June 01, 2017
News in Brief, June 2017
IN THIS ISSUE:
2017 DSN Global 100 List
Building Strategy for Future Growth
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking
By The Numbers
Amway North America California Business Center Opens
Amway recently opened the doors to its newest experiential facility, the California Business Center (CABC). The new facility, located in Buena Park, will empower Amway Independent Business Owners (IBOs) with resources for better business-building.
The CABC is a dynamic, high-impact experience center that offers flexible meeting spaces, training and demonstration areas, product and sampling zones, an Amway historical gallery, and in-store purchasing options for IBOs, including Amway’s high-quality products from its leading nutrition, beauty and home brands.
Amway Engineering and Facilities partnered with Tom Rakestraw Architects of California to develop the CABC as an expansion of Amway’s Center for Nutrilite Experience. The two experiential Centers now occupy the shared space. The location was originally home to Amway’s first Nutrilite facility, which opened in 1948.
“We are excited to announce the opening of the California Business Center as a part of the ongoing investment in our IBOs, building credibility for their businesses and helping them achieve their goals,” said Jim Ayers, Managing Director, Amway North America. “Having a physical space to experience all facets of our business opportunity—meet, train, demo and purchase product—is a tremendous value that we’re proud to now deliver on both coasts through the new facility as well as our New York Business Center at Citi Field.”
Herbalife Q1 Results Exceed Expectations
Los-Angeles, Calif.-based Herbalife reported net sales of $1.1 billion for the first quarter of 2017, and volume point growth of 1 percent compared to the prior-year period. Net sales increased in China (5 percent), EMEA (6 percent) and Mexico (8 percent); sales decreased in North America (7 percent), Asia Pacific (2 percent) and South and Central America (8 percent).
China sales and volume significantly exceeded expectations primarily due to the impact on timing of sales and volume, which resulted from a price increase announced in March 2017, effective April 1, 2017. The company believes this shifted member purchases into the first quarter, which would likely have been made in the second quarter of the year.
On a reported basis, first quarter net income was $85.2 million, or 98 cents per diluted share, compared to net income of $95.8 million, or $1.12 per diluted share, for the first quarter of 2016.
“We’ve made a solid start to 2017, exceeding our EPS guidance,” said Michael O. Johnson, Chairman and CEO of Herbalife.
Herbalife was No. 3 on this year’s DSN Global 100 ranking of the top direct selling companies in the world. The company reported earnings of $4.5 billion for 2016.
Zija International Acquires XANGO
Zija International, the Lehi, Utah-based direct seller, announced that it has acquired XANGO, the health and wellness company also based in Utah that was the first to market a premium mangosteen beverage to consumers worldwide.
The acquisition was made possible through the efforts of Zija’s Founder Ken Brailsford, who also co-founded Nature’s Sunshine and founded Enrich International (now Unicity).
“Every one of the XANGO founders has worked with Ken during our careers,” said XANGO Founder, CEO and Chairman Aaron Garrity. “Ken brought my partner Joe and I into the direct selling business and shaped the early parts of our careers. He is a mentor and a trusted friend. Ken has always shown deep respect for what we have all built with XANGO, and he shares our belief that a company in our industry must make distributors its top priority.”
Zija executives say the company is poised to drive change in direct selling and continue a path of accelerated company growth, led by President and CEO Ryan Palmer. XANGO distributors, which number more than 2 million in over 40 international markets, will now have access to the entire Zija catalog.
XANGO was founded in 2002 by brothers Joe and Gordon Morton and Aaron Garrity. Brailsford founded Zija four years later, in 2006.
Herbalife Sponsored Triathlete Wins IRONMAN
Heather Jackson, a triathlete sponsored by global nutrition company Herbalife, won the women’s race at the IRONMAN 70.3 Peru in April, and then she donated all proceeds to the Peruvian people devastated by the recent floods that displaced an estimated 900,000 families.
“I’m always so grateful for the opportunity to race, and meanwhile, thousands of people have lost their homes,” said Jackson. “Peru, Herbalife Nutrition and the entire Herbalife Nutrition community have given me so much in so many ways that it is the least I can do to give back to this wonderful country.”
Jackson, who trains in Bend, Oregon, was one of 1,600 runners competing in the race. She completed the event with a time of 4 hours, 12 minutes and 41 seconds. Her finish qualifies her for the upcoming IRONMAN in Chattanooga, Tennessee, in her attempt to secure a spot in this year’s IRONMAN World Championship in Kailua-Kona, Hawaii, in September.
“As [Heather Jackson’s] official nutrition partner, we could not be more proud of her success in this IRONMAN and for giving back to those who need it most right now,” said Herbalife Chairman and CEO Michael O. Johnson.
dŌTERRA Funds Playgrounds at UVU Autism Center
dŌTERRA International has funded the construction of two specialized playgrounds and a sensory garden for children at the UVU Autism Center in Orem, Utah.
