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Young Living Hosts Over 210,000 at Virtual Worldwide Convention

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Young Living recently hosted its first-ever virtual International Grand Convention, with more than 210,000 people from 81 countries virtually attending the four-day online event.

The convention was designed to keep attendees safe from the COVID-19 pandemic while still providing an immersive, enriching experience. Attendees from around the world were able to interact together live via the event chat function. These chats featured lively discussions about the event and the new products announced during the different sessions.

“We were thrilled to see our members’ reaction to this year’s big event,” said Jared Turner, president and COO of Young Living. “It took quite an effort from our events team to pivot our entire convention to an online format and seeing all their hard work come to fruition was incredibly rewarding.”

At the event, Young Living debuted new oil blends, glass diffusers and essential oil aroma rings, as well as a full skincare line. Attendees also learned new strategies for building at-home businesses, how to create happier, healthier homes, and the potential health benefits of products like CBD.

“This year”s virtual convention was a historic event that came out of our desire to connect with our members knowing how we would miss being together and sharing in each other’s success at our annual convention,” said Mary Young, co-founder and CEO of Young Living. “Our virtual experience was beautiful to watch and the music was spectacular. It was educational, entertaining, and so rewarding as we were able to share our powerful message around the world with over 200,000 members and non-members alike. It was a thrill to be part of so many new discoveries about virtual communication and future possibilities.”

ARIIX, NewAge Create Unified Partnership

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A July agreement between ARIIX and NewAge, Inc., a publicly traded NASDAQ listed company, has the potential to create the only omni-channel company in direct selling with access to e-commerce and direct-to-consumer channels in more than 75 countries.

“We are very excited that these companies are coming together to create a powerful global enterprise with tremendous growth potential,” said NewAge CEO Brent Willis, who will be the CEO of the newly combined company. “We believe this partnership will be an industry game-changer, as we will have the team, the scale, the profitability, the brands and the reach to drive superior growth and return for shareholders and all of our valued independent Representatives and consultants worldwide.”

The Agreement

NewAge, who also acquired Morinda in late 2018 and now operates a direct-selling division Noni by NewAge, signed a definitive agreement on July 20 to merge with ARIIX—which was founded nine years ago by Dr. Fred Cooper and Mark Wilson—along with four additional companies (LIMU, MaVie, Zennoa and Shannen) that ARIIX acquired.

Consideration for the acquisition will consist of a combination of cash, common stock and convertible notes. At closing, NewAge will pay $25 million in cash and will issue 18 million shares of the company’s common stock. NewAge will also issue a convertible note for $10 million that matures six months from closing and a convertible note for $141.25 million that matures 24 months from closing. Closing of the transaction is expected to occur in the third quarter of 2020.

The combined entity expects to reach pro forma revenues of over $500 million, with a blended gross margin of approximately 70%, and adjusted EBITDA of more than $30 million for 2020. Once the transaction is completed, NewAge will have a network of over 400,000 independent product consultants (IPCs), Representatives and affiliates around the globe.

Shares of NewAge jumped more than 100 percent in after-hours trading after the company announced the merger.

A Unified Partnership

NewAge’s direct selling division, Noni by NewAge, will partner with ARIIX. Founded in 1996 as Tahitian Noni, it has a presence in more than 60 countries, with manufacturing operations in Tahiti, Germany, Japan, the US and China. Like ARIIX, it has headquarters in Utah.

According to Mark Wilson, ARIIX’s president who will now serve as worldwide group president for NewAge, partnering with other direct selling companies has always been part of the ARIIX business strategy to disrupt the industry.

“We took two companies of unique synergies and strengths to build a large-scale organization of unlimited opportunities,” said Wilson. “Over the last nine years, we have merged with over 15 different companies and utilized this strategy to grow and consolidate a very fragmented industry, resulting in strong, consistent growth for ARIIX. Now, together with NewAge, a newer, aggressive company that has a different outlook on how to build this public, omni-channel platform, we are further positioned for even greater growth. ARIIX is a disruptor, with its House of Brands strategy that offers a diversified product portfolio. We are creating a unified partnership, empowered by a family of cultures, that provides the very best opportunities for all of our Representatives, employees and shareholders worldwide.”

