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Immunotec: A Celebration of Science and Happiness

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Immunotec has quite a compelling story to tell. Its 20-year history is rooted in groundbreaking scientific research and product innovation, which began 40 years ago in Canada.

Immunotec
Founded: 1996
Headquarters: Vaudreuil-Dorion, Canada
Top Executive: CEO, Mauricio Domenzain
2017 Revenue: $101.5 Million
Products: Immune-Boosting Supplements

But the story isn’t over—by a longshot, according to new CEO Mauricio Domenzain. A big dose of personality and focus on culture is setting the company up for its next chapter of success.

Immunotec was actually founded as Immunotec Research in 1996. It was born out of the work of medical researcher Dr. Gustavo Bounous. In 1978, Bounous initiated a novel program in conjunction with colleagues from the McGill University Faculty of Medicine in Montreal, including Dr. Patricia Kongshavn, to search for a dietary protein source that would boost the immune system. The process took 15 years, but it led to the development of a high-quality, bioactive material given the name Immunocal, which helped to sustain normal glutathione (antioxidant) levels.

By the mid-1990s, the scientists had teamed up with veteran network marketing entrepreneurs to found the company now known to the world as Immunotec.

Mauricio Domenzain

Mauricio Domenzain

Helping People Live Better through Science

The company’s two flagship products, Immunocal and Immunocal Platinum, have been widely used by many for more than two decades, and the company can boast that its flagship product is backed by an ever-increasing number of clinical studies. It’s even listed in the prestigious Physician’s Desk Reference, the comprehensive drug reference book used by doctors, nurses and pharmacists.

Scientific credibility and superior quality are fundamental to the company’s brand DNA and are reflected in the tagline: The Science of Living Better. According to Mimi Cohen, vice president of marketing, “This tagline also speaks to our exceptional business opportunity that is designed to help people live better. Immunotec’s powerful combination of scientifically proven products and generous compensation plan is our unique selling proposition.”

Immunotec currently operates in six markets worldwide: Canada, Mexico, United States, Dominican Republic, Ireland and the United Kingdom. Two other markets in Latin America will open in 2018, with Guatemala this month. “Increasing our footprint in the Americas and beyond is perfectly in line with our ultimate mission encompassing 40 years of research, to educate people in the Science of Living Better,” says President of Immunotec USA Meredith Berkich. “The incredibly strong connection between the Consultants in different countries creates a high level of enthusiasm and engagement, which is behind the more than 50 percent increases in sponsorship month over month, double-digit growth year over year, and what drove sales beyond the $100 million annual revenue mark in 2017 for the first time in the company’s 20-year history.”

Meet Mauricio, Immunotec’s New CEO

Another milestone was when the company was acquired in May 2017 by Immuno Holding, a company led by Mauricio Domenzain, who was a former top executive of a prominent global direct selling company, with relevant expertise in the Mexican and U.S. markets and a passion for the network marketing channel.

“I am passionate about quality, and part of ensuring you have quality products, operations and customer service is to question everything. There are no sacred cows.”
—Mauricio Domenzain, CEO, Immunotec

His interest in Immunotec was immediate, because of its solid foundation and years of commitment to scientific discovery. “There aren’t very many companies that can say they have 40 years of experience in research and development,” says Domenzain. “I was looking for a company that aligns with my values, culture and vision, and saw huge potential in Immunotec. In addition, what I mainly fell in love with was the amazing leadership. They are the best I’ve ever seen.”

Berkich, who Domenzain hired to help develop the North American market, says the company is equally enamored with Domenzain. “As people have described Mauricio’s entrance to me from both the field and corporate side they refer to him as a breath of fresh air,” she says. “All of a sudden it wasn’t just about the science, which can be an intimidating topic to talk about, and he has really brought a profoundly human element to the company that everybody can feel, and everyone is excited about.”

Berkich says consultants who have been working the business for the past 10 to 20 years—some who have been dormant for years—have been inspired not only with his leadership style, but more importantly the cheerful enthusiasm he is bringing to the company and emphasis on choosing to be happy. “A lot of the reason why people aren’t happy is because they’re so overwhelmed with fear and worry,” says Berkich. “And we all know that network marketing is the place where freedom can happen if you apply yourself and work hard.”

Domenzain says his first focus is establishing a culture, which he feels the corporate office and field are welcoming with open arms. “It can sound a little bit cheesy I know, but I truly believe that if you are happy you can perform to your best ability.”

Immunotec’s Mauricio Domenzain (left) and Meredith Berkich recognize consultants during the company’s recent awards and convention.

The seeds of his cheery optimism comes from his father, who he says never showed any resentment or negativity, even when he was diagnosed with a brain tumor, which took his life when Domenzain was just 26. “He was always enthusiastic, and people loved to be around him,” he says. “He would always say to me, ‘keep smiling, life is good, so celebrate with me.’ I’m trying to share this culture of happiness and celebration, but with results driven by action.”

It’s Domenzain’s focus on creating an emotional connection and a true partnership with the field that guides Immunotec. “We have incredibly talented and inspiring individuals on our corporate team who care about each other and our consultants,” he says. “It is vitally important we treat our people with the highest level of respect so they know how much we appreciate them.”

It’s a Celebration, Not Just Recognition

The new culture was on full display at Immunotec’s recent annual convention this February, appropriately themed Be Spectacular. Domenzain told the corporate team he has great plans for such events with not only recognition of people onstage for their accomplishments, but everyone celebrating those accomplishments right along with them as a family.

