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DSA of Canada Announces 8 New Board Members

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The Direct Sellers Association of Canada recently announced the appointment of eight new members to its Board of Directors.

The newly appointed directors are:

“We are pleased to welcome Helena, Gina, Tracy, Len, Patricia, Goran, Sheila and Lynda to the DSA Board of Directors,” said Peter Maddox, president of the DSA. “I believe their collective experience will be a significant asset to the Board. I look forward to leveraging their expertise as we focus on planning and implementing an effective strategy that meets the needs of our members and advances the direct selling industry.”

The new members join the current Board members Rhancha Trick (Chair), Tracie Graham, Nathalie Cormack, Hatem Jahshan, W. Jack Millar and Randall Markus.

ARIIX Names Alison Xu Canada Country Manager

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Bountiful, Utah-based ARIIX recently announced the addition of Alison Xu to the executive team.

Alison Xu

Alison Xu

As Canada Country Manager, Xu will prepare ARIIX Canada operations to facilitate projected growth, ensuring proper licensing and quality assurance and helping corporate better understand and support the Canadian market.

“Alison’s impressive history of successful product launches, reducing stock inefficiencies and positively affecting company revenue makes her a powerful asset to the continuous growth of our Canada market,” said Ian Chandler, ARIIX chief sales officer and founder. “We have high expectations for Alison—which she doesn’t seem to mind and actually welcomes—that tells us that she’s the right person to lead our Canadian market!”

A Hong Kong native, Xu has resided in Vancouver since her elementary school years. She joins ARIIX with 13 years of front-line and operational experience in the direct selling industry, including a variety of positions in customer service, field development, sales management and operations management.

“What gives me satisfaction is contributing towards someone’s dream,” said Xu. “Whether the outcome is big or small, seeing Representatives realize their own power and achieve their goals one step at a time with the direct selling community supporting them is what drives me. ARIIX is truly one big family, and I can already see the incredible growth happening for ARIIX Canada.”

Cannabis Legislation Will Open New Doors for Direct Sellers

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Next month, the U.S. Senate and House of Representatives are expected to meet to reconcile differences in their versions of the Farm Bill.

One of the key points to be considered, the legalization of industrial hemp, is being carefully monitored by several direct selling companies looking to take part in what is expected to be a major boom over the next decade in the legal sales of cannabis products for both medical and recreational purposes.

According to recent data published by Forbes, citing Brightfield Group, the global cannabis market is projected to reach $31.4 billion by 2021. By end of 2017, the global market value was estimated at $7.7 billion, in which the U.S. held about 90 percent of total sales. While the U.S. is expected to account for only 57 percent of global cannabis sales by 2021—due to other countries that have or are in the process of easing regulations—the cannabis market is expected to continue to grow at a CAGR of 60 percent.

The Canadian market is expected to heavily contribute to the growing cannabis market due to the recently passing of the historic Cannabis Act. Recreational marijuana use will be legal in Canada come October 17, and those wishing to market and distribute hemp products will be required to obtain and LNHPN (Licensed Natural Health Product Number) from Health Canada.

Canada became only the second country in the world to permit a nationwide marijuana market, joining Uruguay as the only countries to legalize cannabis on a federal level. Uruguay legalized marijuana’s production, sale and consumption in December 2013.

Here in the U.S., nine states and the District of Columbia currently allow for recreational marijuana use, and 30 allow for medical use. On June 28, the U.S. Senate voted to legalize industrial hemp after a decades-long ban under marijuana prohibition. With the Senate passing of the Hemp Farming Act, the provisions of which were included in the larger Farm Bill, the non-psychoactive cannabis cousin of marijuana may finally become legal again to grow in the United States. However, the House farm bill does not mention hemp, which, because of its similarity to marijuana, is labeled a controlled substance.

What is the difference between marijuana and hemp?

The Cannabis sativa plant contains over 100 known cannabinoids, a class of chemical compounds that can alter neurotransmitter release in the brain. When found to have high tetrahydrocannabinol (THC) levels, the plant is referred to as marijuana. When THC levels are low, it is called a hemp plant, which has been widely used in several applications for centuries. Hemp can be used in everything from the production of fiber, to skin care products, to food. A by-product of hemp is cannabidiol (CBD) oil, which has been found to have wellness benefits and which currently makes up the highest percentage of the sales of hemp in the U.S. market. It is this use of hemp that direct selling companies are interested in.

Because selling American hemp is still largely restricted, parts of the market are highly reliant on products imported from China and Canada. Still, according to the Hemp Business Journal, the U.S. hemp market pulled in $820 million in sales in 2017. With growth projected at almost $2 billion by 2022, there is high optimism that American growers can secure a large part of this market.

