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Foursquare Report Sheds Insight on Smart Targeting Mothers

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Foursquare’s recent report on the diversity of mothers provides some surprising data that will be helpful to direct sellers when determining their company’s messaging strategies and onboarding materials for new distributors. While some moms may fit into multiple buckets, there are some ways to explore life stage nuances in a deeper way.

The report features location technology that shows generalized media targeting and standard demographic descriptors don’t work anymore. Smart targeting is about viewing commonalities, like motherhood, as a modifier, and, according to the company, blanket terms are missing the behavioral insights which ideally should be constructing them.

Location technology can be used as a proxy for unpacking factors like consumer life stages and lifestyles to help marketers better reach as well as engage audiences. As household decision-makers, mothers, in particular, are a prime audience to not only reach, but truly understand. In fact, Forbes claims that mothers control 85 percent of household purchases, with a spending power of $2.4 trillion.

Foursquare was able to identify, reach and comprehend more nuanced audience segments based on real-world consumer behavior. In viewing motherhood as a modifier, it recognized that moms have rich lives and interests in addition to raising children. The following are insights that Foursquare location data confirmed as to the true versatility of motherhood.

New Moms:

  • prioritize getting back in shape after pregnancy: They’re 11% more likely than the average female U.S. consumer to visit gyms, and 12% more likely to visit yoga studios.
  • are mindful of what they’re feeding themselves and their families: They’re 7% more likely to visit health food stores, 5% more likely to visit Whole Foods Market, and 4% more likely to visit juice bars.
  • appreciate the convenience of a one-stop-shop: They’re 28% more likely to visit Target (versus 22% less likely to visit run-of-the-mill grocery stores like Publix, 16% less likely to visit Albertsons, and 6% less likely to visit Kroger).
  • enjoy beer venues: New moms also need to take the edge off from time to time and are actually 11% more likely than the average female U.S. consumer to visit beer bars, and 4% more likely to visit beer gardens (however, they’re 7% less likely to visit wine bars, and 5% less likely to visit cocktail bars).
  • often opt for mass-market gyms over boutique studios: Perhaps appreciating the flexibility of working out when they can find the time, they’re 6% less likely to visit boxing studios, and 5% less likely to visit boutique cycling studios like Soulcycle (versus 174% more likely to visit midmarket gyms like Gold’s Gym, 28% more likely to visit Life Time Fitness, and 14% more likely to visit Anytime Fitness).

 Moms of Young Children:

  • visit kid-friendly food venues so they can bring the little ones along: They’re more likely than the average female U.S. consumer to select tastes like tater tots, ice cream sundaes, and soft pretzels.
  • shuttle to after-school activities: They’re often seen at gymnastics gyms, dance studios, music schools, martial arts studios, soccer fields, baseball fields, and skating rinks.
  • are seen at kid-friendly leisure venues: They’re 34% more likely to visit Chuck E. Cheese’s, 29% more likely to visit playgrounds, 24% more likely visit zoos, 18% more likely to visit theme parks, 12% more likely to visit arcades, and 12% more likely to visit mini golf courses.
  • say yes to convenient dining over the more health-conscious options: Perhaps opting for pace and ease, they’re 12% more likely than the average female U.S. consumer to visit fast food joints—for example, they’re 37% more likely to visit Little Caesars, 27% more likely to visit Chick-fil-a, and 17% more likely to visit Red Robin.
  • can be spotted refueling on the go: They often stop at gas stations, convenience stores, and are 17% more likely to visit Sonic Drive-in.

Moms of Teenagers:

  • are more price-conscious: As children age and college becomes a closer option, they’re 44% more likely than the average U.S. consumer to frequent discount stores. Spy them at stores like Five Below, and Dollar General.
  • support their athletic kids: They’re 17% more likely to be seen at sporting goods stores, 44% more likely to be seen at Dick’s Sporting Goods, 56% more likely to be seen at soccer fields, 44% more likely to be seen at baseball fields, and 14% more likely to be seen at tennis courts.
  • are often also seen at professional sports games: Compared to the average female U.S. consumer, they’re 34% more likely to visit football stadiums, 14% more likely to visit basketball stadiums, and 10% more likely to visit baseball stadiums.
  • shop at trendy, but affordable places: They’re 43% more likely to shop at Victoria’s Secret Pink, 29% more likely to shop at Old Navy, 22% more likely to stop by Nike Outlet store, and 8% more likely to hit up outlet malls.
  • are actually a bit less health and fitness-oriented: They’re 33% less likely to visit cycling studios, 23% less likely to visit Pilates studios, and 18% less likely to visit salad spots.