With the science engine and research division driving development from Montreal, the company is opening a new call center in Mexico and committing major resources into expanding the U.S. market.

According to Domenzain, attendance for this recent event exceeded everyone’s wildest expectations, reaching a total of 4,500. Veteran consultants who hadn’t been to an event in a long time, as well as field leaders and new consultants alike, said it was the best convention they have ever attended. “That’s not just me saying that,” Domenzain says. “I’m using their words.” Other feedback he received from the field was that consultants loved the tone of the event and that there was a firm action plan in place.

One of the actions was to bring an experienced direct selling executive like Berkich onboard. “Meredith brings a lot of experience in the industry, a lot of wisdom and passion for network marketing, and it has made a big impact so far. The field is very happy she is with us,” he says. “We are committed, not only to quality products but to bringing quality people to the table.”

Question Everything

Part of this commitment included making it very clear he and the executive team would be going through every area of the business, department by department, asking tough questions like “will this activity help us accomplish our mission?” “does it tie into our culture?” and “does it lead us to a place of happiness, contribution and results-driven activity?”

“I am passionate about quality, and part of ensuring you have quality products, operations and customer service is to question everything. There are no sacred cows,” Domenzain says.
As Immunotec executives look at the competitive landscape of how people work and how they are competing with the likes of Uber and the continuation of the shared economy, they understand the need for a robust technology platform. This exercise has already paid dividends, says Berkich. “In phase one, we are finding that some of our technology needs updating in order for us to support where we need to be in the future, and to keep up with the trends we are experiencing in the industry.”

Expanding the North American Market

Although Immunotec was birthed in Canada, executives are making the necessary moves to become more present on a global scale. With the science engine and research division driving development from Montreal, the company is opening a new call center in Mexico and committing major resources into expanding the U.S. market. This is evidenced by the construction of a new facility in Houston, Texas, which is breaking ground this spring and will become the center of the company’s customer and consultant experience.

“Our new office in The Woodlands (Houston) will be a showcase for the celebration of the entrepreneurial spirit and the quest for happiness,” says Berkich. “We look forward to having a lot of blue carpet events where visitors can experience how much we value this industry that we are so proud to be a part of.”

Simplified Tools, Tied to Their Daily Activity

New Immunotec consultants enjoy top-level support from the corporate office in the form of a personalized e-commerce website, as well as professional sales tools to help them share the message of their products and opportunity.

This is another area of the business the Immunotec sales and marketing teams are reviewing with the field leadership, looking to streamline current tools into a more simplified system—something that ties into a consultant’s daily activity, especially that new consultant who is eager to get started. “We want to maximize those precious first 30 days of a new consultant joining the business,” says Cohen. “We want the tools to become a natural part of their daily life, an extension of their daily activities, not asking them to do anything that makes it feel awkward or strange.”

Company executives also are planning a tool summit later this year where they will invite field leaders to help them in assessing every single consultant tool to ensure the field is getting the results they are looking for. Executives are eager for feedback as well, so they can meet other needs and wants of consultants.

Immunotec executives stand on the event stage to honor consultants and guests.

Cultivating Learning and a Love of Science

Immunotec has a long and inspiring history of helping those in need, including their Immunotec Children’s Fund, the company’s philanthropic flagship, which was established to continue Dr. Gustavo Bounous’ dream of improving the lives of underserved and underprivileged children. In the last year the company gave $100,000 to two children’s causes and helped with disaster relief in Puerto Rico, Houston and Mexico City. “We are also taking a step back and looking at our philanthropic focus,” says Berkich. “Not only in our design will we continue to give to the causes that we have supported in the past, but we are looking at launching in the fall a new initiative that will align our company’s unique history.”

Education, learning and discovery are all pieces that make up the core of Immunotec, which makes focusing on future generations so important, says Berkich. That’s why Immunotec wants to extend its humanitarian support to provide resources that encourage children to pursue higher learning.

Commitment to Research and Development

Pick up the April 2018 issue here in which this article appeared.

One thing that will always continue at Immunotec is its commitment to innovation and development. “This was a research company before it was a network marketing company,” says Patrick Montpetit, chief financial officer. “With Mauricio’s leadership, we will continue to invest millions of dollars in research to help fulfill our promise of science helping people live better lives.”

The goal, says Domenzain, is not being the biggest company in relation to sales, but to be the gold standard when it comes to high-quality products as well as developing a culture of happiness and celebration throughout the company. “We will also continue the vision of Dr. Gustavo Bounous to have a box of Immunocal in every household in the world,” he says. “I know that’s a big dream, but if you don’t dream big you don’t succeed.”

A Community Honored

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Direct selling prides itself on outstanding service, personalization and extensive support when it concerns the relationship between independent salespeople and their customers.

We’re in the people business of course. But who makes up the backbone of this channel when it comes to engaging the sales field, fulfilling orders, planning events, manufacturing products and all of those other essential direct selling duties? It’s the corporate staff. And Direct Selling News would like to take this moment to celebrate the important role companies and their employees play in bringing out the very best in people.

In this month’s issue of the magazine, we honor 13 companies as the Best Places to Work in Direct Selling. For this project, we once again partnered with Quantum Workplace, an HR technology company that has been collecting Best Places to Work data for more than a decade.

DSN launched the Best Places to Work in Direct Selling program in 2016 to recognize those employers setting the bar for establishing and nurturing great work experiences and environments. This year’s group continues to do just that by offering strong benefits programs, structured onboarding for new team members, consistent and constructive feedback, professional development and a commitment to work-life balance.

