Nature's Sunshine Products

Last updated

Nature's Sunshine Products, Inc.
Company type Public
Nasdaq:  NATR
Russell 2000 Index component
Industry nutritional supplements
Founded1972;52 years ago (1972)
FounderGene Hughes
Kristine Hughes
Headquarters Lehi, Utah U.S.
Area served
Worldwide
Key people
Terrence Moorehead (CEO)
Gregory L. Probert (chairman of the board)
ProductsDietary supplements
Revenue US$ 324.705 million (2015) [1]
US$ 13.872 million (2015) [1]
US$ 13.656 million (2015) [1]
Total assets US$ 200.520 million (2015) [1]
Number of employees
901 (2015) [1]
Subsidiaries Synergy Worldwide [1]
Website naturessunshine.com

Nature's Sunshine Products, Inc. also known as "NSP", is a manufacturer of dietary supplements, including herbs, vitamins, minerals, and personal care products. It is based in Lehi, Utah, with a manufacturing facility in Spanish Fork, Utah.

Contents

History

Hydrated Bentonite, one of Nature's Sunshine's products Hydrated bentonite.jpg
Hydrated Bentonite, one of Nature's Sunshine's products

Nature's Sunshine was founded in 1972 by Gene and Kristine Hughes, who started encapsulating capsicum in their home kitchen. The company employs a multi-level marketing business model in which their products are primarily sold to the consumer by independent distributors who receive commissions based on their own sales, as well as sign-up bonuses and commissions based upon the sales of any distributors they may have recruited.

NSP also owns Synergy Worldwide, a multi-level marketing company that also sells nutritional supplements. Products for both companies are manufactured in a production and research facility located in Spanish Fork, Utah.

In June 2021, Nature’s Sunshine Products, Inc. and the David Eccles School of Business at the University of Utah partnered together to create a new scholarship. Nature’s Sunshine Products, Inc. partnered with the Opportunity Scholars program to provide full-ride scholarships to underrepresented students who are the first in their family to attend college. [2]

Like similar multilevel marketing companies, Nature's Sunshine's business has been adversely affected by the lingering effects of the COVID-19 pandemic, global inflation and the Russian invasion of Ukraine. In the 4th quarter of 2022, net sales fell 13% to $103 million, as compared to the 4th quarter of 2021. According to CEO Terrence Moorehead, the company is making "strategic changes" and "redesigning processes and revamping sourcing relationships." [3]

SEC bribery lawsuit

In 2006, KPMG, which had provided auditing services to the company, resigned from the account. They charged that then-CEO Douglas Faggioli had lied to auditors about "alleged fraud," and had approved bribery. [4] In July 2009, the company agreed to pay $600,000 in fines after being charged by the SEC with having bribed Brazilian officials with more than $1,000,000 in 2000 and 2001. This was done "so it could import unregistered nutritional products into the country, and then falsified its books to hide the payments." [5] [6]

Related Research Articles

<span class="mw-page-title-main">Amway</span> American multi-level marketing company

Amway is an American multi-level marketing (MLM) company that sells health, beauty, and home care products. The company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan. Amway and its sister companies under Alticor reported sales of $8.9 billion in 2019. It is the largest multi-level marketing company in the world by revenue. It conducts business through a number of affiliated companies in more than a hundred countries and territories.

Xango, LLC, was a privately owned Lehi, Utah-based multi-level marketing company founded in 2002. It was acquired by Zija International in May 2017.

Herbalife Nutrition Ltd., also called Herbalife International, Inc. or simply Herbalife, is an American multinational multi-level marketing (MLM) corporation that develops and sells dietary supplements. The company has been alleged to have fraudulently operated a pyramid scheme. Some products sold by Herbalife have caused acute hepatitis. The business is incorporated in the Cayman Islands, a tax haven, with its corporate headquarters located in Los Angeles, California.

Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (1930–1973) in the United States. Originally the organization distributed goods such as home-care products and cosmetics. Company distributors were encouraged to recruit other distributors in a multilevel marketing structure, which was later characterized as a pyramid scheme.

<span class="mw-page-title-main">Nu Skin Enterprises</span> American multi-level marketing company

Nu Skin Enterprises, Inc. is an American multilevel marketing company that develops and sells personal care products and dietary and nutritional supplements. Under the Nu Skin and Pharmanex brands, the company sells its products in 54 markets through a network of approximately 1.2 million independent distributors.

<span class="mw-page-title-main">Juice Plus</span> Line of dietary supplements

Juice Plus is a branded line of dietary supplements. It is produced by Natural Alternatives International of San Marcos, California, for National Safety Associates. Introduced in 1993, the supplements are distributed by NSA via multi-level marketing. Juice Plus supplements contain fruit and vegetable juice extracts with added vitamins and nutrients.

<span class="mw-page-title-main">Mannatech</span> Multinational multi-level marketing company

Mannatech Inc. is a publicly traded, multinational multi-level marketing firm that sells dietary supplements and personal care products. It was founded in November 1993 by Samuel Caster, and is headquartered in Flower Mound, Texas. The company's stock is traded on the NASDAQ exchange under the symbol MTEX. As of 2017, Mannatech employed 252 people and sold its products through some 220,000 independent sales associates.

Multi-level marketing (MLM), also called network marketing or pyramid selling, is a controversial marketing strategy for the sale of products or services in which the revenue of the MLM company is derived from a non-salaried workforce selling the company's products or services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system.

<span class="mw-page-title-main">Usana Health Sciences</span> American direct-selling company

Usana Health Sciences, Inc., or USANA, is an American direct-selling company based in West Valley City, Utah. As of 2021, Usana was the 14th largest direct-selling company in the world by revenue. The company manufactures most of its nutritional products, dietary supplements, and skincare products at a West Valley City facility. Its products are sold in 24 countries via a network of independent distributors.

