- Neways
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Neways International Type Private Industry Multi-level marketing Founded 1992 Headquarters Springville, Utah Key people Scott St. Clair, CEO
Chris Crump, Chief Counsel
Jennifer Wolbers, VP, Sales and Marketing
Ted Rock, COOWebsite http://www.neways.com/ Contents
Company Overview
Neways International is a privately held American multi-level marketing organization that manufactures and distributes personal care products, nutritional supplements, and household cleaning products and has a presence in more than 23 countries.[1] Neways is headquartered in Springville, Utah. The company claims that its products are chemically safer than other brands.
Neways, originally named Images and Attitudes, was founded on June 9, 1987 by founders Thomas and Leslie D. Mower. The company was renamed to Neways in 1992 with its original manufacturing facilities in Salem, Utah. Neways corporate headquarters was moved to Springville, Utah in 2003, with the main manufacturing facility remaining in Salem. Neways was acquired November 8, 2006, by Golden Gate Capital, a private equity firm headquartered in San Francisco, CA.[2] Golden Gate Capital also owned Herbalife before taking it public.[3]
Products
Neways' stated goal is to help people maximize their health and beauty while minimizing their exposure to potentially harmful ingredients. With the input and oversight of the company’s independent Scientific Advisory Board, Neways has compiled a list of over 3,000 controversial ingredients that it believes should be avoided in product formulations. "By replacing mainstream products with Neways products in our three main product categories," according to the company, "people can transform their homes into Neways Healthy Homes."
Neways claims that it not only refuses to put potentially harmful ingredients into its products, but it strives to add "wholesome, gentle, health-enhancing" ingredients to every product it creates.
Neways offers more than 200 products in three main categories: Personal Care, Household, and Health & Wellness. Product lines include skin care, hair care, dental care, cosmetics, cleaning products, and laundry products. Health & Wellness nutritional supplements include the liquid mineral beverage Maximol Solutions, which has now sold more than 25 million bottles worldwide.
Charity
Neways supports a number of charitable causes, both in its local community and globally. Past and present global efforts include the Hearts Full of Hope Foundation and the Empower Program. To date, Neways has donated more than $4.5 million in funds and products.
In particular, Neways donates funds and products to Globus Relief,a nonprofit humanitarian organization. From mid-2007 through February 2009, Globus distributed more than 78,000 bottles of Neways’ Maximol Solutions around the world.
Business Opportunity
Neways offers people a way to start a home-based business with a low startup cost. Individuals distributing Neways’ products can benefit from the tax advantages of a home business and participate in a flexible business model that enables them to work as many or as few hours as they choose.
Neways’ commission-based system pays out an average of 50 percent of the company’s commissionable volumes to distributors. Its compensation plan is a hybrid combination that includes elements of unilevel and stair-step breakaway multilevel plans.
Controversies
In 1993 Neways was forced to recall a weight loss product as it was found to contain a dose at medical levels of the prescription diuretic furosemide [4].
In 2004 Neways was convicted on criminal charges relating to the distribution of a pharmaceutical product containing human growth hormone, which is illegal to distribute without a prescription [5].
In 2005, the founders Thomas and Leslie Mower were convicted of tax fraud concealing over $4 million US dollars of revenue. They also presented false loan documents and lied to an IRS special agent. [6] In 2006, Thomas was sentenced to 33 months in prison to be followed by 3 years supervised release and ordered to pay a $75,000 fine in addition to paying prosecution costs. Leslie was sentenced to 27 months in prison to be followed by 3 years supervised release and ordered to pay a $60,000 fine.[7]
In 2008, Neways Japan Ltd. was forced to suspend signup of new distributors by the Japanese government during a three month period (February 21 to May 20) for deceptive conduct occurring in 2006, after distributors lied about competitors products, claiming they would cause cancer.[8]
References
- ^ Neways Investing Activity - Golden Gate Capital
- ^ Press Release > Golden Gate Capital Acquires Neways International SPRINGVILLE, Utah (November 8, 2006) News - Golden Gate Capital
- ^ Herbalife Investing Activity - Golden Gate Capital
- ^ [1]-"The Food and Drug Administration today announced that Neways Inc., of Salem, Utah, is recalling its "Quickly" weight-loss product"
- ^ [2] - "Guilty plea for Neways on hormone"(OCTOBER 2003)
- ^ #131: 3-18-05 UTAH CORPORATE EXECUTIVES AND LEGAL COUNSEL CONVICTED OF TAX FRAUD FRIDAY, MARCH 18, 2005 - WWW.USDOJ.GOV
- ^ Corporate Executives and Legal Counsel Sentenced for Tax Fraud - FY2006 Examples of General Tax Fraud Investigations - Internal Revenue Service United States Department of the Treasury[dead link](Wayback [3])
- ^ DPJ vice leader received donations from multi-level marketing firms+ October 18, 2008 (Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Oct. 18_(Kyodo) - Technology Marketing Corporation
External links
Categories:- Multi-level marketing companies based in Utah
- Companies established in 1992
- Manufacturing companies based in Utah
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