“There is a reason employees refer to themselves as part of the ‘Nu Skin family,’ ” says Dave Daines, senior vice president of global human resources at Nu Skin, a Best Places honoree. “The company continually pushes the boundaries in its efforts to enrich the lives of its employees.”

To learn more about the Best Places to Work honorees’ approach to workplace engagement, our Cover Story begins on Page 18. Company profiles also can be found in the special award supplement that came with this issue.

Of course, celebrating the enrichment of this channel would be incomplete without recognizing the achievements of top companies through the signature ranking for the direct selling channel: the Direct Selling News Global 100. In its ninth year, this ambitious research project continues to provide better understanding of what it means to be a part of this community. We’d like to thank you once again for your enthusiasm and support, as well as your generosity in participating.

Our final list will be revealed at a Celebration event at the Renaissance Dallas at Plano Legacy West Hotel in Plano, Texas, on May 2, and we hope that you will consider joining us for this special evening. We are pleased to welcome SeneGence Founder and CEO Joni Rogers-Kante as keynote speaker and look forward to announcing this year’s Bravo Award winners. And, of course, we’ll be counting down the list of the 100 largest direct selling companies in the world. Ticket and sponsorship information is available at DSNGlobal100.com.

What is your company celebrating? Whether it is recent accomplishments, international market openings, philanthropic efforts and other key milestones, we’d love to hear from you!

All our best,
The DSN Staff

‘One team, one dream’

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John Addison spent 35 years in the corporate offices of one of the world’s largest direct selling companies, Primerica Inc., most recently serving as Co-CEO. Since his retirement, he wrote the best-selling book Real Leadership: 9 Simple Practices for Leading and Living with Purpose, and he now serves as president and CEO of Addison Leadership Group. He regularly offers his leadership insights to Direct Selling News readers and recently sat down with the DSN staff to discuss workplace engagement. If you have a question you’d like John to answer in a future issue, email editor@directsellingnews.com.

This month, we are announcing our third-annual Best Places to Work in Direct Selling honorees. What do you think makes a direct selling company a great place to work?

Direct sales companies are usually very focused on personal development and positive thinking, which helps make them fun places to work—as long as you like people. It’s not like you’re making auto parts; you are building a business that impacts the lives of other people.

The thing that I always enjoyed when I was growing up in the business—way before I was CEO—was building relationships with people in the field. Many of those relationships have lasted for years, and it’s fun.

How do you advise executives to approach employee engagement?

My approach was always to talk about the three pillars of business. The first is the salesforce. This is the most important, because your salesforce is your distribution system. The second pillar is your clients and customers. You must make sure the products that you sell are the right products for the company, are of high quality, at a fair price and bring real value. The third pillar is the stake holders, your employees and shareholders.

“I’ve watched Dr. Jekyll turn into Mr. Hyde before because they are in charge of something now and they think, ‘I’ve got to prove to everybody that I’m large and in charge.’”
—John Addison

My view is the business has to be “one team, one dream,” with everyone on the corporate staff and salesforce pulling together. It’s important to communicate, talk to, motivate and inspire both your employee base and the members of your distribution force. Whoever is on the phone dealing with the salesforce needs to know the core values, the strategy and the approach that the company is taking. It’s not good enough for the CEO to give a flowery speech, if the employee base hasn’t bought into it. People need to have a common vision and a common purpose.

What is the optimal way for a company to position the HR function within the leadership structure?

John Addison

Advice from the Front Line of Leadership with John Addison.

I think the HR function has to be a critical part of the management team. A company’s human resources leader needs to understand the direction of the company as well as when things are doing great and when things are challenging. The job of human resources isn’t just to put people in seats, it is to put the right people in the right seats. In order to do that, HR has to be very plugged in to the core values, strategy, vision and inner workings of what’s happening in the company.

Do you have a recommendation about where that HR function should fit within the C-suite? Should there be a Chief Human Resource Officer?

I think it varies. I’ve never been a servant to an organizational chart. It depends on the strengths and the weaknesses that you have within the company. I will say that the position of leading human resources shouldn’t be buried down in the organization structure, it needs to have a prominent place.

If a company determines that it needs to shift its corporate culture, how would you advise the company to approach that challenge?

My No. 1 advice is you better move slowly, unless the company is a complete disaster. When a company is on life support, then you’d better change everything. But in most cases, when you see a problem or you see something and decide you need to make a change, you can’t throw the baby out with the bath water.

Change is change, and even positive change is incredibly disruptive. I believe that when you are running a mature direct sales company that has been around awhile, you’re driving a battleship, not a speed boat. When you make changes, if you see you have got to change your course, you don’t just start yanking the wheel on a big giant battleship, you aim and adjust. You also have to plan ahead; you have to start turning it now if you want to move it three miles further into the ocean.

Cultures are very ingrained. You have to think and make intelligent decisions. It also is much better to talk positively about what you are doing when you’re making changes, versus negatively saying how screwed up everything is. I’ve watched a lot of CEOs come into companies, and the first thing they do is spend six months talking about what a disaster they inherited. Well, maybe what was done before wasn’t good, but the guy or the gal that ran it before, they’re not running it anymore, so talking about how bad they were is irrelevant. Instead, take positive steps to move in the direction you want to go.

Does the corporate culture influence the culture within the salesforce, or is it the other way around?

Does the corporate culture influence the culture within the salesforce, absolutely! I don’t think it’s yin and yang, but I don’t think you can have one completely different than the other; I think that sets you up for a disaster. There has to be a congruence between the corporate goals and the field’s goals.

