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Young Living Opens New Global Headquarters

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Young Living Essential Oils recently celebrated the grand opening of its global headquarters in Lehi, Utah, with a ceremonial ribbon-cutting event.

The five-story, 263,000-square-foot building is constructed to qualify for both LEED and Green Globe certification. The design organizes workspace for nearly 1,000 employees around a botanical atrium with two immense skylights and a three-story waterfall. Keeping with Young Living’s dedication to nature and its zero-waste goal, the building has more than 20 eco-friendly features, including roof solar panels, interior glass walls to maximize natural lighting, regionally sourced construction materials, vehicle-charging stations and extensive recycling systems.

“The opening of a new corporate headquarters in Lehi is nothing new,” said Jared Turner, president and COO of Young Living. “That’s why we wanted our campus to stand out. Our goal was to embody the vision of our founder, D. Gary Young. He envisioned a world where everyone enjoyed whole-life wellness. That’s why we pulled out all the stops when it came to construction and catering to our employees’ needs. Employees and our neighbors and friends can eat organic, locally sourced food at the Vitality Cafe, while employee amenities also include an on-campus gym with company-subsidized personal training, an indoor atrium and outdoor gardens for a dose of nature during the workday.”

Additional features include the Skyrider Amphitheater, a research greenhouse and the D. Gary Young Museum, which is scheduled to open in this summer.

The unveiling of the new global headquarters is part of the company’s commemoration of its 25-year anniversary.

Kannaway Receives Authorization in Bulgaria to Sell Hemp-Derived CBD Products

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Medical Marijuana, Inc. announced that it has received the first-ever authorization in Bulgaria to sell hemp-derived cannabidiol (CBD) products.

“As the EU continues to navigate its stance on CBD, we are proud to continue paving the way for the acceptance of CBD in Bulgaria just as we have in many other countries around the world,” said Kannaway CEO Blake Schroeder. “With this authorization, we hope that we can establish our company as pioneers in Bulgaria’s CBD industry and leaders in CBD education throughout Europe.”

The authorization certifies that Kannaway’s imported goods are normally and freely sold in the certifying country’s open markets and are approved for export.

“As a company of firsts, we look forward to trailblazing the international CBD market as advocates of this supplement’s potential benefits,” said Kannaway Vice President of International Alex Grapov. “We have met with all of the appropriate regulatory bodies to ensure that our operations are within the bounds of the law creating a stable opportunity for our customers and Brand Ambassadors.”

Kannaway is a direct selling company specializing in the sales and marketing of hemp-based botanical products. CBD, a non-psychoactive cannabis compound found abundant in hemp, has been researched extensively for its antioxidant and anti-inflammatory properties.

Tricia Stitzel Named Tupperware Brands Chairman of the Board

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Tupperware Brands announced that Patricia A. Stitzel has been appointed Chairman of the Board effective May 22, 2019, following the company’s annual meeting of shareholders.

Stitzel is the first woman to hold this position in the company’s 70-year history and takes on this responsibility in addition to her existing role of chief executive officer, which she has held since May 2018, after serving as president and chief operating officer since October 2016.

Rick Goings, who served as chairman and chief executive officer until May 2018 and executive chairman, thereafter, stepped down after 26 years of successful leadership. He will continue to serve as a member of the company’s Board of Directors. Susan M. Cameron, who has served as presiding director of the Board since May 2018, will continue in this role, now known as lead director.

“I am honored to serve as chair of the board of directors,” Stitzel said. “I’m confident that, with the support of our Board and leadership team, we are poised to transform our business into one that is more relevant, more engaging and more accessible to our sales force and customers to deliver and sustain stakeholder value.”

Tupperware Brands, a company committed to women’s empowerment, continues to solidify its commitment to diversity with equal representation at all levels of the company. Today, women hold positions representing 55 percent of the Board, 50 percent of the executive and staff officers and 36 percent of the senior leadership positions globally. Currently, the company supports and works with an independent sales force of 3 million, most of whom are women.

 

“It is a transformative time for Tupperware Brands,” said Cameron. “With tremendous appreciation for Rick’s years of visionary leadership, we are confident that Tricia is the right choice to position the company for future growth.”

Natura Acquiring Avon Products, Inc.