Wilson said that the companies will leverage resources in order to keep their momentum and maximize growth potential, including revenue synergies in the areas of cost of goods sold, manufacturing efficiencies and scale, operational redundancy, cross-pollination of brands, as well as market and channel expansion.

 

Plexus Extends Feeding America Partnership, Surpasses 3 Million Meal Donations

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Plexus announced that its Lean Forward initiative has resulted in 3.4 million meals being donated to Feeding America.

The Scottsdale, Ariz.-based company also announced an extension of the promotion to continue to help people affected by food insecurity during the COVID- 19 crisis.

What was meant to be a five-day initiative in partnership with Feeding America to donate one meal per Lean serving turned into an effort by the Plexus community to support the health of families across the nation. The milestone comes as Plexus celebrates its two-year anniversary as a Leadership Partner with Feeding America.

“Before this pandemic, Feeding America provided meals to 40 million people, and since the pandemic, those numbers have gone through the roof,” said Claire Babineaux-Fontenot, CEO of Feeding America. “We are now estimating that there will be 53 million people facing hunger in this country as a result of this pandemic and the food insecurity that existed before it started. Of those 53 million, approximately 20 million are children. So, we need the help of partners like Plexus.

“Through our partnership with Plexus we’ve been able to provide almost 13 million meals,” said Babineaux-Fontenot. “That’s a big number, the need is great and Plexus helping to fill it.”

The Plexus Lean Forward promotion is one of many initiatives launched under the Plexus Nourish One charity program, in partnership with Feeding America. The goal is to help communities care for the ones they love and those hit hardest by the current storm. With every serving of Plexus Lean within a pack, Nourish One will donate the equivalent of one meal to citizens and families in need across the country.

Herbalife Announces Preliminary Results of Self‑Tender Offer

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Herbalife Nutrition Ltd. announced the preliminary results of its “modified Dutch auction” self-tender offer.

The offer, which expired at 5:00 P.M., New York City time, on Tuesday, August 11, 2020, was to purchase up to an aggregate of $750 million of the company’s common shares at a cash purchase price not greater than $50.00 nor less than $44.75 for each share tendered. Based on the preliminary count by Computershare Trust Company, N.A., the Depositary for the tender offer, a total of approximately 37.9 million common shares of the company were properly tendered and not properly withdrawn at or below the price of $50.00 per share, the maximum cash purchase price in the price range specified in the tender offer.

In accordance with the terms and conditions of the tender offer and based on a preliminary count by the Depositary, the company expects to accept for payment a total of approximately 15.4 million common shares of the company at a cash purchase price of $48.75 per share, for a total cash cost of approximately $750 million, excluding fees and expenses relating to the tender offer. These common shares represent approximately 10.4 percent of the company’s total outstanding shares as of August 10, 2020.

To read more, click here.

Former NHL Star Mike Hartman Joins Kannaway Sports Team

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Medical Marijuana, Inc. announced that it has welcomed NHL and network marketing veteran Mike Hartman to its subsidiary Kannaway’s Sports Team.

Hartman will help spread awareness on the benefits of cannabidiol (CBD) for athletes and those who are just looking to lead a healthy, active lifestyle.

“Mike Hartman has demonstrated the ability to generate successful results within multiple business and career paths, leveraging both athletic ability and business acumen,” said Kannaway CEO Blake Schroeder.

In his sports career, Hartman spent 17 years as a professional hockey player, winning a Stanley Cup with the NHL’s New York Rangers in 1994. Afterward, he played for Team USA as well as the International Hockey League.

Hartman is also well-accomplished in the direct selling industry, propelled by his skill as a professional performance coach who leads people to generate success by focusing on measurable goals and overcoming setbacks

“I am so excited to be a part of Kannaway,” Hartman said. “Being a former athlete, people give me products all the time. Kannaway’s products stand apart. I take the CBD oils, have never slept better and I feel great. I can’t say enough good things about them. I look forward to working with Kannaway for a long time!”

 

Mannatech Q2 Sales Down 7.5%

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Mannatech, Incorporated announced net sales of $37.6 million for its second quarter of 2020.

