Herbalife Ltd. (NYSE: HLF) (“Herbalife Nutrition” or “Company”)
announced today it has created its first ever “China Growth and
Impact Investment Fund” to stimulate the development of its
business and accelerate growth in China and help address
challenging public-policy issues such as the rise in obesity.
Funds for this new initiative were granted to Herbalife
Nutrition by governments in China as part of an economic
development package for its proven contribution and commitment to
the continuing growth and success of the Chinese economy.
CEO Rich Goudis said, “China is instrumental in our global
growth plans and to fulfill our purpose to make the world healthier
and happier. We are making this significant investment in China to
leverage our deep operational expertise in nutrition to accelerate
growth as well as helping address some of the most pressing and
challenging societal issues such as the rise in obesity.”
This China Growth and Impact Investment Fund will focus on five
key areas: New Acquisitions in Health and Wellness Products and
Companies; Expansion of Nutrition Clubs; Increasing and Improving
Technology; Providing Additional Research, Learning and Training;
and Public-Private Partnerships Focused on Eradicating Obesity.
New Acquisitions in Health and Wellness
Products and Companies
To complement Herbalife Nutrition’s already extensive lineup of
quality products and wellness services, Herbalife Nutrition will
look to increase the Company’s footprint in China through strategic
acquisitions of innovative and impactful health and wellness
companies, products and services. Furthermore, as technology plays
a larger role in the global health and wellness field, Herbalife
Nutrition will look to acquire devices and companies in this
emerging and important sector. While focused on the Chinese market,
some of these acquisitions will potentially take advantage of our
worldwide distribution. The Company’s vast experience in sourcing,
manufacturing and distributing products and services globally will
bring significant value to any synergistic acquisition.
Expansion of Nutrition Clubs
Nutrition Clubs are run by Herbalife Nutrition service providers
and provide local, supportive venues for communities of like-minded
people to gather and receive nutrition and fitness coaching and
counseling as they work to achieve their personal health and
fitness goals. Research has shown that having a supportive
community leads to better results and thus the Company is planning
to invest in Nutrition Clubs and expand the number of Clubs serving
communities across China. To this end, funds will be made available
to qualified service providers to accelerate the opening of new
lower-cost Nutrition Clubs, with a specific emphasis on opening new
Clubs in tier two and tier three cities where the need for this
type of support is particularly acute. Furthermore, the Company
plans to equip Nutrition Club operators with advanced Point Of Sale
(“POS”) systems to better capture key sales data, improve the
Company’s marketing capabilities and improve the efficiency,
productivity and profitability for its service representatives.
Increasing and Improving
Technology
The use of technology by service representatives and service
providers is significant. In order to take full advantage of
technological enhancements, the Company plans to make an additional
investment in technology, equipping the service representatives and
service providers with the latest tools so they may better serve
their customers, track their services and manage their businesses.
Whether it is for use in the field or in Nutrition Clubs, the
acquisition of new technologies will help service representatives
and service providers identify areas where their customers can
improve their nutrition as well as help track and analyze their
customer’s journey.
Providing Additional Research, Learning
and Training
The Company will also offer service providers and employees a
more enhanced and extensive training program focused on nutrition
and wellness. Developed in conjunction with leading global experts
in the field, the new training regimen will ensure customers
receive the latest and most relevant information about how to
improve their nutrition and wellness habits. Herbalife Nutrition
will also offer financial incentives to service providers who meet
certain learning and training thresholds.
Additionally, as Herbalife Nutrition looks to the future, the
Company will seek opportunities to partner with and provide
endowments to universities in China for four chairs, each to play a
distinct role.
The first endowment will be in the field of direct sales.
Although more than 100 million people are engaged in direct sales
around the globe, there is limited high-level and on-going research
about the industry. As a global leader in direct sales, the Company
is constantly seeking ways to evolve the industry and ensure direct
sales companies are utilizing industry best practices. It is
anticipated this endowment will fund research at one of China’s
most prestigious universities to ensure both companies as well as
the government have access to relevant, useful and most of all
credible information.
Research about quality in sourcing raw materials and
manufacturing will be conducted at yet another leading university
in China for the second endowed chair. With a focus on food and
nutritional supplements, this endowed chair will be of significant
value to not only the nutrition industry, but to the entire
industry responsible for feeding and ensuring the people of China
have access to quality nutrition products.
As a premier nutrition company, it is critical for Herbalife
Nutrition to support research into health and wellness and
therefore the Company is planning on providing funds to a
university for this purpose. The information derived from this
research will be made available to the general public thereby
benefiting the people of China.
The final endowment being planned will conduct research into the
best ways to combat the growing epidemic of obesity. This endowed
chair, in conjunction with the Company’s creation of a
public-private partnership in this area, will aid governments and
other organizations that are focused on putting an end to
generations being overweight or obese.
The Company also continues to invest in its employees in this
important market, which was named a Great Place to Work in China.
The Company plans on enhancing its opportunities for employees by
offering a variety of experiential learning opportunities including
rotational assignments, customized coaching
and leadership development programs and opportunities for
global advancement. The Company also anticipates introducing new
technologies to further support learning development.
Public-Private Partnership Focused on
Eradicating Obesity
Obesity has become one of the world’s most dire issues.
