Features

By Teresa Craighead

Direct sellers of “sin” products battle stigma and other hurdles yet continue to thrive.

“When people first hear about [our company] the first thing they jump to is ‘Oh my God, it’s a seedy company whose parties are probably an orgy-fest. Everyone’s going to be wearing fishnet stockings and high heels.’ Nothing could be further from the truth.”
—Chris Cicchinelli, CEO, Pure Romance

“It will take some time for the public to re-learn the many uses for industrial hemp.”
— Whitney Buchanan, managing member, Hale

Products traditionally thought of as the merchandise of “sin”—adult bedroom toys, cannabis products and alcohol, to name a few—are currently exploding in popularity in the direct selling channel. The companies offering them, however, must overcome significant challenges, including bans, values-based objections, conflicting regulatory guidance and even legal ambiguity.

By Steve Jamieson

Inspired change can create a competitive advantage.

Companies that become inspired by the opportunity to lead the change and make the decision early on to invite outside critical analysis of their “stagnant” quo will rise to the forefront.

Transformation can take you in a new direction but, if executed successfully, can also strengthen your core product line.

Does your company feel lethargic, stuck and uninspired? Has your company been poised for success but struggles with results that don’t meet your expectations? Are you disappointed you own or work for a company whose intentions aren’t matched by the company’s sales?

By David Rauf

Avon grows slowly; Michael Johnson settles in at Herbalife; Nu Skin continues expansion.

Note: We listen in on the public company earnings calls and read the transcripts so you don’t have to. Check back each quarter for our review with insights and takeaways for your own business.

This report includes an update on the earnings calls from Avon Products, Herbalife, and Nu Skin. Avon is progressing slowly overall but is experiencing growth in its online sales. Michael O. Johnson has very comfortably stepped back into the CEO role at Herbalife, and Nu Skin opens 2019 with a Latin American presence.

Scott Gottlieb, resigning FDA Commissioner

By Jennifer Anderson

Commissioner resigns shortly after announcing policy shift.

Between 1994 and 2019, dietary supplements grew from a $4 billion a year industry to one that pulls in over $40 billion per year.

Going forward, [FDA Commissioner Scott Gottlieb] warned DSHEA would be used to crack down on supplement products that were being “illegally marketed” as new drugs. Less than a month after revealing this crack down, however, Gottlieb announced his unanticipated resignation from the FDA.

In 1994, Congress passed the Dietary Supplement Health and Education Act (DSHEA). Among other things, the law gave the U.S. Food & Drug Administration (FDA) broad authority to prohibit misleading dietary supplement labels.