Second quarter net sales for 2020 were down $3.1 million, or 7.5 percent, as compared to $40.7 million in the second quarter of 2019.

According to the company, the approximate number of new and continuing independent associate and preferred customer positions held by individuals in Mannatech’s network and associated with purchases of products as of June 30, 2020 and 2019 were approximately 172,000 and 175,000, respectively. As the novel coronavirus (“COVID-19”) continued to spread into its markets, recruiting decreased 5.2 percent in the second quarter of 2020 as compared to the second quarter of 2019. The number of new independent associate and preferred customer positions in the company’s network for the second quarter of 2020 was approximately 19,047 as compared to 20,084 in 2019.

For the first six months of 2020, Mannatech has $74.2 million, down 5.7 percent from $78.7 million for the first six months of 2019.

To read the full Mannatech Q2 2020 report, click here.

USANA’s Mandanas-Gaston Recognized as One of Asia’s Most Outstanding Leaders

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USANA’s Aurora “Duday” Mandanas-Gaston was recently recognized as one of Asia’s “Most Outstanding Leaders.”

Mandanas-Gaston received the title from one of the premier award organizations in the region, the Asia Corporate Excellence and Sustainability Awards.

As a regional vice president at USANA, Mandanas-Gaston oversees the daily operations, Associate advancement and success of USANA’s Filipino, Thai and Indonesian markets. Those markets make up 8 percent of USANA’s net sales.

Mandanas-Gaston began her career at USANA in November 2008 as the general manager of the Philippines and has spent the last 12 years growing the market and advancing through the company. Before USANA, she worked at Triumph International Direct Selling and Tupperware in the Philippines.

“Duday has dedicated her life to support and lead thousands of people within the direct sales industry and USANA in particular,” said David Mulham, USANA’s chief sales officer. “I am so proud to see her receive this very deserved award. “I have been fortunate enough to see Duday grow as a leader and become one of USANA’s greatest assets in Asia Pacific. She has moved USANA to become a highly respected brand across her regions, and I believe her leadership is a big part of that success. From everyone at USANA, I would like to congratulate Duday on this much deserved recognition.”

The Asia Corporate Excellence and Sustainability Awards were founded in 2014 and has become one of the most sought-after accolades in Asia. Mandanas-Gaston was named an “Outstanding Leader in Asia” because she has demonstrated sound leadership and has successfully applied that leadership to spearhead growth and prominence for USANA.

“I feel very privileged and honored to be able to represent USANA and the industry that I have dedicated my entire career to through this award,” said Mandanas-Gaston. “I would not be where I am today without the incredible people at USANA and all the amazing Associates from the Philippines, Thailand and Indonesia. I want to thank you for helping me become the leader I am today. I hope I can serve as an inspiration to everyone working their way through this industry and can continue to help change people’s lives for the better.”

Young Living VP Aubrey Bates Named a 40 Under 40 Honoree

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Aubrey Bates, vice president of people at Young Living, the world’s leading provider of essential oils, has been named to Utah Valley Magazine’s 2020 40 Under 40 list.

Bates was recognized for her dedication to people and belief in creating meaningful work at every level of the organization.

Over the past few months as Young Living transitioned the majority of its more than 3,000 employees to work from home, Bates has been a vital resource for employees at all levels. In May, Young Living announced that the majority of its workforce will continue to work from home through at least the end of this year due to the impact of the global pandemic. Bates has been essential in designing programs to ensure all employees continue to feel included and connected while staying safe at home. From at-home fitness classes to expanded sick leave and benefits, Young Living employees have continued to flourish under her leadership.

“Aubrey has had a major impact on Young Living and her guidance and creativity has been incredibly valuable over the past few months,” said Jared Turner, president and COO of Young Living. “As we continue to navigate our new normal, we look to Aubrey to guide us through these uncertain times and keep our Young Living family thriving.”

Bates combines data-driven work practices with a keen awareness of cultural and societal undercurrents to stay in tune with economic, educational and employment trends. She also serves on the board of advisors for the Women’s Leadership Institute, and partners with several other organizations dedicated to equality and inclusion. Prior to Young Living, Bates served as president and co-owner of Spherion Staffing in Idaho and as vice president of Spherion Staffing in Utah. She has also worked on various projects with local organizations, including the Utah Governor’s Office of Economic Development.