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Natura &Co (B3: NATU3) announced late yesterday that it is acquiring Avon Products, Inc. (NYSE: AVP) in an all-share transaction.

The deal, valued by Natura at around $3.7 billion, caps Avon’s strategic pivot to focus on foreign markets, where sales have been stronger in recent years. The company moved its corporate headquarters to London in 2016 and sold its North American business to private equity firm Cerberus Capital Management for $435 million.

Natura & Co., a consolidation of the beauty brands Natura, The Body Shop and Aesop, said the combined company will have a combined $10 billion in revenue. Natura said it expects the Avon merger to generate $150 to $250 million in revenue annually. It’s expected to close in early 2020.

As part of the all-stock transaction, Natural & Co. shareholders will own about 76 percent of the combined company, while Avon shareholders will own nearly 24 percent.

Avon’s share price soared 16 percent after hours Thursday on the New York Stock Exchange to $4.05 per share.

The acquisition creates a best-in-class multi-brand and multi-channel beauty group, with direct connections to consumers on a daily basis. The group will hold leading positions in relationship selling through Avon´s and Natura’s over 6.3 million Consultants and Representatives, a global footprint through 3,200 stores, as well as an expanded digital presence across all companies. The combined Group is expected to have over 40,000 associates and be present in 100 countries.

“We have always looked at Avon with respect and admiration,” said Luiz Seabra, co-founder of Natura. “Natura was founded on its passion for beauty and relationships, and today’s transaction creates a major force in the direct-to-consumer space. Direct selling was a social network before the word even existed, and the arrival of technology and globalization only multiplied opportunities to connect with consumers in a meaningful way. The peer-to-peer sales model is evolving towards social selling and the power of digital allows the group to go beyond providing products and advice, and advances women empowerment, through financial independence and enhanced self-esteem. We believe that business can be a force for good and together with Avon, we will amplify our pioneering efforts to bring social, environmental and economic value to an ever-expanding network.”

Jan Zijderveld, CEO of Avon, said, “This combination is the start of an exciting new chapter in Avon’s 130-year history. It stands as a testament to the progress of our efforts to ‘Open Up Avon’, and we believe it will allow us to significantly accelerate our strategy and further expand into the online channel. Over the past year, we have started a transformation to strengthen Avon’s competitiveness by renewing our focus on Her, simplifying our operations, and modernizing and digitizing our brand. Together with Natura, we will have broader access to innovation and a portfolio of products, a stronger e-commerce and digital platform, and improved data and tools for Representatives to drive growth and enhance value for shareholders. Further, with the support of Natura, we will continue to invest in cutting-edge technology to enhance our digital capabilities and productivity for our Representatives. Both Avon and Natura are purpose-driven organizations, and the combination will enable us to better serve our millions of Representatives, leveraging Avon’s international presence with the same strongly-held commitment to enhancing Her experience and earnings.”

As part of this transaction, a new Brazilian holding company, Natura Holding S.A., has been created. Upon closing, Natura Holding S.A.s’ stock will be listed on B3 with a 55 percent public float and it will also have ADRs listed on the NYSE. Avon shareholders will have the option to receive ADRs traded on the NYSE or shares listed on B3. Further information is available in the Material Fact which can be accessed here.

Upon closing, the Board of Directors of the combined company will consist of 13 members, three of which will be designated by Avon. The transaction remains subject to customary closing conditions including approval by both Natura &Co’s and Avon’s shareholders as well as anti-trust authorities in Brazil and certain other jurisdictions.

Mary Kay Inc.’s David Holl Among Top Ten Most Reputable CEOs in World

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Mary Kay Inc. recently announced that Chairman and CEO David Holl is among the top ten most reputable chief executives in the world according to the Reputation Institute’s CEO RepTrack 2019.

The Reputation Institute, the world’s leading provider of reputation measurement, measured the reputation of more than 140 global CEOs and canvassed more than 230,000 individual ratings among the informed public. The study was conducted in January and February of this year.

“David’s leadership and operational expertise since being named CEO in 2006 has contributed significantly to Mary Kay’s success,” said Richard R. Rogers, son of Mary Kay Ash, co-founder and executive chairman of the Board. “Mary Kay is a brand born of purpose, and David’s steadfast commitment to our founding values has made him a truly extraordinary chief executive officer and people leader.”

