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Direct selling faces exciting times: a wider range of businesses have come to recognize our channel’s strategic advantages—its ability to forge unrivaled relationships between consumers and the
individual direct sellers who bring the promise of our brands to life.

As the channel’s reputation elevates, our companies are steadily attracting executive talent from some of the world’s most recognizable consumer-facing companies.

The perspectives and insights of these new C-suite and executive-level hires are pivotal. These people are helping companies reposition and provide a more competitive stance that takes on online retailers and the technology platforms that dominate the gig economy. We owe it to them to provide the educational and onboarding experience that ensures their success in the channel.

The Crummer Strategic Optimization Program for Direct Selling Executives at Rollins College is a valuable new addition to DSA’s educational offerings. DSA’s SmartStart and Direct Selling Boot Camp which have served as a “direct selling 101” will continue to address companies seeking to onboard new hires. The Crummer program—slated to begin in February 2020 with pre-registration now being accepted at crummer.rollins.edu/dsa—is a “direct selling 201.” It offers onboarding curriculum that embraces executives’ experiences while ensuring they gain insights to ensure their success.

With input from DSA and direct selling leaders, Professor Greg Marshall—a DSEF Fellow who serves as Charles Harwood Professor of Marketing and Strategy at the Crummer Graduate School of Business at Rollins College in Winter Park, Florida—has developed the Crummer Strategic Optimization Program for Direct Selling Executives program to facilitate the successful integration of new and existing executives within direct selling companies.

“It’s what you learn after you know it all that counts.”—John Wooden

Comprised of both in-person and remote learning components, the program will adhere to the hallmarks that make DSA’s education programs stand apart from others.

With the objectives of enhancing retention, increasing self-efficacy, promoting the importance of company culture, facilitating role clarity, and expediting social integration, the curriculum will be imbued with the real-world wisdom of leaders who have endured the fullrange of direct selling’s business cycles. The exchange of ideas between senior-level peers responsible for making executive decisions in leading direct selling companies every day makes this program unique.

The Crummer Graduate School of Business at Rollins College opened on June 6, 1957, and after 60 years, some things never change: outstanding faculty, incredible students and alumni, and a commitment to excellence.

I encourage leaders from all direct selling member companies to visit the program website crummer.rollins.edu/dsa to read the course description and topic outline. I also urge you to view the early-August discussion with Dr. Marshall, where we reviewed the program and a webinar that continues to be the source of input from executives from across the direct selling spectrum.

As our families and friends send our kids back to school, let’s remember that it’s always a season for learning and that executive education—no matter the level—is what leads to success.

MONAT Global welcomes Marc Juan Lopez as Chief Financial Officer

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MONAT Global welcomes Marc Juan Lopez as Chief Financial Officer (CFO). A financial executive with 16 years of diverse international experience with Fortune 500 companies, Lopez held positions in corporate finance, financial reporting, accounting, internal controls, risk management and auditing.

“I am pleased to add Marc to our team. His talent and expertise further strengthen MONAT’s leadership and positions us for the next stage of our growth, as well as long-term success,” said Stuart MacMillan, President of MONAT Global. “He brings deep financial services insights to the company and is a natural fit to lead our finance department given his previous successes and leadership abilities.”

Lopez earned his bachelor’s degree in Business Administration and Economics and his Executive MBA in General Management from IESE Business School in Barcelona, Spain. He has received certifications as an Internal Auditor and in Risk Management from the Institute of Internal Auditors. Prior to joining MONAT, Lopez served as Mondelez International’s Latin America Division in Miami as Regional Finance Director where he was responsible for Mondelez Latin America’s $4B accounting and external reporting, as well as managing a team of more than 100 employees. He started his professional career with KPMG in Spain and later moved to the UK.

“MONAT continues to attract and retain strong talent. Our team is the key to our success,” said Ray Urdaneta, CEO of MONAT Global. “Marc brings a unique set of skills and invaluable years of experience to the company, and I’m happy to welcome him to our family.”

Response to the DSA’s Memo on CBD

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It’s been a month since the Code Administrator of the Direct Selling Association (DSA) made it known to all member companies in a memo released July 29th stating  “…it is the determination by this office that the sale of ingestible CBD (cannabidiol-based oils) products such as a foodstuff, nutritional supplement, tincture or for any digestible means for humans or animals is violative of the DSA Code of Ethics.”

The Association also stated in the memo that they are instituting a 90-day window for member companies selling CBD products during which they will not be cited for DSA Code of Ethics violations, and to account for additional time to permit the FDA to “articulate a path forward wherein sale of these products may be deemed legal.”