Dietary Supplement Report: Market Expected to Grow at CAGR of 6.9%

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According to the recently released “Global Dietary Supplements Market – Growth, Trends, and Forecast (2018-2023)” report by ResearchAndMarkets.com, the global dietary supplements market was valued at $96 billion in 2017, and it is expected to grow at a CAGR of 6.9 percent during the forecast period.

The dietary supplements market is primarily driven by the paradigm shift toward preventive health management practices amid rising healthcare costs and increasing burden of lifestyle diseases. Digitization in retail is expected to boost the future growth of dietary supplements. Moreover, the popularity of herbal and probiotic supplements is also expected to drive the market growth in the future.

Based on product type, the vitamin segment is steadily growing whereas the fatty acid segment represents the fastest growing supplement segment due to popularity of omega-3-based supplements. Dietary supplements, such as vitamins, minerals, botanicals, enzymes, fatty acids, and proteins, help promote general health and well-being, by preventing nutritional deficiency diseases.

The vitamin segment of the global dietary supplement market was valued at $34.39 billion in 2017 and is expected to grow at a CAGR of 6.6 percent during the forecast period. Mineral-based dietary supplement is a well-established segment of the overall nutraceutical market, owing to its longstanding tradition of use and years of clinical research.

Asia-Pacific holds the major share in the market, followed by North America and Europe. The North American dietary supplement market has high competition, with Herbalife, Amway, and Farmacias Similares SA de CV as the leading players.

Youngevity to Enter the Hemp (CBD) Market

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Chula Vista, Calif.-based Youngevity International, a leading omni-direct lifestyle company, recently announced it will enter the CBD market with a proprietary line of hemp-derived CBD oil products.

Youngevity has taken a measured approach to entering the CBD market after ensuring that a credible amount of research had been conducted to support concrete health benefits. Hemp (CBD) oil products also support the company’s belief in natural forms of nutrition and nutrients that address root causes of health issues and support relief of symptoms. That belief, combined with the industry’s burgeoning popularity, aligns with Youngevity’s goal of enriching people’s lives through better health and better business opportunities.

“We firmly believe in plant-based nutrition, and hemp (CBD) oil perfectly complements our product development philosophy,” said Chief Executive Officer Steve Wallach. “Entering this market, which is growing almost exponentially, also should offer a tremendous advantage to our many Distributors around the world.”

According to the latest data, the CBD market is experiencing meteoric growth. In fact, the Hemp Business Journal estimates it will grow to $2.1 billion in consumer sales by 2020, with $450 million of those sales coming from hemp-based sources. That’s a 700 percent increase from 2016. Demand for CBD has also skyrocketed, which is due in large part to the wide variety of ways it can be used in products, ranging from cosmetics to food and beverage to health supplements.

Direct Sellers Make Utah Business Magazine’s Fast 50

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Three direct selling companies—ARIIX, USANA and Xyngular—were recognized Friday during a celebration of Utah Business Magazine’s Fast 50 list, an annual ranking that acknowledges companies for their entrepreneurial spirit, innovative business tactics and skyrocketing revenue growth.

ARIIX, the Bountiful, Utah-based international wellness company, came in at No. 11 on the list. The company recently announced it is opening an office in Ireland to support European sales growth and additional international markets.

Global nutritional company USANA was ranked No. 37. This year marks the 11th consecutive time the company has made the list of fastest growing companies in Utah. USANA had an historic 2017 in which the Salt Lake City-based company achieved record net sales totaling $1.047 billion—a 4.1 percent increase from 2016.

Lehi, Utah-based Xyngular was the third direct seller recognized. It came in at No. 47. The company offers systems designed to help users achieve health and wellness goals.

The Fast 50 highlights the companies in Utah that generate record revenues or expand at rapid speeds. The list is determined by Utah Business Magazine, Utah’s premier business news and information provider.

Salt Lake City Home to Youngest Entrepreneurs

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The Salt Lake City area is home to several highly successful direct selling companies. Now, a new report by LendingTree®, the nation’s leading online loan marketplace, says the Utah capital is also the No. 1 city when it comes to young entrepreneurs.

The study compared ages of business founders on their companies’ dates of origination in the 50 largest U.S. cities using anonymized data from business owners seeking funding through the LendingTree small business marketplace. The Top 10 cities are Salt Lake City; Buffalo; New Orleans; Oklahoma City; Charlotte, N.C.; Minneapolis; St. Louis; Portland, Oregon; Milwaukee; and Austin, Texas.

