in January, six months after backing out of extended merger talks with Solavei. Pointing to a confidentiality agreement signed by both companies, Solavei claimed senior Stream executives had used knowledge of Solavei’s technology, social marketing strategies, go-to-market plan and customer lists to roll out its mobile direct selling business.

The day before Stream’s mobile launch in January, Solavei aired its grievances in an official statement, a move that prompted Stream to obtain a temporary restraining order prohibiting further disparaging remarks by Solavei.

Back in June 2014, while in talks with Stream, Solavei filed a Chapter 11 bankruptcy and announced that services would continue uninterrupted as its business underwent restructuring. After Stream terminated the transaction, Solavei went on to merge with Aspider, a Netherlands-based mobile infrastructure and services brand.

At the end of June this year, the court granted Stream’s request for a summary judgment, ordering a dismissal that prohibits Solavei from filing another lawsuit on the same grounds.

Herbalife to Bring 300 New Jobs to North Carolina

HerbalifeHerbalife’s Innovation and Manufacturing facility in Winston-Salem, North Carolina

Following the grand opening of its largest manufacturing facility in January, Herbalife has announced plans for further investments that will bring 300 new jobs to North Carolina. The nutrition company previously announced that its Winston-Salem Innovation and Manufacturing facility would employ 500 by the end of 2015. Herbalife is now investing an additional $3.5 million in infrastructure that will open 300 manufacturing and IT jobs at the 800,000-square-foot plant. The company expects to complete this latest phase of development by the close of 2018.

The NSF-certified facility is one of four Herbalife Innovation and Manufacturing facilities worldwide. In addition to manufacturing operations, its one-mile loop houses Herbalife’s Global Technical Operations Center and a state-of-the-art quality and testing lab.