NEWS FROM AROUND THE WORLD
inside 12
16 features 8 | 2008 Year in Review
A record-breaking effort even in the toughest of times.
12 | L.A. Live
H erbalife moves into new corporate headquarters.
16 | Helping Hands
Impacting the lives of at-risk children in Colombia.
18 | You Don’t Know Jack!
Up close and personal with our VP of business development.
20 | Mark Hughes Day 2009
// cover photo by roger dela rosa //
Celebrating our founder and his unparalleled vision.
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departments 4 | Ask MOJ
Learn straight from our CEO, “Why Herbalife, Why Now?”
5 | Herbalife Happenings
Revealing where to go for ‘everything Herbalife.’
7 | From the Expert
Six tips for reducing belly fat.
10 | Green Success Stories
See how our employees support a better environment.
14 | What Do You Do?
Team Herbalife members and the important roles they play.
15 | Science Talk
Shaking up our clinical studies.
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Ask MOJ
Q | Why Herbalife, Why Now? A|
I’ve traveled around the world talking to our Distributors about Why Herbalife, Why Now? Here’s why it’s important for our employees:
Why Herbalife: Are you a product of the product? Do you walk the talk? The best way to represent our brand is to use our products and know our marketing plan. Our Formula 1 shake is a complete meal. And when you understand how our marketing plan works, you can better relate to Distributors and understand how they got to be where they are today. Why Now: Herbalife is at the intersection of health and wealth. We offer a solution to both the global obesity epidemic and the worldwide economic crisis. Our company is proven and powerful. Look at the facts: 29 years of financial growth and success; more than 1.9 million Herbalife Independent Distributors in 70 countries; outstanding nutrition products developed by leading scientists and formulated to support your healthy, active lifestyle; a global brand; and, even in tough economic times, we continue to help children in need through the Herbalife Family Foundation's Casa Herbalife programs on six continents. Why Herbalife, Why Now? People need our Herbalife® products and business opportunity now more than ever. Proven. Powerful. Now is the time.
THIS IS YOUR MAGAZINE
If there is something you’d like to ask MOJ, or have any comments and questions, email us at: InsideHerbalife@Herbalife.com. 04 | insideherbalife
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Herbalife Happenings
One Site for Everything Herbalife In February, we launched our first-ever global corporate intranet. The intranet is our one-stop destination for ‘everything Herbalife’ where we can find news about our company – including Herbalife news, company resources, useful links to internal and external sites, videos and other helpful information. Each region has its own section with more local information. This is the first phase of the intranet, which will evolve as we get a better understanding of how it’s being used and the best ways to provide information. It was designed by Andres Podesta and his team (pictured above) who also oversaw the programming and development of the site. To access the intranet and listen to our “5 minutes” episode, just type “intranet” into your browser.
Puttin' on the Glitz, Herbalife Style Beverly Hills certainly has its share of celebrities, but this star-studded town had never seen so many superstars in one place as it did at this year's Honors. Kicking off this year’s event was a tour of the new Herbalife headquarters at L.A. Live, downtown L.A.’s new premier destination. Adding to the momentum from this incredible experience was the “Dream Team” of speakers that provided a forum of inspiration and leadership, sharing strategies and ideas that helped everyone raise the bar and realize their dreams. The theme: Proven. Powerful. Now is the Time, and listening to these powerful speakers and their stories proved just how perfect the time is for Herbalife. Herbalife celebrated Old Hollywood style at the Coconut Club gala, benefiting the Herbalife Family Foundation. And speaking of celebrities, what about the incredible Mark Hughes Bonus Awards party with the biggest bonus payout in Herbalife history.
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... Herbalife Happenings
Closer to HOME
Sponsorship Updates
Herbalife Order Management for the Enterprise (HOME) is the single biggest project our company has ever undertaken. This world-class system will allow us to better manage our business and will support growth by increasing process globalization, reducing system downtime and providing a more stable and efficient data processing environment. All of this means our Distributors and employees will be happier with a new system that’s more robust and developed on a modern technology platform. So how close to HOME are we?
