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A GLOBALNEWS.AMWAY.COM
COUNTRIES AND TERRITORIES IN THE WORLD WHERE AMWAY OPERATES
100+
MEDIA GUIDE
GLOBAL
FACTS
BRANDS & PRODUCTS
SUPPLY CHAIN
BUSINESS MODEL
RESEARCH & DEVELOPMENT
CORPORATE SOCIAL RESPONSIBILITY
010305070913
TABLE OF CONTENTS
FOR ADDITIONAL INFORMATION PLEASE CONTACT AMWAY PUBLIC RELATIONS AT GLOBALNEWS.AMWAY.COM.
PHOTOS AMWAY BUSINESS OWNERS AND EMPLOYEES ARE FEATURED IN THE IMAGES THROUGHOUT THIS GUIDE.
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GLOBAL EMPLOYEES
20,000+
63%PRODUCTS
AMWAY IS A GLOBAL LEADER IN DIRECT SELLING
AMWAY ANNUAL SALES (BILLIONS USD)
Households in 10 of Amway’s top markets that have an Amway product
71 M+
Average year-over-year growth during the last five years
5.1%$10.8 B USD
FACTS
U.S. households that own at least one Amway product
Amway sales growth from 2004–2014
22%
68%
Households in Beijing, China that own at least one Amway product
Korean households that own at least one Amway product
OF PEOPLE AROUND THE WORLD SELL AMWAY PRODUCTS
ANNUAL REPORTED SALES FOR THE YEAR ENDING DECEMBER 31, 2014
58%
MILLIONS
3 421
PEOPLE
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DIRECT SELLING BUSINESS IN THE WORLD AS RANKED IN THE 2015 DIRECT SELLING NEWS GLOBAL 100
#1
Unique, high-quality products are manufactured and distributed by Amway
450+
POWER BRANDS FOR AMWAY ARE Nutrilite™, Artistry™ and eSpring™
SUCCESS
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LEGACYIn 1959, Jay Van Andel and Rich DeVos founded Amway, launching a business model fueled by the power of relationships. The original product offered was Liquid Organic Cleaner (L.O.C.™), one of the first concentrated, biodegradable and environmentally sensitive cleaning products. Since then, Amway has become a global leader in the categories of nutrition, beauty and home.
EXECUTIVE LEADERSHIPAmway is led by Chairman Steve Van Andel and President Doug DeVos. Van Andel is the former chairman of the U.S. Chamber of Commerce and DeVos is a member of the Wall Street Journal CEO Council. Both have served in leadership positions with key industry organizations, such as the World Federation of Direct Selling Associations (WFDSA) and the Direct Selling Education Foundation. DeVos currently serves as chairman of the WFDSA.
DIRECT SELLING INDUSTRY INVOLVEMENT Amway is a prominent and active member of regional and national direct selling associations worldwide. Amway executives hold approximately 50 leadership positions in direct selling industry associations globally.
CORPORATE SOCIAL RESPONSIBILITY Amway is committed to leveraging its corporate expertise to fight global childhood malnutrition, support local youth programs and improve sustainability.
PRODUCTS
SUCCESS
Ranking on the Forbes Magazine 2014 list of “America’s Largest Private Companies”
#26
2014 SALES FROM DIRECT SELLING (BY PERCENTAGE)
25%
BEAUTY
43%
NUTRITION
19%
DURABLES
8%
HOME5%
OTHER
GLOBALPRODUCT
Languages in which Amway conducts business
60+Satisfaction guarantee on all Amway products
100%5
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Bonuses and incentives paid to Amway Business Owners since the company’s founding in 1959 through 2014
3 MILLION
$50.3 BILLIONUSD
PEOPLEQUOTE
NUMBER OF LEARNING ACTIVITIES THAT ABOS PARTICIPATED IN DURING 2014
Today, millions of people around the world have their own Amway business. The business requires hard work and dedication, and while it may not be right for everyone, it has led to success for many individuals.
Amway is a direct-selling company that offers people the opportunity to own their own business by selling products and building teams of others to do the same. Amway Business Owners (ABOs) make money based on the sale of products. When ABOs sell products to customers above ABO cost, they earn retail margin. They can also earn bonuses and incentives based on their sales and the sales of downline ABOs.
