01.16.15
Amway has acquired the XS Energy brand, an energy drink line co-founded by former Amway business owner. The deal expands the brand's geographic reach and advances Amway's strategy of connecting with young entrepreneurs. This acquisition links Amway more directly to the growing energy drink segment, which expanded from a $3.8 billion global business in 1999 to a $27.5 billion business in 2013 and is expected to grow annually by 13% until 2018, according to Euromonitor and Research and Markets.
"According to our research, no demographic is more positive about entrepreneurship than those younger than 35, which is the precise target group for the XS brand," said Amway chairman Steve Van Andel. "Bringing Amway and XS together will strengthen our efforts in the years ahead and create more opportunities for aspiring business people."
XS, created by David Vanderveen, has made a name by appealing to younger consumers through parties, a focus on adventure and the seamless combination of work and play, according to Amway, which has been the exclusive distributor of XS since 2003. During that time, the brand has grown to $150 million in sales each year and is now in 38 markets around the world, according to Amway.
Vanderveen will join the company as vice president and general manager for the XS brand as part of the transaction.
"According to our research, no demographic is more positive about entrepreneurship than those younger than 35, which is the precise target group for the XS brand," said Amway chairman Steve Van Andel. "Bringing Amway and XS together will strengthen our efforts in the years ahead and create more opportunities for aspiring business people."
XS, created by David Vanderveen, has made a name by appealing to younger consumers through parties, a focus on adventure and the seamless combination of work and play, according to Amway, which has been the exclusive distributor of XS since 2003. During that time, the brand has grown to $150 million in sales each year and is now in 38 markets around the world, according to Amway.
Vanderveen will join the company as vice president and general manager for the XS brand as part of the transaction.