According to the World Health Organization, in 2016, globally more
than 1.9 billion adults (25% of the population) were overweight
while 650 million adults (10% of the population) were obese. Rates
amongst children are also at alarming levels with 41 million
preschool children overweight. Additionally, approximately 2.8
million people die each year as a result of being overweight or
obese. And unfortunately the problem is only growing as the
prevalence of obesity nearly tripled from 1975 to 2016.
This epidemic, unfortunately, has not bypassed China and the
government is addressing these issues head on in part with the
approval of the Healthy China 2030 plan by China’s Central
Committee. President Xi Jinping has made the promotion of health a
top priority for the government and is making great progress. The
Company supports this mission and believes everyone has a role to
play.
The Company plans to fund a series of public-private
partnerships at the local and regional levels that will focus on
best practices to end obesity. The learnings from these programs
will help policy-makers, thought leaders and families make better
decisions in an effort to initially curb and ultimately to
eradicate obesity.
To receive the latest company updates from Herbalife Nutrition,
visit Herbalife.com or follow @HerbalifeNews.
About Herbalife Nutrition
Herbalife Nutrition is a global nutrition company whose purpose
is to make the world healthier and happier. The Company has been on
a mission for nutrition - changing people's lives with great
nutrition products & programs - since 1980. Together with our
Herbalife Nutrition independent distributors, we are committed to
providing solutions to the worldwide problems of poor nutrition and
obesity, an aging population, skyrocketing public healthcare costs
and a rise in entrepreneurs of all ages. We offer high-quality,
science-backed products, most of which are produced in
Company-operated facilities, one-on-one coaching with an Herbalife
Nutrition independent distributor, and a supportive community
approach that inspires customers to embrace a healthier, more
active lifestyle.
Our targeted nutrition, weight-management, energy and fitness
and personal care products are available exclusively to and through
dedicated Herbalife Nutrition distributors in more than 90
countries.
Through its corporate social responsibility efforts, Herbalife
Nutrition supports the Herbalife Family Foundation (HFF) and its
Casa Herbalife programs to help bring good nutrition to children in
need. The Company is also proud to sponsor more than 190
world-class athletes, teams and events around the globe, including
Cristiano Ronaldo, the LA Galaxy, and numerous Olympic teams.
The company has over 8,000 employees worldwide, and its shares
are traded on the New York Stock Exchange (NYSE: HLF) with net
sales of approximately $4.5 billion in 2016. To learn more, visit
Herbalife.com or IAmHerbalife.com.
The company also encourages investors to visit its investor
relations website at ir.herbalife.com as financial and other
information is updated and new information is posted.
FORWARD-LOOKING STATEMENTS
This release contains “forward-looking statements” within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Although we believe that the
expectations reflected in any of our forward-looking statements are
reasonable, actual results could differ materially from those
projected or assumed in any of our forward-looking statements. Our
future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and to
inherent risks and uncertainties, such as those disclosed or
incorporated by reference in our filings with the Securities and
Exchange Commission. Important factors that could cause our actual
results, performance and achievements, or industry results to
differ materially from estimates or projections contained in our
forward-looking statements include, among others, the
following:
- our relationship with, and our ability
to influence the actions of, our Members;
- improper action by our employees or
Members in violation of applicable law;
- adverse publicity associated with our
products or network marketing organization, including our ability
to comfort the marketplace and regulators regarding our compliance
with applicable laws;
- changing consumer preferences and
demands;
- the competitive nature of our
business;
- regulatory matters governing our
products, including potential governmental or regulatory actions
concerning the safety or efficacy of our products and network
marketing program, including the direct selling markets in which we
operate;
- legal challenges to our network
marketing program;
- the consent order entered into with the
FTC, the effects thereof and any failure to comply therewith;
- risks associated with operating
internationally and the effect of economic factors, including
foreign exchange, inflation, disruptions or conflicts with our
third party importers, pricing and currency devaluation risks,
especially in countries such as Venezuela;
- uncertainties relating to
interpretation and enforcement of legislation in China governing
direct selling and anti-pyramiding;
- our inability to obtain the necessary
licenses to expand our direct selling business in China;
- adverse changes in the Chinese
economy;
- our dependence on increased penetration
of existing markets;
- any material disruption to our business
caused by natural disasters, other catastrophic events, acts of war
or terrorism, and cyber-security incidents;
- contractual limitations on our ability
to expand our business; our reliance on our information technology
infrastructure and outside manufacturers;
- the sufficiency of trademarks and other
intellectual property rights;
- product concentration;
- our reliance upon, or the loss or
departure of any member of, our senior management team which could
negatively impact our Member relations and operating results;
- U.S. and foreign laws and regulations
applicable to our international operations;
- uncertainties relating to the United
Kingdom’s vote to exit from the European Union;
- restrictions imposed by covenants in
our credit facility;
- uncertainties relating to the
application of transfer pricing, duties, value added taxes, and
other tax regulations, and changes thereto;
- changes in tax laws, treaties or
regulations, or their interpretation;
- taxation relating to our Members;
- product liability claims;
- our incorporation under the laws of the
Cayman Islands;
- whether we will purchase any of our
shares in the open markets or otherwise; and
- share price volatility related to,
among other things, speculative trading and certain traders
shorting our common shares
We do not undertake any obligation to update or release any
revisions to any forward-looking statement or to report any events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events, except as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20180212006407/en/
Herbalife NutritionGary
Kishner213-745-0456Garyki@herbalife.com
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