Amgen Tour of California
HOME has completed its rollout to all regions except EMEA. In addition, China is the one market that will remain on a stand-alone system set for the time being. EMEA is slated to cutover to Oracle in July, and this is the most complex region with 37 markets, multiple time zones, languages and taxing regulations. Because of the additional challenges associated with the region, our IT team has ‘all hands on deck’ for this rollout. We originally had split the IT team into four groups – one for each region. With fornitoreall nutrizionale ufficiale Internazionale but EMEA completed, all four teams (aboutF.C.45 IT employees) have been combined into one very experienced implementation team. This should help to ensure the EMEA launch is flawless. What’s in store for the team after the EMEA launch in July? First, make sure all the quirks in the system are eliminated. They will drive towards stabilization by having four ‘war rooms’– Rome, Moscow, Venray and Herbalife Plaza – open 24/7 for the first two weeks after cutover. This will ensure they can address issues quickly, improve system performance and maintain the high levels of service our Distributors expect. Once those two weeks are over, the team will start the transition to standard production support and turn its attention to the decommissioning of HP3000. This is the system that we used prior to ORACLE and had been customized for things like the Mark Hughes Bonus Awards and requalifications. Oracle's phase two will focus on making post-launch improvements to the system. All regions will begin to leverage the advantages of being on a common platform. 06 | insideherbalife
The largest cycling race in North America, the Amgen Tour of California, pedaled its way across southern California in February and Herbalife was the Official Nutrition Company and Presenter of the sprint jersey. After nine challenging days, Levi Leipheimer of Astana was crowned champion of the 2009 Tour. With over 2,000,000 fans and viewers, our Distributors sampled over 10,000 shakes and gathered leads at each stage of the race in our new interactive sampling mobile, which is wrapped in Herbalife logos and colors. The mobile unit also has a lounge-like area for BMI (body mass index) measurements and fitness-oriented video games.
official nutritional supplier F.C. Internazionale
official nutritional partner F.C. Internazionale
partner nutrizionale ufficiale F.C. Internazionale
Internazionale F.C.
In February, we became the Official Nutritional Supplier of Italian Football Club Internazionale ("Inter") for the 2008/9 season. As part of the deal, our H3O Pro Isotonic Drink, available throughout Europe, will become the isotonic drink of Inter, the current Italian league champions based in Milan. Herbalife and H3O Pro Isotonic Drink signage will now be seen by thousands throughout Inter's home stadium, as well as through their many multimedia channels, including the club magazine, cable TV channel and in-stadium broadcasts. Statistics show that about 40 million people in Italy are fans, making this a great way to display our Herbalife brand.
* insideherbalife
RECEIVES AWARD OF EXCELLENCE
Inside Herbalife received the PRISM Award of Excellence from the Public Relations Society of America, which annually recognizes outstanding programs and materials created by public relations professionals.
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From the Expert Luigi Gratton, M.D., Vice President of Medical Affairs and Education
Q | Dr. Luigi, we keep hearing so much in the news these days about the dangers of belly fat. Why is it so dangerous, and what can we do about it? A | Belly fat is more dangerous to our health because, unlike fat on the hips and thighs, it secretes a number of hormones and other factors that set the stage for the development of some chronic diseases - particularly heart disease and diabetes. The good news is that belly fat is easier to lose than fat on the lower body.
