USANA Promotes Three to VP Roles

Three have advanced to vice president roles at USANA Health Sciences Inc., the nutrition company announced Thursday.

The past month has ushered in several leadership changes at USANA, beginning with the appointment of Kevin Guest as sole CEO. Guest formerly shared the role with Co-CEO Dave Wentz, who stepped down at the end of November. The company then named Jim Brown as President, in addition to his role as Chief Operations Officer, and hired on Walter Noot as Chief Information Officer.

Now, three executive directors have been promoted to vice presidents over their respective areas. Ashley Collins will serve as Vice President of Marketing and PR, Amy Haran as Vice President of Communications, and Howard Gurney as Vice President of Product Development Process.

“I have had the pleasure of working with these proven leaders for many years now and know firsthand their dedication and commitment to our employees, stakeholders, distributors and customers,” said Guest. “These talented and ambitious individuals have been essential in hitting key benchmarks within the company and will continue taking us to the next level of excellence.”

Collins, who has led USANA’s public relations and social media efforts, will now oversee the marketing and digital marketing teams as well. In 16 years with the company, she has contributed to major campaigns and helped to develop key relationships with athletes and celebrities, as well as USANA’s sponsorship of The Dr. Oz Show.

Heading up communications, Haran will draw upon 13 years of experience with the company. Her new responsibilities include leading digital communications for USANA’s 1,300 employees and 400,000 distributors, and providing guidance to the customer service, translation and content creation teams.

Gurney formerly served as executive director of quality systems and regulatory affairs, managing the company’s regulatory team. As vice president, he will continue to oversee these areas while orchestrating a wider effort to streamline the product development process.

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USANA Boosts Earnings Outlook on Strong Q3 Results

USANA Health Sciences (USNA—NYSE) on Tuesday reported its fourth consecutive quarter of double-digit growth in sales, earnings and customer acquisition.

The health firm posted net income of $25.6 million in the third quarter, up 31 percent from $19.5 million a year ago. Diluted earnings were $1.92 per share, coming in 16 cents higher than the average estimate from analysts. The Utah-based company closed out the quarter with zero debt and $174 million in cash.

Revenue for the quarter rose 21.5 percent to $233.3 million, despite an $18.3 million hit from currency rates. Constant currency revenue increased 31.1 percent. The Asia Pacific region accounted for 72 percent of total sales, with 29 percent growth in the quarter. The Americas and Europe reported a 5.5 percent uptick in revenue. Globally, the company’s network of active sellers grew by 39 percent.

“While currency fluctuations negatively impacted our reported results, we generated strong local currency sales growth in nearly all of our markets,” Co-CEO Dave Wentz said in the company’s release. “Our results continue to be driven by our strategies for customer growth, which is our highest priority as we seek to improve the overall health and nutrition of our customers around the world.”

For the full year, management said it expects revenue of $915 million to $920 million, narrowing its previous guidance of $900 million to $920 million. The company expects earnings in the range of $7.25 to $7.35 per share, versus earlier guidance of $6.90 to $7.20 per share.

USANA Assembles 150,000 Meals for Charity during Annual Convention

Photo: World champion boxers Timothy Bradley and Austin Trout join USANA Founder Dr. Myron Wentz and Co-CEO Dave Wentz at the Children’s Hunger Fund Food Pak event. (PRNewsFoto/USANA Health Sciences)


At USANA’s recent International Convention, company associates, athletes and celebrity partners came together to assemble 150,000 meals and raise $160,000 for charity—all in a span of four days.

The nutrition company incorporated several humanitarian projects into its annual event, held in USANA’s hometown of Salt Lake City. The schedule included a large-scale Food Pak event benefitting the Children’s Hunger Fund, a charitable partner dedicated to feeding malnourished children around the world. USANA had support from NFL Network correspondent and former American Ninja Warrior host Jenn Brown, as well as world-champion boxers Timothy Bradley, Austin Trout and Juan Diaz, who helped associates and employees pack more than 150,000 meals.

