Melaleuca, Inc.

  • Overview

Melaleuca grows its sales from the ground up. Deriving its name from the tea tree (Melaleuca alternifolia), the company is a leading manufacturer and direct seller of more than 350 personal care and household products, many of which are environmentally friendly. Its products portfolio includes cosmetics, laundry care items, household cleaners, first-aid kits, and vitamins. They're marketed through a global network of independent sales representatives and through Melaleuca's website. Besides consumer products, the company offers home security systems in the US and Canada. The company was founded in 1985 to market a tea tree oil formulation called Melaleuca Oil.

Geographic Reach

Based in Idaho, Melaleuca operates its business primarily across North America, but also in Europe, the Middle East, and Asia/Pacific. 

Operations

Melaleuca has focused on growing its operations in recent years to boost its production capabilities. The company built a 223,000-sq.-ft. addition to its manufacturing and distribution center in Knoxville, Tennessee. It also built a 37,000-sq.-ft. plant near its headquarters in Idaho. The two projects cost more than $26 million, which represents just a portion of more than $110 million Melaleuca has poured into infrastructure investments since 2009 to support its business.

It's also moving in 2014 to new digs it has been building since late 2012. Having outgrown its existing home office, Melaleuca plans to unveil a new 371,000-sq.-ft. headquarters that will house both its domestic and international operations, sans the company's manufacturing and distribution.

Sales and Marketing

The consumer products company operates worldwide across 17 markets. It markets its products directly to its customers through catalogs and online. Rather than allocating funds to advertising, middlemen, and retail stores, Melaleuca focuses on scientific research and product effectiveness to get its name out.

Some 63% of Melaleuca's customers are only interested in the company's products. The remaining group pursues the financial opportunities offered through the company's direct sales model. One out of nine customers (or 11%) decide to start their own Melaleuca business and achieve director status or above.

Financial Performance

Melaleuca logged a 9% increase in worldwide sales to $1.13 billion in fiscal 2012. While it serves several global markets, the company posted its biggest gains in the US and Canada. While it continued to grow its business in North America in 2013, the company's international efforts accounted for 45% of its revenues that year.   

Strategy

The direct seller has extended the global reach of its sales force to make it less reliable on the US. Its brand is expanding throughout the Asia/Pacific region, especially in Japan, Taiwan, and South Korea. About a quarter of the company's revenues are generated outside the US. And even amid the global economic downturn, the company's revenues have been on an upswing in recent years. In 2014 Melaleuca extended its reach to Mexico, chasing after strong demand for its wellness items and the country's entrepreneurial spirit.

The direct-sales industry as a whole has seen an increase in the ranks of independent sales representatives as some companies have slowed hiring or reduced their headcount to stay afloat. Other individuals have also started careers in direct sales to supplement their existing incomes.

Company Background

CEO Frank VanderSloot took over Melaleuca in 1985, when it was much smaller and suffered from poor management. His focus on frugality has helped to drive the company's earnings and growth since then. VanderSloot, a devout Mormon with 14 children, also encourages sales representatives to support causes that espouse traditional family values. As such, the company has backed humanitarian efforts in the US and abroad through its Melaleuca Foundation. In recent years the foundation has extended assistance to Ecuador, donating time from volunteers and funds to support St. Lucia's Children's Home.

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Company News and Press Releases



Melaleuca, Inc.


3910 S Yellowstone Hwy
Idaho Falls, ID 83402-6003
Phone: 1 (208) 534-2473
Fax: 1 (208) 5282090
www.melaleuca.com

STATS


  • Employer Type: Private
  • President and CEO: Frank VanderSloot
  • Coo: Todd Sorenson
  • President and CEO: Frank VanderSloot

Major Office Locations

  • Idaho Falls, ID

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SALARY FINDER

SALARY FINDER

Health Service Administrator

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Yearly Salary Range (US$ Thousands)