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.............................. Herbalife
Logo and Trademark..............................
Founded in 1980, Herbalife International (NYSE: HLF) is a company that sells weight-loss, nutrition and skin-care products by multi-level marketing, also known as network marketing. In February 1980, Mark Hughes began selling the original Herbalife weight loss product from the trunk of his car. By 1982, Herbalife had reached $2,000,000 in sales and opened a distributorship in Canada, its first outside of the United States. In 1986 Herbalife became a publicly traded company via NASDAQ. Independent distributors' personal vehicles could be seen on the street, decorated by decals bearing the mysterious slogan "Lose weight now, ask me how!" In 1996 Herbalife reached $1,000,000,000 in annual sales. In 2000, Hughes died at the age of 44 from an overdose of alcohol and doxepin after a four-day drinking binge. The company has continued to grow after his death.
In 1994 Mark Hughes started the Herbalife Family Foundation, a charity dedicated to helping children. The organization receives donations from Herbalife itself as well as individuals within and outside the company. The Herbalife Family Foundation has donated more than $6.5 million to children's causes worldwide.
In 2003, Michael O. Johnson joined Herbalife as CEO following a 17-year career with The Walt Disney Company, most recently as president of Walt Disney International. On December 16 2004 the company had an initial public offering on the NYSE of 14,500,000 common shares at $14/share. 2004 net sales were reported as $1.3 billion. In April 2005, the company celebrated its 25th anniversary with a four-day event attended by 35,000 Herbalife Independent Distributors from around the world. In August 2005, Dr. Steve Henig joined the company as Chief Scientific Officer, responsible for product research and development. The company is headquartered in Los Angeles, California and employs 3500 worldwide. Products are distributed in 65 countries through a network that Herbalife claims contains 1.5 million independent distributors.
Herbalife's product offering includes weight-management products such as Formula 1 Nutritional Shake Mix, a meal-replacement shake and one of the first products introduced by the company. Other nutritional products offered by Herbalife range from dietary supplements made from vitamins, minerals and herbs to personal care products emphasizing nutritional and herbal ingredients, such as aloe vera and vitamin C.
As of 2005, it is not immediately clear what method Herbalife's weight loss products employ [citation needed], although the nutritional ingredients are listed on the product. Recent advertisements indicate that the current philosophy is one of meal replacement via diet shakes, and nutritional supplements.
Proponents claim that the Herbalife strategy is aligned with health industry recommendations for safe weight control, eating a balanced diet, low in calories and taking regular exercise, and that their nutritional and weight management line of products facilitate this through macronutrient and micronutrient food formulas. Herbalife provides testimonials from health professionals as part of their marketing campaign.
Some of the original Herbalife weight loss products contained the active ingredient Ma Huang or Sida cordifolia, two herbs containing ephedrine alkaloids. Adverse reactions involving the company's Thermojetics original green tablets were recorded by the U.S. Food and Drug Administration and Herbalife subsequently stopped using ephedrine in its products in the face of rising insurance premiums. The U.S. FDA banned supplements containing ephedra in 2004.
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