HERE ARE SOME TIPS FOR REDUCING BELLY FAT. EXERCISE REGULARLY Regular exercise burns calories, so it reduces overall body fat as well as the ‘hidden’ belly fat. Strength training helps too, since it helps to build muscle that in turn burns more calories, which facilitates weight loss. KEEP YOUR CALORIES IN CHECK AS YOU GET OLDER Even if you stay active, your metabolic rate declines with age. If you don’t adjust your calorie intake, you’re likely to see your waistline getting larger each year. Keep tabs on your weight to avoid creeping obesity. WATCH THE CALORIES IN YOUR FLUIDS If you drink beverages like soda, lemonade, sweetened teas and fruit juices, you could be drinking a lot of your calories. Try to eat your fruit rather than drink it, and aim to make most of your beverages calorie free. AVOID THE TRANS FATS While our foods have fewer trans fats than they used to, these fats still lurk – especially in snack foods and baked goods. Be diligent about reading labels and try to avoid trans fats – large population studies have shown trans fat intake is associated with an increase in belly fat. DON’T MAKE FOOD TOO EASILY AVAILABLE The more readily available foods are, the more likely we are to eat them. Don’t keep tempting items in your desk where you can easily reach them, and avoid the vending machine if that’s your downfall. Keep tempting foods at home in opaque containers so they’ll be less enticing. GET ENOUGH SLEEP The odds of gaining weight are much higher in people who sleep five hours a night or less versus those who sleep at least seven hours. Sleep-deprived people experience an increase in appetite for carbs and sweets – which often go straight to the waistline.
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2008 YEAR
2008 was another record-breaking year for us. Here’s a quick look at some of our updated figures:
1.9 million Herbalife Independent Distributors worldwide. Operating in 70 countries. Retail sales of $3.8 billion / Net sales of $2.4 billion. 3,900 employees worldwide. Over 40 Casa Herbalife programs on six continents; nine new programs funded in 2008. The Herbalife Family Foundation fed over 12,000 kids every day in 2008.
When your friends or family ask you, “What's Herbalife?” you can say: “We are a global nutrition and direct-selling company. Our products include protein shakes; protein snacks; nutrition, energy and fitness supplements; and personal care products.”
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Green Success Stories
In addition to our “Mug Shots” program introduced last year (you can view photos on the intranet), take a look at how our employees Live Green at work and at home.
Claudia Del Valle, Coordinator, North America Marketing. Herbalife Plaza
Eileen Wong, Supervisor, Logistics Services. Herbalife Plaza
Mila Rodriguez-Mancha, Administrative Assistant. U.K., EMEA
This year, I decided to reuse paper instead of buying wrapping paper. More importantly, I involved my 5-year-old nephews Isaac and Jesse. We reused grocery bags, and then drew holiday images such as Christmas trees, snowflakes and snowmen. We helped the environment while having a great time.
Three years ago I bought a hybrid vehicle to commute to work. The car’s fuel consumption meter has helped me change my driving habits, and I get between 46-50 MPG. The green car led me to more greener areas in my life. At work, I bring my own ceramic plate/bowl, fork and spoon. I've used my own mug at work for several years. I even brought in a dish towel. I drink water from a reusable bottle and store my food in reusable containers. I turn extra paper into scrap paper, and even used it to make office snowflake decorations. I often make a salad for lunch and take home the vegetable scraps (apple cores, cucumber ends, lettuce stems, carrot peelings and avocado skins) and put them into a composter to make fertilizer.
I have always been passionate about ‘Live Green’ issues. Since working at Herbalife, I make sure all my paper is recycled, even taking old newspapers home to recycle before the bins were put into place in the office. I enjoy helping the team brainstorm new ‘Live Green’ initiatives and have been key in projects that have been put into place such as the book swap and the “Mug Shots” program. I look forward to getting involved with more green projects this year.
P.S. After the presents were opened, the paper was recycled.
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Maciej Targosinski, Daniel Szóstkiewicz, Krystian Szczesniak and Ewa Mazur, Warehouse. Poland We started to recycle used pallets. In the past, the pallets were thrown away, but since mid-July we started to recycle them, saving trees and money. For each pallet we get about US$2 that goes to the Herbalife Family Foundation.