Corporate people and employees are different than the field. When you do a rally of your employees, it is never going to be as exciting or crazy as a rally for your salesforce. But, I think it is incredibly important to make sure that both of those are on the same page, and moving in the same direction.

Pick up the April 2018 issue here in which this article appeared.

What common mistakes do you see new managers make?

Thinking they’ve got to establish their authority. I’ve watched Dr. Jekyll turn into Mr. Hyde before because they are in charge of something now and they think, “I’ve got to prove to everybody that I’m large and in charge.” A lot of people that you would have thought were going to be great managers because they were really good at the job they were doing, get into management and they become a challenge.

You have to earn the respect of your people; you can’t demand the respect of your people. My biggest advice to those who are becoming a manager for the first time is to stay humble and realize that you are depending on the other people on the team, it’s not just you anymore. You’ve got to build a team, and that starts with you having some humility.

Public Direct Sellers End 2017 on a Strong Note

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Douglas M. Lane, CFA, is a securities analyst with more than 20 years of experience covering companies that employ the direct selling business model. He leads a boutique equity research firm, Lane Research, focusing on those companies. His website is www.laneres.com, and he can be reached at doug@laneres.com.

The six publicly traded direct selling companies we follow and whose stocks are listed in the United States, Herbalife (HLF), Medifast (MED), Nu Skin (NUS), Tupperware (TUP), USANA (USNA) and London-based Avon Products (AVP), on balance ended the year on a strong note.

Organic sales growth on average increased by 10 percent in the fourth quarter 2017, which is an acceleration from the low- to mid-single digit growth rates on average in the four previous quarters. The companies focused more on nutrition and healthy living did particularly well, while the more traditional companies, Avon and Tupperware, showed some softening in the fourth quarter.

OPTAVIA, Medifast’s direct selling company, led the way with very strong growth. In fact, the direct selling channel has become so dominant that Medifast management stated it would no longer report separate segment information, and that the company was moving its Medifast Direct customers over to the OPTAVIA health coaches. We view Medifast as an interesting laboratory for go-to-market strategies of weight-loss and nutrition companies, as its direct selling channel went from less than half of the business 10 years ago to now virtually taking over the company.

OPTAVIA ended the year with a strong 32 percent organic growth, much better than expected due to continued momentum coming out of the recent convention in Dallas, Texas. After introducing the OPTAVIA product line to its health coaches in 2016—which was very well received—it was at the company’s convention in July 2017 that Take Shape For Life was rebranded altogether to OPTAVIA, a name, in our view, more suited for international markets. OPTAVIA announced in March that it would open its first international markets, Hong Kong and Singapore, in early 2019.

Therefore, with momentum building domestically coupled with international expansion on the horizon, the future seems bright for Medifast, which did not go unnoticed by the markets as its stock soared on the earnings release.

Nu Skin also posted strong double-digit organic growth rates in the fourth quarter, driven by the limited-time offer (LTO) of its AgeLOC LumiSpa treatment and cleansing device, introduced at its Salt Lake City convention held in October. Importantly for future growth, the number of sales leaders in the fourth quarter was much higher than we expected at 81,900 versus our forecast of 68,800. It appears that the LumiSpa LTO generated an increase in product sales and leadership activity, so the key now is to see how that translates into growth in 2018 as LumiSpa is rolled out globally. Management also noted that its focus on utilizing social selling programs to increase outreach and expand its customer acquisition contributed to an 8 percent increase in its customer base. Clearly the company is on much stronger footing coming out of 2017 than it was a year ago, which is reflected in the nearly 50 percent appreciation in the stock over the past 14 months.

USANA and Herbalife round out the direct sellers posting accelerating organic growth trends in the fourth quarter. In the latter part of 2017, USANA appears to have reversed several quarters of decelerating growth, benefiting from successful new product and promotional activity. The prelaunch of its new Celavive skincare line created some excitement among leadership and USANA was able to execute on a successful promotion in China that drove 12 percent organic growth in that important market for the company. Total organic sales growth was up 5.1 percent in the fourth quarter after being up 3.0 percent in the third quarter and up 2.3 percent in the second quarter. These improving trends have also been recognized by the market after some of the 2016 product and promotional efforts didn’t live up to expectations. Overall, USANA is up 25 percent over the past 14 months and 33 percent since the first quarter 2017.

For Herbalife, after several quarters of negative growth as a result of sharp declines in the U.S. due to its leadership being more focused on FTC compliance in conjunction with its July 2016 settlement—as well as softness in China—organic sales increased 3 percent in the fourth quarter. This was the first positive note for that metric in five previous quarters. Organic sales in North America were down 5 percent after being down double digits in the second and third quarters, and organic sales growth in China turned positive for Herbalife for the first time in several quarters. Therefore, with these two markets heading in the right direction, a combined accounting for more than one-third of total company sales, the stage appears set for a sustained return to positive organic sales growth later in 2018. Despite the recent fundamental soft patch, Herbalife’s stock has almost doubled over the past 14 months as it became apparent that it would be able to successfully navigate through the FTC settlement in the U.S. Short seller Pershing Square Capital Management exited its position, which it held for five years, in the first quarter 2018.

