ADA- For the first time in 20 years, each of Amway’s top 10 markets posted sales increases, led by double digit jumps in Columbia, Hong Kong, Italy, Mexico, Russia, Turkey and Venezuela, contributing to record sales of $11.3 billion in 2012 for parent company, Alticor, up from $10.9 billion in 2011.
The private company does not disclose profits.
Amway’s biggest product category continues to be its Nutrilite line, which accounts for 46 percent of revenues and sells more vitamins worldwide than any of its competitors. Beauty category products generated 26 percent of company sales last year, with most of that revenue coming from Artistry skin and cosmetics line. Home products brought in 22 percent of revenues, led by Amway?s Atmosphere air purifers, iCook cookware, eSpring water treatment systems and cleaning products. Amway sales that do not fall into the nutrition, beauty or home categories, such as catalog products, were 6 percent in 2012.
Amway Chairman Steve Van Andel credits the rapid growth with launching the company?s Growth Through Innovation business strategy that involved placing ?strong, seasoned leadership? in each of the company?s four global regions.
?We see even more potential for growth in 2013,? said Van Andel. ?We continue to invest in our supply chain, manufacturing, and scientific resources to be more responsive to market demands, which helps our distributors better serve their customers with products when and where they need them.?
President Doug DeVos says Amway?s seven years of continuous growth reflects the success of its more than 3 million distributors around the world.
?They want a business opportunity that provides them with personal reward and potential for growth,” said DeVos. ?For more than 50 years, Amway has provided people with an opportunity to have a business of their own, backed by strong brands, innovative products and localized sales and business skills training programs. We?re proud of their success. We will continue to find new and better ways to support millions of the world?s entrepreneurs as they achieve their goals.?
DeVos said one of the highlights of 2012 was the introduction of the eSpring water treatment system in China, which resulted in the company?s largest product launch in history. He said the company expects first-year sales to exceed more than $500 million.
Amway plans more than $335 million in manufacturing and research and development, including four facilities in the U.S., a new manufacturing facility in India and second sites in both China and Vietnam.
In 2012, Amway announced plans to invest nearly $185 million to build four U.S. operations for manufacturing and processing Nutrilite vitamins and supplements. Two of the facilities will be in Ada. Construction will begin this year on a $81 million nutrition soft gels and tablet manufacturing operation at the company?s Spaulding Avenue site in Ada. It is expected to create up to 200 jobs over the next three years.
Last year, the company opened a $24 million nutrition powder products plant at its Ada headquarters that resulted in 50 new jobs.
The company has nearly doubled in size in the last six years when sales were $6.3 billion, and two-thirds of the Ada-based direct selling giant?s revenues come from its Asia markets.
