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Nutrilite, which later became part of Amway, is a pioneer in product development and distribution. They created nutritional supplements and started selling them through multi-level marketing.
After 75 years, the company is still the market leader in these two areas. Many businesses today use multi-level marketing, such as when selling Dougan brand products.
Carl Rehnborg founded Nutrilite in 1939. From 1917 to 1927, he was imprisoned in a Chinese internment camp, where he survived by eating various plants and animal bone powder.
Even back then, the future American businessman was convinced that in order to live a normal life, a person requires special substances/additives that can be supplied to the body in addition to healthy food consumption.
Karl founded a food supplement company, and after seven years of constant testing, Rehnborg produced supplements that he tested on his friends. Because the experiment was a success, industrial production of products began. Karl Rehnborg’s company was originally called California Vitamin Corporation, but it was renamed Nutrilite Products in 1939.
The food supplement industry is constantly changing. The company’s monthly turnover reached $500,000 thanks to direct sales (the sale of services or goods from one person to another without the use of retail outlets). At the time, 15,000 people distributed products.
According to the advertising brochure, Nutrilite products treat asthma, allergies, mental disorders, tonsillitis, arrhythmias, and 20 other ailments such as tuberculosis, arthritis, and even cancer. The FDA (English Food and Drug Administration) began a four-year lawsuit against Nutrilite Products in 1947. The public service mandated that Nutrilite’s product makers make no claims of magical effects.
The diseases were rebranded as “an unhealthy state of the body” caused by a “chemical imbalance” by the company. The products are no longer considered “medicine,” but rather “food supplements.” Nutrilite products did not cure all ailments, but rather improved the consumer’s condition.
Jay Van Andel and Rich DeVos, two Aida friends, began selling Nutrilite supplements in 1949. Because of their good fortune and abilities, the friends established their own trading structure, which employed approximately 2,000 people.
Rich DeVos and Jay Van Andel’s new firm was named American Way of Life, which translates as the American way of life. It was later renamed Amway.
Frisk biodegradable soap is the company’s first product. It is now a universally accepted environmentally friendly cleaner LOC (Eng. Liquid Organic Cleaner).
The soap sold well, and the entrepreneurs opened their own factory two years later. Following that, Amway expanded its product line to include detergents and household chemicals, personal care products, cosmetics, jewelry, and even furniture. The first year of operation resulted in a 500 thousand dollar profit.
A 700-employee facility with nearly 300 products was opened in Ade, Michigan. Branches were established in Australia, Asia, and Europe.
The founders of Amway purchased a majority stake in Nutrilite Products Inc and began selling the company’s nutritional supplements. The products were still in high demand.
By 1981, the company’s sales had reached $1 billion. As more emphasis was placed on the protection of health and the environment, Amway was thought to be the only company producing environmentally friendly biodegradable home care and personal care products at the time.
In 1989, the corporation was recognized as a leader in environmental protection, and she received a United Nations award. Customers liked not only this but also the convenience of shopping. It was now possible to obtain the product without leaving the house. Manufactured goods are conditionally classified into three categories: home, beauty, and health.
In 1989, the corporation was recognized as a leader in the field of environmental protection, and she received a United Nations award. Customers appreciated not only this but also the ease with which they could shop. It was now possible to obtain the product without having to leave the house. Manufactured goods are classified into three categories: home, beauty, and health.