Melaleuca, Inc
From Wikipedia, the free encyclopedia
 |
This article has been nominated to be checked for its neutrality. Discussion of this nomination can be found on the talk page. (May 2008) |
- This article is about the direct-consumer company; for the genus of plants, see Melaleuca
| Melaleuca, The Wellness Company | |
|---|---|
 |
|
| Type | Private |
| Founded | 1985 |
| Headquarters | Idaho Falls, Idaho |
| Key people | Frank L. Van der Sloot, President & CEO[1] |
| Industry | Health |
| Revenue | ▲ $782 Million Sales Graph 1985 to January 2007 |
| Employees | 2,500 |
| Website | www.Melaleuca.com |
Melaleuca, The Wellness Company , often called simply "Melaleuca", is a $780 million nutritional, cosmetic, and personal care products company founded in 1985 and headquartered in Idaho Falls, Idaho, USA.
Melaleuca was listed on the Inc. 500's list of fastest-growing companies in 1990, 1991, 1992, 1993, and 1994 and today is one of the largest privately owned companies in Idaho. [2]
Contents |
[edit] History
The company began under the name "Melaleuca Oil" with the offering of a single product called "T36-C5 Melaleuca Oil" which was formulated from extract of the melaleuca tree, commonly known as tea tree oil. A previous Melaleuca-based company by the name of "Oil of Melaleuca" operated as a standard multi-level marketing company whose literature made health claims the FDA would not approve. The company sold products whose uses and benefits were not verifiably documented. There were also exaggerated claims of the efficacy of the active ingredient, tea tree oil, and claims that the company was a sole source of the same, creating an impression of privileged access to a unique product.[3]
In 1985, the company was taken over by Frank L. Van der Sloot who dissolved the previous company and started this new company under the name of "Melaleuca, Inc.". In the transition, he created a new marketing plan and brought the company's product line into compliance with FDA regulations. He made the compensation plan more favorable to Marketing Executives, by establishing Consumer Direct Marketing. Independent Representatives were no longer required to sell products but instead became membership enrollment facilitators.
Melaleuca was recognized by Inc. Magazine as one of the fastest growing companies in the United States for five consecutive years (1990-1994). [4] In addition, Melaleuca has seen 22 years of consecutive growth since its foundation in 1985. Though sales reached $859 million in 2007, the company holds less than 0.5% of the North American marketplace.
Since Van der Sloot has taken the helm, the company has expanded internationally. Melaleuca now has over 2,500 employees as well as sales offices in Hong Kong, Japan, Australia, Taiwan, New Zealand, United Kingdom, and Netherlands and grossed US $782,000,000 in sales in 2006. [5] The company began sales in Singapore, Netherlands, and Jamaica in 2006.
[edit] Products and business model
While initially based predominantly on melaleuca plant extracts, the product line has since expanded beyond this initial focus. The company now markets over 350 items such as household cleaners, personal care items, pharmaceuticals and nutritional supplements. The company markets itself as being earth-friendly, and many of their products are certified organic. They also launched a cosmetics line in partnership with fashion designer Nicole Miller in January 2003.
Melaleuca has been outspoken against the abuses inherent to multi-level marketing and the damage they can cause. By contrast, Melaleuca does not allow inventory loading (a practice used by many multi-level marketing companies encouraging them to purchase up to thousands of dollars worth of inventory), limits the marketing chain to 7 generations, and prohibits "breakaways" (another practice commonly found in multi-level marketing). Another way it is different from typical MLM's is that Melaleuca does not require its marketing executives to maintain an inventory.[citation needed]
Melaleuca claims to focus on developing products that support a healthy lifestyle and are safer for the home. In the home, the company focuses on researching and bringing to market cleaning products that use more natural cleaning products that are claimed to be safer than "harsh chemicals." The company touts that its products are as good or better than what is found at the local grocery store, but without the bleach, lye, or other chemicals typically found in other brands. [6]
Melaleuca has developed an extensive line of nutritional products such as vitamin and mineral supplements which claim to promote heart health, cardiovascular, and blood pressure supplements, and a glucosamine product for healthy joints. They also have developed products using natural ingredients that the company claims support healthy vision, healthy prostate, healthy urinary tract, as well as other nutritional supplements. It also has a body and bath product line, beauty and makeup line, and weight management line.
The company uses a direct to consumer delivery model, where a customer can place an order via telephone or online (over the internet) and products are delivered to the door via postal service or national mail carrier.
