Vemma Founder and CEO BK Boreyko shares the gift of good nutrition with children at Father Joe’s Village in San Diego, CA.

When someone has four children under the age of 4, it’s hard not to think about kids all day long.

This truth comes through in the work of BK Boreyko, Founder and CEO of Vemma. As a dad with the health and well-being of his own children at the forefront of his mind, that care and concern spills over into the lives of children with need.

“You have kids and you see these kids in disadvantaged situations and you say, ‘What can I do to help?’ ” he says.

He has managed to provide much help to children in need through his company, Vemma, which he founded as a way to make a difference in the lives of others. Vemma’s charitable work supports this mission by reaching out to the most vulnerable and deserving members of the communities they serve.

Scientifically Based Supplementation

The company specializes in nutrition in the form of liquid supplementation. The company produces six products (with another coming soon), including their flagship product and namesake Vemma, a daily liquid supplement that contains phytonutrient-rich mangosteen, vitamins, plant-sourced minerals and whole-food nutrients.

The company prides itself on the scientific validity of its premium liquid nutrition. In a randomized, double-blind, placebo-controlled trial, the use of Vemma formula over 30 days resulted in a significant decrease in C-reactive protein response and a significant increase in immune system function.

As Dr. Yibing Wang, Vemma Director of Product Development and Research, wrote in a report for distributors, “C-reactive protein is an important blood marker because it can measure the risk of cardiovascular disease; the higher the level, the higher the risk. Immunity markers in the blood can show how well the body is able to fight disease.”

The importance of good nutrition and supplementation is something that hits close to home for BK.

“I lost both of my parents to the two top killers in the United States—cancer and heart disease—and I still think of them every day. When you go through that much pain, you search for a way to turn that pain into a passion,” BK says. “That whole experience laid the foundation for Vemma and the mission that we are on. There is a tremendous amount of science out there that confirms the importance of supplementation and how something as simple as supplementing may prevent many of the modern-day health challenges.”

All in the Family

Vemma is a young company—founded in 2004—but it’s not BK’s first experience in network marketing. He ran his former company, New Vision, for 16 years. And he’s actually a second-generation network marketing professional—and philanthropist.

His parents were Amway distributors and BK got his own start selling in his dad’s store during summer break. “We grew up in a network marketing household,” he says of him and his sisters. “My parents became involved in 1969.”

Their business helped them share their passions with others, as well. “My mother was in Mexico and kids were having school underneath a tree outside. She asked why they were doing that and it was because they didn’t have a place for them inside. She actually funded the building of a classroom for those children,” he says.

Inspired by his mother, Dottie Boreyko, who he says always made children her first priority, BK’s focus is on Vemma’s charitable giving to improve the lives of children. And true to the company’s focus, they do this particularly by impacting the health and wellness of children and teenagers, helping them to grow into happy and healthy adults.

“My parents were a huge influence on my life, but they were a huge influence on a lot of people’s lives,” he says. “My parents wanted to make a difference whether they benefited or not.”

Vemma tries to positively influence the lives of children through three major endeavors: the NEXT Helping Now Project, the Children’s Miracle Network® and HealthCorps®.

NEXT Helping Now Project

BK recently visited Father Joe’s Village in San Diego, Calif. To describe Father Joe’s Village as a “homeless shelter” would not be doing it justice. The charity works with people who are homeless in multiple ways—first by providing shelter, then by helping them regain their self-sufficiency through job training, counseling, chemical dependency services, and dental and medical care. Ninety-one percent of the “graduates” of Father Joe’s Village are families with children.

The visit was, for BK, very emotional. “It really had an impact on me. I almost started crying when I was talking about it. Man,” he says, “it’s a big deal to these kids. It’s a big deal to make a difference.”

Father Joe’s Village is one of many recipients of the NEXT Helping Now Project.

NEXT Helping Now was inspired by the TOMS Shoes One for One program. When BK heard about TOMS Shoes, who donates a pair of shoes to a child in need for each pair of shoes customers buy, Vemma was coming out with Vemma NEXT, their children’s product. BK says, “This Vemma NEXT is going to be our philanthropic brand. We are not going to be making a profit.”

For each purchase of a month’s supply of Vemma NEXT, the company donates a month’s supply to several different nonprofit organizations who distribute them to children in need.

He says even when he thinks of his own children, “even a typical child doesn’t eat right, let alone a disadvantaged child.” Vemma NEXT was designed to provide children with the nutrition they need. He felt that giving away this product to children in need would do the most “to give them a lifetime of benefit.”

The experience of visiting Father Joe’s Village and seeing approximately 150 children, ages 2 to 12, living in a homeless shelter was overwhelming for BK. “It astonishes you that these kids are just like your kids. They have the same laughter, the same dreams. They are just caught in this cycle of poverty,” BK says.

He feels Vemma NEXT is an important addition to their diets. “Everybody kind of focuses on feeding these kids,” he says, because the need is so great. But often, inexpensive food isn’t nutritionally sound. “Nutritionally, their diets are so bad. We are filling that gap. We are giving them the finest supplements on the planet.”