As for the 90-day grace period itself, which will elapse at the end of October, industry legal expert Spencer Reese, partner at Reese, Poyfair & Richards, believes the timeframe is not conducive to obtaining any final ruling on CBD from the FDA.

“I would be somewhat surprised to see the FDA have some new or concerted approach by the end of October,” said Reese. “This is not a new issue. The Epidiolex pre-IND (investigational new drug) was filed back in 2014, so everybody knows CBD oil was the subject of extensive investigations and research as a drug as far back as then. It’s no secret that the FDA’s position on CBD is, because of the pre-approval of Epidiolex, that CBD oil is a drug; however, the FDA has done nothing about regulating it.” (Cannabidiol is the active ingredient in Epidiolex, a prescription medicine used to treat seizures associated with Lennox-Gastaut syndrome or Dravet syndrome).

Company Reaction to Memo

Blake Schroeder, CEO of Medical Marijuana Inc.’s subsidiary Kannaway, feels that DSA has blurred the law in regard to CBD. “Kannaway became the first direct selling company to sell hemp-based cannabidiol (CBD) products in 2014, we are proud of our accomplishments through the years since then and many now follow our path. Among our most significant achievements was creating a pipeline for CBD products to be legally marketed and sold in the U.S., providing access to hundreds of millions of Americans. We believe the DSA has not accurately portrayed the law with respect to CBD, and we vehemently disagree with their position.

”We believe the DSA has not accurately portrayed the law with respect to CBD, and we vehemently disagree with their position.” – Blake Schroeder, CEO of Kannaway

In July, DSA member Young Living acquired Nature’s Ultra, which has more than 1,500 acres of hemp farms in Colorado. The company is aware of DSA’s statement and much like the Association is looking to the FDA to articulate a path forward on any specific details guiding the sale of CBD.

“When those regulations are published, Young Living is committed to aligning with FDA regulations as they continue to build a regulatory framework around the 2018 Farm Bill that legalized CBD,” said a Young Living spokesman. “Young Living is always committed to uphold and follow the law. “We are committed to making sure that our members have access to the best essential oil products, which is why we’re working with Nature’s Ultra, a wholly owned subsidiary partner, to ensure they can legally obtain CBD products from a trusted source. One of the reasons that we partnered with Nature’s Ultra was to leverage its CBD infrastructure and knowledge to bring CBD products to our members now even in the midst of a rapidly shifting regulatory landscape.”

DSA Provides Further Communication to Members

In a follow up response to Direct Selling News, the DSA stated that the Code Administrator who enforces the DSA Code of Ethics independently of the Association recently issued communication regarding the sale of ingestible products containing CBD. Shortly after, the Association provided the membership background materials on CBD and the legal and regulatory issues occasioned by marketing CBD as a dietary supplement.

In addition, the DSA stated they have taken the following actions:

  • DSA management is engaging the Board of Directors to develop an Association position paper on CBD products, to help ensure full, fair and legal access to the marketplace for direct sellers
  • Conducting information sharing regarding the legal and regulatory issues facing CBD-related products which included a session at the 2019 DSA Annual Meeting and information from discussions of the General Counsel Committee

Finally, given the immense interest in CBD and the regulatory uncertainty CBD faces from the US and state governments, the DSA reaffirmed the Code Administrator will not undertake enforcement actions until the 90-day window has elapsed, and may increase the abeyance depending on factors such as an FDA announcement.

Coty and Younique to Part: Will Focus on their Respective Strengths

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Coty and Younique announced a mutual decision to terminate their partnership.

Coty Inc. acquired 60 percent of the fast-growing beauty brand in 2017 for approximately $600 million in cash.

According to a statement released from Coty, given the different nature of the companies’ business models and the need for a strong and specific focus to successfully improve fundamentals, Coty and Younique have agreed to part and focus on their respective strengths.

Coty will sell its controlling stake to Younique’s original founders upon regulatory clearance, as soon as practicable, it said. The conditions of the exit will not be made public, however no further adjustment to Coty intangible asset base is expected as a result of this transaction.

“I am grateful for the collaboration and knowledge we have gained from our partnership with Coty,” said Derek Maxfield, CEO, Younique. “Younique is excited to return to our entrepreneurial roots armed with the knowledge and insights gained from the partnership experience. We remain focused on serving our Presenters with innovative products and leading-edge digital selling tools that make Younique the easiest way to start and run a direct sales business.”