Anna Mazurowska, DR representative, Marcin Kucharski, sales & marketing representative and Piotr Suwała, sales order representative. Warsow, Poland We each travel over 12 miles to work each way – all of us in our own car. For the last few months, we have been taking turns driving to work. This limits CO2 emissions, gas use, puts fewer cars on the street and brings our trio closer together.
JJ Licea, Manager, Assembly, Labeling & Rework. LADC After two years and collaboration with The Department of Water & Power, The Port of Los Angeles and the Air Quality Management Department, we were able to have the first private school in the South Bay “go green.” From the beginning, I knew it would require a lot of time and effort to get the donors/ sponsors needed to make this project happen. After forming some important partnerships, I presented this project to the school at no cost to them – a huge accomplishment. My next plans are to have the school kitchen renovated and I am currently talking to other organizations to ‘green’ the school’s athletic field by using turf made from 100 percent recycled tires.
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Photo: Benny Chen / Fotoworks
Photo: Benny Chen / Fotoworks
Herbalife Moves to L.A. Live In December, over 100 employees moved into our new worldwide corporate headquarters at L.A. Live in downtown Los Angeles. With the L.A. Convention Center next door and all of downtown L.A. at our fingertips, we’re in the perfect spot for entertaining our Distributors from around the world. Heralded as the “Times Square of the West,” L.A. Live is a place where entertainment, retail, corporate and residential come together in one location. This is a destination showplace for our Distributors who visit from around the world. We know they’ll be impressed when experiencing the Recognition Wall, Sponsorship Hall and other features. We have made a long-term commitment to revitalizing downtown L.A., including building environmentally friendly offices. Our new space is progressive, stylish and green. It was constructed following the strict guidelines outlined by the United States Green Building Council in order to reduce our impact on the environment. For starters, we’ve reduced water usage, increased natural lighting, used environmentally conscious materials and are located next to public transportation.
When it comes to going green, less is definitely more. Less gridlock; less water; less energy = less waste.
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What Do You Do? Rosario Morales Fresco Ethics and Business Practices Representative | Bolivia, South America Rosario joined Herbalife in February 2008 and works with Distributors to disseminate the message, “You are the brand.” This means respecting all of our rules of conduct and policies. She is a working mom who loves to spend her spare time with her 5-year-old daughter.
Eduardo Garrido Salazar Sales Center Supervisor | Acapulco, Mexico Eduardo and his team are all about having a great attitude towards our Distributors. Eduardo is known for his dynamic energy and enthusiasm, and the extraordinary support he provides. Being in charge of our sales centers is no easy task, but for Eduardo, assuming this responsibility and helping our Distributors has been very rewarding.
Salvador Manzano Copy Editor / Proofreader, Global Creative Services | L.A. Live, North America Salvador is responsible for reviewing, rewriting and editing copy for corporate materials in both English and Spanish – including this magazine. He also ensures that copy in different languages is consistent to our branding and style guides – this includes proofreading product labels for 70 countries.
Henry Duan Customer Service Assistant | Shenzhen, China Henry won an employee service award in 2008 for the wonderful relationships he builds with sales employees and for providing quality service in everything he does. Henry is sure to always have a smile on his face because he believes that smiling is a reflection of being happy and positive.
Diane Chen Marketing Manager | Taiwan, Asia Pacific Diane plays a key role in developing the marketing strategy to support Taiwan’s growth. Her responsibilities are to increase brand awareness, identify new opportunities for sponsorships and create successful promotions and product launches. Diane works closely with her team to develop innovative and quality promotion (AOP) items and provides the best possible support to drive business performance.
Viviana Lignelli Sales, Strategy & Support Coordinator | Uxbridge, England, EMEA Viviana has been on Team Herbalife for four years and says that every single day has been very different. This freshness and variety is one of the reasons she enjoys being the link between North America and EMEA with regards to implementing projects. She also coordinates Distributor recognition, certain sales initiatives for 2008, and giveaway ideas at events. The highlight of her job is the fact that she works with so many different people, including top Distributors, marketing, finance, sales and corporate communications. “I get a 360 degree vision of the business and I love it,” says Viviana.
