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Plexus Enters Energy Drink Market with Clean Energy Supplement

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Plexus Worldwide recently announced its expansion into the energy drink category with the launch of Plexus Active™. 

According to the company, Active is an energy supplement formulated with a clean energy blend for a long-lasting boost without jitters or a crash feeling, enhanced mental clarity and alertness and improved post-activity recovery.

“Plexus has always been committed to formulating products backed by science and proven to work so that you look better, eat better, focus better and live better,” says Tarl Robinson, CEO and founder of Plexus. “We created Active as an approach to energy support that helps consumers feel awake and alert without sacrificing their health.”

Active is 100 percent vegetarian and gluten free and features bioavailable forms of Vitamins A, C, E, and B vitamins. It contains no artificial stimulants, flavors, colors or sweeteners.

Kannaway Joins European Industrial Hemp Association

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Medical Marijuana, Inc. recently announced that its subsidiary Kannaway® has become a member of the European Industrial Hemp Association (EIHA).

“We’re excited to be recognized as a leader in the European hemp industry,” said Kannaway Vice President of International Alex Grapov. “We look forward to working with the EIHA to help drive global policy changes regarding the legislation of hemp and CBD and help spread education on the potential wellness benefits of CBD.”

The EIHA is the only coalition for the industrial hemp sector in Europe. Its members, representing 31 different countries, are players in industrial hemp processing and distribution, car manufacturing, construction, food and feedstock, as well as the pharmaceutical sector. Research institutes and financial investors also help guide the EIHA’s activities. The organization lobbies for legislation surrounding hemp and CBD throughout the EU and organizes events to connect industry leaders.

Kannaway launched its European operations in 2018 with its Grand Opening Event in Prague. The company has hosted over a dozen events throughout the European Union, garnered more than 50,000 Brand Ambassadors and has begun selling products in many new markets and countries.

“Europe has shown us great potential for operational growth and we’re enthusiastic about the future of CBD there,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “Working with the EIHA is a stepping-stone to connecting with a larger audience there and helping the CBD industry progress as a whole.”

Martine Girotto Named President of LegalShield Canada

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LegalShield today announced that Martine Girotto has been named president of LegalShield Canada. She will report to LegalShield CEO Jeff Bell. 

“We are incredibly excited Martine has joined our leadership team. With her record of leadership at major brands and deep roots in the Canadian community, Martine has developed a top reputation in the industry driven by a strong work ethic,” said Bell. “With more than 17 years of experience in various marketing, management training and business development roles, Martine brings a wealth of knowledge and success within the direct sales industry.”

Prior to joining LegalShield, Girotto served as general manager of Canada for another direct selling company, where she was responsible for the market strategy, sales, leadership development and marketing efforts in Canada.

“Throughout my career, I have dedicated myself to building relationships, to inspiring others to be their best, and to empowering people to live up to their full potential,” said Girotto. “I am humbled and honored by the company’s trust and belief in my leadership abilities. I believe in LegalShield’s mission to provide legal access for all and my vision is to make it accessible to all Canadians, while continuing to provide an amazing experience. The future is a bright one!”

Thirty-One Gifts to Support RMHC This Summer

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Thirty-One Gifts is rallying support for Ronald McDonald House Charities (RMHC) to help keep families together and near the care they need when a child experiences a medical crisis.

This summer, through August 31, customers can round up their order total to the nearest dollar or make a donation of any amount to support RMHC.

Additionally, through its network of nearly 70,000 consultants, Thirty-One Gifts will be hosting a National Serve Day on July 31, 2019. On this day, independent sales consultants will come together to prepare meals for families at more than 160 Ronald McDonald Houses in the U.S. and Canada.

“RMHC provides comfort and support to children and their families when they need it most,” said Sheila Musolino, president and CEO, RMHC. “We are grateful to our partners at Thirty-One Gifts for their contribution to these services as families brave such difficult situations.”

Since 2013, Thirty-One Gifts has been a valued and dedicated partner to RMHC. Through their generosity, over 11,000 additional nights have been provided to families staying at Ronald McDonald Houses. To date, Thirty-One Gifts has also provided 600,000 RMHC branded bags as a welcome gift to families upon their arrival to a Ronald McDonald House in the U.S. and Canada.

LifeVantage Added to Russell 3000 Index

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LifeVantage Corporation announced it has been added to the Russell 3000® Index following the annual reconstruction, effective after the market opened on July 1.