SUPPORTING ENTREPRENEURIAL SUCCESS
Amway offers corporate support, training programs and business tools to help ABOs succeed, as well as a limited money-back guarantee on the business registration fee.
SINCE 1959, AMWAY HAS PAID OUT MORE BONUSES AND CASH INCENTIVES TO ITS DISTRIBUTORS WORLDWIDE THAN ANY OTHER DIRECT SALES COMPANY IN HISTORY.7
GLOBAL
“AMWAY GAVE US A REAL CHANCE FOR SUCCESS – OFFERING THE TOOLS AND OPPORTUNITY TO HELP US BUILD FINANCIAL INDEPENDENCE. WE’RE NOT RICH, BUT WE HAVE EVERYTHING WE WANT. NOW, ALONG WITH LEISURE TIME, WE HAVE THE COMFORT OF KNOWING OUR FAMILY IS SECURE.”
SUNEA AND LEELIN KAOKASABA Amway Business Owners, Thailand
BUSINESS MODEL
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TOP-SELLING AMWAY BRANDS AND PRODUCTSMore than 450 products are offered by Amway in the areas of nutrition, beauty and home.
Sold exclusively by Amway Business Owners, Nutrilite™ is the world’s number one selling vitamins and dietary supplements brand.9 Since its inception in 1934, Nutrilite™ has provided products that deliver the quantity and variety of nutrients that experts recommend in daily diets. Distributed around the world, plant-based Nutrilite™ supplements preserve naturally occurring phytonutrients which have been linked to health benefits. Backed by 80 years of science and research, the Nutrilite™ team has perfected a proprietary seed-to-supplement practice to preserve potency and maximize the consistency, efficacy and safety of our products. More than 90 percent of the plant-based ingredients used in Nutrilite™ supplements can be traced back to their farm source, providing quality and consistency.
In beauty, the Artistry™ brand is a global competitor in the premium beauty space, boasting anti-aging, intensive, brightening, luxury and basic skincare collections.
Designed to meet the unique skin care needs of different ethnicities around the world, Artistry™ has been driven for more than 50 years by the three creative pillars of discovery, imagination and invention. The brand features Australian screen actress Teresa Palmer as its global face for skincare and color cosmetics, and Rick DiCecca as its global makeup artist.
Amway helps transform your home for healthy living with home care, water purification, air purification and cooking products, backed by more than 50 years of scientific research and innovation. Most Amway Home™ and Legacy of Clean™ laundry, surface and dish care products contain active ingredients derived from natural sources. The eSpring™ Water Treatment System uses intelligent technology to reduce particles, sediment and 140+ health-effect contaminants to deliver high quality water in the home and Atmosphere™ reduces 84 different contaminants for safer, cleaner home air.
BRANDS
BRANDS & PRODUCTS
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MILLION90+UNITS OF HOME PRODUCTS SOLD ANNUALLY
SUCCESS
TOP-SELLING PRODUCTS
Nutrilite™ Protein Powder
Nutrilite™ Double X™/Triple X™
Nutrilite™ Vitamin C Plus
HOME CARE DURABLES
Dish Drops™ Concentrated Dishwashing Liquid
SA8™ Premium Concentrated Laundry Powder Detergent
L.O.C.™ Multi-Purpose Cleaner
eSpring™ Water Filtration Systems
Atmosphere™ is the world’s number one premium selling brand of home air treatment system12
iCook™ Cookware
HOME
THE WORLD’S NUMBER ONE SELLING BRAND OF HOME WATER TREATMENT SYSTEMSeSpring™
TOP-SELLING PRODUCTS
NUTRITION
BILLION11+VITAMIN AND MINERAL TABLETS, AND SOFT GELS SOLD ANNUALLY
SUCCESS
THE WORLD’S NUMBER ONE SELLING VITAMINS AND DIETARY SUPPLEMENTS BRAND Nutrilite™
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TOP-SELLING PRODUCTS
PERSONAL CARE ARTISTRY
Glister™ Toothpaste
G&H Body Shampoo
G&H Lotion
Artistry™ Creme L/X
Artistry Ideal Radiance™
Artistry Youth Xtend™
BEAUTY
MILLION230+BEAUTY AND PERSONAL CARE PRODUCTS SOLD ANNUALLY
SUCCESS
AMONG THE WORLD’S TOP FIVE, LARGEST- SELLING, PREMIUM SKINCARE BRANDS Artistry™
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Scientists, engineers and technical professionals on staff
900PEOPLE
Research & Development/Quality Assurance laboratories worldwide
75GLOBAL
+
BRAND // HEADLINE HERE
AREAS OF EXPERTISE
Biochemistry
Chemical, electrical, mechanical and packaging engineering
Chemistry
Clinical research
Food science and technology
Horticultural and plant sciences
Material science
Micro- and molecular biology
Nutritional sciences
Pharmaceutical sciences
Toxicology
Amway uses the best of nature, science and research to develop and manufacture products to the highest quality standards. Amway scientists, engineers and technical professionals around the world respond to market demands, create new markets and devise products that closely fit an infinite variety of customer needs and desires. It’s enough to put Amway at number 15 on The Patent Board’s Consumer Products industry scorecard in December 2014. The ranking seeks to measure the overall strength of a company’s patent portfolio.
