Amway begins phased-in launch of new nutrition products plant in Michigan

$24 million plant will produce top-selling NUTRILITE® products

ADA, Mich., Feb. 15, 2012 — Amway will start producing some the company’s most popular NUTRILITE® products at a new three-story, $24 million manufacturing facility  that is expected to be fully functional by the second quarter of 2013. The operation is moving to Ada, Michigan, from the company’s production facility in Lakeview, California.

The new Michigan plant will employ more than 50 workers and support production for the nutrition category of Amway, which accounted for more than 40 percent of 2010 sales.

The 120,000-square-foot (11,148 m²) facility on the company’s mile-long Ada, headquarters complex, is the company’s first consumable goods plant in Michigan. It features state-of-the-art production technology, a $1 million quality assurance lab and an innovative work system.

“Amway continues to make strong investments in manufacturing so we can bring the very best quality of products to consumers and our distributors all over the world,” said Lauren Walker, vice president of Ada operations. “This is evident not only in our investment in infrastructure but also in our investment in human capital. Many of the employees at this plant will have had six months of skill development and team building before the first batch of product leaves this facility.”

The new facility will produce nutritional powder products such as POSITRIM®, a meal-replacement powder mix; ACTIVE 8®, a powder drink mix containing eight essential vitamins; and INVISIFIBER®, a blend of three types of natural, soluble, tasteless fiber that is sold in individual packs.

It will also produce a reformulated, NUTRLITE All Plant Protein Powder made of a tri-blend of soy, wheat and pea. The powder is lactose and cholesterol free.

Walker said the company used the opportunity of a new facility to rethink and restructure its work system, with employees’ input. The new system not only improves efficiency and quality assurance, it also creates a new career path for employees while ensuring Amway remains competitive in the long term.

The system includes: 
• Individual weekly work schedule of three 12.5-hour days on, three and a half days off  
• Quarterly rotation of day/night shifts and work days
• Cross-training of employees including training to use all the equipment

“We value the input of our employees and continue to empower them to create best practices for their work environments,” said Kelly Savage, chief human resources officer at Amway. “The result is engaged employees who are invested in the process and proud of their work.”

In 2010, Amway announced a series of changes to its supply chain structure aimed at improving the global direct selling leader's competitive position. Among those changes, the company announced it would close the Lakeview operations by 2013, with some operations relocating to existing facilities at the company’s headquarters in Michigan, Buena Park, California and company farms in Washington State, Mexico and Brazil.

NUTRILITE is the world’s No. 1 selling vitamins and dietary supplements brand*, and it’s sold exclusively by Amway and its distributors throughout the world. NUTRILITE is the only global vitamin and mineral brand to grow, harvest and process plants on its own certified organic farms.**

About Amway 
Amway (amway.com) is one of the world's largest direct selling businesses. Alticor Inc., parent company of Amway, reported global sales of $9.2 billion in 2010. Founded in 1959 and based in Ada, Michigan, USA, Amway offers consumer products and business opportunities in more than 80 countries and territories worldwide. The top selling brands for Amway are NUTRILITE® vitamin, mineral and dietary supplements, ARTISTRY® skincare and colour cosmetics, and eSpring® water treatment systems. The company provides product development, manufacturing and logistics services through its Access Business Group and Alticor Corporate Enterprises divisions. For company news, visit globalnews.amway.com. For media questions: contact Public Relations at 616-787-7565 (Michigan, United States) or mediainfo@amway.com
 

*Source Euromonitor International Limited; Vitamins and Dietary Supplements, World, Retail Value RSP, 2010.
**Source Euromonitor International Limited; Based on 2010 RSP sales (US$) of Vitamins and Dietary Supplements (Euromonitor definitions) across all retail channels. Brand owners must have a global presence and own farms where inputs used in the manufacture of a brand are planted, grown and harvested, these facilities must also be organically certified and brand owners must own all production facilities used to challenge the claim. Based on Euromonitor research for Amway Corp. To the extent permissible, Euromonitor does not accept or assume responsibility to any third party in respect of this claim. Further information is available upon request.