Herbalife Nutrition comes from the idea of an entrepreneur, one named Mark Hughes. He started to sell its products on a car supermarket. With its success, Herbalife is now a public company with over $ 4 billion in revenue annually and publicly traded.
The beginnings of Herbalife Nutrition
In February 1980, Mark Hughes began selling the original product weight management Herbalife, who was in the trunk of his car. Hughes often stated that the genesis of his product and program concerns came from his mother Joanne in terms of weight lossWhich he attributed the premature death to an eating disorder and an unhealthy approach to weight loss. According to a Herbalife website, the goal of the company was to change the eating habits of the world.
Their first product was a protein shake designed to help people manage their weight. It has structured its business using a model of direct sales and multilevel marketing. In 1982, Herbalife has received complaints from the Food and Drug Administration concerning claims made on certain products and the inclusion of mandrake oil, spruce root and linseed oil "food grade" in another. Following these complaints, the company amended its claims and reformulated the product.
The Canadian Department of Justice filed suit against the company in November 1984 for misleading medical claims in ads.
In 1985, the company was considered by Inc. as a private company in the fastest growing in America, after its turnover rose from 386,000 dollars to 423 million dollars over the previous five years. The same year, the California Attorney General sued the company for making exaggerated claims about the effectiveness of its products. The company has suffered from this trial and was forced to lay off nearly 800 employees in May 1985. The company settled the lawsuit for $ 850 000 without admitting fault but stopped selling two products. In 1986, Herbalife has become a NASDAQ listed company and was renamed Herbalife International. However, due to the negative publicity surrounding the trial of the FDA, the company recorded uno loss of 3 million this year.
In 1988, the company had extended its reach to Japan, Spain, New Zealand, Israel and Mexico and its global sales reached 191 million in 1991. In 1993, the company made a secondary offer of five million shares and launched in 1995 a line of personal care products including perfumes and facial cleansers. In 1996, the company had expanded its reach to 32 countries, international sales accounting for more than half of total sales. The company was sued in civil court by two former distributors in 1997 for retained income it had earned.
In 1999, Hughes tried to buy the company private after saying that Wall Street was undervaluing the company. Although the board of directors has approved the tender offer, the company's shareholders have filed a lawsuit against the company because they felt that the price of shares offered to them was unfair. On 20 May 2000, Mark Hughes died at the age of 44. The results of the Los Angeles County coroner's autopsy concluded that the businessman died of an accidental overdose of alcohol and doxepin, An antidepressant. After his death, the company was led by Christopher Pair until October 2001.
In 2002, the company was redeemed for $ 685 million by J.H. Whitney & Company and Golden Gate Capital, who repratked her . At the same time, plant-based ephedrine sources have been removed from Herbalife products in 2002 after several US states have prohibited supplements containing these plants. In April 2003, Michael O. Johnson joined Herbalife as CEO after a 17-year career at the Walt Disney Company. On December 16, 2004, the company made a first public offer to the New York Stock Exchange of 14.5 million common shares at the price of $ 14 per share , giving owners $ 1.3 billion. In the mid-2000s, Herbalife has modernized its manufacturing facilities to manufacture about 60% of its products internally, and has changed the way the company sold its products to distributors.
In March 2014, Herbalife was the subject of a survey of the Federal Commission for the United States Trade and the State of Illinois. On May 7, 2014, the company announced that it had entered into an agreement with the Bank of America Merrill Lynch to buy $ 266 million from its actions.
In July 2016, Herbalife agreed to change its business model and pay $ 200 million to its distributors as part of an agreement with the FTC. The Company announced in November 2016 that General Manager Richard Goudis would take the leadership of the company in June 2017 and that Johnson would become Director General. In August 2017, the company announced that it would redeem until$ 600 million from its actions. The Company also announced that its shareholders had approved a division of shares at the rate of two for one. In January 2019, Herbalife announced that it replaced Goudis after reading the comments he had made before CEO's position and who were "contrary to business policies and practices related to the company's expenses" and inconsistent. with the norms and culture of society. The former CEO Johnson then assumed this role in an interim basis.
Herbalife Nutrition in our time
Herbalife Nutrition is an anonymous company, which then includes shareholders who are divided the following capital:
- ICAHN ENTERPRISES (EN) 23.3%
- Capital Research & Management 12.3%
- JL Advisors 7.88%
- Perry Corp. (New York) 7.37%
- The Vanguard Group 6.79%
- Herbalife Nutrition (Autocontrol) 6.63%
- Deccan Value Investors 6.44%
- Renaissance Technologies 5.38%
- Cantillon Capital Management 5.09%
- Third Point Management (EN) 4.10%
Society, it is managed by several members Who are no longer the founders:
- Michael O. Johnson, President.
- Brett R. Chapman, General advisor.
- Walsh President.
- Richard P. Goudis, Managing Director.
- John Desimone, Chief Financial Officer.
It's this team with tens of thousands of VDI sellers and employees running and living the Herbalife Nutrition company.