Amway (In short “American Way”) is an American multi-level marketing company/cooperation that sells health, beauty, and home care products. The company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan. Amway and its sister companies under Alticor reported sales of $8.8 billion in 2018. It conducts business through a number of affiliated companies in more than a hundred countries and territories. Amway has been investigated in various countries and by institutions such as the Federal Trade Commission (FTC).
In 1949, they were introduced to the Nutrilite Products Corporation by Van Andel’s second cousin Neil Maaskant. DeVos and Van Andel signed up to become distributors for Nutrilite food supplements in August. They sold their first box the next day for $19.50, but lost interest for the next two weeks. They traveled to Chicago to attend a Nutrilite seminar soon after, at the urging of Maaskant, who had become their sponsor. They watched promotional filmstrips and listened to talks by company representatives and successful distributors, then they decided to pursue the Nutrilite business. They sold their second box of supplements on their return trip to Michigan, and rapidly proceeded to develop the business further.
Their first product was called Frisk, a concentrated organic cleaner developed by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later changed the name to LOC (Liquid Organic Cleaner). They subsequently formed the Amway Sales Corporation to procure and inventory products and to handle sales and marketing plans, and the Amway Services Corporation to handle insurance and other benefits for distributors. In 1960, they purchased a 50% share in Atco Manufacturing Company in Detroit, the original manufacturers of LOC, and changed its name to Amway Manufacturing Corporation. In 1964, the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing Corporation merged to form the Amway Corporation.
Amway bought controlling interest of Nutrilite in 1972 and full ownership in 1994.
Nutrilite is a brand of mineral, vitamin, and dietary supplements developed in 1934 by Carl F. Rehnborg. Nutrilite products are currently manufactured by Access Business Group, a subsidiary of Alticor whose products are sold via Amway worldwide. The Nutrilite brand is known as Nutriway in Denmark, Finland, Norway, Sweden, Turkey, Australia and New Zealand.
The founders of Amway, Jay Van Andel and Richard DeVos, began as independent distributors selling Nutrilite products in 1949, at a time when the product’s previous distributors (Mytinger and Casselberry, Inc.) were involved in a dispute with the U.S. Food and Drug Administration (FDA), which accused them of false advertising. They rose rapidly to being top-selling distributors. Concerned about the FDA dispute, Van Andel and DeVos launched a new company, the American Way, (later known as Amway), to use the multi-level marketing system for other household products. The FDA/Mytinger-Cassleberry dispute, which went to the United States Supreme Court, was resolved in favor of the FDA in the 1960s.
In 2001, five Nutrilite products were the first dietary supplements to be certified by NSF International.
In 2007, the Simply Nutrilite (later renamed Nutrilite Trim Advantage Body System) line was introduced. The line includes meal replacement bars, anti-oxidant, and vitamin supplements.
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