Amway R&D isn’t only conducted inside the walls of its own laboratories. In fact, Amway scientists who work in Open Innovation serve as research scouts who canvas the globe searching for discoveries made by other scientists that can be incorporated into new Amway products. As a result of the scouts’ work, numerous partnerships have been formed with outside scientists and their technologies have been incorporated into 20 high-impact products released in a total of 55 markets with an impact of $1.2 billion in new product sales.
Results of long-term global research projects also will help direct Amway scientists as they work to discover beneficial breakthroughs. Conducted by the Stanford University Prevention Research Center and funded by an unrestricted gift from the Amway Nutrilite Health Institute Wellness
Fund, WELL aims to help identify lifestyle and environmental factors that may help people maintain their health and wellness as they age. A study commissioned by the Nutrilite Health Institute of Amway found the majority of adults worldwide would have to at least double their current consumption of fruits and vegetables to meet the World Health Organization’s minimum recommendation of five servings (400 grams) per day.
A CULTURE OF SCIENTIFIC EXCELLENCE
RESEARCH & DEVELOPMENT
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• Manufacturing facilities in Ada, Michigan, Buena Park, California, and Quincy, Washington, United States; Guangzhou, China; and Ho Chi Minh City, Vietnam
• Organically certified farms for growing food supplement ingredients in Trout Lake, Washington, United States; Jalisco, Mexico; and Ubajara, Brazil
• A global distribution network of more than 100 facilities, with major operations in Ada, Michigan and Santa Fe Springs, California, United States; Venlo, Netherlands; Busan, South Korea; and Guangzhou, China
• Regional shared service centers in San José, Costa Rica; Cyberjaya, Selangor, Malaysia; and Zabierzow, Poland
AMWAY AND ITS AFFILIATES OWN OR MANAGE:
GLOBAL & REGIONAL OPERATIONS TARGET LOCAL NEEDSAs a global enterprise, Amway has divided operations into four regions across the world. This structure enables the company to quickly and efficiently address the unique needs of regional business, Amway Business Owners and customers.
For example, local selling regulations, packaging requirements, product sizes and brand preferences vary from region to region. Amway is committed to working with local governments and serving consumers in ways that benefit all.
To learn more about the Amway Supply Chain, visit amwaysupplychain.com.
SUPPLY CHAIN
Amway places and spaces around the world include experience centers, shops, plazas and distribution centers
Global manufacturing and processing plants are owned and operated by Amway
700+ 17GLOBAL
SUPPLY CHAIN
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Of Amway functional botanicals can be traced back to their farm source
90+ PERCENTLOCATIONS
GLOBAL ORGANIC FARMING PRACTICESAmway’s commitment to sustainable farming began more than 80 years ago. Today, many botanicals —or plant-based ingredients—are grown on Amway farms, which are known for providing unique and differentiated organic ingredients based on location. All Amway farms practice organic farming and include processing operations.
To ensure the quality of Amway nutrition and beauty products, the company oversees the entire supply chain process by tracking information on the seeds, plants, farms, water and nutrients. If a botanical is grown by an Amway supplier, the NutriCert certification process is used as a guideline for documentation about that product’s source and growth data.
