Amway to Build $81 Million Manufacturing Operation in Ada


ADA — Amway parent company, Alticor Inc., today reported record global sales of USD $11.3 billion for 2012, compared with 2011 sales of USD $10.9 billion. This is the seventh consecutive year of growth for the company, with sales increases 12 out of the past 13 years.

In 2012, Amway announced plans to invest nearly $185 million to build four U.S. operations for manufacturing and processing NUTRILITE vitamins and supplements:

  • A new $81 million nutrition soft gels and tablet manufacturing operation at the company’s Spaulding Avenue site in Ada, Michigan, is expected to create up to 200 jobs over a three-year period. Construction starts in 2013.
  • A $24 million nutrition powder products plant unveiled in 2012 at the company’s world headquarters created 50 new jobs in Ada, Michigan.
  • A $42 million project in Buena Park, California, includes a new granulation facility to support tablet manufacturing that is scheduled for completion in 2013; new research and development facilities and pilot laboratories; and a two-story professional office building.
  • A $38 million Nutrilite Botanical Concentrate processing plant in Quincy, Washington, which will process plants from the company’s nearby Trout Lake Farm. Construction is now underway.

Amway grows in each of its top 10 markets

For the first time in more than 20 years, sales increased in each of the top 10 markets for Amway, including China, India, Japan, Korea, Malaysia, Russia, Taiwan, Thailand, Ukraine, and the United States. Markets posting double-digit increases in 2012 include Colombia, Hong Kong, Italy, Mexico, Russia, Turkey, and Venezuela.

“We’ve nearly doubled in size since we launched the company’s Growth Through Innovation business strategy six years ago,” said Steve Van Andel, Amway chairman. “Our business is now much more aligned globally, with strong, seasoned leadership in each of our four regions. We see even more potential for growth in 2013. 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.”

“Millions of people around the world are looking for something more. They want a business opportunity that provides them with personal reward and potential for growth,” said Doug DeVos, president. “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 will continue to find new and better ways to support millions of the world’s entrepreneurs as they achieve their goals.”

Global investments in manufacturing, R&D exceed $335 million

Amway plans more than $335 million in manufacturing and R&D expansion, including four facilities in the U.S., a new manufacturing facility in India, and second sites in both China and Vietnam.

Ground breaking for the $95-million manufacturing plant in Tamil Nadu, India is scheduled in 2013 with completion in 2015. In China, Amway will add a second manufacturing plant in Guangzhou. The $75-million facility is scheduled to be fully operational in 2016. Details for a second Amway manufacturing facility in Vietnam will be released in 2013.

U.S. expansion for Amway includes new research and development facilities and pilot laboratories in Buena Park, California, home to the company’s top-selling NUTRILITE product brand. In addition, Amway will build a $10 million botanical research and experience center in Wuxi, China, to integrate scientific knowledge used in product development with the historic use of traditional Asian plants. More than 900 scientists, engineers, and technical professionals work in 65 R&D and quality assurance labs worldwide to support the company’s product development through premium ingredient selection and innovative technologies.

Nutrition leads Amway product category sales

According to Euromonitor International limited, NUTRILITE is the world’s number one selling vitamins and dietary supplements brand, accounting for 46 percent of the company’s product sales. NUTRILITE Protein Powder (including the introduction of NUTRILITE All Plant Protein Powder), DOUBLE X™ Vitamin/Mineral/Phytonutrient supplements and NUTRILITE Vitamin C Plus Extended Release led product sales in the nutrition category.

Beauty category products generated 26 percent of company sales last year, supported by the star power of Teresa Palmer, new “global face” of ARTISTRY™. The ARTISTRY brand took center stage with a premiere sponsorship at the 2012 Busan International Film Festival to kick off the launch of the ARTISTRY YOUTH XTEND™ Collection in Korea, Japan, and Thailand. Amway markets in Europe and the U.S. are preparing for 2013 introductions of this prestige anti-aging product. Top-selling products for Amway in the beauty category are ARTISTRY Creme L/X, ARTISTRY Intensive Skincare Renewing Peel, and ARTISTRY Intensive Skincare Anti-Wrinkle Firming Serum.

Home products generated 22 percent of sales, led by sales of ATMOSPHERE™ air purifiers, iCook™ cookware, eSpring™ water treatment systems and cleaning products. In 2012, the introduction of the eSpring water treatment system in China resulted in the company’s largest product launch in history. First-year sales are projected at more than $500 million. Amway sales that do not fall into the nutrition, beauty, or home categories, such as catalog products, were 6 percent in 2012.

Celebrating 10 years of improving the lives of children

Celebrating its 10th anniversary in 2013, the AMWAY ONE BY ONE™ Campaign for Children helped Amway distributors and employees break another record by collectively reaching 10 million children in need. Since 2003, the campaign has donated USD $190 million to children’s causes worldwide, and Amway distributors and employees have logged more than 2.7 million hours of volunteer time.