Industry News

Company Spotlight: Tahitian Noni
by Barbara Seale

After 10 years of rapid growth, category leadership and product innovation, Tahitian Noni International (TNI) is poised for what it calls its "second wave."

In 1996 when the company launched with its namesake beverage, TAHITIAN NONI® Juice, TNI executives say it essentially created the exotic healthy juice market that so many others have entered since. Its juice product is derived from the bumpy, green noni fruit that grows abundantly in French Polynesia. TNI has embraced the fruit and the people of Tahiti as its own, creating and controlling standardized processes for growing and harvesting noni fruit, seeds and leaves. Along the way they've made noni Tahiti's No. 1 agricultural export. The new industry has created jobs and increased prosperity for islanders who work closely with TNI, as well as for its distributors, known as independent product consultants, or IPCs, around the globe.

The history of the noni plant, the company's foundation, goes back thousands of years to a time when the ancestors of the Polynesian people left Southeast Asia. Among the treasures they took with them were noni plants, prized as a secret to health and longevity. Fast-forward to 1993, when food scientist John Wadsworth discovered research showing the beneficial properties of the plants. Wadsworth traveled to Tahiti, confirmed the existence of a commercially viable source of noni, and three years later became one of the founders of Tahitian Noni International. Wadsworth is now vice president of Morinda Holdings, TNI's parent company.

Reflecting on the company's beginnings, TNI President Kelly Olsen, another company founder, says, "When we first started telling our story, most people had never heard of noni. I've been involved with a lot of companies and products, but I've never seen anything that had the immediate mass appeal that noni did. It had a huge, dynamic impact, and our numbers grew dramatically right away."

Product Innovation Opens Doors

While TNI is a privately held company and doesn't regularly release revenues, it celebrated surpassing $3 billion in total sales in September 2005, with some $530 million in sales that year alone. Company executives say that in 2006 its revenues grew by 22 percent in the United States, its largest market. TNI now has manufacturing facilities in the United States, Tahiti, Japan, China and Germany, and sales offices in 30 countries with products available worldwide. The original Tahitian Noni Juice has lots of product-line companions. TNI has added noni fruit, leaves or seed extracts to 76 products, including teas; protein drinks; hair, face and body care products; weight management drinks; and even products for dogs and horses. Consumers can nosh noni fruit chews or chocolates, sip hot or cold noni beverages, slather on noni lip balm, or shave with noni oil-infused gels. The company even offers combinations of a few products as gift packs. The juice is now offered in several sizes, including one that is certified kosher.

"Having a wide variety of products opens opportunities for our IPCs to approach different demographics," explains Shon Whitney, Vice President of Marketing. "Some love dietary supplements; skin care opens up the women's market; our weight loss line opens another demographic. Variety can really help as long as we stay true to our core product and story. It can be something that expands and extends our brand and gives new opportunities for people to try noni."

Opportunity Café Taste some tea, have a healthy lunch, learn about noni. Not the usual fare at a fast-casual restaurant, but it's the daily special at the Tahitian Noni Café. Tahitian Noni International runs the cafés as profit centers unto themselves, but they also introduce consumers to the noni fruit, a selection of Tahitian Noni products and the TNI story, helping to warm the market for TNI's independent product consultants (IPCs). The cafés are typically located with TNI "Lifestyle Centers," a combination retail store and conference facility. "People can learn about noni as they dine in the cafés, and the Lifestyle Centers include a retail store where people who aren't distributors can buy products. In addition, there are areas where the company can host community events and opportunity meetings," explains Michael Olsen, Managing Director, Tahitian Noni Cafés. "People often come into the café simply because of the healthy food, the ambiance and the affordable price. While they're there, they can begin the familiarization process with TNI at whatever level they want. There's no selling-simply some light information on noni that people seem to enjoy." The brick-and-mortar presence of the cafés and Lifestyle Centers offer subtle support to IPCs by fostering the company's credibility. In cities where a café is located, IPCs often use it as a meeting spot to discuss the opportunity one-on-one with prospects. "Our IPCs love the fact that there's something to point to. They can do more than make a business presentation," Olsen says. "They can also show the products, and there are meeting rooms where they can have opportunity meetings. At the same time, our distributors are sensitive about not approaching café customers. We know that for us to be successful, customers must be comfortable and like what they see." Food in all the cafés incorporates some noni products, such as the line of Tahitian Noni leaf teas. "We use the tea as a cooking ingredient in many sauces," Olsen adds, "and we cook rice in Tahitian Noni leaf tea instead of water. It makes an incredibly healthy rice with a unique, tasty flavor. We're also experimenting with a bread product that has Tahitian Noni juice in it. We're always looking for ways to carefully include noni without making it an oddity." Tahitian Noni Cafés are now located in Atlanta, Georgia; Dallas, Texas; Provo, Utah; Tokyo, Nagoya and Fukuoka, Japan; Tai Pei, Taiwan; Munich, Germany; and Sao Paulo, Brazil. TNI opens its first Motus Tahitian Noni Grill-with an expanded menu, a full kitchen and a heavier Tahitian theme-in Phoenix, Arizona, in April. TNI just announced that they'll open another café in Kaohsiung, Taiwan, and is looking for properties in other cities. But no matter where a Tahitian Noni Café is located, it creates buzz, which is good for the company and for its IPCs. "One of the greatest things the café can do for TNI is to provide a lot of PR benefit," Olsen says. "It's amazing how many newspaper stories and TV spots are generated because of a café. We've had a lot of food writers and critics call to ask questions about the café, and then their questions turn to TNI." Tahitian Noni Cafés are located in cities where IPCs have created a broad business base. "Where there is a groundswell of support from our IPCs, the company supports them with a Lifestyle Center and a retail environment," Olsen says. "The cafés are magic. The TNI business was already strong in places like Dallas and Atlanta, but the slingshot effect that happened after their cafés opened was unimaginable. It's one of the reasons we're continuing with this concept. Business does so well. Distributor counts go up, sales volume increases, and the energy is unbelievable."