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Science Talk
Clinical Study Shows:
Formula 1 Healthy Meal – A Proven Way to Lose Weight
Three clinical studies have been completed that show the effectiveness of Formula 1. The studies, conducted at University of California (UCLA*); University of Ulm, Germany; and Seoul University National Hospital, Korea, showed that using Formula 1 meal replacements twice a day led to effective weight loss. Individuals in the studies who had certain weight-related conditions showed improvement in those conditions as a result of using Formula 1 shakes for weight loss. The studies in Germany and Korea were conducted by members of our Nutrition Advisory Board, Drs. Marion Flechtner-Mors and Belong Cho†, respectively. The results of the UCLA* study were published in Nutrition Journal, August 2008; while the Korea results appeared in The International Journal of Clinical Practice, February 2009. Dr. Flechtner-Mors presented in October 2008 at the annual meeting of the Obesity Society in Phoenix, Arizona, and at the European Congress of Obesity in Geneva, Switzerland. * The University of California does not endorse specific products or services as a matter of policy. † Belong Cho was a member of Herbalife’s Nutrition Advisory Board.
We currently have five clinical studies being conducted at major universities in the United States and abroad. To learn more, visit the intranet.
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Casa Herbalife Colombia
Sets New Fundraising Record
If you’ve ever wondered whether wishes come true, just ask Sylvia Lara, director of our Casa Herbalife program at Asociación Probienestar Infantil (APROBI), in Bogota. When we launched the program in 2007, Sylvia shared her vision for increasing APROBI’s impact by adding a new building to its existing facility. In true Herbalife fashion, our Distributors launched what quickly became one of the largest local fundraising efforts in the Herbalife Family Foundation’s history and made this dream a reality. Recently, the new building, which now houses a formal dining area as well as additional classroom space and a soon-to-beopened library, was inaugurated with a huge celebration. HFF Executive Director Robyn Browning, Chairman’s Club members Eduardo Cuellar and Sylvia Anzola, and the City of Bogota’s first lady, Cristina Gonzalez de Moreno, attended the opening. This was an incredible occasion for HFF and proves that with the support and passion of our Distributors and staff, dreams really do come true. To learn more about HFF Casa Herbalife programs around the world, please visit: HerbalifeFamilyFoundation.org. insideherbalife | 17
Did you know that… Jack is a product of the products? Before joining our company, Jack lost 32 pounds by using our products and has a shake every day.* Jack has visited more than 500 Nutrition Clubs around the world and traveled to over 45 Herbalife countries — spreading the best practices of Nutrition Clubs. For more on Nutrition Clubs and Jack, listen to our “5 Minutes” episode on the intranet. *Results not typical. Individual results will vary.
You Don’t Know Jack! As vice president of business development, Jack Kavulich has responsibility for analyzing business opportunities and globalizing new programs. One program that has literally taken Jack to the corners of the globe is Nutrition Clubs. Like other great Business Methods, Nutrition Clubs support daily consumption of our products and are increasing sales revenues. Nutrition Clubs are the brainchild of a Distributor and started seven years ago in Mexico. They’re social events where guests are invited into someone’s home or commercial space to enjoy complimentary samples of shakes, teas and aloe, and learn about a variety of wellness topics, and enjoy different social activities. Now, there are approximately 47,000 clubs in 44 countries. Jack brings an interesting perspective to his work, having taught religion to high school students and serving as a guidance counselor.
