Melaleuca continues 20-year growth streak, sales top $702 million

Idaho Business Review |

Melaleuca, The Wellness Company, a manufacturer of 350 health and wellness products sold directly to consumers around the world, recently reached a milestone by setting a new total-sales record in each of its first 20 years. Melaleuca increased its gross sales by 11 percent last year to $702 million, from $634 million in 2004.

The company's 20 straight years of record-setting revenue performance include double-digit revenue gains in each of the last four years.The company employs about 2,500, mostly in southeasternIdaho.

It markets strictly through word-of-mouth referrals from customers. Melaleuca shares its profits with existing customers who have referred new customers. Last month, the company sent more than 200,000 checks to its own customers throughout the U.S.and 54,000 checks to customers overseas.

More than 600,000 households order directly from Melaleuca each month, and 95 percent will order again the following month, officials said.

"I know of no other company that consistently has 95 percent of their customers return to buy again the following month," President and CEO Frank VanderSloot said. "Customers today are looking for natural products that prevent illness, eliminate toxins, make them look and feel better and live longer. Our consumers are loyal to Melaleuca because they understand our quality products are safer and far more effective than what is available through traditional channels."

Most growth comes from strong U.S.and Canadian operations, though international business accounted for nearly a quarter of Melaleuca's revenues in 2005. Last year, the company began operations in the Republic of Ireland. This year, it will begin operations in the Netherlands and Singapore, and it is currently seeking a direct selling license in China.

The company has recently established an overseas manufacturing facility for its Asian markets and retail store locations in China in the cities of Guangzhou, Shenzhen and Shanghai.

In 2006, Melaleuca will market its products in 14 countries and plans to continue its worldwide expansion.

After ranking as one of the nation's fastest growing companies for several years, Melaleuca was inducted into Inc. Magazine's Hall of Fame based on its longstanding record of continuous growth and profitability, an honor that only 81 companies have received, according to the Melaleuca statement.