Vemma partners with several nonprofit organizations to distribute the NEXT Helping Now donations throughout the country to children in need. The list includes Feeding America® Food Banks (such as St. Mary’s Food Bank Alliance, the world’s first food bank), who works across the country with thousands of local agencies; Kids in Distressed Situations, who distributes to organizations, such as Operation Homefront; Presbyterian Hospital’s Community Care Cruiser in Charlotte, N.C.; the Havasupai Native American Tribe at the Grand Canyon; and Father Joe’s Village in San Diego.

Since the company launched the NEXT Helping Now Project in September 2009, they have donated more than 100,000 bottles of Vemma NEXT, representing 1.6 million doses, with a value totaling more than $2 million.

The donations aren’t just a “one-shot deal,” BK says. “When we give this, we are committed to giving it again and again as long as the product exists.” So, he says, when a mother picks up a supply at a local food pantry, she can be assured that she can come back next month to get it again, if that’s what she wants to do.

BK is looking to expand charitable giving internationally with a new product—what he terms “a healthy soda-pop”—coming in 2011. “We are always going to keep doing more,” he says. “There is always someone who has a need for you to do better.”

Children’s Miracle Network®

In addition to the one-for-one model with Vemma NEXT, for three months of each year, a portion of the proceeds from every purchase of the product also is donated to the Children’s Miracle Network®.

During those months, the product is co-branded with Children’s Miracle Network® and Vemma works to fundraise in other ways through email marketing, social media and mobile giving, where donors can text to make donations.

Children’s Miracle Network® is a charity that works to save the lives of children throughout North America by raising money for children’s hospitals. The organization was founded in 1983 by Marie Osmond, John Schneider, Mick Shannon and Joe Lake as a nationally televised telethon. The organization has raised nearly $4 billion for children’s hospitals over the past 27 years.

Since 2009, Vemma has donated a total of $70,000 to Children’s Miracle Network® through the sales of Vemma NEXT and additional fundraising. This includes 23 of Vemma’s distributors who made a donation of $1,000 or greater during the three-month campaign in 2010.

HealthCorps®

BK calls Vemma’s association with HealthCorps® his favorite charitable initiative.

BK met Dr. Mehmet Oz, founder of HealthCorps®, about six years ago “when HealthCorps® was just a glimmer in his eyes,” he says. “We were actually able to get in and lay the groundwork, to have it be the great charity that it is now.”

HealthCorps® is a movement to help fight obesity through comprehensive health education that centers on a peer-to-peer educational model. HealthCorps® coordinators volunteer for two-year stints, deferring medical school or graduate school health field studies to do community service (similar to the Peace Corps). HealthCorps®’ mission is to educate high-school students about nutrition, exercise and mental resilience in order to empower them to live a healthier lifestyle. The hope is, also, that the students will bring this message home to their families and communities.

BK serves on the advisory board for HealthCorps®. He talks about his work with HealthCorps® as an investment in the future.

“If you want to talk about a return on your charitable giving investment, teenagers are the next generation to be taking over,” BK says. “To be able to help them with their mental health, their physical health, their exercise, their decision-making process—it’s just really, really great work.”

As a principal sponsor, Vemma has donated more than $500,000 to date to HealthCorps®. In 2008, BK was recognized for his personal support of the organization with the HealthCorps® Award.

Vemma’s relationship with HealthCorps® was featured in the February 2008 issue of Direct Selling News.

Bringing It Home

To focus only on the major commitments of the corporation would be to overlook a vast amount of financial and volunteer support by the employees of Vemma at their home office. Whether it is food drives to support a food bank, serving as Christmas angels for children in need, participation in a holiday hot meal feeding program or even recycling hundreds of computer systems, Vemma’s more than 100 employees step up to support the local community.

The employees conduct an annual food drive to support their local Feeding America food bank. Vemma’s annual drive is always important, but this year it was especially impactful—in October, the facility was damaged by a storm, and the food bank lost 20 percent of its food stores. So, right before the Thanksgiving holiday, the Vemma staff jumped into action and started their annual drive early.

The staff also steps up each year at the holidays to provide gifts to children in need. The 100 employees act as Christmas angels, supplying gifts for 50 children.

Church on the Street is a Phoenix-based ministry to people who are homeless. Each year, they do mobile Christmas dinners during the month of December. Vemma makes a financial contribution to fund a few of these dinners. In addition, employees bring family members to help distribute the meals. The employees bring blankets and clothes to hand out as well. BK says he encourages staff to bring children, so they can see charity in action.

“It’s sort of a melancholy thing,” BK says. “You are sad, but you are happy. You just wish the world was kind to everyone. It’s sobering. You count your blessings where you are.”

According to the Chinese calendar, 2011 is the year of the Rabbit, which means a year in which one should strive to be creative and compassionate. For the direct selling industry, 2011 might well be the year of focusing on a continued and diligent commitment to ethics. During his address at the Annual Meeting several years ago, Direct Selling Association (DSA) President Neil Offen challenged our industry to be both creative and compassionate by redoubling efforts to make direct sellers the envy of other industries by “walking the walk and talking the talk” on high ethical standards and consumer protection. DSA companies responded in earnest to this challenge with renewed vigor and commitment to raising the bar on ethics on a variety of fronts.