 Empty Nesters:

  • enjoy high-end culture, making the most of free time: They’re 78% more likely than the average female U.S. consumer to frequent opera houses, 24% more likely to visit theaters, and 14% more likely to visit performing arts venues.
  • like to cook, even though they have less mouths at home to feed: They’re 24% more likely to enjoy farmers markets and 15% more likely to enjoy gourmet shops.
  • are ready to decorate: They’re 31% more likely to browse antique shops, 23% more likely to browse furniture stores, 37% more likely to visit Pier 1, and 31% more likely to stop at Home Goods.
  • value fashion a bit more, perhaps focusing on themselves rather than children: They’re fans of department stores like Bloomingdale’s, Macy’s, Lord & Taylor, and are 18% more likely to shop at boutiques, and 16% more likely to shop at jewelry stores.
  • enjoy wine-related tourism, perhaps enjoying adult-oriented travel after years of kid-friendly vacations: They’re 36% more likely to be spotted at vineyards, and 24% more likely to be at wineries.

In addition to life stages, lifestyles are equally important when breaking down audience buckets. Generalized terms like “working moms” and “millennial moms” are often too broad, failing to distinguish the intricate factors that lead to such classifications. Foursquare identified groups of mothers based on our foot traffic data (not stereotypes) and broke down popular cultural beliefs to look five core segments brands should consider.

 Working Moms:

  • are likely to commute by mass transit: They’re 35% more likely than the average female U.S. consumer to be seen at metro stations, 33% more likely to be seen at train stations, and 28% more likely to be seen at bus stations.
  • have stamina: They’re 67% more likely to be seen at cycling studios, 48% more likely to visit Pilates studios, 32% more likely to visit boxing gyms, and 12% more likely to visit gyms in general. They appreciate a schedule, favoring boutique studios like SoulCycle, FlyWheel Sports and CorePower Yoga.
  • work on their homes: They’re more 48% more likely than the average female U.S. consumer to browse Crate & Barrel, 31% more likely to peruse The Container Store, and 27% more likely to browse Ikea.
  • take a break between work and family time to recharge: They’re wine drinkers, 24% more likely to hang at wine bars, 15% more likely to visit wine shops. They also value self-care, and are 26% more likely to visit massage studios, 25% more likely to visit spas, and 20% more likely to visit nail salons.
  • keep up with fashion trends at stylish retailers: They’re 59% more likely to visit Anthropologie, 44% more likely to visit Zara, 34% more likely to visit Gap, 32% more likely to visit UNIQLO, and 20% more likely to visit H&M.

 Tech-Savvy Moms:

  • take their kids to digitally-driven entertainment spots: They’re 21% more likely than the average female U.S. consumer to visit video game stores, 6% more likely to visit arcades, and 24% more likely to visit Dave & Busters.
  • are working professionals: They’re often seen at offices, convention centers, meeting rooms, and conference rooms.
  • are also beauty enthusiasts, perhaps finding inspiration while scrolling: They’re 52% more likely to visit perfume shops, 12% more likely to visit cosmetics stores, 60% more likely to visit Sephora, and 11% more likely to visit Sally Beauty Supply.
  • don’t spend all of their time indoors: They’re actually more likely than the average female U.S. consumer to enjoy the outdoors. Find them at trails, neighborhood parks, national parks, outdoor supply stores.
  • are healthy eaters, favoring nutritious options over junk food that’s sometimes associated with the gaming or tech worlds: They’re 28% more likely to shop at health food stores, 28% more likely to stop by salad spots, and 25% more likely to visit juice bars.

