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    Top Companies Report

    7. Amway

    ...

    07.07.09

    Ada, MI
    616.787.6000
    www.amway.com
    Sales: $6.5 billion



    Sales: $6.5 billion (estimated) for household, personal care and nutritional products. Corporate sales: $8.2 billion for the year ended June 30, 2008.

    Key Personnel: Steve Van Andel, chairman; Doug DeVos, president; Bill Payne, chief of staff; Al Koop, chief operating officer, Access Business Group LLC; Russ Evans, chief financial officer; Candace Matthews, chief marketing officer; Eva Cheng, executive vice president, Amway Greater China and Southeast Asia, Jim Payne, executive vice president, Amway North America, Europe, Japan, Korea, Australia, New Zealand, India and Latin America.

    Major Products: Nutrition and wellness products; skin care and color cosmetics; home and personal care.

    New Products: Clear.Now chewable beauty supplement, Artistry Tinted Moisturizer, Clear.Now chewable supplement for beautiful skin, Nutrilite Glucosamine-1 joint health supplement, Nutrilite Kids MultiTarts chewable supplements, Phosphate-Free Dish Drops Powder, Artistry Time Defiance Lifting Eye Creme, Artistry Essentials Skin Care. To be launched: Legacy of Clean line of home cleaners and laundry care products.

    Comments: Corporate sales surged more than 15% last year. That should be no surprise; historically speaking, when times are tough, business is good for Amway and other direct sales companies.

    The company, which was founded by Rich DeVos and Jay Van Andel back in 1959, is celebrating its 50th anniversary this year. Last year, 80% of sales came from outside the U.S. Moreover, of its 59 worldwide affiliates, two-thirds reported an increase in sales, with much of the growth in Russia, China and India.

    In new product news, Amway launched Clear.Now in May, which it calls a chewable supplement for beautiful skin from the inside out. Clear.Now is a fruit-flavored chewable that supports healthy skin, promotes clear and even skin tone, and enhances a body’s natural ability to promote the appearance of healthy skin. The supplement, along with the three-step Clear.Now Skin Care System, provides a comprehensive solution to achieving a healthy complexion, according to Amway.

    The exclusive Clear.Now Supplement features Praventin, a patent-pending, milk-derived protein that helps provide a healthy complexion and beautiful skin. It is also safe for those who are lactose intolerant, with no side effects, according to the company. A 30-day supply retails for $29.99.

    While other marketers try to flesh out their internet strategy, Amway continues to succeed through the channel. In fact, according to Internet Retailer’s annual Top 500 Guide to the web, Amway Global is ranked first in the health & beauty category for the sixth consecutive year, and 28th in overall web sales.

    According to Internet Retailer estimates, Amway Global’s online sales surpassed $904 million in 2008. The online H&B category grew 14% to more than $2.9 billion, with Amway Global’s sales estimated to represent more than 31% of that category.

    “The leader for online health and beauty sales for six straight years is not a label most people would normally associate with Amway Global, but it’s one we’re extremely proud of,” said Steve Lieberman, Amway Global’s managing director in a statement.

    In August 2008, Amway Global launched a North American tour of mobile brand experiences, featuring two customized buses, to increase consumer awareness of its two flagship brands, Nutrilite nutrition and wellness products; and Artistry skin care and cosmetics.The buses were designed to educate consumers about the brands and offer opportunities for product sampling.

    In June 2008, Nutrilite attained a new milestone by posting a record $3.1 billion in annual sales over the previous 12 months.

    Finally, in 2008, Amway’s sister company, Access Business Group, reached $1 billion in contract sales revenue since its inception in 1999.

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