“I’m honored to be included on this list among so many incredible local leaders,” Bates said. “We’ve gone through a period of immense change over the past few months and have proven that crisis is a call for innovation. I’m determined to continue learning and will use this time as a runway for long term change and to shift the paradigm on how, when and why we work.”

Direct Selling Companies’ Impressive Performance Continues in July

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Transformation Capital recently reported that direct selling companies in its survey set* of 50 continued their impressive performance during July.

Their July performance continued what is now a five-month trend for the industry. 

“While the volume and rate of sequential growth have predictably slowed, due to the higher hurdle rate that has been established month after month, more than half of the companies surveyed once again grew in July compared to June,” said Stuart Johnson, CEO of Transformation Capital. “In addition, the vast majority of respondents reported being up for the month as compared to July one year ago, as well as up year-to-date as compared to the same period in 2019.”

Transformation Capital began tracking this data in March of this year to provide industry executives with timely and salient data related to the direct selling industry’s performance in the COVID-19 environment.

In March, as the pandemic was beginning to take hold of individuals’ daily lives, 80 percent of respondent companies reported sequential revenue growth over February, which was followed by 80 percent of respondents reporting sequential growth again in April during the peak of COVID-19 related lockdowns. May and June’s surveys each resulted in reported growth by more than 70 percent of respondents.

“As we are all aware, summer is typically a slow season for most companies within our industry, which, we believe, makes June and July’s results all the more impressive,” said Johnson. “Despite some seasonality and the likely effect of altitude fatigue, the industry remains strong and all indications point toward a strong fall and close to 2020.”

*The total data set consists of more than 50 companies, with criteria including headquarters based in the U.S., a minimum of $5 million per month in revenue, and a substantial percentage of revenue from U.S. business. Public companies did not participate. Half of the companies are not members of the Direct Selling Association

 

VirBELA Revenue Up 260% in Q2 2020

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VirBELA recently announced exponential growth and momentum in the second quarter of 2020.

Backed by a billion-dollar public parent company, eXp World Holdings, VirBELA saw a 260 percent increase in revenue in the second quarter of 2020 compared to the first quarter of 2020, more than a five times increase in monthly active users and six times increase in new users.

In addition, VirBELA has grown from 20 to 105 employees in the first half of 2020 and introduced several new product features to meet a demand surge from organizations looking to scale their business in an increasingly remote world.

“VirBELA was developed to revolutionize the way people learn and collaborate together, while apart,” says Alex Howland, VirBELA president and co-founder. “While we never could have predicted the COVID-19 pandemic, now more than ever, there is a crucial need for a solution that is going to enable organizations worldwide to bring together remote teams in virtual settings to learn, work and socialize. This moment in time will forever alter how we approach connection and aspects of life moving forward, and VirBELA is at the forefront.”

Work, education and events are all thriving in virtual worlds

Since the start of the pandemic, VirBELA has seen an increase in demand for virtual events and collaborative spaces for remote teams, and, as a result, introduced several new products and features, including:

  • Expo Hall – VirBELA’s Expo Hall is a modern business meeting and event facility that gives event attendees an impressive 3D virtual experience, complete with a lobby, socialization space and exhibitor floor.
  • Concert Stage for Virtual Entertainment – In partnership with Event Farm, VirBELA added multiple music stages to host a wide variety of social events like comedy shows and concerts.
  • VR Support – VirBELA has early VR support, and users with an Oculus Rift or HTC Vive can now access the platform.
  • Screen Sharing and Video Chat – Users can now easily share a webcam or screen without the use of third-party applications, which gives users an opportunity to speak or give presentations “face to face” on VirBELA.

With more employees working from home full time, companies are turning to VirBELA to build their own virtual campuses and office spaces to help teams connect and build community. HTC recently partnered with VirBELA to introduce a new virtual environment called VIVE Campus, which will be part of their new XR Suite—an integrated application bundle that enables users to work, learn, socialize and attend events virtually.

