At the core of Alticor, there's Amway. Holding company Alticor operates direct-selling giant Amway International and North American Web sales affiliate Amway Corp., which does business as Amway Global. Its Access Business Group offers manufacturing and distribution services, primarily catering to the Amway units but also to contract clients. Outside the direct-sales realm, Alticor Corporate Enterprises operates resort management firm Amway Hotel and health diagnostics developer Interleukin Genetics. Formed in 2000, Alticor is owned by Amway's founders, the DeVos and Van Andel families.
Alticor is the parent company to Amway, Access Business Group LLC, and Alticor Corporate Enterprises.
Collectively through its network of businesses, Alticor serves more than 100 countries and territories worldwide. The company offers consumer products and business opportunities not available elsewhere. Its services include product development, manufacturing, and logistics. Besides Alticor's Amway Hotel and Interleukin Genetics businesses, the company operates several other unique entities. Its Metagenics unit, a global life sciences company, focuses on reversing chronic illness and on improving health through nutrition. Fulton Innovation, another subsidiary, is a technology licensing company. Its KinDex Therapeutics unit concentrates on the discovery of molecules associated with chronic disease.
In 2016 Alticor sold upscale cosmetics maker Gurwitch Products (known for its Laura Mercier and ReVive brands) to cosmetics maker Shiseido Americas Corporation.
Sales and Marketing
Amway boasts more than 3 million independent distributors worldwide. China has become its largest market. It's a well-known multi-level marketer and direct seller of household, personal care, nutrition, and cleaning items. The company also peddles the products of other companies worldwide in more than 80 markets.
Based in Ada, Michigan, Alticor's headquarters spans more than 1 million sq. ft. The company owns or manages manufacturing and distribution facilities worldwide. It boasts manufacturing facilities in the US, China, Vietnam, and India and oversees organically-certified farms in the US, Mexico, and Brazil for growing food supplements. Alticor's distribution facilities are located in North America, Europe, and the Far East.
While privately-owned Alticor doesn't report its results, Amway reported global sales of $10.8 billion in 2014, down from $12 billion in 2013.
The company's success depends on setting up Independent Business Owners (IBOs) to sell its name-brand products, but more importantly build its network. The company has been accused of focusing on new IBO recruitment rather than on selling and developing new products or services. Although individuals are required to pay a membership fee, Amway asserts that they can then buy its products and sell them at a 20% to 25% markup. IBOs that recruit get a cut from the sales made by those members.
The direct-selling business model is popular; Amway reaches across North America and Europe. Its focus, however, is increasingly on Asia's fertile market. Sales from its Amway China and India units are anticipated to jump by double-digits as consumers increase retail spending. The company deepens its presence by outsourcing its manufacturing operations to third parties in the Asia/Pacific region as well as by aligning its product design and branding around their cultures.
To this end, Amway is investing $335 million in manufacturing and research and development expansion. The initiative involves upgrading four factories in the US, building a new manufacturing facility in India, and adding second sites in both China and Vietnam. In 2013 Amway broke ground on a new $95-million production plant in Tamil Nadu, India, set for completion in 2015. Its second plant in China will be located in Guangzhou; the $75-million facility is slated for completion by 2016.
Alticor continues to invest in its supply chain, manufacturing, and scientific resources to ensure distributors have access to products when and where they need them.
Mergers and Acquisitions
In 2015 Alticor purchased energy drink brand XS Energy, which the company says has $150 million in sales in nearly 40 global markets. XS Energy creator David Vanderveen is a former Amway salesman.