 Active Moms:

  • enjoy boutique fitness in particular: They’re 67% more likely than the average female U.S. consumer to visit CorePower Yoga, 52% more likely to visit Flywheel Sports, 42% more likely to visit SoulCycle +42%, and 30% more likely to visit Barry’s Bootcamp.
  • have active kids: Spot them at gymnastics gyms, dance studios, martial arts studios, skating rinks, soccer fields, baseball fields, and gym pools.
  • fuel up with coffee: They’re lovers of Peet’s Coffee & Tea and Starbucks, as well as eateries with breakfast options like Corner Bakery Cafe, Pret A Manger, and Le Pain Quotidien.
  • say yes to indulgences, treating themselves to sweets after a tough workout: They’re 22% more likely to visit pie shops, 6% more likely to visit donut shops, 5% more likely to visit yogurt shops, and 3% more likely to visit bakeries.

 Millennial Moms:

  • are music and nightlife fans: They’re 27% more likely than the average female U.S. consumer to go to music venues, 28% more likely to attend comedy clubs, 34% more likely to hang at whiskey bars, and 29% more likely to enjoy cocktail bars.
  • enjoy active experiences: Spy them at climbing gyms, national parks, and trails.
  • enjoy boutique fitness: They’re 85% more likely to visit cycling studios, 37%% more likely to visit boxing gyms, 60% more likely to visit Pilates studios, and 44% more likely to visit yoga studios.
  • appreciate old-school arts and culture: Perhaps commonly perceived as digital connoisseurs, our data shows they’re actually more likely than the average female U.S. consumer to appreciate a good old-fashioned night at the movies. Rather than being glued to their screens, we found they’re more likely to visit art museums and galleries.
  • are slightly less into beauty: Despite the rise of beauty bloggers and influencers, we found they may be too busy enjoying experiences to get always get dolled up. They’re actually 4% less likely to visit spas, and 3% less likely to visit cosmetic stores.

 Moms of Multiple Kids:

  • are price-conscious, seeking deals as they shop for a large household: They’re 23% more likely to shop at discount stores, 9% more likely to shop at big box stores, 38% more likely to shop at 99 Cents Only, 21% more likely to shop at Dollar Tree, and 19% more likely to shop at Target.
  • are not big on nightlife, often too busy taking care of the kids for a night on the town: They’re 26% less likely to visit hotel bars, 24% less likely to visit whiskey bars, 27% less likely to visit cocktail bars, 18% less likely to visit nightclubs, and 15% less likely to visit karaoke bars.
  • actually do take the time to DIY: Perhaps looking for a creative or money-saving outlet, spot them at arts & craft stores like Michael’s and Jo-ann Fabrics.
  • are still able to recharge: They’re 26% more likely to work out their stress at boxing gyms, 11% more likely to be found at Gold’s Gym, 9% more likely to treat themselves to mani-pedis at nail salons, and 6% more likely to visit spas.
  • are not into organic or vegetarian: Perhaps disliking the higher prices, they’re 40% less likely to shop at organic grocery stores, and 31% likely to stop by vegetarian restaurants.

New Apple Group FaceTime Feature Could Aid Direct Sellers

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Apple recently announced a new feature for iOS 12 that will allow FaceTime to accommodate up to 32 people at once. For direct sellers, downline conferences on the fly with their organizations and three-way calls with recruits will now be a possibility.

Previously, only two people could participate in a FaceTime video chat. Now, when iOS 12 rolls out later this year, up to 32 people can participate in Group FaceTime. This will make it a strong possibility that the enterprise will find more uses for iOS devices as workplace tools.

The new feature Apple, which was introduced at the company’s recent developer conference, will allow multiple parties to participate in a FaceTime group video chat, similar to Google Hangouts Chat and Skype for Business.Many business groups use Google Hangouts Chat or Skype to communicate with multiple people at once, and the new FaceTime feature will allow for Apple to be a direct competitor to those collaboration tools.

“This year FaceTime is going to take a big leap forward,” said Craig Federighi, Apple’s senior vice president of software engineering. “It helps us deepen our connection with people wherever they are.”

MONAT Global Receives Communitas Award for CSR Program MONAT Gratitude

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MONAT® Global, the Miami-based multinational manufacturer and distributor of premium hair care products, was recently awarded a Communitas Award for Community Service and Corporate Social Responsibility (CSR) for its MONAT Gratitude program.

The Communitas Awards started in 2010 as an outgrowth of the pro bono recognition program of the Association of Marketing and Communications Professionals. The awards program is an international effort to recognize the spirit of communitas—people helping people. Communitas winners unselfishly give of themselves and their resources and are changing the way they do business to benefit their communities. Nominees are evaluated based on the extent and effectives of their program. The awards recognize exceptional businesses, organizations and individuals for excellence in community service and CSR.

