Herbalife taps into new breed of ‘Generation H’ distributors in US

By Elaine Watson

- Last updated on GMT

Related tags: Net sales, North america, Revenue, Herbalife

Herbalife 24 is 'attracting a younger distributor who isn’t necessarily a weight loss distributor'
Herbalife 24 is 'attracting a younger distributor who isn’t necessarily a weight loss distributor'
Strong growth for Herbalife in the US is being driven by a new breed of young distributors dubbed ‘Generation H’, according to the direct sales supplement giant.

Unveiling a 22.1% rise in group net income and a 20% rise in net sales in the three months to December 31, 2011, Herbalife said local currency net sales surged by 34% in the Asia Pacific region and by 33% in South and Central America.

However, it still notched up double-digit net sales growth in North America over the same period and increased distributor numbers by 5%, revealed president Des Walsh during Herbalife’s Q4, 2011 earnings call yesterday.

“The North American region also had another strong quarter posting almost 18% net sales growth."

New Herbalife 24 sports nutrition range helping to attract new distributors and​ end consumers

And this was being driven by a new breed of distributors under the age of 35, dubbed ‘Generation H’, he claimed.

“In the US we are seeing continued momentum and business growth in the generation H distributor group... We are seeing exciting adaptations of Nutrition Clubs… and higher utilization of Herbalife 24 products ​[the new sports nutrition range] in addition to stronger use of social networks.”

Meanwhile, a “younger more athletic distributor group in western Europe”​ was also embracing Herbalife 24, which was helping Herbalife appeal to a new customer base beyond its core weight management audience, he said.

A new generation of Herbalife distributors

Chief executive Michael Johnson added: “Herbalife24 is for people with active lifestyles... so we think the general public is receptive to one or all of the products.

“It’s attracting a younger distributor to us who isn’t necessarily a weight loss distributor.

“It’s a fabulous thing to see a younger more fit group coming in, not just concerned with weight loss, but concerned with total nutrition and fitness nutrition... We are seeing a new generation of Herbalife distributors.”

Q4 and FY 2011 results breakdown

In the three months to December 31, 2011, net income rose 22.1% to $105.4m, while group net sales increased 20% and volume growth topped 23%.

For the full year 2011, Herbalife reported net sales of $3.5bn, up 26% on 2010. Adjusted net income surged 35% to $413.3m.

Meanwhile, plans to increase the percentage of products manufactured in-house were progressing well, added Johnson.

“We now manufacture more than 25% of our global volume in our own manufacturing facilities.”

He added: “The interdependency of three metrics – volume growth, engagement and ​[distributor] retention – gives us confidence that the best is yet to come​."

Related news

Show more

Related products

show more

ApplePhenon Paper by Renowned Dr William Sears, MD

ApplePhenon Paper by Renowned Dr William Sears, MD

BGG (Beijing Gingko Group) | 13-Oct-2020 | Technical / White Paper

Dr. William Sears, author of over 40 best-selling books and world-renowned media health expert, lends his pen to one of the most exciting ingredients to...

Nature-based Sugar Reduction for Protein Beverages

Nature-based Sugar Reduction for Protein Beverages

SweeGen Inc. | 09-Sep-2020 | Product Brochure

Whether you produce a plant-based protein shake or a ready to drink smoothie, your consumers want to see healthy, non-GMO, nature-based sweeteners on the...

Does my Nutraceutical Need a Clinical Trial?

Does my Nutraceutical Need a Clinical Trial?

dicentra – CRO and regulatory consulting firm | 03-Aug-2020 | Technical / White Paper

The global nutraceutical industry is growing at an unprecedented rate. However, companies preparing to bring new and innovative products to the burgeoning...

Related suppliers

Follow us

Products

View more

Webinars