Herbalife Ltd. (NYSE:HLF), a global nutrition direct-selling
company, announced today that it has received its direct-selling
license from China's Ministry of Commerce.
The license permits Herbalife to conduct a direct selling business
in Suzhou and Nanjing in the Jiangsu province. Over six million people
live in Suzhou, the fifth largest Chinese city based upon GDP, and
approximately eight million people live in Nanjing, which is the
second largest commercial center in East China after Shanghai.
Herbalife currently operates 42 stores and 17 service centers in
25 provinces in China. The company operates a unique direct-selling
model in China in accordance with local regulations. Independent
distributors who are employed by the company conduct their business in
retail locations owned by Herbalife. Consumers and other distributors
come into the store to buy product and learn more about the business
opportunity. Now that a license has been granted, Distributors will be
allowed to conduct business outside of the store in the particular
province and cities named in the direct selling license.
"It is an honor for Herbalife to receive this license. We have
worked closely with China's Ministry of Commerce and the State
Administration Industry and Commerce over the past year and we are
committed to maintaining the highest standards of integrity in the
direct-selling industry," said Chief Executive Officer Michael O.
Johnson.
"We can help set an example for the direct-selling industry on how
our industry can improve the wellbeing of our Chinese distributors and
their customers," said Percy Chin, Herbalife's senior vice president
and managing director of its Greater China region.
Headquartered in Shanghai, Herbalife sells more than 30 products
in China. The company operates its own manufacturing facility in
Suzhou, China, that produces products for local use and export.
Herbalife is affiliated with, and plays an active role in a large
number of industry trade organizations, including The World Federation
of Direct Selling Associations, the Federation of European Direct
Selling Associations and 40 individual Direct Selling Associations
globally.
About Herbalife
Herbalife (http://www.herbalife.com) is a global network marketing
company that sells weight-management, nutritional supplements and
personal care products intended to support a healthy lifestyle.
Herbalife products are sold in 64 countries through a network of more
than one million independent distributors. The company supports the
Herbalife Family Foundation (http://www.herbalifefamilyfoundation.org)
and its Casa Herbalife program to bring good nutrition to children.
Please visit Investor Relations (http://ir.herbalife.com) for
additional financial information.
