Amway parent Alticor reports record year-end sales of $11.3 billion
Amway parent company Alticor Inc. reported Thursday record global sales of $11.3 billion for 2012, compared with 2011 sales of $10.9 billion. This is the seventh consecutive year of growth, according to the Ada company, and marks sales increases for 12 out of the past 13 years.
Alticor also owns other businesses, including three hotels in downtown Grand Rapids, but Amway CFO Mike Cazer said “the vast majority” of the $11.3 billion “is our distributor sales.”
Amway has more than 3 million independent distributors around the world, with China now being the company’s largest market.
Cazer said Alticor has 5,000 employees in West Michigan, which includes those at the plants in Ada and staff at the Amway Grand Plaza Hotel, the JW Marriott Grand Rapids and the Courtyard by Marriott.
Amway reports that for the first time in more than 20 years, sales increased in each of its top 10 markets: 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’re excited to announce another record year of sales performance at Amway,” said Steve Van Andel, Amway chairman. “We’ve nearly doubled in size since we launched the company’s Growth Through Innovation business strategy six years ago. 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," he said. "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.
Doug DeVos, Amway president, added that “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."
"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," DeVos said. "We’re proud of their success. We will continue to find new and better ways to support millions of the world’s entrepreneurs as they achieve their goals.”
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.
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.
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 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
- A $42-million project in Buena Park, Calif., home to the company's top selling Nutrilite product brand, 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, Wash., which will process plants from the company’s nearby Trout Lake Farm. Construction is now underway
Nutrilite vitamins and dietary supplements account for 46 percent of the company’s product sales. Beauty products generated 26 percent of company sales last year, and home products generated 22 percent, led by sales of Amway’s Atmosphere air purifiers, iCook cookware, eSpring water treatment systems and cleaning products.
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. 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.
Details for a second Amway manufacturing facility in Vietnam will be released in 2013.