Herbalife Nutrition: A Global Nutrition CompanyMike Yatcilla, PhDSenior VP, Research & Development
Since 1980, we have been on a mission to improve nutritional habits around the world with great-tasting, science-backed nutrition products that help people get the right balance of healthy nutrition.
Our industry-leading meal replacement protein shakes, teas, aloes, energy, fitness and outer nutrition products cater to a variety of daily nutritional needs, offering choice to consumers in over 90 countries.
Our products are available exclusively through educated and trained Herbalife Nutrition distributors who provide comprehensive and personalized solutions to their customers nutrition and wellness goals. Distributors are independent entrepreneurs who set up their own businesses and decide when and where they work and do so on their own terms.
A GLOBALNUTRITION COMPANY
Herbalife NutritionKEY FACTS
Our company has never been more relevant because we are on the right side of some of the biggest global trends:
battling obesity
promoting healthy aging
addressing the rising cost of healthcare
providing opportunities to todays entrepreneurs
SNAPSHOT OF GLOBAL TRENDS
Review: Our Three Customer Goals
$98.7B $14.0B$16.1BHealth & Wellness Keep Fit/Look GoodHealthy Weight
5-Yr Fwd CAGR: 5.3% 5-Yr Fwd CAGR: 5.8% 5-Yr Fwd CAGR: 11.0%
Source: Euromonitor 20171. Healthy Weight includes: Meal Replacement, Slimming Teas, Supplemental Nutrition Drinks, and Weight Loss Supple
2. Health and Wellness includes: Vitamins Dietary Supplements and Aloe3. Keep Fit /Look Good: Sports Nutrition
4. CAGR Projections
Chart1Sheet1Sales1st Qtr21.672nd Qtr0.233rd Qtr1.44th Qtr1.2To resize chart data range, drag lower right corner of range.21.9Chart1Sheet1Sales1st Qtr21.672nd Qtr0.233rd Qtr1.44th Qtr1.2To resize chart data range, drag lower right corner of range.21.9Review: 2017 Market Size & Opportunity
19.7% 0.5 %
5-Yr Fwd CAGR: 5.3% 5-Yr Fwd CAGR: 5.8% 5-Yr Fwd CAGR: 11.0%
1.5%
$98.7B $14.0B$16.1BHealth & Wellness
Keep Fit/Look GoodHealthy Weight
Source: Euromonitor 20171. Healthy Weight includes: Meal Replacement, Slimming Teas, Supplemental Nutrition Drinks, and Weight Loss Supp
2. Health and Wellness includes: Vitamins Dietary Supplements and Aloe3. Keep Fit /Look Good: Sports Nutrition
4. CAGR Projections
Healthy Weight Health & Wellness Keep Fit/Look Good
HN ProductCategories*
Meal Replacements, Protein Boosters (PPP, PDM), Weight Loss
Supplements, Bars, Soups, Snacks
Targeted Nutrition, Aloe, Tea Sports Nutrition (H24, Liftoff, H3O)
* Herbalife Outer Nutrition not included
3 Customer Goals Product Categories
2009-2012
2013-2014
2015
2016
$3.5M+ investment
$5M+ investment
Changsha Lab BuildWinston Salem Lab Build
QMS Team Established, Global LIMS and EM Implementation
2009: HP1 Lab Build2010: LF Lab Expansion
Nanjing Lab BuildGenomic Lab @HP1
Accreditation and Compliance Team Established, ISO17025
Accreditation ReceivedOracle BI Tool Implementation
$2.5M+ investment
2003: Mark Hughes Nutrition Lab$3M+ investment
$500k investment
As part of our Herbalife Nutritions Quality Control strategy, we continue to invest in new technologies, build our talent pool and expand our current analytical capabilities to build our innovation pipeline.