United Sciences of America, Inc. was an American company that was accused of fraud and shut down in the late 1980s. USA manufactured nutritional supplements such as "Master Formula", "Calorie Control Formula", "Fiber Energy Bar", and "Formula Plus", distributing them via multi-level marketing. The company experienced rapid growth in the 1980s, was heavily endorsed and marketed by various celebrities, and was marketed via over 140,000 distributors. However, an exposé by NBC revealed fraudulent practices, and this was followed by multiple lawsuits from attorneys general in three different states. Several of the company's advisors resigned, and USA declared bankruptcy in 1987.

Protandim is a herbal dietary supplement marketed with unsupported claims that it can treat a number of medical conditions. The product is a patented mix of five herbal ingredients and sold by LifeVantage Corporation, a Utah-based multi-level marketing company. The manufacturers of Protandim claim it can prevent or cure a wide variety of medical conditions. In 2017, LifeVantage was issued a warning letter by the U.S. Food and Drug Administration (FDA) regarding illegal advertising claims on the company's websites suggesting that Protandim can help to cure various ailments, including cancer and diabetes.

<span class="mw-page-title-main">Shaklee</span> Multi-level marketing vitamin distributor

Shaklee Corporation is an American manufacturer and multi-level marketing distributor of natural nutrition supplements, weight-management products, beauty products, and household products. The company is based in Pleasanton, California with global operations in Canada, China, Indonesia, Japan, Malaysia, and Taiwan.

<span class="mw-page-title-main">MonaVie</span> Multi-level marketing company

MonaVie is a defunct, American multi-level marketing company that manufactured and distributed products made from blended fruit juice concentrates, powders, and purées. The company was the subject of several controversies. Health claims for its products had not been scientifically confirmed or approved by regulatory authorities, and its chairman had been previously involved in false health claims concerning another beverage company. According to Forbes, MonaVie's business plan resembled a pyramid scheme. In 2015, the company defaulted on a US$182 million loan and went into foreclosure. Florida-based Jeunesse Global took over MonaVie’s assets when it purchased the note for $15 million.

<span class="mw-page-title-main">AdvoCare</span> American dietary supplement company

AdvoCare International, LLC is an American dietary supplement company. They are a direct sales company and a former multi-level marketing company that was charged with operating a pyramid scheme. The company, headquartered in Richardson, TX, was founded in 1993 by Charles Ragus.

The Beachbody Company is a publicly traded American fitness and health company based in El Segundo, California. It operates the brands Beachbody On Demand, Team Beachbody, MYXfitness and Openfit. The company also sells dietary supplements such as Shakeology and Beachbar through direct response infomercials and multi-level marketing via independent Team Beachbody "coaches" who serve as sales consultants. In 2023, the company changed its name to BODi.

Market America is a multi-level marketing company founded in 1992 by JR and Loren Ridinger. Headquartered in Greensboro, North Carolina, the company employed around 800 people as of 2016. The products offered by the company include household cleaning supplies, jewelry, personal care products, auto care, cosmetics, dietary supplements, custom websites, water purifiers, and weight management products. A 2017 lawsuit accused the company of being an illegal pyramid scheme.

<span class="mw-page-title-main">ViSalus</span> American multi-level marketing company

Vi is an American multilevel marketing (MLM) company based in Los Angeles, California, with offices in downtown Detroit, Michigan. The company is mostly known for the Body by Vi 90-Day Challenge platform. The company markets weight management nutritional products, dietary supplements and energy drinks in the United States, Canada, Italy and United Kingdom. Weight management products, including Vi-Shape meal replacement shake and Vi-Trim Clear Control Drink Mix, form the bulk of the company's sales.

VemmaNutrition Company was a privately held multi-level marketing company that sold dietary supplements. The company was shut down in 2015 by the FTC for engaging in deceptive practices and being a pyramid scheme.

Young Living is a multi-level marketing company based in Lehi, Utah. Founded by Donald Gary Young in 1993, it sells essential oils and other related products.

<span class="mw-page-title-main">Younique</span> American multi-level marketing company

Younique is an American multi-level marketing company (MLM) that markets beauty products. The company was founded in 2012 by Derek Maxfield, who is CEO, and Melanie Huscroft, and is headquartered in Lehi, Utah. Between 2017 and 2019, Younique was 60% owned by Coty, Inc. In 2019, Coty sold their share of the business back to Maxfield and Huscroft.

References

  1. 1 2 3 4 5 6 "Annual Report of the company for 2015" (PDF).
  2. ↑ McFarland, Sheena (June 2, 2021). "Nature's Sunshine announces scholarship fund for diverse Eccles students". The David Eccles School of Business. Retrieved December 19, 2022.
  3. ↑ Teal, Kelly (March 28, 2023). "MLMs cutting costs, going digital to get past 'pandemic malaise': Natura & Co., Nature's Sunshine and Herbalife are returning their focuses to growth as the negative effects of Covid-19 diminish. Even so, the MLMs have instituted restructuring to combat losses". Natural Products Insider. Retrieved April 29, 2023.
  4. ↑ Harvey, Tom (July 31, 2009). "SEC fines Nature's Sunshine for bribing Brazilian officials". The Salt Lake Tribune. Archived from the original on August 4, 2009.
  5. ↑ Leong, Grace (August 1, 2009). "Nature's Sunshine pays $600K to settle bribery charges". Daily Herald (Utah) . Archived from the original on January 5, 2010. Retrieved April 30, 2023.
  6. ↑ "Securities and Exchange Commission v Nature's Sunshine Products, Inc., et al. Civil No. 2:09cv0672" (PDF). United States District Court, District Of Utah, Central Division. July 31, 2009. Retrieved December 9, 2016.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.