Presentation on theme: "July 10th, 2008 Our mission: helping people live better lives:"— Presentation transcript:
1July 10th, 2008 Our mission: helping people live better lives: Helping customers live better livesHelping IBOs live better livesHelping members of communities in which we operate live better livesHelping our employees live better livesValues: Partnership, integrity, personal worth, achievement, personal responsibility and free enterpriseFounder’s Fundamentals: Freedom, Family, Hope, RewardJuly 10th, 2008
2Our Leaders Office of the Chief Executive: Steve Van Andel - ChairmanDoug DeVos – PresidentBoard of Directors - Family Members and Outside Industry LeadersOCE – Doug and Steve are equal partnersBoard - 10 members including three non-family members
3Who We AreAlticor (www.alticor.com) is the parent company of Amway Corp., Quixtar Inc., Access Business Group LLC and Alticor Corporate Enterprises. Alticor is privately owned.Headquartered in Ada, Michigan, USA, Alticor and its affiliates offer products, business opportunities, and product development, manufacturing and logistic services in more than 80 countries and territories worldwide.For 2007, the company reported worldwide sales of more than $7.1 billionIn May of 2009, Alticor will celebrate its 50th anniversaryCompany started and based on a handshake between two life long friends: Rich DeVos and Jay Van Andel
4Our History1959Started with one product – LOC™ – a multipurpose organic cleaner - in the basements of the founders’ homes, then moved to an old abandoned gas station in the village of Ada just outside of the city of Grand Rapids in West Michigan. Today a global powerhouse in direct-selling with a manufacturing and office complex sitting on more than 300 acres.Today
5Our Neighborhood Greater Grand Rapids area population 775,000+ Downtown Grand Rapids is 15 minutes from Amway’s Headquarters in Ada, Michigan. Amway’s co-founders have played major roles in the development of downtown Grand Rapids. The Grand Rapids metropolitan area has a population of more than 775,000 people. The tri-county area has more than 1 million people, has more than 2,000 manufacturers, and is the hometown of former President Gerald R. Ford. Grand Rapids is 30 minutes east of Lake Michigan, and about half way between Chicago and Detroit.On the right (the dark glass tower by the river) is Amway’s Grand Plaza Hotel. Highlights of this 682-room four-star hotel include a five-diamond rated gourmet restaurant and the 29-story glass tower.Top left is Van Andel Arena – home to many concert and special events.Bottom center is the Van Andel museum.[Note: We may want to consider adding a picture that includes the new JW Marriott hotel upon its completion. PL]
6Where We Do BusinessManufacturing in USA, Vietnam and China (for China markets only)Farms in USA, Mexico, BrazilDistribution throughout North America, Europe and the Far East
7Put years on x axis (scale is off) Our SalesPut years on x axis (scale is off)
8Our PeopleAlticor and its companies employ more than 13,000 worldwide and offer more than 3 million people an opportunity to become entrepreneurs in more than 80 countries and territories.Over 450 products are sold through Amway and Quixtar, primarily focused on health, wellness and beauty categories, led by flagship brands Nutrilite and Artistry.
9Add ACE Alticor Family Tree Now we will review each company in more detail….
10What is Direct Selling? US$102 billion industry Provides customers convenience and service, including personal demonstration and explanation of products, home delivery, and generous satisfaction guaranteesAllows individuals an alternative to traditional employment by building a business of their ownProvides a channel of distribution for companies with innovative or distinctive products not readily available through traditional retail
11Founded in 1959, by Rich DeVos and Jay Van Andel One of the world’s best known direct selling brandsOffered in more than 80 countries and territories worldwideMore than 70% of sales generated in Asia
12Quixtar Inc. Launched in September, 1999 Web-based business in North AmericaMore than $1 billion in sales annually#1 online retailer in health and beauty sales and 20th overall among e-commerce sites#5 in ForeSee’s 2007 annual index of online retailers– tied with Old Navy and AppleBrings together the high-touch nature of direct selling with the high-tech power of the internet
13Amway/Quixtar Business Opportunity Low risk and low cost opportunity to run a business based on one’s own needs and prioritiesTrusted business plan recognized as a benchmark model for direct sellingSupported by high quality consumable productsWorld-class infrastructure and logisticsEquitable compensation plan based on sales of products to consumers: IBOs buy products at a cost and sell them directly to consumers at a profit; IBOs who support others to do the same are entitled to a bonus calculated on their sales and sales of the new IBOs they introduced to the business
14A business services company specializing in: Research and developmentProduct supplyManufacturingLogistics… for Alticor and other companies