Nutrilite™ is the only global vitamin and mineral brand to grow, harvest and process plants on their own certified organic farms.14 Amway botanicals also are used in Artistry™ beauty and personal care products.
Certified organic farmland owned and operated by Amway in the United States, Mexico and Brazil and dedicated to sustainable farming
6,400 ACRES+
GLOBAL
NutriCert standards provide evaluation criteria for auditing botanical suppliers of products not grown on Amway farms. Categories for these standards include human welfare health and safety; farm site environment; water and soil; crop protection, harvest and storage; and alternative operations such as wildcrafting and cooperatives.
FIVECATEGORIES
CATEGORIES
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MANUFACTURING AND R&D EXPANSION
SUPPLY CHAIN
Amway is in the midst of a major manufacturing and R&D expansion globally, including four facilities in the U.S., a new manufacturing facility in India, a second manufacturing site in Vietnam and an R&D center in China.
The U.S. sites will support the Nutrilite™ brand and include:
• An $81 million manufacturing and warehouse facility near the company’s world headquarters in Ada, Michigan. The 317,000-square-foot facility will house select manufacturing operations for Nutrilite™ vitamins, minerals and dietary supplements.
• A $42 million project in Buena Park, California, includes a new granulation facility to support tablet manufacturing; new R&D facilities and pilot laboratories; and a two-story professional office building.
• A $50 million Nutrilite Botanical Concentrate processing plant in Quincy, Washington, which will process plants from the company’s nearby Trout Lake Farm sites.
Construction on a $24 million nutrition powder products plant was recently completed at the company’s World Headquarters in Ada, Michigan.
The company also is constructing a $100 million manufacturing plant in Tamil Nadu, India, and a $25 million Amway manufacturing facility in Vietnam. In China, Amway is building a $10 million botanical research and experience center in Wuxi, near Shanghai, to integrate scientific knowledge used in product development with the historic use of traditional plants.
$332 MILLION USD
INVESTMENT IN NEW FACILITIES
LOCATIONS
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CARING FOR PEOPLE AND THE PLANETAt Amway, there is a corporate philosophy that global challenges can be solved and improvements can be made in communities around the world. The company supports people, one by one, in their commitment to their communities and Amway nutrition expertise is improving the health of children.
Sustainability also is an important consideration for the global Amway manufacturing and supply chain, as well as offices and experience centers.
CORPORATE SOCIAL RESPONSIBILITY
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the Nutrilite™ Power of 5 Campaign to raise awareness of malnutrition and work toward a global solution.
This growing program partners with CARE USA, a leading humanitarian organization, and various local Non-Governmental Organizations as they make Nutrilite™ Little Bits™ a daily part of children’s diets in areas where the groups are actively educating, providing food and conducting follow-up assessments to be sure children are thriving.
With over 80 years of science and research in nutrition, Amway is in a unique position to understand and address the global issue of childhood malnutrition. To learn more and participate, visit powerof5.nutrilite.com.
Around the world, Amway is taking on the issue of malnutrition, helping thousands of children and families live better lives. Everyone needs proper nutrition to achieve their full potential. However, many people— especially children—aren’t getting the vitamins and minerals they need. This causes a wide range of health and developmental problems.
Backed by a worldwide network of Amway Business Owners, employees and customers, Amway is utilizing
FIGHTING CHILDHOOD MALNUTRITION
Cost to provide Nutrilite™ Little Bits™ to a child for 1 year
Nutrilite™ Little Bits™ is the first micronutrient supplement for malnutrition enhanced with plant nutrients15
$120 FIRSTCOUNTRIES WHERE NUTRILITE™ LITTLE BITS™ WILL BE DISTRIBUTED BY 2016
A KEY MILESTONE FOR CHILD SURVIVAL AND HEALTHY DEVELOPMENT
SUCCESS
15PRODUCTS
5 YEARS OLDEssential vitamins and minerals are contained in each package of Nutrilite™ Little Bits™, including acerola cherries, which are grown on Amway farms
FIFTEEN
USD
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MOBILIZINGPEOPLE AND COMMUNITIES
CORPORATE SOCIAL RESPONSIBILITY
Launched in 2003, the Amway One by One Campaign for Children rallies the resources of the entire Amway family—Amway Business Owners, employees and customers—to make a difference in the lives of children by volunteering, giving and addressing challenges in communities where Amway people live and work.
