Herbalife gets green light to expand China operations

By Gary Scattergood

- Last updated on GMT

Herbalife gets green light to expand China operations
Herbalife has won approval from China’s Ministry of Commerce to operate in three additional provinces in the country.

The Gansu, Ningxia and Inner Mongolia provinces, which include three provincial capital cities and 16 districts, have completed their service outlet reviews that permit Herbalife to conduct direct selling activities.

The provinces have a population of about 57m.

China’s Ministry of Commerce granted the permits after reviewing the current business practices of Herbalife in the country. Herbalife has 300,000 service providers in China and licenses to operate in 25 other provinces.

“These approvals are a testament to our success in China and our future growth plans,”​ said Michael O. Johnson, chairman and CEO of Herbalife.

In July Herbalife began operations at its newest facility in Nanjing, a 372,000-square-foot factory that will double its production capacity in China. It also has factories in Changsha and Suzhou. Herbalife employs more than 1,300 people in China, including 124 Nanjing.

“Our business continues to expand as more consumers see Herbalife as a trusted, convenient and accessible nutrition brand,”​ said Jerry Li, senior vice president and manager of China operations for Herbalife. “Our nutrition clubs and preferred customer loyalty program are aimed at engaging Chinese consumers in improving their well-being and weight.”

Earlier this month the firm announced record Q2 results​ in the wake of the conclusion of a two-year investigation by the US Federal Trade Commission.

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