“By recognizing individuals, organizations and companies for their volunteerism and socially responsible business practices, we are hoping to not only bring attention to great programs but are working with community-minded leaders to make the spirit of communitas an essential element of every business,” said Ed Dalheim, executive director of the Association of Marketing and Communications Professionals.

As a direct selling company, MONAT is an ardent supporter of the communities in which its Market Partners reside. As part of the company’s CSR, it created MONAT Gratitude with a mission to generate a positive impact and inspire change in the areas of education, children and families by working with visionary organizations that are improving the world.

“CSR is a vital component of any successful company,” said Stuart MacMillan, president of MONAT. “It’s important for MONAT’s executives, employees and Market Partners to give back to the communities in which we live and work.”

Rayner Urdaneta, CEO and co-founder of MONAT, agreed. “It’s a collective effort. As a corporation, we work hard to ensure MONAT offers the best products to our customers. Our Market Partners work hard and their communities are important to them. MONAT Gratitude is one way we can all help our neighbors.”

Thirty-One Gifts Canada, CCHF Announce “Take Flight” Mental Health Initiative

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Thirty-One Gifts Canada, Inc. (Thirty-One) and Canada’s Children’s Hospital Foundations(CCHF) recently announced the launch of “Take Flight,” a new nationwide initiative to advance mental health services for children.

The program’s goal is to expand care for families in need, assisting them in recovery from mental issues—freeing them to take flight and enjoy happier, healthier and more productive lives.

The program kicked off with an initial $100,000 donation by Thirty-One, timed to Mental Health Awareness Month, and an opportunity for customers to join the cause when they make a purchase in the month of May.

Mental health is a critical issue that threatens the lives and well-being of children and families, and one that does not discriminate based on gender, race or socioeconomic status. In Canada:

  • 70 percent of mental health problems begin in childhood or adolescence; preventing and managing these issues when they arise offers children and youth the best possible chance of thriving in adulthood;
  • An estimated 1.2 million children and youth are affected by mental illness; however, only about 20 percent will ever receive the appropriate care;
  • By age 25, approximately 20 percent of Canadians will develop a mental illness;
  • The youth suicide rate is the third highest in the industrialized world.

“Families are a major focus for our Thirty-One Gives charitable initiative, which reaches our 63,000 independent consultants in Canada and the U.S., our customers and our communities,” said Cindy Monroe, Thirty-One Gifts founder and CEO. “As we continue to grow our presence in Canada, it is an honor to expand this commitment through Take Flight with Canada’s Children’s Hospital Foundations, an incredible organization that has brought remarkable, positive change to millions of lives.”

Thirty-One’s $100,000 donation this month will benefit 11 of CCHF’s 13 hospitals throughout Canada, to be used toward pediatric mental health services. It is the Ohio-based company’s first major charitable commitment in the country, following the appointment of two Canadian-based independent sales consultants to the Thirty-One Gives Care Council.

Funds donated through Thirty-One Gives and raised through “Gives Round Up!” will support the highest priority mental health needs in each hospital, such as research, education programs and care. Through these efforts, Thirty-One and CCHF are supporting families by stopping the stigma surrounding mental illness and starting the conversation so that everyone can take flight.

“We are incredibly grateful for the support of Thirty-One Gifts through its Thirty-One Gives charitable initiative,” said Mark Hierlihy, CEO, Canada’s Children’s Hospital Foundations. “I often say that if we change the health of children, we will change the health of our country. This is especially true of laying a good foundation for mental health among children.”

Since 2012, Thirty-One has raised $2,000,000 USD through Gives Round Up! for its nonprofit partners in Canada and the U.S.

WorldVentures Holdings Welcomes Paul Jenkins as CTO

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Plano, Texas-based WorldVentures Holdings LLC, parent company of WorldVentures™, welcomed Paul Jenkins as chief technology officer. Jenkins will guide the strategic technology needs of the company.