Annual reconstitution of the Russell US Indexes captures the 4,000 largest US stocks as of May 10, ranking them by total market capitalization. Membership in the Russell 3000 Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell US Indexes primarily by objective, market-capitalization rankings and style attributes.

“We’re pleased to be included in the Russell 3000 Index,” said LifeVantage President and Chief Executive Officer Darren Jensen. “This inclusion reflects our commitment to building shareholder value through growth across our U.S. and global platform, driven by successful execution of our product, customer and geographical expansion initiatives.”

The Russell US Indexes are widely used by investment managers and institutional investors for passive funds and investment products and as benchmarks for active investment strategies. Approximately $9 trillion in assets are benchmarked against Russell US Indexes. Russell US Indexes are part of FTSE Russell’s suite of index offerings.

Mary Kay Inc. Wins Gold at Prestigious Spring 2019 Omni Awards

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Mary Kay Inc. announced it was recognized in the 2019 Spring Omni Awards with a coveted gold ranking for its Link & Learn™ sales education system.

The e-learning platform hosts a learning curriculum designed to amplify educational support for the independent sales force and increase their business success. It also connects Mary Kay Independent Beauty Consultants to a learning community based on content, accessibility and localization.

“At Mary Kay, we believe so strongly in the pursuit of continuous education and professional development,” said Beth Lopez, vice president of Global Sales Education for Mary Kay and vice president of Sales and Marketing for Mary Kay Inc.’s European Region. “We are honored to receive the Spring 2019 Gold Omni Award for the hard work we’ve put into our Link & Learn technology. Reaction and engagement to the new sales education system has been overwhelmingly positive and we will continue to work with our Mary Kay markets to roll out this innovative, award-winning platform to help continue our mission of enriching women’s lives around the world.”

The Omni Awards exist to recognize outstanding achievements in film/video, web and mobile media. Entries are accepted from countries all around the world. The judging process brings together a wide variety of talented professionals working for highly respected companies. Companies represented by the awards committee include the Olympic organization committee, CNN, NBC, ABC, PBS, US Army, Cartoon Network, Disney, Associated Press and Sodium Entertainment, among many others.

Dave DeFeo Named J.Hilburn Chief Executive Officer

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J.Hilburn recently announced that Dave DeFeo has been named chief executive officer.

DeFeo replaces Andy Janowski, who served in the position since April 2018 and will resume his role as chairman of the J.Hilburn board of directors.

“It’s been an investment year focusing on the strategic vision of the company, assembling a world-class leadership team and positioning the company for aggressive growth,” said Janowski. “With that said, the time is now to hand over those reins to someone who is incredibly additive to our amazing team. Dave is a passionate and proven leader and you’d be hard pressed to find anyone in the business with more experience in the direct sales of luxury apparel.”

DeFeo most recently served as CEO of Worth, where he led the brand for more than 10 years. Prior to that he was president and COO of The Longaberger Company, president of Doncaster and held leadership roles at Milliken & Company.

“J.Hilburn is a modern-day direct sales business with tremendous upside and I’m thrilled to join this dynamic, leadership team to grow the company,” said DeFeo. “I’m passionate about the vision that Andy has set for the company, the personal stylist network, product development and the commitment to marketing and technology. I look forward to contributing to the organization, to scale it and maintain its position as the leading lifestyle brand for custom-made men’s clothing.”

J.Hilburn is led by an expansive network of nearly 2,000 personal stylists across all 50 states. The company operates four showrooms, as well as online sales at jhilburn.com. The company plans to launch its new fall collection later this month, as well as make continued enhancements to its omnichannel initiatives and digital platforms in the back half of the year.

“The combination of Dave’s strengths and experience in direct selling combined with Andy’s talent in product and brand building is a powerful one-two punch for the company,” said Michael Brown, Battery Ventures General Partner and J.Hilburn Board Director. “We are excited to see the incredible advancements the company will make in the coming months.”

Young Living Announces New Partner Farm

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Young Living Essential Oils  announced its newest partner farm in the Philippines: the Kalipay Coconut Farm.

The Kalipay Coconut Farm is making a difference in its community by empowering the local population and helping to protect the environment. Because social responsibility is an important part of its philosophy, the Kalipay Coconut Farm donates each year to the Lao Foundation, a non-profit organization that helps empower less fortunate people in the Philippines through education, livelihood training and values formation. In addition to making donations to the Lao Foundation, the farm also sponsors the children of local coconut farmers to receive training in electromechanical technology, helping to break the cycle of poverty and empower a new generation. To date they have sponsored a total of 84 students.