According to Kylie Wright-Ford, CEO at Reputation Institute, acting responsibly, behaving ethically and caring about social issues are the most important drivers of CEO reputation. In fact, according to Reputation Institute’s findings, CEOs are more likely to be judged on ethics versus profit margins. In this way, the perception of CEOs and the companies they lead are directly correlated.

The top 10 global CEOs recognized in Reputation Institute’s 2019 CEO RepTrak study (in alphabetical order) are:

  • Ben van Beurden, Shell (OTCMKTS: RYDAF)
  • Niels B. Christiansen, LEGO Group
  • Michael Dell, Dell
  • Emmanuel Faber, Danone S.A. (OTCMKTS: DANOY)
  • Fabrizio Freda, ​The Estée Lauder Companies (NYSE: EL)
  • Shuntaro Furukawa, Nintendo Co., Ltd. (OTCMKTS: NTDOY)
  • Ralph Hamers, ING Group (NYSE: ING)
  • David Holl, Mary Kay, Inc.
  • Christopher J. Nassetta, Hilton Worldwide Holdings Inc. (NYSE: HLT)
  • Carsten Spohr, Deutsche Lufthansa AG (OTCMARKETS: DLAKF)

Recently, Forbes named Mary Kay to its lists of America’s Best Employers for Diversity and America’s Best Midsize Employers.

The af Jochnick Family Offers $1.3 Billion for Oriflame

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Swedish cosmetics giant Oriflame recently announced it has received an offer valuing it at $1.3 billion from the af Jochnick family that founded it back in the 1960s.

By proposing a 35 percent premium over Tuesday’s closing price, the family is hoping to build on the roughly 30 percent stake it already has in Oriflame and take the company private. The goal is to push through a “re-positioning” that the af Jochnicks argue is better done away from the glare of the stock market.

But the offer price, which the family says is all they can afford and can’t be raised, doesn’t take into account the company’s potential, according to Joakim Bornold, a savings adviser at Soderberg & Partners. He says that means smaller shareholders will miss out on the restructuring gains that are buried in the stock.

“The bid feels a bit ungenerous right now,” he said by email. “The shares have dropped considerably lately and are very far from their all-time high.”

About a year ago, one Oriflame share traded at a high of 419 kronor, compared with Tuesday’s close of 168 kronor. The af Jochnicks are offering 227 a share.

“I understand that the owner family sees a good opportunity to buy out the company right now, to make the big changes that are required,” Bornold said. “If they succeed, then Oriflame will likely return to the stock exchange, but it will be much more expensive.”

The proposed deal comes after Oriflame lost roughly a tenth of its market value since the beginning of the year. That followed a slump of more than 40 percent in 2018. Walnut Bidco, the company created by the af Jochnick family to push through the deal, “will not” increase the offer price, it said in the statement. They need shareholders representing at least 90 percent of the stock to agree to the deal for it to be successful.

“It’s a gloomy development that the stock exchange increasingly loses these restructuring cases to the private environment,” Bornold said. “It’s a sign of weakness for the stock market. The losers are the smaller shareholders.”

Frida Bratt, a savings economist at Nordnet in Stockholm, says it’s likely that a lot of Oriflame investors are “tired of the share-price pressure and want to sell.”

“But at the same time, there are investors more willing to take risk, that see the low valuation and a chance of recovery,” she said. “From that perspective, there is a risk that a premium of 35 percent will not be enough for the bid to go through.”

Bratt says the af Jochnick offer is understandable because “the stock market’s judgment can be quite tough on companies where profitability falls over a period.”

Alexander af Jochnick, the chairman of Oriflame, says the family can’t raise the offer price “because we decided that if we’re going to buy it out, we’re going to buy it ourselves, not with industrial or private equity capital.” There’s “no room” for the price to be raised, he said in an interview. The family is also prohibited from raising the offer due to the stock exchange’s takeover rules.

In the statement, the family said that it “has become increasingly obvious” that the company “is facing a number of headwinds.” Oriflame, whose markets currently include Turkey, the former Soviet Union and Latin America, now “needs to undertake a re-positioning in key geographies” and “achieving this re-positioning has challenges in the public market.”