Paul Jenkins

Paul Jenkins

“I look forward to shaping and executing the technology strategy at WorldVentures, joining an outstanding culture with a great team, and to once again be working alongside CEO Josh Paine,” said Jenkins. “My focus will be to turn obstacles into opportunities and help WorldVentures deliver world-class technological innovation to our Independent Representatives and DreamTrips Members.”

Prior to WorldVentures, Jenkins assisted WorkRecords, Inc. with the modernization of its infrastructure and SaaS implementation, and Pickup, Inc. with technology platform selection and development. Additionally, he served as CTO for One Technologies and CheapCaribbean.com, and has held executive-level positions with other software and technology companies.

Jenkins’ technological experience and leadership skills will make him a welcome addition to the WorldVentures executive team.

“One of my key responsibilities as CEO is to ensure we have leaders who can make a significant and immediate impact to our business as we work to better serve our Representatives and DreamTrips Members,” said Josh Paine. “Paul is an exceptional servant leader that I’ve been in the trenches with, that I’ve made a difference with, and I look forward to seeing how he will help guide the way to our continued success and future achievements.”

Herbalife Signs LA Galaxy’s Jonathan Dos Santos to Multi-Year Sponsorship

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Los Angeles-based Herbalife Nutrition has signed LA Galaxy midfielder and Mexican National Team member Jonathan dos Santos to an exclusive multi-year sponsorship deal as his official sports performance nutrition partner. The deal runs through the 2021 MLS season.

“We’re thrilled to be Jonathan’s exclusive sports performance nutrition partner,” said Rich Goudis, CEO of Herbalife Nutrition. “His commitment to nutrition, fitness and the community is an embodiment of our purpose to making the world healthier and happier.”

As his official nutrition and sports performance partner, dos Santos will have access to the company’s Herbalife 24® line of sports performance products, which are NSF Certified for Sport®, to help fuel him in his efforts to optimize his performance on the field.

“As an athlete, I understand the importance of balanced nutrition, and I am excited to work with Herbalife Nutrition and its nutrition and sports experts to develop a personalized plan to make sure I achieve the proper nutrition and hydration needed to compete and win,” said dos Santos.

Dos Santos was introduced to the products in the LA Galaxy players’ lounge. He uses Herbalife24® Rebuild Strength to start his morning and post-practice, and recently worked with the Herbalife Nutrition team to develop a video preparing his favorite shake recipe he calls “Banana Sunrise.”

The sponsorship also includes supporting joint community partnership initiatives, sports nutrition education and the company’s marketing initiatives.

Dos Santos, a native of Mexico City, joined FC Barcelona’s famed academy at an early age with his brother, Giovani, where both worked their way up into Barcelona’s first team. In 2014, he followed in his brother’s footsteps and joined Villarreal CF, where he made a name for himself as one of the most reliable midfielders of the Spanish league. In 2017, he once again reunited with his brother, this time as one of the three Designated Players of the LA Galaxy.

Herbalife Nutrition proudly sponsors more than 190 sporting teams, athletes, and events around the world.

Cosway Launches New Product Lines Diamond Royale and Dignita

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Cosway, the Kuala-Lumpur, Malaysia-based direct seller of skin care, personal care and clothing, recently launched two new product lines: Diamond Royale, a premium line of skin care products, and Dignita, a collection of scarves.

Diamond Royale is a luxury skin care line from Switzerland. It comprises six products containing the ground-breaking Age Correct Complex and adopting self-regenerative stem cell technology to bring skin back to its youthful state. It is enriched with extra-fine black and white diamond particles, offering a unique approach to anti-aging.

The Dignita brand celebrates the empowerment of women and, according to Cosway executive director Dr. Alice Lee, is positioned as trendy, fashionable and youthful. Cosway has teamed up with stockist Naelofar Hijab for the first limited edition of Dignita printed satin scarf collection, which will be exclusively distributed by Cosway nationwide and online through Cosway’s website.

Dignita is part of what Lee said is a rebranding effort for the company. “Cosway is known to be Chinese-centric, but we’re doing a rebranding,” she said. “We want to expand our horizon and target new audiences.”

As part of its business re-engineering and rebranding strategy, the company added a new feature into its business model, the Experience Center, or e-centre, which is an online one-stop store targeted to the younger generation.

