Purpose
According to information contained in the Herb-
alife website, the company sells its products to con-
sumers so they can manage and control their weight,
add nutritional supplements to their diets, and provide
personal care items to their daily body regimen.
Weight management and weight-loss products include
protein snacks, enhancers for energy support,
enhancers for appetite support, and enhancers for
digestive support. Nutritional supplements sold by
the company include herbs,minerals, andvitamins.
Some of its nutritional supplements are devoted to
specific body parts such as the heart and digestive
system, and on certain physical and mental conditions
such as stress, energy/fitness, and aging. Its personal
care products emphasize nutritional and herbal ingre-
dients such as aloe vera andvitamin C, and deal with
such matters as skin essentials and skin revitalizers,
anti-aging, body essentials, hair essentials, and
fragrances.
The Herbalife mission, according to its website, is
to ‘‘change people’s lives by providing the best busi-
ness opportunity in direct selling and the best nutrition
and weight management products in the world.’’ The
company states that it provides safe weight control
products that supplement a balanced low-calorie diet
and a regular exercise program. Its weight manage-
ment and nutritional products use macronutrient and
micronutrient food formulas.Macronutrientsinclude
carbohydrates,fats, and proteins, which together pro-
vide most of the energy needed by humans. Micro-
nutrients are essential elements (minerals and
vitamins) that are needed in minute quantities for a
healthy body. Such essential elements include chro-
mium, cobalt, copper, iron,manganese,molybde-
num,selenium, andzinc.
As part of their advertising and marketing strat-
egy, Herbalife relies on testimonials from health pro-
fessionals. Customer testimonials also appear on the
company’s website.
Description
The company was incorporated in 1979, but
essentially started operations in February 1980 when
its first distributor, Mark Hughes, began selling Herb-
alife products from the trunk of his automobile. As his
customers tried and liked the products Hughes’ busi-
ness quickly grew. He rented an office and a ware-
house in the Beverly Hills, California area, and soon
developed a network of distributors.
Within two years, the company had grown to over
two million dollars in sales through its distributorships
in the United States and its sole distributor in Canada.
Vehicles all over the United States were seen with the
company’s slogan: ‘‘Lose weight now, ask me how!’’.
At this time, the Herbalife plan recommended only
one meal each day, which was supplemented with
protein powders and nutritional pills.
By 1985, Herbalife was listed onINC.magazine’s
fastest growing private companies. Its five-year profits
from 1980 to 1985 went from $386,000 to $423 million.
More than 700,000 distributors in the United States,
Canada, the United Kingdom, and Australia had total
gross sales of about $500 million.
In 1994, Hughes started the Herbalife Family
Foundation in order to help children worldwide. In
1996, Herbalife reached one billion dollars in sales.
However, four years later, Hughes died from an over-
dose of alcohol and doxepin (a psychoactive drug with
antidepressant and anti-anxiety properties).
Today, signs posted on telephone poles, fences,
mailboxes, newsstands, vehicle windshields, and other
public structures and locations state such slogans as:
‘‘Lose Weight Now—Ask Me How’’, ‘‘Have a Com-
puter?—Work from Home’’, and ‘‘Lose 30 lbs in 30
days!’’. These and other advertising means are often
seen promoting a way for people to earn cash. When
people call the toll-free number or browse the listed
website they are directed to Herbalife.
Precautions
Historically, there has been controversy with
Herbalife due to the way the company operates its
business. This controversy, specifically, has been
directed to potentially dangerous ingredients in some
KEY TERMS
Botanical—Relating to plants.
Doxepin—A psychoactive drug characterized with
helping treat depression and anxiety.
Macronutrient—Any carbohydrate, fat, or protein.
Micronutrient—Essential elements needed for
human life such as minerals and vitamins.
Pyramid scheme—A fraudulent act in which per-
petrator(s) recruit other people to pay money to
those above them in a structured hierarchy with
the expectation that they will get a portion of that
money.
Herbalife