With the leadership and vision of Andrea Jung of Avon and Truman Hunt of Nu Skin, the World Federation of Direct Selling Associations’ (WFDSA) model world code of ethics was revised and updated to enhance ethical standards and provide more consumer protections. These standards provide clear and consistent rules for all direct sellers worldwide and bind direct selling companies and distributors to the highest standards of consumer protection. In the United States, DSA went beyond some of these already high global standards and enhanced its pending and active member company review process to ensure initial and continued adherence to the requirements of the DSA Code of Ethics.

To complement these efforts, DSA launched a Code of Ethics Communication Initiative that recognizes DSA member companies which not only meet the minimum requirement of publishing the Code, but also actively disseminate information about the rights and responsibilities of sellers and their customers to their internal audiences and the public at large. By bringing the Code to life it becomes a tool that helps to grow businesses and create more confidence in direct sellers and the products they sell. Moreover, DSA is working on emerging consumer protection initiatives with the Direct Selling Education Foundation (DSEF), which has produced a variety of videos and other practical and hands-on materials to educate the public, and current and prospective distributors and consumers, about the ethical business standards they should expect and practice. By doing so, everyone is a winner. A partnership between DSEF and the Council of Better Business Bureaus (CBBB) was also forged in 2010 to promote sound direct selling business practices on the Council’s website. This joint venture was a milestone in communicating more useful and concrete information to the public about legitimate direct selling opportunities.

DSA is also committed to its continued work and liaison with the Federal Trade Commission (FTC) as that agency concludes work on a business opportunity rule that largely exempts direct sellers because of the industry’s existing commitment to self-regulation. Although direct sellers are by no means exempt from laws designed to address fraudulent business practices, the Association has been successful in demonstrating to the FTC and other regulatory and lawmaking bodies that burdensome requirements for direct sellers are not necessary because of the industry’s commitment to self-regulation through an independently administered Code of Ethics, vigorous ethics review of pending and active members and an expansive ethics communications initiative that would be the envy of any other industry.

Nevertheless, DSA is not resting on its laurels. There will always be unscrupulous pyramid scheme operators that need to be rooted out and exposed for what they are—frauds. To that end, DSA continues through its advocacy efforts to work closely with national attorneys, general organizations and state and federal authorities and agencies to expose these fraudulent schemes that masquerade as legitimate direct selling companies. Equally troubling are disgruntled and self-interested industry critics, such as felon and fraudster Barry Minkow, who use the same deceptive and misleading tactics of which they accuse legitimate direct sellers to defame and devalue companies and hardworking individuals, all in the name of personal gain. Despite a recent ruling that found Mr. Minkow had destroyed evidence, lied under oath and deceived the court and even his own attorneys, the damage has been done. It is up to those who choose to take the high road to promote open, frank and honest exchanges on issues that affect the public, consumers or distributors through its innovate and interactive methods such as DSA’s consumer website (directselling411.com), DSEF’s work with consumer organizations and WFDSA’s efforts to promote ethical business practices on a global scale.

The year 2011, as DSA President Neil Offen has said on more than one occasion, will be the “year of ethics” as our industry strives to raise the bar on ethical standards and consumer protection initiatives, thereby walking the walk, talking the talk and leading the way in creating a high level of marketplace excellence.

Adolfo A. Franco is Vice President of Global Regulatory Affairs for the Direct Selling Association.

PartyLite U.S.

Michael Norris

PartyLite Worldwide announced the promotion of Michael Norris to President of PartyLite U.S.

Norris joined PartyLite last February as Senior Vice President of Sales and Marketing, bringing nearly 20 years of experience in the direct selling industry. Before joining the company, he was Chief Sales and Marketing Officer for Gold Canyon. Prior to that, he filled a number of increasingly senior positions at Amway, including Vice President of Global Sales and Marketing for Alticor, the parent company of Amway, Amway Global and Access Business Group; and General Manager of Amway Brazil. Prior to his roles at Amway, Norris worked in financial auditing and marketing at Arthur Andersen & Co. in Sao Paulo.

Based in Plymouth, Mass., PartyLite was established in 1973 and is a member of the Blyth Inc. family of home-fragrance products and related candle accessories.

Herbalife

Ibi Fleming

Gary Small

Herbalife Ltd. named Ibi Fleming as Senior Vice President and Managing Director of its North America region. Fleming, a 13-year Herbalife veteran, is responsible for all business, strategic, sales and marketing functions across the region, which includes the United States, Canada, Jamaica and the Caribbean.

Fleming, who joined Herbalife in 1998, most recently served as Vice President of Sales and Marketing for the U.S. Latin market, which represents approximately 65 percent of North American sales and has been one of the company’s fastest-growing markets under her leadership.

Herbalife also announced that Gary Small, M.D., an expert in brain health and aging, has joined the editorial board of the Herbalife Nutrition Institute, an online resource promoting excellence in the field of nutrition, and the company’s Nutrition Advisory Board (NAB).

Small has authored more than 500 scientific works and received numerous awards and honors, including Senior Investigator Award, American Association for Geriatric Psychiatry; and the Weinberg Award for Excellence in Geriatric Psychiatry from the American Psychiatric Association. Scientific American magazine named him one of the world’s top innovators in science and technology. He is the author of several popular books on brain health and aging (The Memory Bible, The Memory Prescription, The Longevity Bible and iBrain), which have been translated into two dozen languages.