Conversely, Avon’s organic sales declined 2 percent and Tupperware’s were reportedly down 4 percent, a deceleration from flat and up 2 percent in the third quarter respectively. However, for Tupperware, if you adjust for the vagaries of the calendar and for the recent BeautiControl divestiture, organic sales were actually up 3 percent, which was a modest sequential improvement from Q3. Brazil, which surpassed $300 million in sales for Tupperware in 2017, and China were the biggest contributors to growth. However, this sequential improvement was still below expectations as Indonesia, Italy, Malaysia/Singapore and Tupperware South Africa were softer than expected. We reduced our estimates, and the stock has been soft since the quarter was announced. In fact, Tupperware has shown opposite trends from other direct selling companies in that a year ago it was coming into 2017 with some momentum, but appears to have stalled coming out of 2017—and so consequently its stock price today isn’t much different than it was 14 months ago.

Organic sales growth at Avon continues to soften, and missed our forecast for the fourth quarter. However, investors’ attention was on the new CEO, Jan Zijderveld, and his commentary, which was apparently well received by the markets since Avon’s stock has risen over 20 percent since earnings were reported despite what we would characterize as soft top-line results. However, even with that bounce Avon’s stock is still about half the price it was a year ago as business fundamentals continue to be challenged.

In looking at the performance of direct selling stocks overall since the end of 2016, our Lane Research Index, which is comprised of U.S.-listed stocks over $1 billion in market capitalization, has modestly lagged the market as represented by the S&P 500. Outperformance in the first half of 2017, the fourth quarter and so far in Q1 2018 has not been enough to offset the underperformance in the third, which was driven primarily by Avon’s 40 percent stock drop after a poor second quarter earnings report and the announced departure of its CEO. Tupperware’s stock also declined double digits in Q3 as it became apparent that top-line momentum had stalled.

However, we note that Medifast, which is not in our index since it had not reached the $1 billion market capitalization threshold, saw momentum build as 2017 progressed, and its stock has more than doubled since the end of 2016. If it holds these levels, we anticipate it will be added to our index in the not too distant future.

Lastly, after several years of rebranding to Herbalife Nutrition, Herbalife is taking the next logical step and renaming the whole company Herbalife Nutrition Ltd. Can anybody say OPTAVIA Inc.

Disclosures: Financial Interests

The analyst, Douglas M. Lane, and members of his household own equity and/or equity derivative securities in Herbalife Ltd., which had previously been publicly disclosed in a Direct Selling News article originally published in January 2013.

Other than mentioned above, neither I, Douglas M. Lane, nor a member of my household, owns any security(ies) which is/are the subject of this article. Neither I, nor a member of my household is an officer, director, or advisory board member of the issuer(s) or has another significant affiliation with the issuer(s) that is/are the subject of this research report. I do not know or have reason to know at the time of this publication of any other material conflict of interest.

Stronger Together

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“In the long history of humankind,” Charles Darwin observed, “those who learned to collaborate and improvise most effectively have prevailed.” Change and disruption are the story of our times. The direct selling channel isn’t merely adapting by collaborating and improvising, but finding new opportunities to grow.

While ill-informed critics sometimes will question the values of the Direct Selling Association (DSA) and DSA’s self-regulatory and advocacy activities, the need for and values of our association have never been clearer. We are stronger together, and better able to shape our respective futures together. DSA promotes the interests of direct selling as a dynamic marketplace force, responsive to the challenges and opportunities of the times.

We have constantly evolved to adapt to changes in the marketplace and technology breakthroughs that affect our industry and the changes in regulatory approaches they’ve necessitated. DSA’s role is to support our membership by helping improve and elevate the direct selling channel. We do that with our active education efforts, by building relationships with lawmakers and by protecting consumers and focusing on channel-wide issues. While we cannot and do not act as legal counsel for any individual company, if a member’s regulatory issues have negative implications for the industry, DSA acts to defend the common interests of our members.

We engage with an often skeptical media to better inform public perceptions, address misunderstandings, and protect the values of our business model. We educate lawmakers and regulators about the popularity and integrity of our businesses. Proving our continued commitment to self-regulation strengthens consumer protection and our channel’s accountability. Our relationships with federal and state policymakers also serves to promote understanding of our industry. And to understand is to appreciate.

Because we are the premier national trade association for direct selling, the industry’s detractors sometimes target their criticism at our membership. Self-appointed “watchdogs” intent on policing our industry criticize our businesses, members and non-members. That’s why DSA membership is so important and why our expanding self-regulatory program is so valuable. Many of these critics harbor suspicions about our industry that mostly originate from a lack of appreciation for a retail channel they don’t see themselves wanting to engage in as consumers or as independent salespeople.

Fortunately, DSA is well-informed and well-positioned to rebut the negative stereotypes promoted by critics who don’t understand our industry. Our association has instituted a fully functioning self-regulatory program. We scrutinize new applicants for membership in our association to ensure their commitment to our high standards. Our Code of Ethics and independent Code Administrator as well as our members’ commitment to the Code’s strictures is our first line of defense against misconceived attacks on your practices. When criticism has merit, the Administrator can direct corrective actions be taken. Where criticism is unwarranted, the Administrator can explain why.

Of course, DSA membership is not a foolproof shield against unreasonable criticism, but it is an unequivocal statement by members that they are committed to doing the right thing by abiding by informed and viable standards for direct selling.

In a time of constant change, of proliferating challenges and opportunities, the integrity, efficacy and durability of our more than a century old association is attributable, as it always has been, to our able defense of those common interests, adapt to an ever-changing landscapes in the marketplace and our united advocacy of the interests, rights and aspirations of all legitimate direct sellers.

Joseph N. Mariano is President of the U.S. Direct Selling Association and the Direct Selling Education Foundation.

