HERBALIFE ANNOUNCES RESULTS OF STUDY ON DISTRIBUTORS AND END USERS IN THE U.S.

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Study Finds That 3.3% of U.S. Adults, or 7.9 Million, Have Purchased Herbalife Products for Personal Use within Past Three Months

 

Company Appoints New Vice President of Consumer & Distributor Insights

 

LOS ANGELES –June 11, 2013—Herbalife Ltd. (NYSE:HLF) today released the results of a study conducted to determine the penetration of Herbalife distributors and end users in the U.S.  Herbalife engaged Nielsen, a leading global provider of information and insights into what consumers watch and buy, to conduct the research.

 

Conducted online during April and May of 2013, the survey was completed without intervention from Herbalife and the Company’s sponsorship was not disclosed. The survey was conducted among a nationally representative sample of entirely adults, aged 18 and over in the U.S., and balanced by key demographic indicators from the U.S. census, including age, gender, race, personal income and geographic region. With a sample size of 10,525 consumers, the survey had a margin of error of +/- 0.96%.

 

According to the research, 3.3% of the general population reported that they had purchased Herbalife products within the past three months, indicating that Herbalife currently has approximately 7.9 million customers when projected to the total U.S. adult population.  Herbalife customers would include their distributor network, which totaled approximately 550,000 in the U.S. as of the end of the first quarter 2013.[1]

 

“This survey, conducted by one of the world’s most respected research organizations, confirms what we at Herbalife already know to be true: that Herbalife’s products have a broad consumer base here in the U.S. – nearly 8 million in the last three months – and that the majority of individuals that purchase Herbalife products do so for personal consumption,”1 stated Michael O. Johnson, Herbalife’s chairman and CEO.  “Many of the national polls sponsored by major news organizations during the recent presidential election relied on sample sizes of 800 to 1,000 participants.  Importantly, in this research, the sample size of more than 10,000 consumers and the corresponding very low margin of error give this survey strong credibility.  Throughout our 33-year history, Herbalife has been committed to having a positive impact on the lives and health of our consumers while addressing global public health concerns: weight management and nutrition.  We look forward to continuing to create meaningful results and value for all Herbalife stakeholders.”

 

Additional findings from the market research include[2]:

  • ·         Past three month purchasers also claim to purchase Herbalife at a mean rate of every 2.2 months.
  • ·         Weight Management is the most commonly purchased type of Herbalife product for personal use, with 95 percent of past three month Herbalife purchasers claiming to have bought this type of product.

 

Johnson concluded, “We believe the results of this study substantiate our belief that many of those who attack our model lack a clear understanding of the direct selling industry, and Herbalife in particular.  Meanwhile, Herbalife continues to deliver record results in sales and profitability as our independent distributors go deeper into existing markets, developing more customers using our nutrition products every day.”

 

Herbalife Names Vice President of Consumer & Distributor Insights

Herbalife also announced today that it has appointed Monica Wood as Vice President, Consumer & Distributor Insights.  In this role, Ms. Wood will help advance Herbalife’s commitment to ongoing, in-depth market research.

 

Ms. Wood joins Herbalife from MWA, LLC, where she was an advisor to research agencies and corporate departments across the financial services, pharmaceutical and consumer sectors to develop best-in-class practices, training programs and consultancy skills across marketing research, consumer insights and data analytics. Prior to her role at MWA, LLC, from 2005 to 2009 Ms. Wood held a number of marketing and research positions at Novartis International AG, a Swiss multinational pharmaceutical company, which ranked number two in sales among the worldwide industry in 2010.  Ms. Wood most recently held the position Vice President of Global Marketing Services at the company from 2007 to 2009.  Earlier in her career, Ms. Wood also held consumer insights, commercial analytics and strategic planning positions at Toys “R” Us, Inc., Edelman Public Relations, Wyeth and the Campbell Soup Company.

 

Ms. Wood received a BS in Education from the University of Florida, and an MBA in Marketing from the University of Miami (Florida).

 

About Herbalife Ltd.

Herbalife Ltd. (NYSE:HLF) is a global nutrition company that sells weight-management, nutrition, and personal care products intended to support a healthy lifestyle. Herbalife products are sold in over 80 countries through and to a network of independent distributors. The company supports the Herbalife Family Foundation and its Casa Herbalife program to help bring good nutrition to children. Herbalife’s website contains a significant amount of information about Herbalife, including financial and other information for investors at http://ir.Herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted.

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