Small is professor of psychiatry and biobehavioral sciences, the Parlow-Solomon professor on aging at the David Geffen School of Medicine at UCLA, director of the UCLA Center on Aging, and director of the Geriatric Psychiatry Division at the Semel Institute for Neuroscience & Human Behavior.

Herbalife is a global network marketing company that sells weight-management, nutritional and personal-care products intended to support a healthy lifestyle.

The Southwestern Company

Chris Layfield

Chris Layfield has been appointed Corporate Director of Advertising and Marketing at Southwestern/Great America Inc., parent corporation to Southwestern.

This new role was created to advance the brand and raise awareness of Southwestern and its family of companies on the Web and through other media. Layfield will serve the needs with the Southwestern summer sales program and work to coordinate a consistent message with all the businesses within the corporate family.

Layfield has experience in marketing and communications, most recently at Praxis and previously as a partner at The Burgundy Group in Nashville. He has spent more than 13 years working in advertising, marketing and communications, with more than 10 years on the ad agency side of the business. Layfield has worked with national, regional and local brands on projects ranging from brand definition and development, clinical trial recruitment and locally relevant and nationally brand-compliant marketing plans for multi-unit chains and Web development.

The Southwestern Company was established in 1855 in Nashville, Tenn., and is the oldest direct selling company in the nation.

Rodan + Fields Dermatologists

Oran Arazi-Gamliel

Rodan + Fields Dermatologists announced the appointment of Oran Arazi- Gamliel as Executive Vice President of Global Strategy and Business Development.

In this newly created position, Arazi-Gamliel will lead the company in creating a global footprint as the direct selling business ownership opportunity in the clinical skincare arena. He will be responsible for the sales and sales support teams and will report to Lori Bush, President and General Manager of Rodan + Fields.

With more than 15 years of successful, hands-on business development experience as a senior-level executive in the global wellness and direct selling arenas, Arazi-Gamliel has worked in the United States, Europe, Russia, Israel and South Africa, and his experience includes restructuring and building direct selling operations from scratch. Most recently, Arazi-Gamliel served as Founder and Managing Director of Talor04, a global business development firm that utilized its exclusive industry expertise and global networks to develop and execute robust business strategies. Clients included such companies as Nu Skin, LifeWave and MonaVie.

Prior to creating Talor04, Arazi-Gamliel served as Chairman of the Dietary Food Supplement Division of the Israeli Chamber of Commerce and as Chairman of the Direct Selling Association of Israel.

Founded by Drs. Katie Rodan and Kathy Fields, the creators of Proactiv® Solution, Rodan + Fields Dermatologists is a direct selling skincare company that offers individuals the confidence of healthy, radiant skin though clinically proven skincare regimens.

Immunotec Mourns Passing of Senior VP Dr. Wulf Droge, Ph.D.

Immunotec Inc. announced the death of its colleague, leader and friend, Dr. Wulf Droge, Senior Vice President, Research & Development. Dr. Droge passed in December 2010.

Dr. Droge was a world-renowned scientist with more than 40 years in basic and clinical research and participation in more than 280 publications in the areas of redox modulation and aging. After completing a postdoctoral fellowship at the Max Planck Institute and Harvard University, Dr. Droge spent three years as a scientific member at the renowned Basel Institute of Immunology and 29 years as professor of cell biology at the University of Heidelberg. He was also department head at the National Cancer Research Center of Germany (Deutsches Krebsforschungszentrum).
After his retirement from the academic sector, he joined Immunotec in 2005 as head of Research and Development, where he contributed greatly to promoting the benefits of cysteine supplementation with Immunocal®. He was the architect of the Immunocal® Platinum product, one of the company’s flagship products.

“We wish to express our most sincere condolences to his wife and to their daughter,” said James A. Northrop, President and CEO of Immunotec Inc. “The scientific community has lost a great leader, and Immunotec owes Wulf a tremendous debt of gratitude for his contributions over the years.” 

Submissions
Please submit news of executive promotions and hires at your company to be included in the Executive Announcements section of Direct Selling News. Email pr@directsellingnews.com

AFTER hearing the details of the much-anticipated Irish ‘bail-out’ by the EU, it’s doubtful the economic situation here will see much improvement over the next few months and into the coming year.

There is a sense of foreboding at every level, with a rumoured €70 billion deficit and 13 per cent unemployment, which harks back to the early 90s before the birth of the ‘Celtic Tiger.’

Compare these figures to those reflected in the last annual survey of the Direct Selling Association of Ireland (DSAI), which showed an increase of almost 7 per cent in the total number of people engaged in this kind of occupation… Agents, Representatives, Distributors, Consultants and so on.

With around 16,000 people involved in direct selling, DSAI member companies report sales growth of up to13 per cent over the same period, with combined turnover reaching €60 million. These are positive figures when seen against a reported decline of 7.6 per cent in GDP (source: National Treasury Management Agency).

Experience shows that direct selling as an industry benefits from an economic downturn as long as companies can adapt accordingly. More people are clearly looking for a new source of income, and in the past 12 months there have been some outstanding figures reported in Ireland.