USANA Expanding into Four New Markets

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USANA, a Salt Lake City, Utah-based cellular nutrition company, has announced its upcoming European expansion. On June 20, 2018, the company will open in Romania, Germany, Italy and Spain, increasing its global footprint from 20 to 24 markets worldwide.

“Further expansion of USANA in Europe broadens our international reach, and we couldn’t be more excited,” said USANA CEO Kevin Guest. “When Dr. Myron Wentz founded this company, he wanted to provide personal and financial health and wealth to everyone in the world, and this expansion helps Dr. Wentz get one step closer to his ultimate goal.”

“I have seen USANA grow from being in a handful of markets, to 20, and now to 24, and it’s truly amazing to see what this company has become,” said USANA Chief Field Development Officer David Mulham. “This expansion will provide the people of Romania, Germany, Italy and Spain the potential opportunity for financial freedom and the access to some of the highest quality nutritional and skincare products on the market.”

According to the company, Romania is a very entrepreneurial population that is hungry for opportunity. The World Economic Forum states that Romania is the second-fastest growing economy in Europe. In addition, large Romanian populations live in Italy, Spain, Germany, United States, Canada and France.

Germany is the fourth-largest direct selling market in world, according to the World Federation of Direct Selling Associations. According to WFDSA, direct selling in Germany has grown at a 5.2 percent compound annual growth rate (CAGR) over the past three years. In addition, Germany is ranked among the top 10 most health-conscious countries in world, according to US News.

Italy is the 12th-largest direct selling market in the world, according to WFDSA, with direct selling growing at a 4.7 percent CAGR over the last three years. According to the International Monetary Fund, Italy has the fourth-largest economy in Europe.

Spain boasts the 14th largest by nominal GDP in the world and the 30th largest population in the world. The country features a healthy direct selling community, with local operations by more than 20 direct selling companies. According to the World Tourism Organization, Spain is the third-most visited country in the world.

The new European markets will be supported by both in-country directors of Field Development and by USANA’s European headquarters in Paris, France.

Thirty-One Gifts Launches Baby Product Line

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Thirty-One Gifts, a Columbus, Ohio-based custom handbag and tote company, has launched Baby by Thirty-One, an online-only collection of specially designed diaper bags and thermals with baby-friendly personalization options available. Other items include nursery décor and organization favorites.

“Moms have been using our Baby Product Line as baby diapers for years, and we’re thrilled to now release a full line of diaper bags, thermal bags, accessories and home décor to meet the needs of busy moms and families,” said Founder and CEO Cindy Monroe. “Mothers will find the style and functionality they’ve come to expect from Thirty-One in the new line of baby products.”

Thirty-One Gifts is launching the new line as it hosts 22 baby showers nationwide at Ronald McDonald House Charities (RMHC) locations throughout the U.S. and Canada for mothers whose babies are in NICU units. The first baby shower was held on March 26 at RMHC – Chattanooga, where Thirty-One was founded 15 years ago. The remaining showers will take place around Mother’s Day—from May 8 to May 17—in 15 states and two Canadian provinces: Tennessee, Pennsylvania, New York, Michigan, Georgia, North Carolina, Ohio, Texas, Florida, Connecticut, Nebraska, Oregon, California, Utah, and Alberta and Ontario, Canada.

Thirty-One Gifts has supplied 10,000 Baby by Thirty-One products for the RMHC showers. Many of the mothers staying at RMHC with babies in the NICU delivered early and haven’t had a baby shower, so the gifts help them prepare for their newborn.

RMHC is a nonprofit organization that Thirty-One Gifts supports in the U.S. and Canada through Thirty-One Gives, the company’s philanthropic initiative. To date, families have received more than 500,000 Thirty-One Gifts welcome bags at RMHC locations throughout the U.S. and Canada, and the company’s financial commitment has helped enable over 12,500 family nights.

Employees at Thirty-One’s headquarters volunteer at the local RMHC chapter in Columbus, Ohio, on the last day of each month with 31 days. The company also created a beauty salon at the house, sponsored a guest room and purchased an adjacent home for RMHC’s use.

Giving back is fundamental to Thirty-One, and through Thirty-One Gives, the company works to empower girls, women and families to lead purposeful, thriving lives. Since 2012, Thirty-One Gives has donated $100 million in products and cash to charitable organizations that share their mission.

Avon Helps Found First Breast Cancer Support Center in Russia

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Photo: St. Basil’s Cathedral in Red Square, Moscow, Russia

Avon Products, the second-largest direct seller in the world, announced the grand opening of the first Breast Cancer Support Centre in Moscow, Russia, to provide support for women with breast cancer.

The center, called Vmeste (meaning “together”), was founded by London-based Avon Products and the National Women’s Health Care Foundation and aims to help 20,000 women a year with free comprehensive psychological, social, legal, well-being and rehabilitation support.

More than 60,000 cases of breast cancer are diagnosed every year in Russia. The new center will use the latest rehabilitation techniques to help many of these women, their families and loved ones overcome the effects of a breast cancer diagnosis and help them return to normal life.

The Vmeste Centre was officially opened by Avon CEO Jan Zijderveld. “Supporting women’s health and well-being is part of our DNA,” said Zijderveld. “Across our network of 6 million Avon Representatives globally we’re committed to improving the lives of women, their families, communities and, ultimately, the world. Through the Avon Breast Cancer Promise, we educate women about the signs and symptoms of breast cancer and make sure they know where to go for help. To date, we’ve educated 180 million women and funded more than 20 million breast screenings. And we promise to do more.”