Tan Sri Vincent Tan, executive chairman of Cosway’s parent company Berjaya Corp Bhd, noted that the new e-centre feature offers members another source of income—with commissions of up to 15 percent of sales—without handling stock and inventory. “We believe this is what the younger generation will embrace because it’s online and will provide convenience for members and consumers,” Tan said.

Tan also expressed confidence that new product offerings will spearhead Cosway’s penetration into the Malay direct-selling market environment. “The introduction of new products such as Diamond Royale and Dignita will provide more options for members to promote in the competitive direct-selling environment,” he said.

New Report Shows More Digital Disruption Coming

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The speed of technological disruption is accelerating. Consider this: It took about 80 years for Americans to adopt the dishwasher. The consumer internet has become commonplace in less than a decade.

Technology will continue to disrupt the way we work and the way we engage with employees and consumers. In the coming year, expect more on-demand and internet-related jobs to predominate—and internet leaders like Google and Amazon will offer more artificial intelligence service platforms as AI becomes a bigger part of enterprise spending.

For 2018, legendary stock analyst and investor Mary Meeker of the venture capital firm Kleiner Perkins Caufield & Byers has released a new report offering insight into what’s happening in the digital world for 2018, including the biggest trends in mobile usage and e-commerce innovation.

Meeker’s 294-page 2018 Internet Trends Report shows that although year-over-year growth in the number of internet users slowed by 5 percent from 2016 to 2017, approximately 3.6 billion people are currently using the internet. That represents 50 percent of the world population for 2018.

While internet adoption may be slowing, mobile usage is increasing. American adults spend a total of 5.9 hours per day using digital media in 2017, up from 5.6 hours in 2016. Those 5.9 hours break down into 3.3 hours on mobile devices, 2.1 hours on a desktop/laptop and 0.6 hours on other connected devices.

Here are other highlights from the report:

  • Wifi adoption: Globally, rates are rising. In 2015 there were 300 million Wifi networks; last year that number had risen to nearly 450 million.
  • Mobile apps: Easy-to-use products are becoming more pervasive due to the simplicity of use. Examples include messaging apps like Telegram, commerce apps like Square Cash and media apps such as Spotify.
  • E-commerce: The e-commerce reach continues to expand. According to the global respondents in the report, 60 percent of transactions were done digitally compared to 40 percent in-store. Digital transactions included in-app payments, QR codes, P2P transfers and smart home devices. In the U.S., acceleration continued with a 16 percent year-over-year increase in growth for e-commerce use from 2016 to 2017.
  • Instant messaging: Monthly active user statistics show Twitter usage remaining constant while activity on Instagram and WeChat continues to grow. The two largest apps are Facebook Messenger, with approximately 1.3 billion active users, and WhatsApp (now owned by Facebook), with 1.5 billion users.
  • Mobile video: Mobile video adoption is climbing. In 2012, daily mobile video viewing minutes were around 5 minutes; in 2017 they were up to 28 minutes and are expected to continue climbing.
  • Voice technology: Voice technology is gaining in popularity as well, due largely in part to the fact that speech recognition has a 95 percent accuracy rate. The popularity is well illustrated in Amazon Echo, which went from 10 million to over 30 million sold by the close of 2017.

Of course, as much as the internet drives innovation and shapes consumer habits, it does have its issues. The privacy of data is at the top of any discussion on internet usage, particularly in light of the new GDPR rules from the European Union that went into effect on May 25. As Meeker’s report states, data improves consumer engagement and experiences. It drives growth, but it also increases scrutiny. And with the recent rash of data breaches, regulators want to ensure data is not used improperly—that internet users and their personal information are protected. “It’s crucial to manage for unintended consequences, but irresponsible to stop innovation and progress,” says the report.

One point of interest for direct sellers: According to the report, the desire of workers for scheduling and work-from-home flexibility led internet freelance work to grow three times faster than the total workforce growth. The on-demand workforce grew 23 percent in 2017, driven by Uber, Airbnb, Etsy, Upwork and Doordash.

To see the full 2018 Internet Trends Report, click here.

Hedge Fund Manager Icahn Reduces Stake in Herbalife

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Last Friday, hedge fund manager Carl Icahn significantly reduced his stake in Herbalife Ltd., causing shares in the Los Angeles-based nutritional company to plunge 9.6 percent. According to a securities filing, Icahn’s fund, Icahn Enterprises (IEP) said it was tendering up to 11.4 million of Herbalife shares, making an approximate 25 percent divestiture of the 45.7 million shares it currently owns.