Analysts monitoring Oriflame shares had been largely positive. Of the six tracked by Bloomberg, three were advising clients to buy, two said hold on to existing stock and only one recommended that investors should sell. On average, analysts expected Oriflame shares to trade at about 195 kronor 12 months from now, indicating upside potential of about 16 percent.

Natura and Avon Products, Inc. in Advanced Talks on All-Stock Deal

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Natura Cosmeticos and Avon Products Inc. announced that they are in advanced talks over a potential all-stock transaction.

The Sao Paolo, Brazil-based Natura said in a statement that the two parties are negotiating the final details of the deal but cautioned that agreement may not be reached. Avon later confirmed talks are at an advanced stage.

Avon shares rose nearly 22 percent in pre-market trading in New York on Wednesday.

Reuters reported last week that Natura was close to completing the deal to buy Avon, which has a market capitalization of $1.42 billion, as per Refinitiv data.

Citing people familiar with the matter, the Financial Times reported on Wednesday that Natura will buy Avon in an all-stock deal that values the U.S. group at more than $2 billion.

Natura will end up owning about 76 percent of the combined group while the rest will be owned by Avon shareholders, the FT said. The Wall Street Journal reported the boards of the companies have approved the deal.

Tupperware Donates 43,000 Reusable Drinking Items

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Tupperware Brands Corporation recently announced the donation of 43,000 reusable drinking items to Clean the World Foundation, a global leader in WASH (water, sanitization and hygiene) and sustainability.

The donation comes as a result of Tupperware’s 2019 Buy One, Give One campaign held last month in the US and Canada in honor of World Water Day. From March 16 through March 22, Tupperware committed to donating one reusable drinking item for each qualifying drinking item sold. The Tupperware® products donated will go to support Clean the World Foundation’s WASH Education Program, which provides supplies and training to schools, maternal health centers and community clinics to help them provide education and resources on water, sanitation and hygiene to children and families without access to it around the world.

“We admire the mission of Clean the World and are excited to join together with a fellow Orlando-based organization,” said Jim Bellonzi, president, U.S. & Canada at Tupperware.

Through its international relief efforts and support from partners like Tupperware, Clean the World Foundation provides families with access to hygiene supplies that meet their basic needs, improving health in a way that sustains results over time. Its programs were created to support the United Nations (UN) Sustainable Development Goals call for universal access to water, sanitation and hygiene (WASH) globally by 2030. Clean the World Foundation continues to partner with the UN on international relief efforts and was recently named the 23rd member of the UN Global WASH Cluster.

“We are excited to be the beneficiary of such a meaningful donation from Tupperware Brands,” said Sam Stephens, executive director of Clean the World Foundation. “In countries and communities in which our WASH Programs operate, we see significant decreases in the spread of hygiene-related illnesses, improving overall health and increasing school attendance. By having durable, reliable solutions for our families to gather, store and access clean water, we only expect that to further the success of our mission.”

In June 2019, Tupperware employees based in Central Florida will join forces with Clean the World to pack emergency relief kits which will include the donated items as part of the WASH Program. Clean the World Foundation will distribute these Emergency Relief Hygiene Kits to refugee and internally displaced persons (IDP) camps located in Somalia, Kenya, Syria and Bangladesh.

ARIIX Launches in Italy

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ARIIX, an international opportunity company that promotes healthy, toxin-free living, announced the launch of Italy as an official market.

The European market has grown to become the third-largest region for ARIIX, increasing by 40 percent within the past year. With Italy, forecasted growth is expected to double over the next 12 months.

“Exciting things are happening in Europe,” says Cameron Bott, president of International. “Opening Italy is both a testament to our commitment to European growth and a demonstration of the dedication of our Representatives. We worked closely with new market leaders on all aspects of the business. The ARIIX Bill of Rights outlines our commitment to partnering with these highly esteemed individuals, and we can’t wait to see the success that together, we will achieve.”

Italy is the 21st official market for ARIIX in just seven years of business, and the company plans to continue its international reach. Last month, ARIIX placed No. 57 on the DSN Global 100 list of top direct selling companies, achieving $220 million in revenue in 2018.