The Pleasant Grove, Utah-based direct seller of essential oils recently joined with leaders from Utah Valley University (UVU) and the local community to celebrate the opening of the Melisa Nellesen Autism Center on UVU campus in Orem, Utah, which features therapy and sensory rooms for counseling, diagnostics, social skills groups and family support.
doTERRA provided funding for the outdoor playgrounds and sensory garden, which are part of the 15,000-square-foot Autism Center. “The purpose of the autism center aligns with doTERRA’s mission, which is focused on empowering families and improving individuals’ health and wellness,” said Kirk Jowers, Vice President of doTERRA Corporate Relations and European Markets.
The two newly completed playgrounds focus on enhancing motor skills while encouraging children with autism to interact with their surroundings. The sensory garden features a variety of plants and landscape features that encourage exploration and provide tranquility.
“Utah is one of the top states for children on the autism spectrum,” said Jowers. “Having a fully equipped autism center here at Utah Valley University is a blessing for so many.”
UAE DSA Organizes First Middle East Direct Selling Forum
The Direct Selling Association of the United Arab Emirates (DSA UAE) recently facilitated the first Middle East Direct Selling Forum. Held in Dubai Festival City, the full-day event was organized to promote and protect the direct selling business model in the MENA (Middle East North Africa) region.
The DSA UAE had the full support of the World Federation of Direct Selling Associations (WFDSA), Department of Economic Development in Dubai (DED), the Dubai Chamber of Commerce & Industry, and the Department of Tourism and Commerce Marketing (DTCM) for the event. Approximately 200 guests attended the forum, which stressed the importance of the channel for the UAE, GCC (Gulf Cooperation Council) and MENA region.
Panel speakers included DED Deputy Director General Ali Ibrahim; DTCM CEO Issam Kazim; Vice President of International Relations for the Dubai Chamber of Commerce & Industry Hassan Al Hashemi; COO and Executive Director of the WDFSA Tamuna Gabilaia; DSA UAE Chairman Omar El Masri; and DSA UAE Executive Director Poorya Montaseri.
The Direct Selling Association of UAE was established in 2012 and is based in Dubai. Its nine direct selling members are DXN, Edmark, Forever Living, Juice Plus, Jeunesse, LEO, PMI, Thermomix and Unicity.
AVON 39 Walk to End Breast Cancer Season Begins
New Avon LLC and the Avon Breast Cancer Crusade announced the kickoff of AVON 39 The Walk to End Breast Cancer. Now in its 15th year, the 2017 season began in Houston at the end of April, with Washington, D.C., right behind it in May. They will be followed by Chicago (June 3–4), Boston (June 24–25), San Francisco (July 8–9), Santa Barbara, California (September 9–10) and New York (Oct. 14–15).
United by the theme #FierceIsForever, the two-day, 39.3-mile walks celebrate the strength and philanthropic commitment of participants who raise a minimum of $1,800 to accelerate breast cancer research; improve access to screening, diagnosis and treatment; and educate people about breast cancer.
“As the company for women, we are proud of our strong purpose-driven mission to improve the lives of women—and this includes our long-term commitment to the fight against breast cancer,” says Scott White, CEO of New Avon.
Since the launch of the Avon Breast Cancer Crusade by the Avon Foundation for Women in 2003, more than 235,000 participants have raised nearly $620 million in the fight to end breast cancer. Avon and the Avon Foundation for Women have contributed over $1 billion globally toward eradicating breast cancer and domestic violence.
Nu Skin Reports Q1 2017 Sales
Nu Skin Enterprises announced financial results for the first quarter of 2017.
At Nu Skin, revenue increased 6 percent compared to the first quarter of 2016, with the company reporting $499.1 million. “We are pleased to deliver strong first-quarter results, which demonstrates the progress we made executing on our strategic priorities to increase customer trial and acquisition,” said CEO Ritch Wood.
In Mainland China, revenue increased 26.4 percent, from $119 million in the first quarter of 2016 to $150 million in 2017; and South Asia-Pacific saw an increase of 9.8 percent, from $64 million to $70 million.
South Korea, Japan and Hong Kong all experienced decreases in revenue: South Korea was down 4.2 percent, from $86 million to $82 million; Japan, down 6 percent, from $65 million to $61 million; and Hong Kong/Taiwan, down 10.3 percent, from $40 million to $36 million.
The Americas saw a very slight decrease of 0.01 percent for the first quarter, from $65.75 million to $65.66 million. Revenue in EMEA increased 4.5 percent, from $33 million to $34 million.