According to the study, the cities with the youngest entrepreneurs are likely to have some of the lowest barriers to enter entrepreneurship. A closer look reveals that booming local economies, along with low local costs and taxes, may be fueling startup growth. These cities also have strong support systems in place to help founders and their startups succeed, from business incubators and accelerators to networking events and opportunities to apply for small business grants or attract venture capital. In short, these are the cities where young entrepreneurs are more quickly reaching their goal to form a business of their own.

The youngest business founders in the country can be found in Salt Lake City, Utah. Entrepreneurs here achieve their dreams of starting a business at just 37.8 years old. The area, known as “Silicon Slopes,” encompasses the Salt Lake City metropolitan area and nearby cities; it is home to billion-dollar tech companies such as Overstock.com, PluralSight and Qualtrics. These big players have helped established a steady, growing economy in Salt Lake City and throughout Utah. The area also has an established (and growing) pool of qualified talent. Combined with the relatively low cost of living, entrepreneurs in Utah have few obstacles—and plenty of opportunities.

Other key findings from the report include:

  • Entrepreneurs in Salt Lake City; Buffalo, N.Y; and New Orleans have the youngest business founders, on average. Entrepreneurs in these cities, along with Oklahoma City, were younger than 38 years old on average at the time they started their businesses.
  • Providence, R.I.; San Jose, Calif.; and Hartford, Conn. fell on the other end of the spectrum—business founders were 42 years old on average when starting their companies.
  • Gen Xers helmed nearly 42 percent of new businesses founded in the last five years, followed by millennials who founded almost 38 percent.
  • Louisville, Ky. had the highest proportion of millennial founders, at 44.8 percent.
  • Providence, R.I. and Philadelphia had the highest proportion of Gen X founders, at 48.7 percent.
  • Baby boomers founded more businesses in Silicon Valley (San Jose, Calif.) than anywhere else, at 24.1 percent.

To read the full report, click here.

LifeVantage Reports Q4 Revenue Up 6.7%; Full Year, 1.9%

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Sandy, Utah-based LifeVantage Corporation reported financial results for its fourth quarter and full fiscal year ended June 30, 2018.

For the fourth fiscal quarter ended June 30, 2018, the company reported revenue of $54.0 million, an increase of 6.7 percent as compared to $50.6 million in the fourth quarter of fiscal 2017. Revenue in the Americas for the fourth quarter increased 4.7 percent compared to the fourth quarter of fiscal 2017 and revenue in the Asia/Pacific & Europe region increased 13.3 percent compared to the fourth quarter of fiscal 2017. Active independent distributors were consistent with the third quarter of 2018 and active customers increased 5.5 percent sequentially.

“We are very pleased to finish fiscal 2018 on a strong note, exceeding our adjusted earnings per share guidance and reporting accelerated revenue growth both on a year over year and a sequential basis,” stated LifeVantage President and Chief Executive Officer Darren Jensen. “The initiatives implemented over the last year have driven improved growth and retention of our active members (total active distributors and customers), higher average order sizes, broadened our product portfolio and geographical footprint and put us at the forefront of the technologically-driven evolution of network marketing.”

For the fiscal year ended June 30, 2018, the company reported net revenue of $203.2 million, an increase of 1.9 percent compared to $199.5 million for fiscal 2017. In fiscal 2018, revenue in the Americas increased 0.5 percent and revenue in Asia/Pacific & Europe increased 6.1 percent. Revenue for fiscal 2018 was positively impacted $0.2 million, or 0.1 percent, by foreign currency fluctuations associated with revenue generated in several international markets.

To read the full LifeVantage Q4 and full year 2018 financial report, click here.

Lori Bush Appointed New Avon Chairwoman of the Board of Managers

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New York City-based New Avon LLC recently announced that Lori Bush has been appointed chairwoman of the company’s Board of Managers, effective immediately. She succeeds Jack Stahl, who has served as chairman since June 2016.

“The Board of Managers and I look forward to working with Lori in this expanded capacity and are confident that she will be a strong partner to Chief Executive Officer Scott White in driving New Avon’s strategic growth agenda,” said Chan Galbato, chief executive officer of Cerberus Operations and Advisory Company, LLC, and member of New Avon Board of Managers. “Lori shares our strong belief in New Avon’s potential, and brings the visionary leadership required for this next stage of the company’s journey.”

Bush served as president and CEO of Rodan + Fields from October 2007 through January 2016. During her tenure, the company re-launched under a social commerce model that grew to become a billion-dollar business and one of the largest skincare brands in the U.S.  Bush has been an advocate for women’s quality of life, speaking at industry and academic events and writing a number of papers dealing with health, beauty and women’s leadership. She co-authored the bestselling beauty and wellness book, Write Your Skin a Prescription for Change.