FOR ADDITIONAL INFORMATION, VISIT AMWAYONEBYONE.COM.
12 M 3.5 M
$250 MILLION USD
TOTAL AMOUNT CONTRIBUTED BY AMWAY, AMWAY BUSINESS OWNERS AND EMPLOYEES TO ONE BY ONE PROGRAMS
Number of children who have been helped through Amway One by One since its inception
Volunteer hours dedicated by Amway Business Owners and employees since 2003
RESOURCES
CHILDREN VOLUNTEERS
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Reduction in greenhouse gases since 2008
Reduction in water usage since 2008
25% 10%
SUCCESS
HOME CARE FORMULAS NOW CARRY THE U.S. ENVIRONMENTAL PROTECTION AGENCY’S DESIGN FOR THE ENVIRONMENT (DFE) CERTIFICATION. AMWAY IS COMMITTED TO ACHIEVING AND MAINTAINING DFE PARTNERSHIPS ON ALL ELIGIBLE PRODUCTS
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THE AMOUNT OF WIND POWER USED SINCE 2013
DOUBLED2014 GLOBAL GOALS ACHIEVED
Amway cares about the planet and its people. This sense of responsibility is reflected prominently in the company’s historical commitment to environmental sustainability. Since the company was founded in 1959, sustainability has been a cornerstone of the business, as exemplified by the first product, Liquid Organic Cleaner, or L.O.C. ™, which was concentrated and bio-degradable.
Amway continually innovates ways to integrate sustainability goals throughout the business. For example, waste reduction is a focus for corporate systems and processes, enabling reduced water use and decreased greenhouse gas emissions.
In business practices and operations, Amway personnel are developing and implementing sustainable building practices and increasing the use of alternative energy and sustainable agriculture.
GLOBAL SUSTAINABILITY INITIATIVES
1 Based on population data available about the specific markets and surveys conducted in China, India, Japan, Korea, Malaysia, Russia, Taiwan, Thailand, the United States and Vietnam between May 2013–June 2014 by an independent research firm. 2 Based on an April—May 2014 survey conducted by an independent research firm 3 Based on a November 2013—January 2014 survey conducted by an independent research firm 4 Based on a May 2013 survey conducted by an independent research firm 5 Some exclusions apply. 6 Some exclusions may apply. 7 Euromonitor International Limited, www.euromonitor.com/amway-claims 8 Based on markets in which gender is a reporting requirement 9 Euromonitor International Limited, www.euromonitor.com/amway-claims10 Euromonitor International Limited, www.euromonitor.com/amway-claims 11 Based on a Verify Markets study of 2014 global sales 12 Based on a Verify Markets study of 2013 global sales 13 Based on The Patent Board’s Consumer Products industry scorecard, December 26, 201414 Euromonitor International Limited; www.euromonitor.com/amway-claims 15 ORC International
7575 FULTON STREET EAST, ADA MI 49355-0001 / U.S. / GLOBALNEWS.AMWAY.COM 07.2015
FOR ADDITIONAL INFORMATIONAmway Press Room: globalnews.amway.com Amway StartUp: amwaystartup.com Amway Insider: amwayinsider.com Amway Global Entrepreneurship Report: amwayentrepreneurshipreport.com Manufacturing Expansion: amwaymanufacturingexpansion.com Scientific Excellence: amwayscientificexcellence.com Supply Chain: amwaysupplychain.com
GREATER CHINA
• Regional president: Gan Chee Eng
• Markets include: - China - Hong Kong - Taiwan
AMWAY’S GLOBAL FOOTPRINT
EUROPE, INDIA, AFRICA
• Regional president: Samir Behl
• Markets include: - Europe - India - Russia - Southern Africa
AMERICAS
• Regional president: Candace Matthews
• Markets include: - North America - Latin America - South America
ASIA PACIFIC
• Regional president: Mark Beiderwieden
• Markets include: - Australia - Japan - Korea - New Zealand - Southeast Asia