Alticor’s Sales Reach $4.9B

October 22, 2004
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ADA — Alticor Inc. marked its fourth consecutive year of growth, reporting worldwide sales of $4.9 billion for the fiscal year ended Aug. 31. Sales for 2004 were up 9 percent over last year.

The company saw strong performances in Asia from its Amway Corp. subsidiary. Amway China, Indonesia, Malaysia, Taiwan and Thailand each posted their highest annual revenues ever.

"There is new excitement for Amway in both our emerging and established markets," said Alticor Chairman Steve Van Andel. "Amway is gaining strength as a global brand known for great products and an attractive business opportunity."

Amway announced earlier this year that it plans to commit an additional $120 million to enhance its manufacturing and distribution capabilities in China, raising total investment there to $220 million.

Amway has been established in the markets of Japan, Korea, Taiwan and Thailand for 18 years on average, and all four remain top markets for Amway, the company pointed out.

In Europe, Amway Greece, Hungary, Romania, Scandinavia and Turkey also recorded their best sales year. The company will begin operations in Ukraine next month.

Quixtar also had its best year on record, exceeding $1 billion in revenues. Both the Amway and Quixtar subsidiaries grew their nutrition and beauty businesses. The two units combined accounted for more than half of Alticor's worldwide sales, according to the company.

Company officials attributed the increase in Quixtar sales in part to the launch of several "leading-edge health and beauty products," including the eSpring Water Purifier, XS Energy Drinks, Nutrilite Carb Blocker 2, Artistry Spa Collection body care products, protein shakes, food bars and other new products.

Access Business Group reported that its third-party product development, manufacturing and logistics sales for the year generated $79 million in revenues, an increase of more than 25 percent over the year before.

Al Koop, COO of Access Business Group, said Amway and Quixtar remain the heart of the business. Access' inter-company sales to Amway and Quixtar, however, are not included in Alticor's total of worldwide sales.

Alticor purchased 50.3 percent of the stock of a biotech company known as Interleukin Genetics LLC during the fiscal year. Alticor and its business divisions anticipate using Interleukin's intellectual property and expertise in genomics to develop personalized consumer products, according to the company.    

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