“For almost six years, we have been one of Herbalife’s strongest, most loyal supporters,” Icahn wrote in a statement. “We stood by the company through a half-decade-long short-selling campaign; and we never sold a share, even after our investment doubled. But, given that our Herbalife investment has become an outsized position, representing approximately 24 percent exposure to total NAV (new asset value), it is only prudent for IEP to reduce its exposure.”

Icahn will remain Herbalife’s largest shareholder. Out of the 29 long-quiet positions IEP currently holds, only three have been longer than Herbalife.

Icahn had a much-publicized battle with billionaire hedge fund manager William Ackman, who launched a campaign against Herbalife in 2012. Ackman’s Pershing Square Capital contended the direct seller was an illegal “well-managed pyramid scheme” and backed those claims with a $1 billion short position. On Feb. 28 of this year, three months after he closed out the short position and converted it into a bet using put options, Ackman exited his bet against the company. Throughout the battle with Ackman and a lengthy investigation by the Federal Trade Commission, Icahn stood by Herbalife.

Herbalife closed last Friday at $48.70, reflecting a 43.8 percent return year-to-date and a 36.4 percent increase over 12 months, sharply outperforming the S&P 500’s 1.8 percent gain and 12.7 percent growth over the same respective periods.

Is Your Website GDPR-Compliant?

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On May 25, the strict new data privacy law in the European Union that limits what information can be collected about people online, known as the General Data Protection Regulation (GDPR), took effect.

Europe’s new privacy measures allow people to limit the information they leave behind when browsing social media, reading the news or shopping online. Businesses must now detail how someone’s data is being used.

The new rules have appeared to focus on Silicon Valley tech giants like Facebook and Google, but they affect all businesses that offer free content online but make money by collecting and sharing user data to sell targeted advertising. It is a common practice for websites to use tracking software to gather information about visitors to better target ads. Advertising companies have warned that the GDPR will harm their businesses because it restricts how information is packaged and shared to sell advertising.

When the GDPR took effect last Friday, several news organizations in the United States blocked access to their websites from Europe, choosing to black out readers rather than comply with the new data privacy law. The most notable blackouts were by news organizations The Chicago Tribune and Los Angeles Times, The New York Daily News, The Orlando Sentinel and The Baltimore Sun. The decision illustrated that some companies would prefer to lose European customers than risk being hit with the stiff penalties allowed under the new law: Fines can reach 4 percent of global revenue.

The websites of many other American news organizations, including The New York Times, USA Today and The Washington Post were accessible from Europe. Some acknowledged the new privacy rules with large disclaimers and other information to explain what information was being gathered when a reader visits the site. “Welcome to USA Today Network’s European Union Experience,” the news organization posted at the top of its website, explaining that the company would not collect personally identifiable information or other data commonly used to sell online advertising.

The shutdowns came as a surprise to readers of the publications because companies had two years to prepare for the new regulations. Andrea Jelinek, chairwoman of the new European Data Protection Board, which will coordinate enforcement of the new law, criticized the blackouts and said that companies had been given a long time to prepare. For weeks, businesses as varied as Uber, bike shops and restaurants have been sending notes to alert people to their updated privacy policies resulting from the law.

“It didn’t just fall from heaven,” Jelinek said in a statement. “Everyone has had plenty of time to prepare.”

Part of the reason for the new laws has been the massive data breaches that have occurred over the past few years. In the past 12 months alone Yahoo, LinkedIn and MySpace account details have been breached. The most notable privacy scandals have involved Facebook and Cambridge Analytica.

The GDPR covers both personal data and sensitive personal data. Personal data broadly means a piece of information that can be used to identify a person, such as a name, address or IP address. Sensitive personal data encompasses genetic data, information about religious and political views, sexual orientation and more.

For direct selling companies, adherence to the GDPR is a necessary measure to ensure the privacy of consultant and consumer information. To ensure your company is GDPR compliant, review the guide the UK’s Information Commissioner’s Office has made available.