In the events space, businesses and event organizers are eager to find alternative solutions that provide the human connection and spontaneous social interaction one gets with in-person events. Bordeaux Geekfest, iLRN and Laval Virtual have all turned to VirBELA to host large-scale industry events, each with more than 1,000 attendees, in the second quarter.

Colleges and universities such as Stanford Graduate School of Business (Stanford LEAD), Arizona State University, Davenport University and EGADE Business School in Mexico are also turning to VirBELA this back-to-school season to create their own virtual learning experiences. This includes public spaces for student interaction, private offices for professors to meet with students one-on-one, board rooms for classes and massive auditoriums for lectures, as well as campus events such as student orientation, concerts and more.

VirBELA is expanding to meet business needs and has added 85 new employees since the start of 2020 in key growth areas such as engineering, customer success and sales. Glenn Sanford, the founder of eXp World Holdings, joined in April as chief strategy officer to lead strategic initiatives. Other key leaders added to help scale the business include Marko Stankovic, vice president of marketing, and David Chen, general counsel. These executives have been instrumental in capturing market demand and accelerating growth as VirBELA continues to become the industry go-to for remote work, virtual events and online educational programs.

 

eXp World Holdings Up 33% in Q2

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eXp World Holdings, Inc. the parent company for eXp Realty and VirBELA, recently reported quarterly revenue grew 33 percent year-over-year to $354 million.

The $354 million compares with $267 million in the second quarter of 2019. The company also reported the number of agents and brokers on the eXp Realty platform increased 54 percent to 31,091 at the end of the second quarter of 2020, compared to 20,162 in 2019.

“Even in these uncertain times, eXp Realty continued to deliver on its value proposition to agents, brokers and consumers and report record financial results,” said said eXp World Holdings CEO, Chairman and Founder Glenn Sanford. “We achieved the most profitable quarter in the company’s more than 10-year history with a positive net income for the third quarter in a row.”

According to Sanford, VirBELA expanded quickly during the quarter to keep up with demand as companies look to the future and how they will operate given all the uncertainties around physical office set-ups or how to hold events.

“As we look toward the second half of 2020, we anticipate the presence and influence of COVID-19 to linger, but eXp World Holdings’ businesses are uniquely positioned to adapt and thrive,” said eXp World Holdings CFO and Chief Collaboration Officer Jeff Whiteside. “At VirBELA, we see significant growth opportunities ahead as remote work, distance learning and virtual events become the norm during this time of physical distancing.”

To read the full eXp World Holdings Q2 2020 report, click here.

 

NewAge Revenue Down 5.5% in Q2

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NewAge, Inc. announced financial results for the quarter ended June 30, 2020, with net revenue reaching $62.6 million.

The revenue does not include revenues from NewAge’s recently announced combination with ARIIX and four other direct selling companies, which is expected to more than double the size of the company and improve the combined entity’s profitability. The pending merger is expected to close during the third quarter of this year.

The net revenue of $62.6 million compares with $66.3 million for the second quarter of 2019, a 5.5 percent decrease. According to the company, revenue was impacted by COVID-19 in Asia markets. Regionally, results were:

  • The U.S. delivered revenue growth of 13% in the second quarter versus the same quarter in the prior year.  Year to date, the U.S. is up 15% in net revenue.
  • Revenue was up 2% in Western Europe.
  • Revenue was up 10% in Latin America.
  • Revenue in China was down in the second quarter of 2020 but overall year-to-date is down less than 2% from the prior year period as the company continues to implement its new compensation system.
  • Japan was also down in the quarter compared to the prior year due to the impact of COVID-19, and year-to-date is down 5% in the first six months of 2020 compared to the first half of 2019.

Brent Willis, Chief Executive Officer of NewAge, commented, “We are pleased with how the business is holding up in the current business environment, especially compared to most peer group companies.  Despite our Japan and China markets being locked down because of the pandemic for much of the quarter, we are seeing good organic growth in North America, Latin America, Western Europe and recovery in certain Asia Pacific markets as they began to reopen.”

NewAge recently changed its name from New Age Beverages Corporation to NewAge, Inc. to reflect the expanded opportunities in front of the company.

To read the full NewAge, Inc. Q2 2020 report, click here.