Guest Post by Greg Boudonck
In today’s post, through much research, I am going to provide the top 50 facts about Herbalife. At the end of this article is a reference list with links.
The objective in this post is to inform you, the reader, about Herbalife. I am not associated in any form with Herbalife except of occasional use of some of their products.
Now come with me as we examine the top 50 facts about Herbalife. If you have more to add, please do so in the comments section at the end of this article.
Herbalife was started in 1980 in Orange County, California.
Herbalife was founded by a 22 year old by the name of Mark Hughes. Mark only had a 9th grade education, but he showed that a person can still gain success without a full education. This is no excuse to quit school, but if you have little education, you can still find success in the business world.
Mark believed that utilizing Chinese herbs with vitamins and minerals would be an answer to better health for humans. He started traveling to China and gathering herbs he knew were beneficial for good health. He experimented and made the perfect mix of the Chinese herbs and vitamins from a top United States vitamin supplier. He developed the first Herbalife product…The Formula 1 Nutritional Shake Mix.
The best selling and most popular Herbalife product is the first product Mark Hughes developed…The Formula 1 Nutritional Shake Mix.
Herbalife Ltd. Has its main headquarters at Georgetown, Grand Cayman. If you are unfamiliar where the Cayman Islands are, they are South of Cuba and West of Jamaica.
In 1986, Herbalife became a publicly traded company, and listed on the NASDAQ exchange.
In 1996, Herbalife attained $1 Billion in yearly sales.
The Herbalife Family Foundation is committed to helping children worldwide with their nutrition needs. Their Casa Herbalife Program funds organizations that provide nutrition to children in over 50 countries. The dollar amount comes to approximately $2.3 million. Here is what Mark Hughes said:
“Treat people with love and affection from your whole heart.”
Mark Hughes died in 2000, but Herbalife didn’t die with him. Mark’s dream lives on.
Herbalife is a member of the Direct Selling Association. They also have good reviews from the Better Business Bureau.
Herbalife focuses on protecting the environment. Always on the lookout for ways to reduce, reuse and recycle, Herbalife’s Los Angeles office was made using recycled materials. They also earned LEED certification for environmental friendly design. Employees are kept fully aware of ways to conserve and save the world for future generations.
In 2002, J.H. Whitney & Company and Golden Gate Capital purchased Herbalife for $685 Million. Upon doing so, they took the company private; it was no longer listed on the stock exchange.
The majority of Herbalife products including the Formula 1 Nutritional Shake Mix, capsules and tablets, and personal care products have shelf lives of two years. There are some products that have only a one year shelf life such as the protein bars. It is recommended by Herbalife that if any items are past the expiration date, they should be discarded.
Some of the original products manufactured and sold by Herbalife contained an appetite suppressant called ephedrine (ephedra sinica). In 2002, several States banned any weight loss products that contained ephedrine because of adverse effects on heart rates, and it was also being used to manufacture methamphetamine. Herbalife was proactive and immediately removed ephedrine from all products that contained it. In 2004, the FDA banned all use of ephedrine in weight loss products.
As an option for new distributors, Herbalife offers 2 “member packs” a person can invest in upon starting their Herbalife business.
The Mini Herbalife Member Pack is $59.50
The Full Herbalife Member Pack is $92.25
These member packs are not mandatory, but Herbalife does suggest them to build a strong independent business.
In 2004, Herbalife went public again, and shares were offered on the New York Stock Exchange (NYSE) for $14 each. Net sales in 2004 were $1.3 Billion.
Some of the Herbalife products are made by 3rd party manufacturers. Herbalife is adding more manufacturing centers and adding to existing ones to bypass 3rd parties as much as possible.
In 2010, Herbalife opened an extraction facility in Hunan Province, China. By doing so, they can purchase herbs directly, and perform the extraction and conversion processes before sending the materials to one of their three manufacturing facilities.
Herbalife has 3 manufacturing facilities. They are located at:
Lake Forest, California
Winston-Salem, North Carolina
Herbalife maintains and follows a strict code of ethics. These code of ethics are in relationship to the system the Direct Selling Association has deemed. Their preamble states:
“The Direct Selling Association, recognizing that companies engaged in direct selling assume certain responsibilities toward customers arising out of the personal-contact method of distribution of their products and services, hereby sets forth the basic fair and ethical principles and practices to which member companies of the association will continue to adhere in the conduct of their business.”
Herbalife has an absolute money back guarantee if any customer is not satisfied with the product they purchased. All a customer should do is ask for the refund from the Independent Member within 30 days of purchase.
Distributors can also return unopened products that have not been sold within a certain time limit.
The statistics show that 73% of those who join the Herbalife program do so just to receive personal products at a discounted price. They have no intent of starting a business. To reflect this, Herbalife has designated those individuals as members instead of distributors. These members can still create a down-line if they desire at some time in the future.
In 2012, Bill Ackman of Pershing Square Capital made allegations against Herbalife as being a pyramid scheme. He invested $1 Billion in short stock against Herbalife. After doing so, Carl Icahn began to purchase Herbalife shares, as did other investors such as George Soros. Ackman claimed he lost $400-500 Million on his short stock position. Ackman played a stock war using Herbalife, and lost.