The Kalipay Coconut Farm also uses green chemistry, a new discipline that optimizes the use of resources and minimizes waste. Relying on the belief that every step of the process counts, the farm is implementing these new practices to make its impact as low as possible.

“Young Living made a choice a long time ago to do what many organizations won’t: put purpose over profits,” said Lauren Walker, chief supply chain officer at Young Living. “There are many ways we could have sourced the coconut oil we need for our products, ways that would have been much simpler or cheaper. The Kalipay Coconut Farm stood out as a sustainable source of coconuts. We chose the Kalipay Coconut Farm because they share our values of community and sustainability, both integral parts of our 5×5 Pledge.”

Every Young Living product that uses coconut oil sourced from the Kalipay Coconut Farm helps send children to school and protects the environment. Young Living will continue to partner with more farms like Kalipay that give back to local communities and implement sustainable practices.

Oriflame Board to Apply for Delisting from Stockholm Nasdaq

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Walnut Bidco Plc recently announced that all conditions for completion of its public offer to the shareholders of Oriflame had been satisfied.

The company, newly established by members of the Oriflame founding families of Robert af Jochnick and the late Jonas af Jochnick, also stated that the offer was declared unconditional at a Walnut Bidco ownership level of 91.33 per cent.

Walnut Bidco further announced that it will initiate compulsory redemption proceedings through a squeeze-out merger against cash consideration under the Swiss Merger Act to acquire all remaining shares in Oriflame as well as promote a delisting of Oriflame’s shares from Nasdaq Stockholm. To provide remaining shareholders of Oriflame a possibility to accept the offer, the acceptance period will be open beyond the end of the initial acceptance period, until July 8, 2019.

In light of the above and at the request of Walnut Bidco, the Board of Directors of Oriflame has resolved to apply for delisting of Oriflame’s shares from Nasdaq Stockholm. The last day of trading in Oriflame’s shares on Nasdaq Stockholm will be announced as soon as Oriflame has received confirmation of such date from Nasdaq Stockholm.

Measures to carry out the above-mentioned merger have been initiated and an extraordinary shareholders’ meeting will be convened in due course to pass necessary resolutions.

Walnut Bidco launched the offer for the cosmetics giant in May, and last month the Independent Bid Committee of the Board of Directors of Oriflame  recommended shareholders accept the offer.

Building a Distinct, Emotionally Connected Brand

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Since 2004, Direct Selling News has been privileged to work with hundreds of direct selling companies in the course of interviewing for our cover story and other feature articles. What we’ve learned is that companies with a great culture lead the way in terms of revenue, growth and retention. In our research, we’ve learned that culture is a blend of several elements. We have defined these elements as Core Principles. This set of eleven clearly defined Core Principles make the difference between direct selling companies that thrive and those that struggle.

Each month we will discuss one of these Core Principles, starting with building a distinct, emotionally connected brand. What makes a good brand great? A sound strategy—one with actionable steps. For this month’s cover story, we talked to some of our industry’s branding experts about their branding philosophies and best practices to remind you what makes a brand great and why you need to build one.

What matters most, the number of social media followers or customer engagement? This month we also are proud to announce our DSN Digital 100 to provide insights into how companies within the direct selling industry are executing their social media strategy. To create the ranking system, we used a mix of native site reporting, as well as third-party tools Sprout Social, Phlanx and SocialRank. For site insights, we used Alexa.com to estimate traffic and page views. See page 38 to read the feature story, and then on page 41 you will see the category rankings.

In this issue, we discuss the impact of China’s recently concluded 100-day review of the health market, which included several direct selling companies. Will it be back to business as usual for companies operating in China, or is it just the start of a new framework, one with new guardrails to be imposed on the business model?

And finally, our company spotlight this month is DotDotSmile, who started their children’s apparel business on social media in 2013 but changed to a direct selling model in 2017. Their core values encompass the path they want everyone to take toward living out the company’s ultimate purpose, which is to create smiles and build confidence. “We do that with the clothing. When the girls put them on, they are suddenly confident and twirl. It just happens naturally,” says CEO Jeff Thompson.

Let us know what you think about this month’s issue. Drop me an email at teliason@directsellingnews.com. Your feedback is important in helping us stay relevant in what’s important to you and the channel.

Payment Pals

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Tokenization and blockchain technology may be the future of data security and payment speed.

As technology continues to evolve along with buying experiences, one of the ongoing challenges for direct selling companies is providing faster and more secure payment processing solutions, both for the customer and the distributor.