15ABG Research and Development Product DevelopmentMore than 700 patents granted, and more than 500 pending65 R&D labs worldwideOver 500 full time employees, including 100 with advanced degreesTechnical/Regulatory AffairsResponsible for worldwide product compliance, registration and safetyReviews and approves product concepts, ingredients, specifications, claimsQuality Assurance Partners with our suppliers to provide world class quality to our customersIncludes Supplier Quality Development, Global Field Services and Process Quality ImprovementAffiliate quality representation present in all major markets
16ABG Product Supply Strategic Procurement 2006 Supply Chain Council Award Winner for Global Supply Chain ExcellenceControls over $1 billion in annual spendingSupplier requirements, scorecards and analytical reporting available atSupply Chain PlanningScheduling, material planning, manufacturing operations and inventory planningPlaces purchase orders with suppliers based on agreed-upon termsKey member of Sourcing Strategy Teams (SSTs), and provides feedback on supplier performanceProject ManagementLeads the Idea to Market (ITM) process designed to bring high quality, innovative and cost-competitive products to marketIncludes the Documents and Design team responsible for development and maintenance of packaging artwork and manufacturing documents
18Ada, Michigan Manufacturing Cosmetics150 million unit capacityPersonal Care (shampoos, soaps and lotions)75 million unit capacityHome Care (cleaning powders and liquids)Liquids: 85 million unit capacity, 1 million liters at any timePowder: patented process with capacity for 60 million unitsHome Tech (air and water treatment systems)400,000 unit capacity on seven assembly lines.Aerosol85,000 square feet (8,000 m2) with 33,000 square foot(3,000 m2 ) gas tank farmPrintingNearly 200 million impressions annually
19Buena Park / Lakeview, California Combined 500,000 square feet (46,500 m2)Buena Park, CA Lakeview, CA
20Buena Park/Lakeview, California Manufacturing TabletingWeigh UpGranulationCompressionCoating/InspectionPackagingPowder DrinkFood BarSize: 500,000 square feet (46,500 m2)Estimated capacity:6 billion tablets40 million food bars100 million pouches10 million canistersProducts: A-Z vitamins, herbal supplements, meal replacement and weight management food bars, powdered drinks and meal supplements
21China Manufacturing City of Guangzhou in the Guangdong province 1,517,711 square feet (141,000 m2) production facility430,556 square feet (40,000 m2) logistics center
22China Manufacturing Nearly 180 products Home Care Cosmetics Nutrition Protein PowdersNutrition TabletsNutrition Softgel CapsulesIs currently expanding operational capacity to support the potential of $3.5B in sales and 300 million unitsISO9001 & ISO14001 certifications5,000+ employeesNamed one of Ten Best Employers in ChinaSponsorships: NUTRILITE™ was the official food supplement brand of the Chinese Olympic Team for the 2000 and 2004 Olympic Games12 products selected as the official products for the Chinese Polar Expedition TeamsAmway China Co. Ltd. has received nearly 500 honors and awards from the Chinese government
23Certified Organic Farms Processing OperationsConcentrationDehydrationExtractionMillingMain Crops: alfalfa, citrus trees, watercress, parsley, acerola cherries, echinacea, mango, pineapple, coconut, carrots, and broccoliOrganic Farming: organic practices promote healthier plants and soils by avoiding synthetic chemical pesticides, herbicides, and fertilizers. It results in plants that resist disease and insects.
24ABG Logistics North American Distribution Multiple distribution centers in the US and Canada provide support to Quixtar and 3rd party contractorsGlobal TransportationWorld-class transportation, door-to-door deliveryEurope LogisticsProduct supply to growing Amway Europe marketsGlobal Trade OperationsAdministers international trade and complianceFacilities ManagementIntegrated engineering and related technical support services for Alticor companies
25ABG Contract ServicesContract Sales clients include five of Fortune Magazine’s “Global 500” companies and eight “Fortune 1000” companies. ABG produces over 31 nationally recognized brands and over 1000 SKU’s for our contract customers.
26Our Business Linesnutritionbeautydurableshome care
27Nutrition NUTRILITE™ Brand – more than 70 years of trust Combines the best of science and the best of nature to build quality and value into all of its productsThe only global vitamin and mineral brand to grow, harvest and process plants on its own certified organic farmsFull line of nutritional supplements in three main categories:weight managementessentialstargeted formulas
28Beauty ARTISTRY™– global leader in prestige beauty The only direct-sell brand classified in the prestige category, with over US $1 billion in annual salesMore than 250 unique products sold in over 50 markets around the worldAt the forefront of technological developments in cosmetics research and formulationsAll products are dermatologically and allergy tested
29BeautyPersonal CareSATINIQUE™ salon quality hair care products featuring the unique Ceramide Infusion System— repairs strengthens and protects in one useBODY SERIES™ family line of soaps, deodorants and lotionsGLISTER™ brand oral care productsNote: The Body Series line is being re-branded under the G&H brand.Use of Body Series in this presentation is OK for now, but you may want to consider updating this slide when the new branding launches in Fall 2008.