During another segment of the convention, the annual USANA Champions for Change 5K, participants ran the streets of downtown Salt Lake City dressed as superheroes. Heart surgeon and Daytime Emmy Award-winning host Dr. Mehmet Oz hosted the event alongside Amy Purdy, an actress, snowboarder and Paralympic bronze medalist who shared her story in the popular TED talk Living Beyond Limits. Oz and Purdy are also among the high-profile celebrities and athletes who donated their photos for the USANA 2016 Influencer Calendar, with all proceeds going to the USANA True Health Foundation.

By the close of the convention, participants had raised more than $160,000 in support of the foundation. The funds will provide critical necessities to those suffering or in need—the mission of the USANA True Health Foundation.

“We want USANA to be the healthiest family on earth, and that means strengthening our bodies and stretching our hearts,” USANA Co-CEO Dave Wentz said in a statement. “We want to reach out to the world and share the goodness that is within all of us. Our heartfelt gratitude goes to those who selflessly lift the loads of others.”

USANA Named a Trusted Partner and Sponsor of ‘The Dr. Oz Show’

Photo: Dr. Myron Wentz (from left), USANA Founder and Chairman of the Board, Dr. Mehmet Oz and USANA CEO Dave Wentz. (Photo courtesy: USANA)


USANA Health Sciences and Dr. Mehmet Oz are making it official, so to speak. USANA has teamed up on several occasions with the heart surgeon and Daytime Emmy Award-winning host of The Dr. Oz Show. On Tuesday, the global nutrition company announced its new status as one of The Dr. Oz Show‘s Trusted Partners and Sponsors.

According to Dr. Oz, the relationship grew from a shared vision “to make a positive impact on the health of others.” In 2012, USANA became a national sponsor of HealthCorps, the charitable foundation that Dr. Oz and his wife, Lisa, founded in 2003. HealthCorps is a wellness movement to combat childhood obesity through in-school and community programming. The following year, Dr. Oz served as master of ceremonies at the USANA Champions for Change 5K, an annual superhero-themed event supporting the USANA True Health Foundation.

“For The Dr. Oz Show to call any company a Trusted Partner and Sponsor, it must meet certain criteria,” Dr. Oz shared in the company’s release. “Chief among them is integrity. We’ve done our research and found USANA to be an outstanding company—one that offers cutting-edge products that we here at the show would feel comfortable recommending to our wonderful audience.”

To kick off the partnership, USANA’s joint health supplement Procosa will appear this week on The Dr. Oz Show. The company’s award-winning products will also appear on Dr. Oz’s website and in future broadcasts.

USANA Reports Second Quarter, Growth in Associate Numbers

USANA Health Sciences Inc. (USNA—NYSE) reported financial results for its fiscal second quarter 2014 after the markets closed on Tuesday. While missing earnings estimates by 14 cents at $1.36 per share (according to Briefing.com the Capital IQ Consensus Estimate was $1.50), the company reaffirmed net sales and earnings guidance for 2014.

For the second quarter ended June 28, 2014, net sales decreased to $188.3 million, down 0.4 percent compared with $189.1 million in the prior-year period. Net sales, on a comparative basis, were negatively impacted by: $7.0 million of incremental sales in the second quarter of 2013 that occurred ahead of policy changes, which included restricting Associate purchases to their country of residence; $3.3 million from unfavorable changes in currency exchange rates; and price discounts that the company implemented in 2013. The number of active Associates for the second quarter increased 11.4 percent year-over-year, and 6.8 percent sequentially, largely as a result of the initiatives implemented by the company in 2013.

Net earnings for the second quarter were $19.3 million, compared with $24.2 million during the prior-year period. Earnings per share for the quarter were $1.36, compared with $1.72 in the second quarter of the prior year. Weighted average diluted shares outstanding were 14.2 million in the second quarter of 2014, compared with 14.1 million in the prior-year period.

During the quarter, the company accelerated its share repurchase activity by repurchasing approximately 682,000 shares under its authorized repurchase program for a total investment of $49.1 million. Additionally, as of July 25, 2014, the company has spent $21.4 million during the month of July to repurchase approximately 285,000 shares.

“USANA generated solid results during the second quarter, notwithstanding several factors that created a challenging year-over-year comparable,” said Dave Wentz, USANA’s CEO. “As we execute our 2014 strategies, we are confident that our performance will continue to accelerate during the second half of the year and we will deliver another year of record results in 2014.”

