Herbalife Grew From A Humble Beginning To A Multi Billion Dollar Empire
Herbalife International is a global skin-care, weight loss and nutrition company. It was established in 1980 and presently employs about 4,000 people throughout the world. In 2009, it achieved global sales of 2.3 billion US dollars. Los Angeles, in the USA, is the location of its headquarters.
The products are available in 73 countries. Selling is done through a network of two million commission based representatives. Not only do they earn commission on sales, but many are part of an MLM system. This is the abbreviation for multi-level marketing.
The company started in modest fashion. Mark Hughes, the founder, sold his weight loss product from the trunk of his vehicle. On many occasions he said that his mother’s weight problem had prompted him to start the venture. It was his belief that her death was the result of an eating disorder accompanied by unhealthy attempts to lose weight.
Thanks to the MLM structure, the company grew rapidly and attracted many thousands of representatives who were happy to sell the products for commission on a door-to-door basis. Hughes shunned the idea of distributing to retail stores. ‘Lose Weight Now, Ask Me How’ became the company’s marketing theme and slogan. It was used in all advertising campaigns.
The early method of recruiting new distributors was through seminars conducted by established distributors. These people would give testimonials on the products. Every seminar included a personal address from Hughes.
In 1982, the company grossed two million US dollars and extended its operation to Canada. During 1986, it became a member of the National Association of Securities Dealers Automated Quotations (NASDAQ). In 1996, ten years later, sales soared to 1 billion US dollars.
Mark Hughes died in 2002 at the age of 44. The autopsy results revealed that his death was caused by an overdose of an anti-depressant medication. In addition, a large amount of alcohol was in his system.
After Hughes’ death, Whitney & Co LLC and Golden Gate Capital acquired the company for 685 million US dollars. Growth continued unabated. One year later, the company appointed a new CEO, namely Michael O Johnson. He was prepared to leave behind a 17 year career with Walt Disney Productions to accept the position.
Mark Hughes was aware of social responsibility and, as such, he established the HFF (Herbalife Family Foundation) in 1994. The HFF is a non-profit corporation that strives to improve the lives of children. This is achieved by supporting organizations that provide children with healthy nutrition.
To further this cause, HFF set up the Casa Herbalife program in 2005. It partnered with charities that focused on children who were not receiving good nutrition. The program was named after an orphanage that the HFF built during 1998 in Brazil. Today, there are 52 similar programs operating on six continents.
HFF frequently participates in relief efforts to help people affected by natural disasters. In addition to these efforts, Herbalife also sponsors many sports teams, athletes and sports events around the world. The list is far too long to mention, but it can be viewed on the internet.
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