Second Wave

But the product that TNI expects to unleash a new flood of sales and recruiting is HIRO, a line of three lightly carbonated, functional beverages it launched at its International Leadership Conference in March. TNI says that HIRO, named after a legendary Polynesian god who was able to accomplish amazing things, combines the power of noni with other health-promoting supplements. Three distinct formulas are available, including Energy, Mobility and Vitality. All are sold in eight-ounce cans.

"This ready-to-drink line will allow us to focus on a whole new demographic, and it opens a new world of opportunity to people," Whitney explains. "If you missed the first Tahitian Noni wave, this is the time to get involved as we position this new product. We believe that HIRO will give us our second wave of major growth. HIRO will be a lower-cost item. With Tahitian Noni juice, people typically buy a month's supply at a time, so it's a higher-priced item. But eight-ounce cans of HIRO provide the benefits of noni in a single ready-to-drink serving. We believe it will allow us to transition into more of a true beverage company as well as to extend our noni brand. We let a few key leaders in on the secret before the launch and everyone was over the moon about it."

TNI is considering unique ways to sell the new beverages, including allowing its IPCs to sell through vending machines and in select retail settings.

"Because it's a retail-friendly product, independent product consultants can introduce it easily to their friends," Olsen adds. "We're investigating some unique systems that will give IPCs a bigger toolbox and a great spectrum of opportunities that haven't been explored before." TNI executives will make those decisions carefully because they affect their sales channel-their independent product consultants.

TNI executives are dedicated to the success of their IPCs, many of whom have previous network marketing experience.

Looking for a HIRO At its International Leadership Conference that started March 13, Tahitian Noni International introduced its latest products, three lightly carbonated, functional beverages called HIRO. Like its other products, the HIRO line is based on the noni fruit, plus other health-promoting supplements. Each of the three new formulations has a different function. HIRO Energy gives immediate results and sustained energy for the person on the go. With no added sugar, HIRO Energy avoids the "crash and burn" that can accompany other energy drinks. Instead, its energy comes from noni, guarana, B-vitamins and added amino acids. Its target demographic is soccer moms and working men. HIRO Mobility combines noni with glucosamine, chondroitin and MSN for added mobility and joint relief. HIRO Vitality mixes vitamins, minerals, phytonutrients such as ginseng, and fruit and vegetable blends plus noni into a beverage the company says provides a powerful immune system boost. TNI President Kelly Olsen says the functional drink category is intriguing. "Energy drinks are one of the fastest growing product categories," he says. "But even as the category is growing, there's a void: the health aspect. Many energy drinks aren't very healthy. We saw an opportunity to create a healthier drink." TNI says that HIRO beverages are low in sugar and have only 10 calories per can, and two have no caffeine. Paramount to TNI is the noni element. "HIRO will be the only product in the category that is based on noni," Olsen says. "Every other company in the category is always scrambling for an ingredient or formula that can be differentiated from all others. We have it. Noni is our forté-our advantage. It differentiates us from every other product out there." TNI executives and key leaders are so enthusiastic about HIRO that they believe it will launch the company on its second wave of rapid growth. Corporate managers are even making changes to the company's compensation plan and selling systems to catapult the company into that anticipated second wave of business growth. "Given the foundation we've built of officers and leaders around the world," Olsen says, "we believe this new product line will spur huge growth."

