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Alticor's Global Sales Top $7 Billion
ADA — Alticor Inc. and its subsidiaries today reported record sales of more than $7.1 billion for 2007, a 12-percent increase over the $6.3 billion recorded in 2006.
According to a news release, company officials attributed the increase to continued growth of Amway markets in Europe, Southeast Asia and Latin America. The company also experienced a rebound in China following the establishment of direct selling regulations, and the “continuing appeal of the company’s consumer product lines.”
The company acknowledged the increased sales resulted in stronger profits, but the privately held firm did not disclose further details.
"Our global business has shown real strength and resiliency this year," said Alticor Chairman Steve Van Andel. "We've challenged our people around the world to focus on understanding and supporting the needs of consumers, and this year is a good first step toward that goal."
Quixtar Inc. sales fell slightly in 2007, but remained above $1 billion for the fifth straight year. Quixtar is the North American web-based division of Alticor that was launched in 1999. Last year Alticor indicated it will phase out the use of the Quixtar label in favor of returning to the Amway brand name. Plans are for the transition to be completed before the end of 2009, which marks the company’s 50th anniversary.
Thirty-nine out of 55 affiliate markets posted sales increases last year, “demonstrating that the company’s growth is coming from established markets as well as newer ones.”
The largest regional gain was seen in Europe, where sales increased 33 percent, attributed mostly to burgeoning Russian and Ukrainian markets and strong gains throughout eastern Europe.
Good sales efforts also were reported in Asia, especially China, where Amway now sells through its nearly 180 retail shops, despite aggressive regulatory efforts.
“We’re proud to see so many of our established markets doing well and growing, and our newest markets at a strong, sustainable pace,” said Van Andel. “That kind of balance provides an excellent base for a company like ours to take measured risks, and act from a position of financial strength.”