Youngevity Reports Q1 Record Revenue, Up 30.9%

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Youngevity International, Inc. (NASDAQ: YGYI) reported revenue of $56.3 million for the first quarter ended March 31, 2019, an increase of 30.9 percent over 2018.

The company derived approximately 59 percent of its revenue from its direct selling segment and approximately 41 percent of its revenue from its commercial coffee segment. Direct selling segment revenues decreased 5.4 percent to $33.4 million in the current quarter as compared to $35.3 million for the quarter ended March 31, 2018. The decrease was primarily attributed to revenues from new acquisitions of $421,000, offset by a decrease of $2,333,000 in revenues from existing business.

Commercial coffee segment revenues increased by 196.9 percent to $22,813,000 in the current quarter as compared to $7,683,000 for the quarter ended March 31, 2018. The increase was primarily attributed to increased revenues from our new green coffee contract that CLR recently signed for approximately $250 million over five years.

The new commercial hemp segment recorded $67,000 in revenues related to the acquisition of Khrysos, which closed on February 15, 2019.

“We exceeded our quarterly revenue expectations and we are encouraged by the increase in gross profits and in adjusted EBITDA over Q1 2018,” said Steve Wallach, chairman and CEO of Youngevity International. “We continue to see revenue stabilization in the direct selling segment and this, combined with strong revenue delivered by our commercial coffee segment, has returned us to Q over Q growth. We reiterate our annual revenue guidance for 2019 in the range of $220 million and $240 million, which represents a projected annual growth rate between 35 percent and 48 percent over 2018. We continue to anticipate estimated annual revenue contribution from our new reporting commercial hemp segment between $45 million and $50 million for 2019 with the great majority of this revenue being delivered in the second half of the year.”

Oriflame Co-Founder Jonas af Jochnick Passes Away

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Jonas af Jochnick, co-founder of direct selling giant Oriflame Cosmetics, died suddenly last Friday.

The 81-year-old Swedish entrepreneur and businessman, who founded Stockholm-based Oriflame with his brother Robert in 1967, passed away peacefully in his sleep. He had been active in various positions in the company, and stepped down from the Company’s board in 2018.

“Unfortunately, today is the saddest day in Oriflame’s history,” CEO Magnus Bronstrom said in a letter to employees. “Jonas was a special person—a true entrepreneur and a true leader. A person we can all admire endlessly for his optimism, energy, sharp mind and big heart. He made the world realize that dreams are possible and that everybody has a right to fulfil their dreams.”

Af Jochnick was a well-educated man who had a law degree from the University of Stockholm and an MBA from Harvard. His entrepreneurial spirit was very active in many different ventures in various industries. In the 1990s he invested in Medicover, a company in the health sector, which has also become a publicly traded company on the Stockholm stock exchange. He had been a driving force behind the company’s successful development from the first clinic in Poland to today’s global operations.

“It is with great sorrow that we have received the tragic message that Jonas of Jochnick has passed away,” said Fredrik Rågmark, CEO of Medicover. “Personally, I have had the privilege of working near Jonas ever since the start of Medicover, following him and his entrepreneurship on a daily basis. He was always full of enthusiasm and ideas for new projects and initiatives.”

Fredrik Stenmo, chairman of the Board of Medicover, added, “The loss of Jonas will be immense to Medicover, both on a personal and professional level. Jonas’ visionary and entrepreneurial leadership has contributed in a fundamental way to Medicover’s success and its corporate culture, something we will cherish on our journey ahead.”

Af Jochnick was also an extremely caring man. In 2004 he and Robert established the af Jochnick Foundation, which is based in Liechtenstein. After establishing Oriflame, the two brothers started visiting developing countries and realized the tremendous need for social contribution. To structure and formalize such activities, the af Jochnick Foundation was founded to contribute to the greater good by supporting projects that focus on children, youth, education and world health.

“An extraordinary person, with an extraordinary life, his legacy will live forever—in the company, in his children and in the hearts of all of us,” said Bronstrom. “To me personally, Jonas was the one who invited me to Oriflame, and he will always remain my role model, my mentor and a person whom I look up to. We will remember Jonas for his never-ending motivation, enormous generosity, always looking at the positive side and with a strong will to never give up!”

Af Jochnick leaves behind his wife, Christina, and their four children and many grandchildren.