2017-2018
Excellence in Quality Control
$4.0M+investment
DNA Lab @CSDNA Patent Submitted
In-house Metrology Lab BuNHP Research AllianceAgile BI Tool Expansion
2019
$4.5M+investment
Transparency InitiativeQMS Infrastructure Expansion
Global Resources of Worldwide R&D
Torrance Winston-Salem
Sao Paulo
Uxbridge
Bangalore
Changsha
SuzhouLake Forest
Shanghai
46 (CA) 12 (WS)1 (MX)
15
12* (BL)
9 (CG) 7 (SH)7 (SZ)1 (NJ)
India
ChinaEMEA
SAM/CAM
NAM/MX
As of 1/1/2019
3 Buenos Aires
3 (SG. MY)
Singapore
10 (UK)6 (PL)
Krakow
Guadalajara
2019 Q1 Headcount : 132* (73 in Ex-US Markets)23 Ph.D.
LEGENDBL: BangaloreCA: CaliforniaCH: Changsha
MX: MexicoNL: Netherlands
PL: PolandSG: SingaporeSH: ShanghaiSZ: Suzhou
UK: United KingdomWS: Winston-Salem
R&D Prioritization
We combine science with social selling by creating efficacious nutritional products that delight the consumer
and leverage the distributor experienceA dedicated team of nutritional science & food science professionals, combined with the value added through an educated social network, represents the best-known opportunity to significantly influence human health (weight
loss, sports and healthy aging) on a global scale.
Mission
Vision
Imperatives InnovationAmplify distributor
product vision through rapid prototyping, ingredient
discovery and research
Personalized NutritionCreate
assessment tools and products that
enable our distributors to
provide exceptional
results
RegionalizationCreate a global network of R&D
centers that meet needs regionally
Product Superiority
Continually test our products vs. competition and
ensure quantitative
superiority in taste and
perceived value
Continuous Improvement
Maintain a culture of challenging
norms and implementing improvements without delay
Global Technical Solutions
Provide global solutions in Superiority, Research, Ingredient
Discovery and IP Scouting
Scientific achievements 2017-2018
Herbalife Nutrition Scientific Publications and Presentations 2018
Future of Herbalife Nutrition Research
Tea
Aloe
F1 Safety
Tea
Aloe
F1 Safety
Personalized Nutrition
Healthy Aging
Behavioral Sports
2016-8 2019-23
How do we know what to work on?
High Impact, Difficult to Do:
Our strategic long-term pipeline
High Impact, Easy to Do:
Our Immediate Priorities for Development and
Launch
Low Impact,Difficult to Do:
These should be removed from our
lists
Low Impact, Easy to Do:
These are gap-fillers that should be rolled
out as appropriate
POTE
NTI
AL
IMPA
CT
FEASIBILITY
POTENTIAL IMPACTUniqueness
Competitive Advantage # of Allowed Markets
HerbalifeabilityFEASIBILITY
Continuity of Supply ChainForm, Fit, Function
Completeness of pre-market documentationRegulatory Acceptance
HighImpact
Low Impact
EasyDifficult
Rating Protein Options
High Impact, Difficult to Do:
These are our current targets for
investment / collaboration
High Impact, Easy to Do:
Our Current Suppliers
Low Impact,Difficult to Do:
These should be removed from our
lists
Low Impact, Easy to Do:
Can be implemented as stop-gaps as
needed.
POTE
NTI
AL IM
PAC
T
FEASIBILITY
IMPACT DRIVERSLow Cost/kgHigh PDCAASGreen Story
FEASIBILITY DRIVERS
Acres under commercial cultivation
Degree of Protein Isolation
HighMarket
Potential
Low Market
PotentialEstablished Supply ChainEarly-stage
Alternate Protein Opportunities
POTE
NTI
AL IM
PAC
T
FEASIBILITY
IMPACT DRIVERSLow Cost/kgHigh PDCAASGreen Story
FEASIBILITY DRIVERS
Acres under commercial cultivation
Degree of Protein Isolation
HighMarket
Potential
Low Market
PotentialEstablished Supply ChainEarly-stage
Autotrophic (green)Algae (aquaculture)
Shiitake mycelium
Duckweed (whole food)
Insect (Crickets)
Breadfruit
Heterotrophic (yellow)Algae (fermentation)
Soy
Canola
Rice
Gelatin
Pea
Chia
Hemp