Amway breaks ground on $38 million herb facility

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Amway breaks ground on $38 million herb facility

Related tags: Multi-level marketing

Direct selling giant Amway is on schedule for its a new 48,000-square-foot extraction and concentration facility in Quincy, WA, as the company breaks ground on its Nutrilite Botanical Concentrate Manufacturing facility.

The new facility, expected to begin operations in 2014, fits Amway’s plans to move processing facilities closer to its growers.

The extraction and concentration facility will process ingredients for nutritional products sold under its Nutrilite​ brand. The company also has the option for an additional 15 acres at the same industrial park.

The Quincy facility is part of a more ambitious plan to expand US manufacturing, said the company. These include a new $81 million nutrition soft gels and tablet manufacturing operation in Ada, Michigan, a $24 million nutrition powder products plant was unveiled in 2012 in Ada, MI, and a $42 million project in Buena Park, California, which includes a new granulation facility to support tablet manufacturing; new research and development facilities and pilot laboratories.

Direct selling

While retailers dominate the sales market for nutrition products in the US, the direct-to-consumers route was still worth $16 billion in 2010, according to the Nutrition Business Journal​.

There are four main channels for direct-to-consumer sales: multi-level marketers (MLM), direct media (TV, radio, print), practitioners, and the internet. MLMs accounted for 46% of the market, with direct media, practitioners, and the internet accounting for 17, 19, and 18%, respectively, said NBJ. 

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