“I’m honored to take on the chairwoman role at this iconic brand at a time when the social commerce channel is rapidly transforming to become more relevant than ever,” said Bush. “I am excited to work with the New Avon Board and Leadership Team to positively impact the lives of our Avon Representatives and their customers.  I believe the success of Avon will strengthen the channel, and importantly, strengthen the opportunity for the millions of direct sellers across hundreds of companies in the U.S. who depend on the sharing economy for their livelihoods.”

Reliv Q2 Net Sales Down 15%

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Chesterfield, Mo.-based Reliv International, Inc. recently reported its financial results for the second quarter of 2018. Net sales for the quarter were $8.5 million, compared with net sales of $10.0 million in the second quarter of 2017.

Net sales in the United States decreased to $6.3 million in the second quarter of 2018, which represented a 15 percent decline in net sales when compared to the prior-year quarter. Net sales in Reliv’s foreign markets decreased 17 percent in the second quarter of 2018 compared with the prior-year quarter. Net sales in Europe and Asia decreased by 21.2 percent and 10.5 percent, respectively, in the second quarter of 2018, along with decreases in all other regions except for Mexico.

“We continue the work of revitalizing sales in the United States and other markets around the Reliv world,” said CEO Ryan A. Montgomery.  “The results of the second quarter are not indicative of the process that’s underway. We have a number of initiatives in progress that we believe will lead to better results for the remainder of 2018 and forward.”

As of June 30, 2018, Reliv had 31,140 distributors and preferred customers—a decrease of 11.3 percent from June 30, 2017—of which 3,200 are Master Affiliate level and above. The number of Master Affiliates decreased by 14.2 percent compared to the year-ago total. Master Affiliate is the level at which distributors are eligible to earn generation royalties.

Montgomery stated the initiatives in progress include further product development, technology enhancements, refocus of distributor incentives and streamlining international operations.

Youngevity Reports Q2 Revenue Up 6.6%

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Chula Vista, Calif.-based Youngevity International, a leading omni-direct lifestyle company, recently reported financial results for the second quarter ended June 30, 2018. Total revenues increased 6.6 percent to $44.3 million.

“We are encouraged to see our revenue and adjusted EBITDA bounce back from the levels achieved last year,” said Steve Wallach, CEO and co-founder of Youngevity. “A 6.6 percent revenue increase and over a $1.3 million improvement in operating income comparing the same quarter 2017 to 2018 is a step in the right direction.  I am most encouraged by the contribution coming from our global expansion, which contributed over 17 percent of our direct selling revenue.”

In the second quarter, revenues increased 6.6 percent to $44,255,000 as compared to $41,527,000 for the three months ended June 30, 2017. The company derived approximately 83 percent of its revenues from direct selling sales and approximately 17 percent of its revenues from commercial coffee sales. Direct selling segment revenues increased by $1,308,000, or 3.7 percent, to $36,846,000 as compared to $35,538,000 in 2017. This increase was primarily attributed to revenues from new acquisitions and price increases on certain products that went into effect on January 1, 2018.

For the first six months of 2018, Youngevity revenues increased 8.7 percent to $87,249,000 as compared to $80,260,000 for the six months ended June 30, 2017. Approximately 83 percent of revenue has been from direct selling sales, which have increased by $3,377,000, or 4.9 percent, to $72,157,000 as compared to $68,780,000 for the six months ended June 30, 2017.

To read the full Youngevity Q2 financial report, click here.

ARIIX Promotes Brandon John to Executive Vice President of Business Strategy

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Bountiful, Utah-based ARIIX recently announced that Brandon John has been promoted from vice president of Global Tax to executive vice president of Business Strategy.

In his new position, he will be responsible for further developing ARIIX’s global tax strategy along with international logistics and operations.

Brandon John

Brandon John

“We are honored that Brandon accepted this new position,” said Jeff Yates, ARIIX chief financial officer and founder. “What he has accomplished at ARIIX in such a short amount of time has been incredibly invaluable. Brandon has a uniquely qualified background that will ensure success in each and every goal we set before him. I speak on behalf of all the owners when I say that we have complete confidence in his capabilities.”

John joined the company in 2016. He facilitated the merge of ARIIX and NuCerity and led the company through a complete tax restructure. For his new role, he will be relocating to Europe next month to join newly promoted President of International Cameron Bott.

“I am ready for the challenges set before me,” said John. “I plan to continue building our merger and acquisition profile while working alongside the ARIIX founders to strategically deploy resources, which will not only grow our current markets, but create new opportunities as well. I’m thrilled to be taking on a bigger role as an influencer in ARIIX becoming a global industry leader.”