The company reaffirmed guidance for fiscal year 2014 with earnings per share between $5.50 and $5.65 (versus $5.66 Capital IQ Consensus Estimate) and consolidated net sales between $770 million and $790 million (versus $784.99 Capital IQ Consensus Estimate).

Read the full results here.

TSFL Co-Founder Authors New York Times Best Seller

Discover Your Optimal Health, a new book by Take Shape for Life Co-Founder Dr. Wayne Scott Andersen, has made its way onto the New York Times Best Sellers list. Following its July release, the diet and weight-loss manual reached the No. 4 spot in the “Advice and How To” category.

The book offers insight into making daily adjustments to reach and maintain a healthy weight. Discover Your Optimal Health is a guide to achieving long-term health, as indicated by the subtitle: “To live better, happier, and healthier into your 80s, 90s, and beyond.”

Dr. Andersen serves as Medical Director of Take Shape for Life and Executive Director of the Health Institute, a training and certification organization in the emerging field of health coaching. According to Dr. Andersen, “Discover Your Optimal Health was written as a tool to inspire people as they begin their health journey, and I’m glad to see so many people respond positively to the book in such a short time.”

The Take Shape for Life co-founder joins other direct selling leaders whose tomes have appeared on the New York Times list, including Nothing to Lose, Everything to Gain by Ryan Blair, CEO of ViSalus, and The Healthy Home by USANA Founder Dr. Myron Wentz and his son, CEO Dave Wentz.

Read the full press release from Take Shape for Life.

DSN Celebrates the Global 100 Companies

by J.M. Emmert

Amway was recognized as this year’s new No. 1 direct selling company in the DSN Global 100 ranking.


IN THIS ISSUE:

• Cover Story • 10 Things to Know • The List
• Topping the Charts • Profiles • Celebration

BRAVO AWARDS: 
• Leadership • Growth • Momentum


DSN Global 100


Direct Selling News celebrated the DSN Global 100 ranking on April 3 at the Gaylord Texan Resort in Grapevine, Texas, with a dinner and awards ceremony. The event marked the fourth consecutive year that DSN has recognized the achievements of the global direct selling leaders.

The event was hosted by DSN Publisher and Editor in Chief John Fleming. Brian Connolly, Chairman of the Board of Miche Bag and former Executive Vice President of Avon Products Inc., served as master of ceremonies.

More than 300 direct selling executives attended the event, including Cindy Monroe, CEO of Thirty-One Gifts; Jim and Kathy Coover, Co-Founders of Isagenix; Wayne Coupland, Network Director of Telecom Plus; Jerry Brassfield, Executive Chairman of GNLD; John Addison, Co-CEO of Primerica; Rob Snyder, Chairman of Stream Energy (Ignite); Connie Tang, CEO of Princess House; Chris Chambliss, a Co-Founder of Ambit Energy; Dave Wentz, CEO of USANA; Robert Goergen Jr., President of PartyLite; Keith Harding, CEO of Sportron; Robert Sinnott, CEO of Mannatech; Ryan Blair, CEO of ViSalus; Jill Blashack Strahan, CEO of Tastefully Simple; Mike Azcue, CEO of WorldVentures; and Orville and Heidi Thompson, Co-Owners of Scentsy.

Special guests included Joseph Mariano, President of the U.S. Direct Selling Association; Charlie Orr, Executive Director of the Direct Selling Education Foundation (DSEF); and two DSEF Circle of Honor winners: J. Stanley Fredrick, Chairman of Mannatech; and Michael Lunceford, Senior Vice President of Mary Kay. Malou Caluza, Chief Marketing Officer of QNET, traveled from Hong Kong to attend the event.



The Bravo Awards

The evening began with the presentation of two DSN Bravo Awards for excellence.

Momentum Award

It Works! Global was honored with the Bravo Momentum Award, which was created for this year’s celebration to recognize a previously unranked company that had demonstrated not only significant growth in 2012, but also the most significant first-time ranking on the DSN Global 100 list.