Oksana Moldavanova, president of the National Women’s Health Care Foundation said, “In the new center we have gathered high-level professionals to show women that cancer is not a death sentence. Thanks to the advances in modern medicine, this disease is often treatable. Life goes on after a diagnosis is made, and our goal is to help women make it as interesting and fulfilling as it was before.”

“The opening of Vmeste is a historical step in the development of a culture of rehabilitation and health care for Russian women,” said Elena Starkova, general manager of Avon Russia and Eastern Europe. “Avon has been present in the Russian market for 25 years and for more than 15 of those years, we’ve been dedicated to supporting the breast cancer cause. Avon has offered screenings to 75,000 women and has educated millions about the disease. We’ve done a lot but there’s more to do and this new center represents a big step towards doing that.”

Mannatech Sales for Q4 2017 Up 8.9%; Down 2% for Year

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Mannatech Inc., a Coppell, Texas-based health and wellness company, has announced financial results for its fourth quarter of 2017. Fourth quarter net sales for 2017 were $46.4 million, an increase of $3.8 million, or 8.9 percent, as compared to $42.6 million in the fourth quarter of 2016.

For the three months ended December 31, 2017, Mannatech’s operations outside of Americas accounted for approximately 67.5 percent of Mannatech’s consolidated net sales.

Asia-Pacific net sales increased by $4.8 million, or 20.9 percent, to $27.8 million, as compared to $23.0 million for the same period in 2016. Net sales comparisons for the fourth quarter were affected by the impact of fluctuations in foreign currency exchange rates. In constant dollars (a non-GAAP financial measure), fourth quarter 2017 net sales would have been $0.8 million lower, or $27.0 million. The currency impact was primarily due to the appreciation of the Korean Won and Australian Dollar, partially offset by the depreciation of the Japanese Yen.

Net sales for Europe, the Middle East and Africa (EMEA) increased by $0.1 million, or 2.9 percent, to $3.5 million, as compared to $3.4 million for the same period in 2016. In constant dollars (a non-GAAP financial measure), net sales for the fourth quarter 2017 would have been $0.2 million lower, or $3.3 million. The currency impact was primarily due to the appreciation of the Euro and South African Rand.

Net sales for North America and South America (the Americas) decreased by $1.1 million, or 6.8 percent, to $15.1 million, as compared to $16.2 million for the same period in 2016. In constant dollars (a non-GAAP financial measure), fourth quarter 2017 net sales would have remained the same at $15.1 million.

For the full year, overall net sales decreased $3.6 million, or 2.0 percent, for 2017, as compared to 2016. During 2017, fluctuations in foreign currency exchange rates had an overall favorable impact on net sales. During 2017, net sales declined 3.3 percent on a constant dollar basis (a Non-GAAP financial measure); favorable foreign exchange during 2017 caused an increase of $2.3 million.

Operations outside of the Americas accounted for approximately 63.7 percent of the company’s consolidated net sales, whereas in the same period in 2016, operations outside of the Americas accounted for approximately 61.1 percent of consolidated net sales.

Sales for the Americas decreased by $6.0 million, or 8.5 percent, to $64.2 million for 2017 as compared to $70.2 million for the same period in 2016. During 2017, Asia-Pacific sales increased by $2.6 million, or 2.7 percent, to $98.8 million, as compared to $96.2 million for 2016. During 2017, EMEA sales decreased by $0.2 million, or 1.4 percent, to $13.7 million, as compared to $13.9 million for 2016.

To read the full report, click here.

Youngevity Up 6.9% for Q4 2017; 1.9% for Full Year

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Youngevity International Inc., a Chula Vista, California-based omni-direct lifestyle company, reported financial results for the fourth quarter and full year ended December 31, 2017.

Revenue for the fourth quarter ended December 31, 2017 increased 6.9 percent to $41,041,000 as compared to $38,403,000 for the fourth quarter ended December 31, 2016. The company derived approximately 87 percent of its revenue from direct sales and approximately 13 percent of its revenue from commercial coffee sales during the quarter. Direct selling segment revenue increased 2.0 percent to $35,716,000 in the current quarter as compared to $35,025,000 for the quarter ended December 31, 2016. Commercial coffee segment revenue increased 57.6 percent to $5,325,000 in the current quarter as compared to $3,378,000 for the quarter ended December 31, 2016. This increase was primarily attributed to increased revenue in its green coffee business.

Steve Wallach, chairman and CEO of Youngevity International stated, “We are encouraged by the revenue growth experienced in Q4 and we are optimistic that this growth will continue into 2018. We made a considerable investment in our global infrastructure over the last several years, including 2017, and we believe that we are just beginning to see this investment producing revenues.”

Revenue for the year ended December 31, 2017 increased 1.9 percent to $165,696,000 as compared to $162,667,000 for the year ended December 31, 2016. During the year ended December 31, 2017, the company derived approximately 86 percent of its revenue from direct sales and approximately 14 percent of its revenue from commercial coffee sales. Direct selling segment revenue decreased by $2,968,000, or 2.0 percent, to $142,450,000 as compared to $145,418,000 for the year ended December 31, 2016. For the year ended December 31, 2017, commercial coffee segment revenue increased by $5,997,000, or 34.8 percent, to $23,246,000 as compared to $17,249,000 for the year ended December 31, 2016. This increase was primarily attributed to increased revenue in the company’s green coffee business and coffee roasting business.

