NewAge, Inc. - Company of the Year - Consumer Products
Company: NewAge, Inc., American Fork, UT, USA
Company Description: NewAge is a purpose-driven firm intending to become the world’s leading social selling and distribution company. Colorado-based NewAge commercializes a portfolio of organic and healthy products worldwide through primarily a direct route-to-market system. The company operates the websites newage.com, noninewage.com, ariix.com, mavie.com, thelimucompany.com and zennoa.com.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Company of the Year - Consumer Products - Non-Durables - Medium-size
Nomination Title: NewAge, Inc.
NewAge was created in mid-2016 with a strategy of developing aportfolio of healthy (beverage) brandsdriven through a(direct) route-to-market. The company offered iconic brands such as Nestea, Evian, and others. In 2018 NewAge merged with Morinda, adding direct-selling to the company’s sales channels. In 2019, NewAge evolved from a $50 million company to one with net revenue above $250 million. 2020 first quarter results revealed a net revenue increase of 9.2%. Better yet, through strategically innovative measures, at the close of 2020, NewAge celebrated a net revenue increase of 53%. This achievement is owed greatly to the partnership with ARIIX, which included four additional direct-selling companies:
Noni, https://noninewage.com/en-us
LIMU™https://thelimucompany.com/
Zennoa® https://www.zennoa.com/ and
MaVie® https://mavie.com/en/
As a result, NewAge has expanded from healthy beverages to broader healthy products with greater functional differentiation. Our channels are more focused, shifting from traditional retail with a direct route-to-market to direct-to-home and e-commerce channels. NewAge is now poised to become a globally leading social selling company with a unique omnichannel route to market, depth in the e-commerce and direct selling channels with a team of more than 400,000 independent representatives, and a portfolio of healthy products unrivaled in the industry.
2019
Launched Noni+Collagen in China with >$600,000 in revenue in the first three days
Entered global CBD market with portfolio of topicals into 60 markets worldwide
2020
Donated immune-system relatedproducts to aid the fight against C-19 including:
-2.9 million RMB of Tahitian Noni® Juice to hospitals throughout China
-Expansion of the product ‘Nhanced™ Cell Defense, an immune-supporting dietary supplement, including accelerated donation efforts
Acquired ARIIX, unifying a team of over 400,000 independent representatives spanning four companies:
-ARIIX: One of the fastest-growing direct selling companies with over 17% CAGR 2015-2019, and a revolutionary nutritional performance portfolio
-Zennoa: A portfolio of superfood-based dietary supplements, beverages and fermented foods, with its largest presence in Japan
-LIMU: Global leader in Fucoidan-rich, seaweed-based nutritional products with over 2,000 independent research studies on its proprietary supernutrient
-MaVie: DNA mapping and wellness company with predictive genomic sequencing and DNA customized nutritional products
Merging five companies successfully and contemporaneously is extremely challenging. To do so, NewAge offers a multi-line compensation plan, integrated payment systems without interruption of pay, product unification, and the dedication to ensure each integrated company retains its culture as a NewAge brand.
Achieved global recognition by ranking No. 29 on the 2021 Direct Selling News Global 100 list of the top revenue-generating direct selling companies worldwide.
2021
Launchednew Children’s Multivitamin with better absorption for immune system support
Acquired Japan-based Aliven, Inc, adding $20 million in net revenue
Launched reef-safe, ocean-friendly Lucim Mineral Sunscreen SPF 30
Despite the challenges of convergence compounded by a global pandemic and economic insecurity, NewAge has gained growth in all sectors and business segments, having reached $500 million in pro forma net revenue in 2020 up from $254 million in 2019, a growth rate of 98%. NewAge’s direct-to-store segment grew 8.3% organically, while NewAge’s Social Selling Segment comprised the bulk of the increase with triple-digit growth in Europe and Mexico, strong organic growth in the U.S., and a resurgence in both China and Japan. Additionally, NewAge’s first-quarter 2021 net revenue is up 97% to $125.5 million.
In addition to the mergers, product launches and revenue growth, other highlights include:
-Divested BWR and other retail brands, improving EBITDA(1) by more than $15 million
-Identified more than $20 million in cost synergies, captured more than 50% already
-Strengthened balance sheet and financial flexibility with almost $100MM in cash
-Net operating loss improved by $6.9 million
While other companies in the direct selling industry have experienced a sharp decline, NewAge’s innovative vision, strong social selling focus, and direct route-to-market approach are seemingly pandemic and recession resilient.
And we’re still growing! Recently, acquired Aliven Inc., one of Japan’s most recognized and admired companies. Aliven is anticipated to bring approximately $20 million in annualized net revenue and more than $3 million in annual EBITDA to NewAge. With it also are 100,000 customers and independent representatives set to join the NewAge Group.
A true disruptor in the direct selling industry, moving beyond outdated business models, NewAge is welcoming a “new age” by becoming a category creator, combining direct sales with social selling and e-commerce. Through this innovative and strategic platform, the company is boldly claiming “the world” as its primary market of emphasis, with a global vision to help people transform their lives in unrivaled ways.
Despite a Herculean task, of combining systems, brand strategies, compensation plans, and culture, NewAge has succeeded, all while accelerating sales growth and business momentum. The NewAge Group is a unified force of brand partners, aspiring entrepreneurs, and micro-influencers creating businesses that can be operated from nearly anywhere in the world.
The URL links provided relay the story of the company's progress through press releases since 2019. While not all-encompassing, the links selectedprovide additional insight into the significant accomplishments that have resulted in a robust and rapid-paced strategy for what will soon be the world’s leading social selling and distribution company.
Through our efforts to partner with other direct-selling companies, further diversify our products and opportunities to help transform lives worldwide, we firmly believe NewAge is a “Best Company of 2020!”
We appreciate your time and consideration.