Andy Smith, Chairman of the DSAI and Country Manager of Amway UK and Ireland, reports an amazing 30 per cent increase in recruitment, with a substantial increase in sales from their new customers. About 90 per cent of this increase comes from eastern Europeans now living in Ireland – a new and dynamic source of potential recruitment that has been noted by many other companies.

Barbara Mieczkowska swapped a full-time job in customer service to become an Authorised Independent Avon Business Developer in 2009 and leads a team of more than 100 independent Avon sales Representatives. About half of her team are foreign nationals who became familiar with the Avon brand when still in their home countries. While most of them are of Polish origin (like Barbara herself), they also come from the Czech Republic, Latvia, Brazil, Thailand and even Mauritius.

“Of course, it is easier to appoint a new Representative if they know and love the brand from home, but everyone is different and has their own reason for joining,” she said.

Gavin Aley from Herbalife, Country Director UK and Ireland, also reports ‘double digit growth in recruitment with healthy sales’ while Bill Crymble of Forever Living Products reports an upswing of more than 20 per cent, with an 18 per cent sales increase.

These results confirm that opportunities for expansion are ripe in direct selling, although it must also be acknowledged that consumer depression may inevitably lead to less spending power.

For companies who have not yet discovered what some call the ‘green secret’ and are yet to consider adding Ireland to their market portfolio, now really is the time to get their Distributor base in place to capitalise on current conditions and be ready for growth once the economy starts to recover… the tiger may yet recover its roar!

Roger Brown is Secretary General of the Direct Selling Association of Ireland and principal of marketing consultancy Roger Brown Associates. A former schoolteacher, he joined the toy industry and became sales and marketing director for Mettoy. In 1987, he joined Avon to head their children’s business, and in 1994 led the company’s market entry into Ireland, where he served as General Manager until 2003.

robar1@btinternet.com

The year was 1956. It was a time when women were defined mainly by what their husbands did for a living—and not the work they did on a daily basis. That year, Jan and Frank Day launched a small company out of their garage in the seaside community of Malibu, Calif. The couple decided to name the company JAFRA, which was a combination of their first names.

From the beginning, Jan focused on creating an opportunity for women to become small-business owners—a fairly radical concept for that era. Women were attracted to the idea of contributing financially to their families while being their own boss with control over their work life.

Fast-forward to the year 2011. Women’s role in society has changed dramatically, and the little company with a big dream has become a multinational corporation. Today, JAFRA Cosmetics International Inc. boasts global annual revenue of more than $500 million and has 550,000 consultants in 17 countries around the world.

What hasn’t changed is JAFRA’s focus on helping women transform their lives with the company’s powerful business opportunity.

“JAFRA has transformed the lives of literally hundreds of thousands of women around the world for 55 years,” says Connie Tang, President of JAFRA USA. “Because of the longevity we’ve had in the direct selling industry, it’s not only their lives, but the lives of our second- and third-generation JAFRA consultants. It’s also about the legacy that they leave behind.”

It’s not just women’s lives that have been transformed, but also men’s. “What’s exciting is not only are there more men in the business now, but the fact that they’re beginning to excel,” says Tang. “We just awarded a Mercedes Benz to a young Hispanic man who was born and raised in the United States and whose mother has been a Director with us for 13 years.

“So we’re seeing the opportunity now passing on to the next generation from a demographics standpoint as well as from a biological aspect. We continue to maintain our foothold in the Hispanic marketplace while expanding the roots to the second and third generation who grew up with JAFRA in the house.”

JAFRA 2010 Circle of Excellence Recipients.

Hispanic Heritage

During the 1960s, JAFRA added the first Spanish-speaking consultant to help the company reach the emerging Hispanic community. It was a fortuitous step. Today, more than half of JAFRA consultants in the United States are Hispanic.

“The face of the ‘general market’ is really diversifying and changing,” says Tang. “This is affording us with expansive opportunities to continue to penetrate the U.S. market through targeted developments in all ethnic groups and leveraging the brand-name recognition that JAFRA carries in the Hispanic market.”
Latinos are the fastest-growing population in the United States, and by 2050, their numbers are expected to eclipse those of any other ethnic group. The U.S. Census Bureau estimated in 2009 that 15.8 percent of the population in the United States was Hispanic. It is projected that by 2050, the Hispanic population will constitute 24 percent of the nation’s total population. The estimated purchasing power of Hispanic Americans is expected to reach more than $1 trillion in 2011.

Reaching the Hispanic market effectively means understanding the culture and values of the people, a feat that many companies are scrambling to achieve today. However, JAFRA has been cultivating a relationship with the Hispanic market for more than 40 years.

“The demographic is extremely loyal to brands,” says Tang. “This is why there are many tried-and-true heritage brands that have huge Hispanic followings. Developing the Hispanic market requires developing relationships of trust. As a brand and as a company, you’re rewarded with loyalty long-term that’s carried from generation to generation.”

How did JAFRA establish its foothold in the Hispanic community? “Our Hispanic market development began not necessarily consciously or strategically,” says Tang. “It really began with the vision of Jan Day, our founder. She had a vision to offer all women an opportunity, and someone offered the opportunity to one of our Hispanic leaders in California. That spawned the organic development of the U.S. Hispanic market for us. Also, I think JAFRA’s presence in many global markets like Brazil, Mexico, Chile, Argentina and Colombia helped to foster that brand-name recognition from the very early days before the Hispanic market was sought after.”