30BeautyE. FUNKHOUSER™ New YorkTrend-setting cosmetics brand developed by professional make-up artist Eddie Funkhouser and available worldwide through Amway and Quixtar IBOs[NOTE: We do not manufacture any of the Eddie or NAO branded products. They are all buy-outs from third-party vendors. PL]
31Synergy Between NUTRILITE™ and ARTISTRY™ Brands The Nutrilite Health Institute/Center for Optimal Health and the Artistry Beauty Institute generate understanding and appreciation for the NUTRILITE™ and ARTISTRY™ brands.The Center for Optimal Health is a world class teaching and training facility within the Nutrilite Health Institute. Science, nutrition, fitness, research and people are brought together for a one-of-a-kind experience focused on optimal health and the NUTRILITE brand.The Artistry Beauty Institute located in a spacious loft in downtown Grand Rapids, is a 10,000 square foot, state-of-the-art facility, dedicated to the science, art, experience, and business of beauty. It is a living workshop for total immersion in the world of ARTISTRY Skin Care and Colour Cosmetics, and one of the most attractive components of the ARTISTRY business opportunity.You may also talk about the use of NUTRILITE ingredients in ARTISTRY products.
32DurableseSPRING™First in-home water treatment system to combine ultraviolet light technology with a patented multi-stage carbon-block filterDestroys more than 99.99% of waterborne, disease-causing bacteria and viruses in drinking water.ATMOSPHERE™ Air PurifiersEffectively removes up to 99.99% of airborne particulates that are drawn through the system
33Durables iCOOK™ / AMWAY QUEEN™ Cookware Premium-grade materials and precision manufacturing provide years of superb cooking performance and durabilityiCook™ ProductsiCook Cookware brand delivers on its promise of quality and nutrition and is the healthiest way to cookiCook Technology:VITALOK™ cooking method - compared to traditional cooking methods, the iCook VITALOK cooking method locks in over a third more essential vitamins and minerals than conventional cooking methods.DURAMIC™ nonstick coating system - is one of the toughest, longest lasting nonstick coatings in the world.OPTITEMP™ base- the base improves heat distribution and retention so foods and sauces cook evenly. The OPTITEMP™ base is universally compatible with any cook top.
34Home Care Three distinct brands: L.O.C.™ offers cleaning products for diverse jobs throughout the houseSA8™ Laundry Care system guaranteed to provide extraordinary results ranked No. 1 Detergent by a leading consumer magazine in Dec. 2006DISH DROPS™ offers powerful dishwashing performanceWould be good to say something about LOC™, the high-quality, highly-concentrated Multipurpose Liquid Organic Cleaner, or L.O.C-- the company's first product.It was an "organic" product long before such products became mainstream, much in the way Nutrilite pioneered the vitamin and food supplement category.If you can, find something “special” to mention about DISH DROPS™ for balanceCONSUMERS REPORT - Internal use only. If this slide is used externally, change to "leading consumer magazine". Consumers Union does not allow the commercial use of their name in conjunction to their testing. They do not wish to appear to endorse any product. PL
35Satisfaction Guaranteed Our satisfaction guarantee ensures that if the customer or an IBO is not completely satisfied with the product, it will be exchanged or refunded. No questions asked. In fact, Amway/Quixtar takes this obligation so seriously that the customer often receives a replacement product before returning the first one.Our mission is to enhance a distributors’ credibility and support their relationships with customers.Only companies with confidence in their products can offer and honor such promises.
36Alticor Suppliers… The Keys to Our Success Our suppliers are critical to our achievement of customer satisfaction andgrowth objectives:Innovative products and servicesLowest Total CostSupply Chain Excellence:exceptional Quality……delivered On-Time……with outstanding Customer Service …Innovation:Alticor has established a reputation for innovation in product development, manufacturing and packaging. Alticor has over 500 patents worldwide. We invite and encourage our suppliers to make Alticor the first stop when demonstrating new technologies / innovations.Supply Chain Excellence:High quality products are a must at Alticor. Distributors are especially concerned about quality because often they have only one or two of the item they’re trying to sell on hand. If that item is not made correctly, it tarnishes on the reputation of the distributor.Lowest total cost:Form partnerships with suppliers to purchase products and services at the lowest total cost.
37Add ACE Questions? www.alticor.com www.accessbusinessgroup.com Add ACENow we will review each company in more detail….