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Nutrition Club | Washington
Nutrition Club | Washington
Nutrition Club | Korea
Nutrition Club | Taiwan
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australia
korea
“Together,
russia
we can all make this a better world...” — Herbalife’s Founder Mark Hughes, 1956-2000
peru
thailand taiwan
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ukraine
hp1
hong kong
japan
china singapore
russia
2009 WORLDWIDE CORPORATE ALLIANCE CALENDAR REGION / COUNTRY
TEAM SPONSORSHIPS
1ST QUARTER
2ND QUARTER
ASIA PACIFIC
Hong Kong Stanley Dragon Boat Race / Hong Kong / May Japan Korea Marathon / Seoul / May Philippines Subic Bay Tri / 05.11 Taiwan Thailand CHINA
China Chinese National Cycling Team
EMEA
Belgium KV Mechelen Football Club Denmark Lyngby BK Old Boys Finland Finnish National Ice Hockey Team France RC Strasbourg Soccer Team Xterra France / Gerardmer / TBC in Q1 Xterra France / Montlucon / TBC in Q1 Xterra France / Sophia Antipolis / TBC in Q1 Iceland KR Basket Reykjavik Club European Championships Italy Inter Milan Football Team Norway Molde Football Club Jentebolgen Girls Run / Trondheim, Norway / June Team Høydahl / Mountain Bike Team Knarvikmila Event / Nordhordland, Norway / 09.03-06 Drammen Cycling Club Holmenkollstafetten Relay / Relay run Oslo, Norway / 05.09 Russia FC Stolitsa / Pro Soccer
Slovak Republic Sweden
Lindingo Ultra 50K / 05.10 Lindingo / Stockholm, Sweden / 05.09 Lidingöloppet Triathlon / Stockholm / 08.16 Lidingöloppet Run / Stockholm, Sweden / 09.25-27
NORTH AMERICA
USA LA Galaxy AYSO Tour of California / 02.17-24 LA Galaxy Regular Season LA Galaxy Regular Season SOUTH AMERICA
Peru USMP Fútbol
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3RD QUARTER
4TH QUARTER
Toray Pan Pacific Tennis / Tokyo / 09.16-21 Taiwan Baseball Laguna Phuket Triathlon / 12.08
Xterra France / Auron / TBC in Q1 Xterra France / Vire / TBC in Q1 Xterra France Final / Mandelieu / TBC in Q1 Gerardmer Triathlon / Sept TBC in Q1
Drammensrittet / Drammen, Norway / 08.15 Birkenrittet / Norway / 08.29
The Jentebølgen Event
Moscow Peace Marathon / Moscow / 09.14
Kozice Peace Marathon / Kozice / 10.05 Herbalife Minimarathon / Kozice / 10.05
East West Bank Tennis Classic / 07.21-27 Los Angeles Tri / Los Angeles / 09.05-07 Malibu Tri / Malibu / 09.14 LA Galaxy Regular Season
LA Galaxy Regular Season
HERBALIFE-SPONSORED ATHLETES Jesse Saarinen Finland / Else Lautala Finland / Heli Jukkola Finland / Nicolas Becker France / Uri Zilberman Israel / Gal Friedman Israel / Lucilla Perrotta Italy / Daniela Gattelli Italy / Knut A. Fostervold Norway / Andreas Lodrup Norway / Ragnar Bragvin Andresen Norway / Monica Torres Philippines / Anaïs Moniz Portugal / Andrey Junkov Russia / Pilar Hidalgo Spain / Sergio Rodriguez Spain / Ismael Gonzáles Spain / Tove Wiklund Sweden / Ronja Ek Sweden / Eva Nystrom Sweden / Chris Klein United States / Townsend Bell United States / Oscar Mauricio Vasquez Ochoa Chile / Lee Chi Wo Hong Kong / Filip Grgi c´ Croatia / Deniz Dimaki Greece / Attila Vajda Hungary / Olly Freeman United Kingdom / Ragna Ingólfsdóttir Iceland / E.J. Viso Venezuela / Sergey Konyushok Ukraine
brazil
portugal
australia
india
mexico
FOR YOUR GENEROSITY AND SUPPORT DURING MARK HUGHES DAY 2009 japan
philippines
Š 2009 Herbalife International of America, Inc. All rights reserved. Printed in USA. WW2273 04/09