Infrastructure Infusion

In 2004, Vorwerk & Co KG—a multibillion-dollar family enterprise with headquarters in Wuppertal, Germany—acquired JAFRA. Established in 1883, Vorwerk is the world’s third-largest direct selling company. One of the benefits of the acquisition was an infusion of capital investment in JAFRA’s infrastructure.

“The purchase of JAFRA by Vorwerk gave the company some significant confidence in ongoing strategic developments,” says Tang. “Vorwerk has a proven track record of patience for long-term strategy and investments. This helped us to focus on plans to continue to prosper, develop and grow on a global basis.”

In 2010, many of these plans reached fruition. At the beginning of the year, JAFRA launched a new corporate website featuring a revitalized brand image with contemporary graphics, fresh content and interactive tools as well as a revamped portal for the U.S. market and new personal websites for consultants.

“We identified a need to have a strong and compelling digital strategy and platform,” says Tang. “In 2010, we launched phase one and two of a multi-year global digital strategy implementation with an investment of $15 million. The United States is leading the way and setting the blueprint for the rest of the world.”

Also in early 2010, JAFRA opened a new manufacturing complex in Querétaro, Mexico. The new facility is twice as large as the previous one and processes more than 1,200 ingredients in making JAFRA’s products. Spread over 23 acres, the manufacturing complex houses JAFRA’s newest processing and packaging technologies, laboratories, offices and other services needed to comply with the most modern standards for cosmetic production.

“Our previous manufacturing facility in Mexico City was busting at the seams,” says Tang. “Because of our growth forecasts, we made the decision to build a brand-new manufacturing facility, investing in our future to the tune of more than $32 million.”

Additionally, in September 2010, JAFRA USA opened a new centralized distribution center in Lewisville, Texas. “It was a $2 million investment to update our facilities, software and pick-and-pack system, and also to look for more service-friendly routes with our partner FedEx,” says Tang. “JAFRA has truly gone through a full circle of evolution, inside and out.”

Investing in People

JAFRA’s investments are not only high-tech; they are also high-touch. The company understands that its greatest investment of resources should be in its consultants—the very lifeblood of the business. JAFRA provides a very supportive environment for its consultants, aided by a corporate national sales team whose mission is to work hand-in-hand with consultants to achieve their goals and dreams.

“One of our biggest investments has been in our national sales team staff members who live and breathe with our leaders,” says Tang. “These are corporate employees whose working life is to be out there in the trenches, in the car, in the hotel room or the coffee shop, helping people put into practice those skills that we try to help them foster.”

Tang’s corporate national sales team in the United States includes 18 individuals, the majority of whom are bilingual.

“There’s a minimum 70 percent required travel time for them,” says Tang. “In addition to managing office time with conference calls and webinars or e-mailing, the bulk of their focus is face-to-face time. The job description for these key team members is very specific about how we want them to manage their time and work with the salesforce. We have a very targeted approach.”

As a result, JAFRA has mastered the art of effectively communicating with consultants in different market segments. “We’re very good at not using a one-size-fits-all approach with our Hispanic market, African-American market, Asian-American market or general/English-speaking market,” says Tang. “We speak to our markets in a culturally attuned style that is best for them, because we know them. We can see it through their eyes, because we live it through their eyes.”

Product Power

The JAFRA product portfolio offers more than 700 products available in collections of skin and body care, color cosmetics, spa, men’s skin care and grooming, baby care and fragrances. The products are designed for all ages, skin conditions and skin tones.

Originally developed in the 1950s, the Royal Jelly collection is JAFRA’s five-product, flagship product line. The collection helps prolong skin vitality and reduce the appearance of wrinkles, leaving the skin looking smoother and radiant. Royal jelly is produced by bees and has been used as a skin elixir for centuries, dating back to ancient Egypt.

“The Royal Jelly collection is still our No. 1 signature product line worldwide,” says Tang. “The company was founded with this product line, so it’s legendary and world-renowned. It’s available in all 17 of our countries. The magic of Royal Jelly and its long staying power is that it really works. It continues to perform and deliver results to all age ranges and all skin types.”

The Royal Jelly Milk Balm was reformulated in 2008 and now features two of the latest breakthrough technologies—sirtuin activators and an exclusive Cellspan Complex. “It was time for us to incorporate some new ingredient stories,” says Tang. “Sirtuin activators help stimulate the enzymes essential in the production of collagen to help you look younger longer.”

JAFRA has a stringent product-development process, including the requirement that each product has a story behind it that consultants can communicate to their clients. “Products must stand the test of the story, so that one woman telling another that same story and how she personally experienced results delivers an authentic message,” says Tang.

With so much success behind the company, JAFRA is preparing to announce still more exciting product-development news this year. “2011 will be a banner year for us in product development,” says Tang. “We’ve got some innovative and compelling stories to tell.”

Future Forward

JAFRA’s vision is to be the No. 1 opportunity choice for women around the world. With this goal in mind, the company recently accelerated its international expansion process by opening an office in New Delhi, India.