“I am grateful for the collaboration and knowledge we have gained from our partnership with Coty. Younique is excited to return to our entrepreneurial roots armed with the knowledge and insights gained from the partnership experience.” – Derek Maxfield, CEO, Younique

“We wish Derek and the teams all the best for Younique’s next chapter,” said Pierre Laubies, CEO of Coty. “Our presence in Younique for the past few years has been an accelerator of our digital strategy, which has today become one of Coty’s strengths. We now need to focus on our turnaround plan and the significant opportunities which lie in our Luxury, Consumer and Professional businesses.”

U.S. Congresswoman Virginia Foxx (R-NC) Visits Direct Selling Association Member Princess House’s Distribution Center

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United States Congresswoman Virginia Foxx (R-NC) visited the 60 employees at the Princess House Distribution Center located in Rural Hall, NC. The Direct Selling Association, national trade organization for the direct selling industry, works with members like Princess House—and executive leaders such as Connie Tang, Princess House CEO and DSA Vice Chairman—to identify opportunities to meet their elected officials.

The facility distributes to the eastern United States; Midwest and the Rocky Mountain states for Princess House, a direct seller of cookware, glassware, flatware and cutlery. The company has used the 200,000 sq. ft. facility in Rural Hall since 1989 for distribution, warehousing and returns processing.

Rep. Foxx toured the facility and saw all aspects of business including receiving, processing, picking and shipping. She also met with the employees and learned more about how the facility supports thousands of Princess House Consultants across the country, as well as local vendors.

“It was great to meet with folks at Princess House in Rural Hall.  Princess House plays a big role in the direct selling industry that provides many North Carolinians opportunities to earn their own income and start small businesses. Supporting opportunities for more jobs and cutting red tape is key to expanding our thriving economy. In Washington, I’m working to support these job creators and entrepreneurs with policies that provide them greater freedom and flexibility to operate independently,” stated U.S. Congresswoman Virginia Foxx.

“It was a pleasure to host Rep. Foxx at our facility and showcase our operation.  We are very appreciative of Rep. Foxx meeting with our team and taking a direct interest in them.  We thank her for supporting the Direct Selling industry and our independent consultants,” said Russ Whittle, vice president of operational excellence, Princess House and Direct Selling Association member.

HealthSync Global Welcomes New President Doug Jensen

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HealthSyncTM Global recently appointed Doug Jensen as President. Jensen will oversee operations, sales, strategic direction, and leadership for the emerging wellness company.  Jensen has over 25 years of corporate leadership and sales experience with 14 years in the network marketing industry.

“Doug is one of the most uniquely qualified individuals with whom I have ever worked. Not only is he inspiring and committed, but he also positively drives growth wherever he goes. From changing people’s lives to building powerful teams, he is instrumental in helping others navigate through challenging situations to realize their potential to achieve their dreams. Doug is a  top-notch leader that has developed exceptional character and skills while maintaining balance in his personal and career life. He is committed to excellent health habits and helping others build a positive legacy in their lives all while being actively engaged in the lives of his family members. No easy task, but he makes it happen,” says Brandon Broadwater, Healthsync Global CEO and Founder.

The HealthSync Global team is excited to have Jensen join the team as a key player to help achieve the company vision to be a pillar of strength within people’s lives and empower individuals to unleash their potential for greater health, wealth, and happiness.

Plexus Worldwide Welcomes Kim Drabik as Director of Government Relations

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Plexus Worldwide is pleased to announce the addition Kim Drabik to its leadership team as the Director of Government Relations. In this new corporate role, Drabik will be responsible for driving strategy that moves good public policy, stakeholder engagement involved with local, state, federal and global government affairs.

“Kim brings established and well-known direct selling industry strategies trusted around the world,” said Chris Reid, Vice President of Compliance and General Counsel of Plexus. “She will be an incredible asset to the team as we continue our rapid global expansion.”

“Staying in an industry I love was important to me in looking at the next step in my career, and Plexus provided the perfect opportunity to work with a talented team, as well as help them grow and expand,” said Drabik. “I look forward to using my extensive experience to help Plexus maintain its reputation as a trusted industry innovator that operates in a way that a direct selling company can, and should, be run.”

Drabik holds a Bachelor of Science degree in Health Care from the University of Michigan. She also has a long history of industry leadership roles including serving as Advocacy Chairman for World Federation of Direct Selling Associations, the Board of Directors of the United States Direct Selling Association as well as the Council of Better Business Bureaus Partnership Circle.

“Kim’s proven track record to lead teams, simplify daunting projects, and provide strategic counsel will be critical to Plexus’ next phase of growth,” said Tarl Robinson, CEO and Founder of Plexus. “We are thrilled to have her as part of the One Plexus team.”