Herbalife had used KPMG as its auditor, but in 2013, the company resigned from being the Herbalife auditor after it was discovered that the executive who was in charge of Herbalife’s affairs had given insider information to an acquaintance about Herbalife and several other companies.
In 2013, soon after KPMG resigned as auditors, Herbalife contracted with PricewaterhouseCoopers to become the company’s auditors.
Herbalife supports Special Olympics. As the Special Olympics was held in Los Angeles, Herbalife was one of the primary sponsors. Herbalife promised to support coaches and athletes coming from all over the world. Herbalife understands how important programs such as Special Olympics are to maintain a better world.
As of writing this, and per the last statement from Herbalife,my calculator says there are a total of 554,353 Herbalife members worldwide. This figure will keep growing on a daily basis, so that number is most likely higher as you are reading this.
In 2014, Herbalife executives entered a deal with Bank of America/Merrill Lynch to repurchase $266 Million worth of its stock.
In 2003, Michael Johnson who was the President of Walt Disney International became the Chief Executive Officer of Herbalife. He has added many other individuals who have helped Herbalife substantially. You will see some of these “Dream Team” members further on in this article.
Dr David Heber holds a B.S. from the University of California, an M.D. from Harvard Medical School, and a P.H.D. from UCLA. Dr Heber is the Chairman of Nutrition Advisory Board and Herbalife Nutrition Institute, and he completely backs Herbalife as being a nutritional weight loss benefit for many.
Dr Louis Ignarro was awarded the Nobel prize in Medicine, and he is also a member of the Nutrition Advisory Board and Herbalife Nutrition Institute. Dr Ignarro worked with Herbalife in Niteworks® dietary supplement.
Herbalife has operations in over 73 different countries. Herbalife is always looking to expand further too.
In 2014, Herbalife had net sales that reached $5 Billion. They are in pursuit to topple that figure in 2015.
Herbalife sponsors the American Youth Soccer Association (AYSO).
Herbalife sponsors the Los Angeles Galaxy which is an American professional soccer team.
Herbalife sponsors the Belgian National Football team. They are known as the Red Devils and this is soccer…not American style football.
Herbalife sponsors professional soccer player Lionel Messi. Messi plays for the Spanish team, FC Barcelona and for the Argentina National team.
Herbalife sponsors professional soccer player Cristiano Ronaldo. Ronaldo plays for the Spanish team, Real Madrid and for the Portugal National team.
The Board of Directors for Herbalife are:
Michael O. Johnson
Chairman and Chief Executive Officer
Richard P. Bermingham
Richard H. Carmona
Jeffrey T. Dunn
Hunter C. Gary
Jesse A. Lynn
James L. Nelson
This Board of Directors is made up of individuals who desire Herbalife, and its members to have success.
Herbalife President is Des Walsh.
Brett Chapman is Strategic Advisor to Herbalife’s CEO.
Richard Goudis is the Chief Operating Officer of Herbalife.
Herbalife’s Chief Financial Officer is John DeSimone.
Dr Y. Steve Henig is Herbalife’s Chief Scientific Officer.
The Executive Vice President of Global Corporate Affairs at Herbalife is Alan Hoffman.
In 2014, Herbalife was presented with 2 distinguished awards. They were:
Herbalife Russia received the Product of the Year Award for the Formula 1 Nutritional Shake Mix. This was given by the Russian Chamber of Commerce and the Moscow International Business Association.
Herbalife Russia was given the 2014 Athletic Russia Award.
In 2015, Herbalife Russia was presented with the 2015 Sports & Russia Award. Recognized as a company that promotes sports and health, Russia recognized Herbalife.
By Herbalife’s 2014 figures, the number of members earning $25,000-$50,000 is 1,274, with the average pay being $35,170.
Herbalife’s 2014 statistics show the number of members making $100,000-$250,000 is 508, with the average income being $147,148.
Lastly, the figures from Herbalife for 2014 show the number of members making over $250,000 is 205. The average pay is $640,200.
As I see it, these are the top 50 facts about Herbalife. As I researched these facts, I have determined that Herbalife is a strong and reputable multi level marketing company. Herbalife has had several individuals who have attacked the company’s integrity and ethics. I am truly hoping this article will help erase those perceptions.
I must mention that in no way am I affiliated with Herbalife. The fact is: I am actually a distributor for a MLM company that could be perceived as a competitor to Herbalife.
So why do I write such a positive article on Herbalife?
First, my ethics tell me to be fair when I write. As I see it, a person can do quite well by becoming a member of Herbalife. Herbalife has great products, and a wonderful compensation plan for its members.
As an independent review, I state that Herbalife is not a pyramid scheme and is a worthwhile business opportunity for people. The company follows a strong code of conduct and is fair to consumers with its guarantees. They are upright in all business dealings in my perception, and they also are proactive in saving the environment, along with supporting many programs to help the needy.
I hope you enjoyed this list of 50 top facts about Herbalife. Do you have any facts you would like to add? Do you have any questions or comments? Please respond in the comment section below. If you are associated with Herbalife, we would love to hear from you
About the author
Greg Boudonck is a freelance writer and the author of over 50 books. He writes on many different topics, but business subjects are one of his primary areas of writing expertise. You can see more about Greg and his work by visiting his website at Lancerlife.com.