Amway to close its Nutrilite facility by 2013
This is not news that will particularly affect Amway/Quixtar IBOs much. But the article does point to huge, important, and long-term trends that are affecting all network marketers:
Amway Corp. will close its facility in Lakeview that has grown and processed the Nutrilite line of dietary supplements for more than a half century, the company said in a recent statement.
The shutdown will eventually affect 150 employees and be phased in over three years, the Michigan-based company said. Amway said it is closing the factory and downsizing several others because much of its customer base is now international.
Some of the Lakeview work will be shifted to a processing facility in Buena Park, which is expanding its capacity, and some to a plant near Amway’s Ada, Mich., headquarters. Other jobs will go to Washington state, Mexico and Brazil.
“More than 80 percent of our customers buy our products outside the United States and Amway needs to update its supply chain to reflect that,” Steve Van Andel, Amway’s chairman, said in the statement.
Rob Zieger, Amway’s director of corporate communications, said that moving Nutrilite’s agricultural production to another state and two Latin American countries will give the company more acreage and allow it to produce more.
“A cutback in capacity is not what we’re doing,” Zieger said in a telephone interview.
Privately held Alticor Inc., Amway’s parent company, announced in March it had sales of $8.4 billion in 2009. Amway does not release breakdowns of individual brand’s performances.
…”It was a very tough call but in the end we had to make some decisions about how we can be more efficient,” Zieger said.
See my comments in the video toward the upper right of this page.