“Organic growth, which had been a challenge for us during the first three quarters of 2017 seemed to bounce back in Q4,” said Dave Briskie, president and CFO of Youngevity International. “We expect Q1 to display continued progress. With our coffee segment revenue up considerably and international markets showing 28.9 percent revenue increases over 2016, we intend to set our sights on delivering profitability and improvement to our balance sheet. This will be a main focus of 2018.”

The Best Places to Work in Direct Selling 2018 Honorees!

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Congratulations to all of our 2018 Best Places to Work in Direct Selling Honorees!

The companies, listed in alphabetical order, are:

Each company above is profiled in this supplement, with employees and executives sharing why they believe their company is a Best Place to Work in Direct Selling. All profiles are based on questions presented by DSN to companies. Quantum Workplace, our third-party vendor, conducted the research and compiled the results for this program (please see page 34 for more information about Quantum and the contest).

The Best Places to Work in Direct Selling contest was designed by Direct Selling News with several goals in mind:

  • To spotlight the channel as a positive job-creating engine
  • To recognize and honor companies that have created positive work environments and become employers of choice
  • To identify and share best practices with the wider direct selling community
  • To provide valuable feedback and data to participating companies that will assist them in measuring levels of employee satisfaction and engagement

Quantum Workplace LogoWe all know that direct selling is a people business. Measuring field engagement is critical to any company’s success, and consistently delivering on that is a hallmark of the channel. But the field is only part of the people equation. Best Places to Work in Direct Selling celebrates the important role companies play as employers in the marketplace and highlights those companies that are setting the bar for establishing and nurturing work experiences and environments that bring out the very best in people.

Our 2018 contest was open to direct selling companies with at least 40 full-time employees based in North America. Any employer or employee could have nominated their company during the open period last fall, which ended on October 23, 2017. Each nomination included a contact person who received all of the communications from Quantum. After the nomination period ended, Quantum sent out an official invitation to each company to begin the survey process.

Pick up the April 2018 issue here in which this article appeared.

Employees were invited to complete an anonymous and confidential survey. A certain percentage of employees at each company, based on size, had to complete the survey in order for the company to reach the threshold to be included. After the survey period was over, the team at Quantum calculated the responses to determine overall scoring and ranking. Only companies who met the threshold determined by Quantum as the baseline for a Best Places to Work environment were announced as Honorees for 2018.

We plan to run this contest again in 2019 , and hope you will join us!

2018 Best Places to Work in Direct Selling – It Works!

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“We’ve worked hard to keep our ‘One Team’ culture as we’ve grown from a staff of 20 to a staff of over 200 in the past six years.”
—Mark Pentecost, Founder and CEO
Company / It Works!
Headquarters / Palmetto, Florida
Number of Full-Time Employees / 204
Year Founded / 2001c

What makes your company one of the best places to work in direct selling?
At It Works!, we embody our motto “Friendships, Fun, and Freedom” not only within our team of distributors, but also within our corporate headquarters. We’ve worked hard to keep our ‘One Team’ culture as we’ve grown from a staff of 20 to a staff of over 200 in the past six years.

What is your top priority when it comes to maintaining a great work environment?
We have a Culture Committee made up of employees across the organization at all levels to create inclusion, bring our team together, and recognize the success of our company and individuals. The Committee focuses on engagement, events, and recognition to ensure It Works! will always have a great work environment.

What benefits do you offer to your employees?

  • Mentor Program for all new employees
  • Monthly luncheons with executive team members and employees at all levels of the organization
  • Dale Carnegie Leadership Class for up-and-coming team members
  • Quarterly happy hours including game nights

What unique or unusual benefits do you also offer?
We are big proponents of team building activities, so managers are encouraged to host quarterly outings. A few favorites are boating in the Gulf of Mexico, day trip to the Pentecost Ranch, and friendly competitions (bag toss or bingo) on the top floor of the headquarters, otherwise known as the “Whole ‘Notha Level” or rooftop bar.

How does your company celebrate a job well done?
We are always looking at new and creative ways of recognizing employees for going above and beyond. We have monthly Town Halls when we invite the entire staff to hear company updates, welcome new employees, and most importantly celebrate team and individual successes.

How does your company support team members in their personal and professional development?
In 2017, we implemented a Mentor Program to accelerate the mentee’s perspective and understanding of It Works!. The goal of the program is to connect employees with one another, open up the lines of communication, and provide them with a person to listen to concerns and successes. The feedback we’ve received since starting the program is that it has helped new employees acclimate to their job and the company culture more quickly while making them feel welcome.

How does your company give back to the community?
We have our own 501(c)3 nonprofit organization called the It Works! Gives Back Foundation. The mission of the organization is to make an impact in the lives of those in need through humanitarian aid, pediatric cancer support, international crisis response, anti-human trafficking, homeless outreach, and veteran support. We give back locally and globally with the help of our corporate team and field team.

How do you develop and maintain trust between all levels of your company?
Encouraging open communication, regardless of your role at the company, has always been a priority. Between mentor programs, monthly connection events and luncheons, and a forum for employees to submit ideas—we continue to have dialogue amongst the team.

What is the single most fun day of the year at your company? Why?
The single most fun day of the year is the first day of our Global Conference. We have staff from our International team join us and we celebrate as “One Team” with our field leaders the kick off to our biggest event of the year.

What is something new that you’ve added in 2018 to enhance your workplace?
In 2018, we’ve added more events to our culture calendar, including a building day with Habitat for Humanity and an all-staff minor league baseball game.

 

Best Places To Work In Direct Selling 2018 Honorees!

Pick up the April 2018 issue here in which this article appeared.