“India is our first big step into Asia,” says Tang. “Our commitment is to continue to open a new market every year for the next five years. Our focus will be on developing Asia, Latin America and Eastern Europe.”

Meanwhile, here in the United States, JAFRA will continue to embrace diversity in the future as it has in the past. “In the last 10 years, I think many companies—in both direct selling as well as traditional corporate America—have awakened to the fact that the face of America is changing,” says Tang. “They perhaps realized they were limiting their potential and audience to a smaller segment, which is a missed opportunity.

“JAFRA is a couple of steps ahead in terms of embracing the diversity of what America has to offer, which is what’s going to continue to fuel our consultant base development. Whether you’re an immigrant or you were born here, there is the magic of the American dream—of building your own business and being your own boss. I don’t think that ever goes away.”

Kids at the Casa Herbalife program at Fundación Sinsoluka in Quito, Ecuador.

Live healthy. Change lives. Those are more than just slogans at Herbalife. The positive philosophies reach its distributors and customers, of course, but the company stretches far beyond the immediate Herbalife community with its constructive messages and actions. Through the Herbalife Family Foundation (HFF), it also brings them to children in need around the world.

Michael O. Johnson, Herbalife Chairman and CEO and Chairman of the HFF.

Herbalife founder Mark Hughes created the foundation in 1994 to support the needs of children at risk. Hughes felt a kinship with those children. He had a troubled youth, and he recognized how important a helping hand had been in his own life. So he started a foundation that would help children in need overcome life’s most basic challenges—from escaping poverty, hunger and abuse to receiving adequate medical care and education.

In 2005, under CEO Michael O. Johnson’s direction, the Herbalife Family Foundation created its Casa Herbalife program, working with established charities to help meet the nutritional needs of children at risk. It also expanded its scope to provide funds to organizations assisting victims of natural disasters. Today, HFF is a global nonprofit working in communities around the world. And its flagship program traces its roots back to the heart of Mark Hughes.

Honoring Hughes’ Heart

In 1998, Hughes visited Rio de Janeiro. While there, he discovered an orphanage that required extensive repair. There was no way he could ignore such tremendous need, so he provided funds to renovate the building. It became known as Casa Herbalife. In 2005 Herbalife Chairman and CEO Michael Johnson saluted Hughes when he chose the name of that Brazilian orphanage as the moniker for the expanded outreach program. Casa Herbalife now serves some 13,000 children in about 60 international locations.

“The Casa Herbalife programs we support today are not freestanding centers we own or built but existing charitable foundations,” says Barbara Henderson, HFF President and also Senior Vice President of Worldwide Corporate Communications for Herbalife. “During its early years HFF had supported a variety of causes related to children. In 2005 we organized to do ‘impact giving’—focusing HFF and volunteer resources on bringing better nutrition to children through long-term relationships with our Casa Herbalife organizations.”

She notes that the first Casa Herbalife established in the United States was in South Central Los Angeles. There, Herbalife works with a nonprofit youth center named A Place Called Home. Its extensive and innovative afterschool programs regularly serve 250 children daily, but during the summer that number explodes. Herbalife learned that meals and snacks there were based on sugary drinks, chips and bologna sandwiches—not the kind of nutrient-packed food that leads to learning and good health. Herbalife is based on helping people be healthy and live their best lives, so it built a kitchen that now lets A Place Called Home serve hot meals. It took an additional step and started a nutrition education program. HFF’s involvement goes beyond funding. Since Los Angeles is the company’s headquarters city and home for many distributors, the Herbalife family gets involved there, too. Last year more than 200 employees and distributors donated more than 1,600 volunteer hours to A Place Called Home, and this volunteer involvement goes on at Casa Herbalife programs all over the world.

(Left) A Place Called Home’s Jonathan Zeichner in the garden HFF funds where kids grow foods that will be served in the Casa Herbalife Kitchen. (Right) A child at the SOS Children’s Village in Bangalore shows off a painting with Ajay Khanna, Herbalife’s General Manager of India.

Tracking Local Needs

HFF Executive Director Robyn Browning adds that the funding the foundation provides to its recipient organizations begins with nutrition, but it doesn’t stop there.

“It means different things for different parts of the world, or even different areas of the community—everything from food to security to education,” she says. “For example, we have groups in the London, England, and North Lanarkshire, Scotland, areas. We learned about children there who were taking care of their disabled parents or elderly grandparents and needed to know how to make healthy meals. Those children shouldered that responsibility in their families, so we stepped up to address their need.” HFF funded educational programs there focus on the importance of preparing and storing food properly, food hygiene and food safety. Thanks to HFF’s efforts, more than 250 young people have learned to cook for their families and to make healthy food choices.

She notes that HFF establishes programs in locations where distributors or employees can play key roles.

“Amazing things happen when we include Herbalife distributors in philanthropy,” Browning says.

Generous Distributors

For example, one Casa Herbalife program in Quito, Ecuador, is called Fundacion Sinsoluka. The name literally means ‘without glue,’ and refers to the readily available, highly addictive glue sniffed by many homeless children in Quito. Sinsoluka supports homeless children by providing after-school help, such as counseling, domestic violence prevention, substance-abuse treatment, tutoring, and job-readiness training. HFF provided a grant that supported the organization’s 2010 food budget.

