Amway Parent Grows to $9.2 Billion in 2010
Strong growth across global markets as direct seller gains market share; brand-building momentum drives 10th sales increase in 11 years
ADA, Mich., Feb. 17, 2011 /PRNewswire/ -- Amway's parent company, Alticor Inc., reported sales exceeding $9.2 billion for the year ended December 31, 2010, a 9.5 percent increase over sales of $8.4 billion in 2009. The 2010 performance results mark Alticor's 10th sales increase in the last 11 years.
The world's second-largest direct selling enterprise, Amway works with more than 3 million distributors who sell the company's branded products, including NUTRILITE® vitamin, mineral and dietary supplements, ARTISTRY® skincare and colour cosmetics, and eSpring® water treatment systems.
The company said that despite an economy recovering from a global recession, 2010 was very solid. "We had a strong year across the map," said chairman Steve Van Andel . "Amway was able to gain market share in the direct selling industry, and our key product lines improved their competitive position as well."
Said president Doug DeVos : "Awareness of Amway's business opportunity and product brands continues to grow as we invest in brand-building. We believe in the potential of this business, and so do our distributors. We are aiming even higher for 2011."
Alticor also owns Access Business Group, which provides third-party manufacturing and distribution services, and Alticor Corporate Enterprises, a holding company for Amway Hotel Corp., Gurwitch Products, Fulton Innovation and Metagenics. Those subsidiaries also contributed to the year's stronger returns, the company said.
Direct selling business
Amway said growth was fueled by strong 2010 results in China, the company's largest market, as well as healthy gains in India, Korea, North America and Latin America.
The company, which is privately held, does not generally release individual market sales or disclose profitability.
"Our message of free enterprise and individual opportunity continues to resonate across markets and across cultures," DeVos said. "We're proud to help entrepreneurs take the first step towards business ownership, and to support them with brands that are becoming better known every day."
The company announced that category sales of NUTRILITE approached $4 billion, attributed to overall growth in the category as well as increased visibility for NUTRILITE in 2010. Major campaigns included "Color Yourself Healthy," a global awareness program that promoted the benefits of plant ingredients for optimal health. Global sponsorships focused on major sports teams and well-known athletes continue to build brand awareness for NUTRILITE.
ARTISTRY skin care and cosmetics led beauty category sales for Amway. The company cited a successful launch of ARTISTRY Intensives Renewing Peel, the first product in a new Intensives line of skin care products designed to provide professional results at home. Masstige brand beautycycle™ successfully launched in Europe and Australia, targeted to consumers who are looking for high-quality skin care and cosmetics products containing natural ingredients.
Brand building continues to be a significant focus for Amway around the world. "Our distributors are realizing the benefits of our global investment in building our brands," said DeVos. "It is easier for them to sell products that consumers already know to ask for by name." To increase consumer access to its brands, Amway expanded its physical presences across the globe to complement its direct selling business model.
The company also unveiled a new Amway brand identity in 2010, highlighted by the opening of the Amway Center, home to the National Basketball Association's (NBA) Orlando Magic , which became the first high-profile venue in North America to showcase Amway's new brand identity.
Operationally, the company took steps to evolve into a true global enterprise – leveraging technology to improve supply chain efficiencies, help distributors run their businesses more efficiently and gain consumer insight vital to developing strong customer relationships. Said Van Andel: "We are a global business, with 90 percent of sales outside the U.S., and we are taking necessary steps to support customers worldwide."
Amway One by One Campaign for Children
The Amway One by One Campaign for Children rallies the resources of Amway distributors and employees around the world to make a difference in the lives of children in every market where the company conducts business. Since Amway One by One launched in 2003, it has provided hope and opportunity to 8 million children and donated more than $141 million to children's causes worldwide. The number of employee and distributor volunteer hours logged since 2003 now totals 2.3 million, nearly doubling from a cumulative total of 1.3 million hours reported in 2009. www.amwayonebyone.com
About Alticor Inc.
Alticor (www.alticor.com) is the parent company of Amway Corporation (www.amway.com), Access Business Group LLC (www.accessbusinessgroup.com) and Alticor Corporate Enterprises. Based in Ada, Michigan (United States), the company offers consumer products and business opportunities, as well as product development, manufacturing and logistics services in more than 80 countries and territories worldwide. With more than 14,000 global employees, Alticor reported 2010 sales exceeding $9.2 billion. Alticor is privately held by the Van Andel and DeVos families, headed by chairman Steve Van Andel and president Doug DeVos , and governed by a board of directors led by members of the two families. For company news, visit globalnews.amway.com.
SOURCE Alticor Inc.
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