Embracing Experience

"Even tired, old, beat-up networkers who had company after company disappoint them have come on board and gotten excited about Tahitian Noni," Olsen says. "We have become a home for beat-up networkers-a humorous name we call our beloved IPCs. They're the backbone of our distributor base."

Olsen says IPCs are attracted to TNI because of its story, its product innovations and its rich compensation, which Olsen says rewards better than any other.

"We've always had a unique relationship with our distributors," Olsen says. "We built our business and our core values from a distributor's perspective, and that has helped us avoid the typical challenges of a young company. Any distributor wants integrity, longevity and a fair payout. From the beginning, our marketing plan blew all the rest out of the water. Today we still pay more on a percentage basis than any other company. We've paid out more money, faster, to distributors than any other company in network marketing history. We think that record will never be bested. When you have a fair plan and the attitude that we're here for the long term, that tells distributors that they can unpack their bags in our business."

The company so fervently believes in its track record that it issued what it called The $100,000 Challenge, offering that amount to anyone who identified another network marketing company that in its first 10 years could best TNI's record in the five areas of revenue, payout and incentives; corporate strength; products; research and process; and corporate citizenship. TNI invited challenges to be sent to Griffin Hill Consulting. The result: Tahitian Noni International still has its $100,000.

TNI also offers the excitement of international growth and, with it, the opportunity for distributors to build multinational organizations. Mexico, Hong Kong, Taiwan and Japan were among the first international markets that TNI entered. Today, Japan is its second-largest market. Like many companies, TNI has begun to establish itself in China, opening sales offices and manufacturing facilities, and looking forward to the day when it receives government approval to move forward. And TNI now operates on most continents. Its product line is the same worldwide, though the formulations of some products change to match regulatory needs.

Having a Heart

TNI's generosity is worldwide, too, but much of its focus is on its Tahitian roots.

"A lot of our heart comes from Tahiti, and we're involved in several local charitable projects there that support education, schools, scholarships, healthcare and infrastructure," Olsen says. "Our fruit comes from Tahiti. It's the source of our success. So we have a huge desire to give back, and we do that in a variety of ways. We're one of the biggest employers in the country. We've become one of the top enterprises in terms of dollars generated. We get involved with promoting Tahitian culture. In fact, we've been told by Tahitian government officials that we do more to promote the Tahitian culture, lifestyle and tourism than the country does itself."

TNI supports Tahiti out of gratitude and affection, and being recognized for those contributions is one of Olsen's fondest memories.

"The past 10½ years are filled with amazing memories, any of which could easily be classified as my favorite," Olsen reflects. "But one experience stands out. In February 2004, my partners and I were invited to the United Nations in New York City to receive an award by a UN-sponsored organization, the International Council of Caring Communities, honoring Tahitian Noni International for the good we have done in Tahiti from the perspective of economic growth and cultural awareness. Receiving the award in that amazing building was a once-in-a-lifetime experience, and it cemented in my mind the legacy of our amazing company."

TNI practices domestic philanthropy, too. Like many other companies, Tahitian Noni International made large contributions to the Red Cross after Hurricane Katrina. But the company didn't stop there. Aware that the devastation and impact on the homes and people of Louisiana didn't end in September 2005, it focused the energies of its IPCs during their annual incentive-and-training event, Pearl Camp, in July 2006 to create almost 5,000 Disaster Cleaning Kits. Some 700 IPCs and more than 50 TNI staff members compiled kits that were sent to victims of natural disasters around the world, including the tsunami in Southeast Asia. The humanitarian project is now a permanent part of the Pearl Camp experience.

Lifting Limits

Tahitian Noni International wants to practice philanthropy and offer opportunities far into the future, so it is considering going public.

"Any company worth its salt is looking for generational longevity," Olsen says. "Going public is definitely an option we're considering. We haven't made a decision, but we're interested-primarily for the prestige, for the longevity it will ensure, for the way it will help us attract qualified, competent management people to help us grow the company, and for the returns it will give our distributors."

But public or private, TNI is unique in its business approach, according to Olsen. Its approach to brand building is what sets it apart.

"Other companies consider themselves network marketing companies," he says. "We've always viewed ourselves as a consumer-product branded company. The brand is the key to our business. Yes, the channel is important; systems are important; but our desire is that Tahitian Noni rise to the level of the world's most valued brands in the same way that Coca-Cola and Disney have actual brand equity in the marketplace. We want our name to be known by the general public-not just distributors and networkers. When that happens, everyone will know about Tahitian Noni-what it is and what it does for them."

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