“It just shows any company in here that if you really focus and persevere you can do this—you can be a 10-year overnight success.”
—Mark Pentecost, Founder and CEO, It Works! Global


Founder and CEO Mark Pentecost had attended last year’s event and decided then that he wanted It Works! to be a Global 100 company. He and his team put together a strategic and operational plan to achieve that goal. In 2011, It Works! had revenue of $45 million; in 2012, revenue jumped to $200 million, placing the company in the 56th position in the 2012 ranking.

“We started from the bottom, and now we’re here,” said Pentecost. “It just shows any company in here that if you really focus and persevere you can do this—you can be a 10-year overnight success.”

Growth Award

Nerium International won the Bravo Growth Award, which is presented to the company achieving the highest percentage of growth over the prior year.

Last year’s winner, ViSalus, won the award for its 600 percent growth, going from $34 million in 2010 to $231 million in 2011. Nerium achieved an astounding 3,900 percent growth, going from $2.5 million in revenue in 2011 to $100 million in 2012. The company, which was founded in the fall of 2011 with only one product in the anti-aging category, placed 86th in the ranking.

Nerium’s founders—CEO Jeff Olson, President Dennis Windsor, Corporate Liaison Renee Olson and Vice President of Marketing and Culture Amber Olson—accepted the award.

“It’s been a fun year,” said Jeff Olson. “We’ve really enjoyed the growth and look forward to a great year coming up.”

Leadership Award

The third award in this category, presented later in the evening, was the Bravo Leadership Award, which was given to Alessandro Carlucci, CEO of São Paolo, Brazil-based Natura and Chairman of the World Federation of Direct Selling Associations.

The Leadership Award is presented to an individual who personifies leadership, guiding those around him toward greater good, progress and achievement all while earning the respect and admiration of those he leads. Previous winners in this category include John Addison of Primerica (2009); Greg Provenzano, Robert Stevanovski, Mike Cupisz and Tony Cupisz of ACN (2010); and Doug DeVos of Amway (2011).

Carlucci was recognized for embodying those traits. He joined his company in 1989 as a member of the sales and marketing team. In 2005, he was named CEO, becoming the company’s first top executive from outside its controlling stockholders. Under his guidance, Natura has grown to be the largest cosmetics company in Brazil.

In October 2011, Carlucci assumed the Chair of the World Federation of Direct Selling Associations, where he now helps guide the industry on a global scale. He believes his responsibility as a leader is to “show to the world our transformation and entrepreneurship capacity,” which will increase business opportunities and the positive impact direct selling has on the lives of millions of people.

“I am very deeply honored to receive this,” said Carlucci upon receiving the Leadership Award. “I am happy to be here because every time I can be together with friends in direct selling, it makes me feel better about the decision I made many years ago to join this industry. It’s a moment to see good friends and the opportunity to make new good friends. This is one of the most important characteristics of our industry—we make friends for life. It is an amazing industry.”


Brian Connolly, Chairman of the Board of Miche Bag, served as master of ceremonies.Brian Connolly, Chairman of the Board of Miche Bag, served as master of ceremonies. Over 300 industry executives attended the Global 100 Celebration.Over 300 industry executives attended the Global 100 Celebration. Alessandro Carlucci, CEO of Natura and Chairman of the WFDSA, gave the keynote address.Alessandro Carlucci, CEO of Natura and Chairman of the WFDSA, gave the keynote address.

Keynote Address

Carlucci was also the keynote speaker for the evening. He spoke of the interconnectedness of direct selling companies, distributors and consumers, and the impact the industry has on the world at large.

“Relationships are the foundation of our company and our business. In the end, relationships move the world; relationships move the business; relationships move people,” he said.


“There is nothing more contemporary than direct selling, and the world is calling for us to help people, to be better leaders, to do the right thing, to transform lives, to generate economic health.”
—Alessandro Carlucci, CEO of Natura and Chairman of the WFDSA


“We see people trying to really produce positive impact,” Carlucci continued. “At the same time we see a huge change in consumer behavior. And when we see all these things together, and we look for the fundamentals of our industry, there is a call for us—a call for our industry because we transform people’s lives, we affect their social aspects, we can do good things for the environment and, economically, we can offer opportunities for people. There is nothing more contemporary than direct selling, and the world is calling for us to help people, to be better leaders, to do the right thing, to transform lives, to generate economic health.”