“But our distributors looked at it and thought we could do more,” Browning says. “With their generosity, we did a huge fundraising campaign, and the distributors were able to purchase and donate a home for the organization that gives them a place where more children can be fed and more services can be provided.”
As heartwarming as that story is, it doesn’t stand alone. Henderson adds that distributors at an Herbalife event in Bogotá, Colombia, were just as generous. After the Herbalife Family Foundation provided initial funds for a project in an orphanage, local distributors met with the executive director of the organization to view plans for the new building. They asked how much money would be needed to construct a new building. The answer: about $100,000.

“We were having a fundraising auction that evening,” Henderson says. “Some of our Chairman’s Club members said, ‘let’s build that building.’ They raised the full $100,000 that night and told the charity’s executive director about it the next morning. There are stories like this from all over the world.”

Keeping It Personal

The number of new Casa Herbalife organizations begun in 2010 is impressive. Grantees are all over the world, too: Chicago, Illinois; Quito, Ecuador; Tijuana, Guanajuato, and Queretaro, Mexico; Bucharest, Romania; São Paulo, Brazil; Taloe, a rural city in the Krasnoyarsk region of Russia; Kiev, Ukraine; Turin, Italy; North Lanarkshire, Scotland; and in Dallas, Texas. Because Herbalife pays all of HFF’s administrative costs, 100 percent of money raised can be used to meet local needs, beginning with better nutrition for children.

Needs are everywhere, of course, and distributors help HFF identify it. Then HFF looks for organizations that are a good fit, and where groups of local distributors are committed to being involved—not just initially but over the years. Their participation facilitates continued fundraising, and it makes the relationship more personal for everyone. “Personal” is something Herbalife seeks in its philanthropy, and nothing makes company distributors or employees happier than when they can watch their efforts make a difference in the life of a young person they have come to know.

“We have young women in Korea living in one of the orphanages we support,” Browning says. “Girls can live there through college, because there is a cultural stigma against young girls who live on their own. So we were thrilled when one of them started working part time for Herbalife. Michael Johnson likes to say that he’s convinced that one day there will be a Chairman’s Club member from one of our Casa Herbalife programs.”

She adds that she has gotten to know a young man in one of  the charitable organizations in South America who this year told her about playing for a rugby team.

“He told me about the places he had gone outside the city—the Bahamas, Miami and other places,” she says. “That all happens because of Herbalife. It was a very touching moment. We know these stories because we have built real-life relationships with the children. We’ve watched them grow and develop, just like we would in our own families. The Herbalife Family Foundation and our Casa Herbalife program provide that exciting opportunity. I love the direction we’re going.”

The Key: Distributors

Browning emphasizes that the more engaged Herbalife distributors become, the better the whole project works. Distributors often get their first taste of giving to others when they become an Herbalife distributor. That’s because Herbalife actually teaches philanthropy. Like most direct sellers, Herbalife distributors usually get involved in the business because they want to make extra income. And when money is short, charitable giving isn’t typically a large line item in the family budget.

“Our distributor demographic doesn’t come from highly philanthropic groups. Their parents didn’t sit on boards of directors. They’re really boot-strappers,” Browning says. “It’s our obligation to teach them how to give back to their community and the most appropriate way to give money. That’s why it’s so important to us that our Foundation is transparent and has strong accountability with grantees so we can say to donors—our distributors—that this is how it’s supposed to be done.”

Browning makes a point of speaking to groups of new field leaders to explain how HFF selects grantee organizations, how it raises funds and why it believes so much in giving back.

“It’s not just about the money; it’s also about volunteerism,” she says. “It’s really about getting involved and giving back your time as well as your money.”

Philanthropy Made Easy

HFF provides many ways that distributors can participate. Every February 1, Herbalife celebrates Mark Hughes Day, honoring his life and the legacy he left through the company and the Herbalife Family Foundation. Then fundraising activities are held to benefit HFF charities during the month.

In addition to their own volunteerism in February and throughout the year, distributors can designate a portion of their earnings to go to HFF charities. Distributors and the general public may make donations in cash, via credit card through the HFF secure website, or through a gift of stocks, bonds or other assets. Distributors also participate in fundraising activities at almost every Herbalife extravaganza around the world—everything from buying T-shirts to bidding for merchandise at an auction. The Herbalife staff facilitates the special events and fundraising, even helping find celebrities to participate. Distributors donate and in return can have their photo taken with the celebrity. Everyone benefits.

They also dig deep to support Herbalife’s efforts toward disaster relief. In 2010 HFF worked with trusted charitable organizations such as the Red Cross to provide disaster relief in Thailand, Chile, India and Mexico. HFF sets up a special fundraiser for each disaster, and money raised through it is designated toward relief efforts for that specific disaster.

Such philanthropic work reflects Herbalife’s values of making each of its communities a better place to live and work. Executives believe that the company should be a good corporate citizen and that it should offer distributors a way to be good civic leaders.

“Michael Johnson tells us that his mother used to say to him, ‘To those whom much has been given, much is expected,’ ” Henderson says. “That’s his philosophy of life, and that’s the culture at Herbalife. All of us—distributors and employees—feel so fortunate to be able to give back.”