John Fleming Pens Open Letter to New Avon CEO Paul Yi

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LG Household & Health Care’s acquisition of the North American operations of New Avon LLC announced back in April went through earlier this month. In connection with this transaction, Former President of Coca-Cola Korea Company Paul Yi has assumed the CEO duties from Laurie Ann Goldman, who led New Avon for the past eight months.

John Fleming, Direct Selling Hall of Famer and former Publisher & Editor in Chief of Direct Selling News penned an open welcome letter to the CEO.

 

August 26, 2019

OPEN LETTER OF WELCOME AND CONGRATULATIONS

TO: Mr. Paul Yi, LG H&H, New CEO – New Avon LLC

The purpose of this letter is to let you know that there are many who found your recent letter to Avon Representatives to be the equivalent of a breath of fresh air. Many of us became aware of your letter through friends and relatives, affiliated with New Avon, who shared your message. Your letter is a demonstration of leadership that recognizes the Avon Representative as the focus of the brand and the chosen channel of distribution. 

Some of us, who have great memories of working for one of the great companies of all time, have been mystified by some of the decisions made over the past 10 years. The company made it so confusing for her (the Avon Representative), her customers and those she recruited as Avon Representatives. However, in one letter, you made so many things so very clear: an acknowledgement of the company’s great history, looking to the future, no more band-aids, earning the right to be winners, a focus on the next quarter of a century – not the next quarter, a willingness to invest, to be strategic, a commitment to the Avon Representative and the direct selling model! 

In one letter, I personally know that you re-ignited belief within the company for the company and provided those of us outside of the company with new optimism relative to the future of a direct selling legacy. As you also stated in your letter; “Clarity is a powerful management force.”

In a very bold move, you immediately announced elimination of the biggest channel conflict created by any direct selling company over recent years – using the internet and e-commerce functions (Avon.com) to compete with Avon Representatives vs using online tools to exclusively support Avon Representatives. You closed your letter with a very simple but concise statement that spoke volumes about how you intend to approach your new responsibility: “With the combination of Avon and LG H&H now complete, we have the wind at our backs like never before. It is our time. Let’s get busy.”

It is my hope, our hope, that your recent letter to New Avon LLC Representatives will awaken a sleeping giant. Direct selling worldwide needs your example, of insight and courage to do the right thing. I am very premature in giving you too much credit however, I have been around this business model long enough to recognize insight, authenticity and courage in decision making and that is what I believe many have recognized in your letter. 

Welcome to New Avon, LLC and welcome to direct selling! On behalf of all who are involved in the positive health and future of the direct selling model, we wish for you and the L.G. Team much success!

John T. Fleming

Direct Selling Hall of Fame

Direct Selling Education Foundation Circle of Honor

Direct Selling News Lifetime Achiever

Passionate Advocate    

Workplace Culture: How to Encourage Collaboration

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Company culture is about more than everyone getting along or creating a fun environment to work in, says Monica Eaton-Cardone, COO and co-founder of Chargebacks911 and CIO of Global Risk Technologies. The culture of an organization, she says, is about the way in which people work together to propel the business forward.

All companies must define their culture and incorporate into that philosophy a strategy for how groups of individuals will interact. Here are Eaton-Cardone’s steps for encouraging collaboration in the workplace.

Step 1: Build teams based around individuals’ strengths

Creating a culture of collaboration will begin with a realistic and honest overview of each individual’s abilities, as well as vulnerabilities.

Step 2: Encourage the collaborative spirit

Team members will work together better when they have real, genuine relationships with one another.

Step 3: Encourage open-mindedness

Ask teams to approach each situation openly. That includes not just problem-solving in the course of fulfilling their roles, but also interpersonally at the office.

Step 4: Reward innovation

Innovation and agility are the keys to maintaining the competitive edge in any industry. That’s why you should always encourage your teams to challenge the status quo.

Step 5: Spread the delegation of tasks

You don’t want to have the same people calling all of the shots all of the time. When this happens, individuals start to feel powerless, as if they have no influence or impact on the organization. That causes passion to leave the team.

Step 6: Diversify

You don’t want employees to think only of their own insular group; rather, you want them to make decisions which benefit the entire organization.

The best way to do that is to ensure individuals understands the role that each team performs and the value that everyone adds to the company.

To read the full article, click here.

Morinda/New Age Announces Expansion Plans; CEO Rings Nasdaq Closing Bell

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Morinda/New Age (NASDAQ: NBEV) recently announced that it plans to expand operations into three regions: Africa, Europe and Latin America.

“We call this new initiative Project: White Spaces, and it begins today,” said Chief Commercial Officer Kelly Olsen. “We see white spaces in every market, and we will seek the best leaders in the industry to seize the opportunity to become ‘Top of Market’ in new regions throughout the world.”