As Chairman of the World Federation, Carlucci re-emphasized the relevance and importance for direct selling companies to be examples of trust, transparency and good business—“Business that can really change the quality of life on this planet,” he said.

The DSN Global 100

The most anticipated segment of the evening was the announcement of the DSN Global 100.

Before announcing the list in reverse order, Emcee Connolly shared some statistics about the 2012 ranking. A total of 16 countries were represented—including Brazil, Canada, Germany, India, Luxembourg, Peru, Russia, South Korea and Switzerland—with 24 newcomers to the list, hailing from Japan, Malaysia, France, the United Kingdom, the United States, China and Cyprus.

By region, there were 57 companies from North America, four from South America, 14 from Europe/Africa and 24 from the Asia-Pacific arena.

In all, the DSN Global 100 companies achieved over $72 billion in net sales in 2012, up from $63 billion one year ago. The Top 10 companies, which collectively represented 625 years of direct selling business across the globe, achieved $44 billion in revenue.

Representatives from nine of the Top 10 companies were present at the event.


“We want to dedicate this distinction to our amazing independent beauty advisors because without their passion, their commitment and their hard work on a daily basis… this would never have been possible.”
—Mona Ameli, General Manager, Belcorp USA


Mona Ameli, General Manager of Belcorp USA, accepted for Peru-based Belcorp Ltd., which placed 10th. “This is a very special year for us as we celebrate our 45th anniversary. This acknowledgment reflects the extraordinary efforts of our 9,000 employees. We want to dedicate this distinction to our amazing independent beauty advisors because without their passion, their commitment and their hard work on a daily basis, from the outskirts of the Amazon to the streets of San Francisco, this would never have been possible.”

Oriflame Senior Vice President Michael Cervell accepted for the Luxembourg-based company, which placed 9th. “On behalf of Oriflame, we are very proud to be in this [ranking], but we are not satisfied. We want to be higher than we are now.”

Greg Darlington, Vice President of Nu Skin, accepted for his company, which placed 8th. “On behalf of our 900,000 distributors and our customers around the world, we thank you for the opportunity to receive this award.”

No. 6 Mary Kay was represented by Senior Vice President Nathan Moore. “Mary Kay always said that if you aim for the moon and you miss, you land amongst the stars. It’s an honor to be among all of you stars tonight.”

Keynote speaker and Bravo Leadership Award winner Carlucci accepted for No. 5, Natura. “On behalf of our 1.5 million consultants around Latin America, we would like to say ‘thank you.’ ”

Hans ter Pelle, Chief Financial Officer of JAFRA Cosmetics, accepted for Germany-based Vorwerk, the No. 4 direct seller. “On behalf of the owner family of Vorwerk and the managing partners, I will gladly take this award and pass it on to them. We aim for higher goals, and we aim for touching many more people on this globe, so let’s put in some healthy competition and see where we end up next year.”


“With leadership comes responsibility, and as such, we will continue to support the industry and its interests going forward.”
—Sandy Spielmaker, Vice President of Sales, Amway North America


The No. 3 direct seller in the world, Herbalife, was represented by Brian McKinley, Senior Director of Corporate Alliances. “Don’t believe everything you read,” McKinley said in reference to recent scrutiny of the company. “Our company is fantastic, our industry is amazing and the future is very bright.”

Angelo Rossi, Avon Group Vice President, accepted for the No. 2 direct seller. “We are honored to be here and accept on behalf of the over 30,000 associates and 6 million independent contractors around the world. I would also say we are honored and humbled tonight to recognize the new top direct selling company in the world.”

AmwayThe new No. 1 direct seller was Ada, Michigan-based Amway, which achieved $11.3 billion in revenue for 2012. Sandy Spielmaker, Vice President of Sales for Amway North America, accepted for the company. “It is really an honor to be a leader in an industry of such great, reputable companies. With leadership comes responsibility, and as such, we will continue to support the industry and its interests going forward,” said Spielmaker. “We also know that, as an industry, we are being attacked by outsiders, but we are not in this alone. We are in it together and we will continue to support each and every one of you and this entire industry.”