USANA Expands R&D Team to Increase Focus on Clinical Studies

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Salt Lake City-based USANA, a cellular nutrition company, has a positive reputation in the nutritional industry due to its commitment to strong, reliable science. To further solidify that foundation, the company has created a new, centralized plan on the design and management of product-related, preclinical and clinical studies. These new processes will be put in place for the design and execution of all new studies to meet and exceed the highest standards in the industry.

“Our no.1 goal at USANA is to continue to develop high-quality, scientifically validated health products for the millions of people all over the world who value USANA products,” said USANA Chief Scientific Officer Robert Sinnott, Ph.D. “Reworking the research and development department to sharpen our focus on clinical studies is the perfect way to ensure that we reach and surpass our goals. This will also provide USANA’s Associates with a great sales tool to show that our products are backed up by sound science.”

The new clinical sciences team at USANA will be led by Rolando Maddela, MD, MPH, and Jessie Johnson, Ph.D. The team is charged with the design and overall strategy of USANA clinical studies. Mark Levy, Ph.D., will also continue his role of working with the research and development department on clinical studies. Lawry Han, Ph.D., is a new addition to the department and brings experience in designing and conducting human clinical studies. Both Dr. Levy and Dr. Han will report directly to Dr. Maddela.

Product-related, preclinical and clinical studies play a vital role in determining what structure function claims can be supported by reasonable science, which are then reviewed by USANA’s legal department to satisfy government regulations. As the bar for scientific validation continues to rise globally, USANA is committed to staying the leader in designing and building the world’s best nutritional wellness products.

Recent meta-analysis studies from USANA include published articles about the effects eating whole fruit versus drinking fruit juice have on immunoregulatory pathways and the covariate-dependent effect of the MTHFR single nucleotide polymorphism rs1801133 on blood homocysteine. USANA’s R&D team has also recently won a Best of State award for the top research and development department in the state of Utah.

JRJR Networks Leaders Ordered into Court

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Photo: The former headquarters of The Longaberger Co., in Newark, Ohio.

According to a recent article in The Columbus Dispatch, the leaders of JRJR Networks, the parent of basket-making company Longaberger Co., have been ordered to appear in court in Columbus, Ohio, regarding money they were lent by Tami Longaberger, the former company executive of Longaberger.

In a filing in Franklin County Common Pleas Court, Judge Mark Serrott ordered John P. Rochon, John Rochon Jr. or other representatives of JRJR Networks to appear in court on June 8 and show what property, income, bank accounts or other means they might have to pay back the $1 million lent by Tami Longaberger.

In addition, Longaberger also is seeking to be repaid for legal fees she incurred to defend herself when state and local taxing authorities tried to hold her personally liable for taxes that JRJR Networks had stopped paying on the Longaberger Co.

In 2013, JRJR Networks, then known as CVSL, bought a 51.7 percent stake in the Longaberger Co., making it the first acquisition of what founder Rochon Sr. had promoted as a holding company of direct-sales businesses. At its peak, Longaberger had sales of $1 billion, supporting nearly 8,000 employees. However, the death of founder Dave Longaberger, father of Tami Longaberger, in 1999 started a decline that was never reversed.

Financial troubles persisted for both the Longaberger Co. and JRJR Networks, and in June 2014 Rochon asked Tami Longaberger, then CEO of Longaberger Co, for a $1 million loan. Ten months later, Longaberger sent Rochon a resignation letter, but, according to court filings, was asked by Rochon to withdraw her resignation so that the publicly traded JRJR would not have to report it to the U.S. Securities and Exchange Commission. A month later, instead of repaying Longaberger as she left the company, Rochon fired her for what he called “good cause.”

Tami Longaberger sued and, in February of this year, was awarded $2.1 million.

On April 2 of this year, the New York Stock Exchange suspended the trading of JRJR Networks’ common stock and notified the company of its intent to commence proceedings to delist it. On May 7, The Columbus Dispatch reported that Longaberger sales consultants received notification the previous Friday that “Longaberger, at this time, has ceased operations.”

Other companies under the JRJR Networks umbrella have had similar fates: Your Inspiration at Home, a maker of spices and other gourmet food items is in bankruptcy in New Zealand and Australia; My Secret Kitchen, a United Kingdom-based maker of gourmet foods is in liquidation; and Kleeneze and Betterware, both of which are in the United Kingdom, collapsed and went into administration, the British term for bankruptcy.