Sales: $6.6 billion
$6.6 billion (estimated) for household, personal care and nutritional products. Corporate sales: $8.4 billion for the year ended June 30, 2009
Steve Van Andel, chairman; Doug DeVos, president; Bill Payne, chief of staff; Jim Payne, executive vice president, North America, Europe, Japan, Korea, Australia, New Zealand, India and Latin America; Eva Cheng executive vice president and chairwoman of Amway (China) Co. Ltd. (ACCL) responsible for Amway markets in Greater China and Southeast Asia; Al Koop, chief operating officer; Russ Evans, executive vice president and chief financial officer
Nutrilite vitamin, mineral and dietary supplements; Artistry skin care; Legacy of Clean household cleaning products; Glister oral care
Artistry Balancing foundation and Hydrating foundation, Legacy of Clean household products
Corporate sales rose 2.3% last year—that’s heady stuff considering how most companies struggled during the recession. Moreover, according to Internet Retailer’s annual Top 500 Guide to the web, Amway Global was ranked No. 1 in the health and beauty category for the seventh consecutive year, and 27th in overall web sales. According to Internet Retailer estimates, Amway Global’s online sales were more than $885 million in 2009.
“We are extremely proud to be number one in online health and beauty sales for seven straight years,” said Steve Lieberman, managing director, Amway Global. “Our leadership in this category is largely due to the high quality and appeal of our major health and beauty brands, Nutrilite supplements and Artistry skin care and cosmetics. The real credit, however, belongs to the dedicated independent business owners (IBOs) who drive our sales.”
In April, Amway Corp. announced a series of changes to its supply chain structure aimed at improving the global direct selling firm’s competitive position.
“More than 80% of our customers buy our products outside the U.S., and Amway needs to update its supply chain to reflect that,” said Amway chairman Steve Van Andel. “As part of our long-term strategy, we are moving some production closer to customers to cut supply times and significantly reduce shipping-related costs. Some of these steps are difficult, but they will help us drive long-term growth and sustain existing jobs in all our markets.”
Through 2013, Amway will:
• Move production of several smaller product lines to Europe and Asia, reducing supply time and cost.
• Move most production of air treatment and water treatment systems to Asia by 2013, where the vast majority of those products are sold. Similarly, production of some home care products will shift closer to high-demand markets in Europe and Asia.
• Consolidate activities at two North American facilities and move some of their functions to other California and Michigan locations.
• End production operations at its facility in Lakeview, CA by 2013. Some operations will be relocated to existing facilities at the company’s headquarters in Ada, MI, a move that will create as many as 50 new positions there, while others will shift to the company’s Buena Park, CA facility, which already has plans to expand, and company farms in Washington, Mexico and Brazil.
The company’s Spaulding Avenue facility in Michigan, underused since catalog sales and fulfillment operations were discontinued in 2009, will close in 2011. Employees will relocate to the main Fulton Street campus in Ada. Amway will offer a retirement program to eligible employees to minimize job loss.
In September, Amway launched Legacy of Clean, a line of household products that includes everything from laundry detergents to surface cleaners to dishwashing detergents and more. Many of them are recognized by the U.S. Environmental Protection Agency’s Design for the Environment (DfE) program. Packaging is made from 25% post-consumer recycled plastic.