In direct selling, companies and pay system solution providers continue to step up their game. Metrics Global works with roughly 30 direct selling companies, including global organizations, and has provided pay system solutions in the industry for more than ten years. In fact, the unique needs of the direct selling industry played a major role in creating and shaping the company’s services.

“There was an opportunity to provide solutions that are as unique as the individual direct selling businesses,” says Jason Sherwood, Metrics Global Executive Creative Director. “The sweet spot for Metrics Global is that personal, individual solution creation.”

“ I think blockchain technology will be important in terms of the speed and security by which payments take place.” —Jason Sherwood, Metrics Global Executive Creative Director

He says that no matter what business model a company uses (party plan, direct selling, networkmarketing, auto shipments, etc.), each company has unique needs and goals at different stages of growth. One common challenge in the industry is supporting a growing company that wants to expand internationally. Sherwood gives an example of a U.S.-based company with sellers in Japan that want to process in yen, but the company receiving money in dollars. “Those are some of the areas where we are able to provide some unique solutions,” he says.

The rise of CBD products has also presented some unique payment solutions challenges in different markets. Payment processing companies such as Metrics Global can create a specific solution by working with banks that may be unsure of the current legal landscape for those products. “The best solution doesn’t come in a pre-wrapped box,” Sherwood says.

Tokenization and blockchain technology may be the future of data security and payment speed. Some direct selling companies have already begun experimenting with nearly immediate commission payments. “That’s a place where blockchain can really make an impact, where you are processing almost instantaneously,” Sherwood says. “You’re able to actually have the money from one place to another place within seconds. I think blockchain technology will be important in terms of the speed and security by which payments take place.”

Sherwood foresees an increased focus on data protection, especially with compliance changes happening across the world. He says direct selling companies could be a specific target because of the nature of using an independent sales force. “In some cases, if you cannot provide your field with a secure and reliable solution, they could find their own solution, not knowing that they may be in breach of personal data infringement. Tokenization and blockchain technology provide a level of security that, hopefully, will eliminate some the challenges that direct selling companies and supporting vendors could potentially have.”

The Way Forward

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In 2011, the Houston Astros were a struggling franchise with a new general manager, Jeff Luhnow. Some thought he was an unusual choice—he had more of a business background than a successful baseball resume. Jeff introduced high-tech tools and analytics and combined data with baseball IQ. In four years, they played in the post-season after a decade. When asked, Luhnow said, “The right answer is to continue to measure the things that really matter. What are the drivers of success for you in the future, and are those things tracking the way they should be, and is there a way to accelerate those?” He warned that you never want to look at another organization and think, “that should have been us.”

It’s important that we stay focused on the things that really matter. We developed a list of four key drivers that matter most to our industry and most importantly show us the way forward:

The Job Environment

Ninety-five percent of net job growth in the past decade was in the alternative work category. The workforce is expected to grow 7.4 percent over the next ten years, but retail position will only grow 1.73 percent. Let’s not be the ones thinking, “that should have been us.” Instead, let’s position direct selling as the income opportunity of choice. We have enviable advantages with our unique ability to cultivate deep and trusting customer relationships and effectively demonstrate product features.

Demographics

With a salesforce that is more than 75 percent female, it’s obvious that direct selling is an attractive and empowering opportunity for women. As we compare to other independent work, such as Uber, we see that most of their drivers are men. Yet, Uber is seeing an increasing number of women drivers. Like direct selling, 75 percent of Uber drivers work part time and say they like being their own boss and having better work/life balance. I believe we can remain as the ideal choice for women and do more to attract men to direct selling.

Next-Generations Entrepreneurs

In 2025, about 75 percent of the workplace will be millennials. They want to combine their personal and professional lives, social networks and alternative income opportunities in a way that supports the causes they believe in. We have a head start here—however we’ll need to build on our strengths. As we do this, the next generation of America’s Original Entrepreneurs will see the contrasting void that exists for the retail and gig worker.

Realistic Earning Potential

Our latest salesforce numbers show the majority of direct sellers work part-time and earn a modest income. As we compare this with a retail employee or someone who is a gig worker, it’s clear that direct selling compares very nicely with these work opportunities. As one DSA company CEO said, “We don’t need to overpromise, just deliver on what we do promise—an opportunity to work and make a bit of extra money, without putting yourself at risk of loss and without any real burdens to getting involved.”

Let’s focus on what matters. Together, we can protect our business model from unwarranted government regulation and interference and promote the reputation of the industry through rigorous self-regulation, consumer protection and communication efforts, ultimately becoming the sales and opportunity channel of choice.