According to Olsen, white spaces are those areas in the world with little-to-no market penetration for Morinda/New Age. The company will roll out operations in the coming months in Nigeria, South Africa, various countries in the Caribbean and Bulgaria. Independent product consultants, or IPCs, who build businesses in these new territories will be rewarded with new titles, bonuses and a new compensation structure.

Expansion into new markets figures prominently in CEO Brent Willis’s goal of reaching $1 billion in revenue in the next three years. During a recent Nasdaq closing bell ceremony in which he was invited to headline, Willis stated, “We have the people, we have the team, we have the aligned vision, we have the brands, we have the products, we have the distribution—we have everything we need to win and really be successful.”

Nearly 1,000 Morinda/New Age affiliates and distributors were in attendance to watch the ceremony on the seven-story Nasdaq screen in Times Square.

“I’ve been here for 14 years,” said Nasdaq Executive Vice President Joseph Brantuk, who introduced Willis at the ceremony, “and we’ve never had a company bring that many folks outside to watch us. Truly remarkable stuff.”

Since its initial listing in February 2017, Morinda/New Age has seen revenue growth of more than 15,000 percent. The company was listed at No. 54 in the Direct Selling News Global 100 list of the top direct selling companies in the world based on 2018 revenue.

Katherine Weng Named Mary Kay General Manager for China

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Mary Kay Inc. announced the appointment of Katherine Weng as general manager for Mary Kay (China) Co., Ltd.

Based in Shanghai, Weng will report directly to Mary Kay’s Asia Pacific Region President KK Chua.

“Katherine’s tireless work ethic, strategic mindset and ability to forge long-term relationships have enabled Mary Kay China to reach new heights,” said Chua. “She is passionate about our mission to enrich women’s lives. She understands our Independent Beauty Consultants’ needs and works hard to fulfill those needs to support their businesses. Within the company, she has successfully created a seamless link between sales, marketing and operations. We look forward to continued growth in China under her leadership.”

Mary Kay began operations in China more than 20 years ago and has quickly grown to be one of the company’s top three international markets.

Weng’s appointment is just the latest in Mary Kay Inc.’s decades-long commitment to empowering women to serve in leadership positions around the globe. Women in leadership positions at Mary Kay is a driving force to its success:

  • 61 percent of Mary Kay’s global workforce is female;
  • In leadership positions of director and above, 59 percent of employees are female;
  • In leadership positions of vice president and above, 51 percent are female;
  • 46 percent of the Mary Kay global executive team is female; and,
  • 68 percent of Mary Kay international market leadership is female.

“I am extremely honored to serve women and their families in China,” said Weng. “It has been a great privilege to work for a company that is dedicated to not only enriching women’s lives through a fantastic business opportunity and cutting-edge products, but also through its philanthropic and sustainability efforts.”

Weng started her career as a Shanghai branch and customer service manager for Mary Kay China in 1995 and has held various key positions in the last 24 years, most recently as senior commercial vice president. She has been an integral part of the leadership team in China and has made a significant contribution to the growth and success of Mary Kay China.

Vistra Energy Announces Agreement to Acquire Ambit Energy

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Irving, Texas-based Vistra Energy (NYSE: VST) announced it has entered into an agreement to acquire Ambit Energy for $475 million plus net working capital in an all-cash transaction. Following the closing of the transaction, Vistra’s share of the ERCOT residential market will grow from approximately 25 percent to approximately 32 percent and an industry-leading 26 percent in all U.S. competitive markets.

“Ambit is a very attractive standalone retail company and a great match for Vistra’s retail business, given its leading direct selling capability and its proprietary technology platform.  Importantly, Ambit’s retail load is nearly two-thirds in the ERCOT market, followed by PJM and the northeast, and this load is 90 percent comprised of residential and small business customers,” said Curt Morgan, Vistra’s president and chief executive officer.  “This acquisition offers significant benefits including consequential synergies and a material enhancement of Vistra’s generation to retail load match, with total customers reaching nearly 5 million, and our expected returns from the transaction representing a superior use of capital.  Given the attractive EBITDA to free cash flow conversion profile of the business, we expect the transaction to have a minimal impact on Vistra’s credit metrics and our capital allocation plan moving forward.”

Dallas-based Ambit serves approximately 1.1 million residential customer equivalents in 17 states. Vistra stated in the press release that the North Texas overlap of administrative functions will uniquely position Vistra to capture synergies and enable the teams to quickly integrate operations. Vistra expects the Ambit business will contribute approximately $125 million to adjusted EBITDA after the full run-rate of approximately $25 million of anticipated annual synergies is achieved.