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The House Oversight Committee calls for more FDA action to ensure safe hemp product access
By: Stephanie Ramirez
“It’s unfortunate that it’s taken this long for Congress to finally get a sit down with the FDA to get the ball really rolling here, but we’ve had a relatively long leash with CBD.” —Nate Farnsworth, Co-owner, Factory6 Inc.
The Subcommittee on Health Care and Financial Services within the Committee on Oversight and Accountability (U.S. House of Representatives) held a hearing in late July, titled “Hemp in the Modern World: The Yearslong Wait for FDA Action,” to examine the failures of the Food and Drug Administration (FDA) to regulate CBD and hemp-derived products.
The backdrop of this hearing traces back to the pivotal 2018 Farm Bill, which not only ushered in the legality of hemp cultivation and the sale of hemp-derived goods but also affirmed the FDA’s jurisdiction over regulating these products.
The iconic brand secures an agreement to reduce debt, re-establish financing, and extend deadlines, signaling a potential turnaround
By: SSN Staf
“I am confident that this agreement provides us with the financial flexibility to continue executing on our near-term turnaround efforts as well as our long-term strategy to create a global omni-channel consumer brand.” —Mariela Matute, Chief Financial Officer, Tupperware
Tupperware, recently presumed dead after announcing earlier this year it might not be able to stay in business, appears to have new life.
The party plan giant announced in August it had finalized an agreement with its lenders to restructure its debt, narrowly avoiding going bust in the process.
The deal with its creditors will reduce interest payment obligations by $150 million. Tupperware also secured $21 million in new financing, an extension on the deadline for paying back about $348 million in debt and a reduction in the amount of debt it owes by around $55 million.
Tupperware shares surged in early August on news of the lending agreement.
“I am confident that this agreement provides us with the financial flexibility to continue executing on our near-term turnaround efforts as well as our long-term strategy to create a global omni-channel consumer brand,” Chief Financial Officer Mariela Matute said in a statement. “We are committed to making ongoing progress in improving liquidity and strengthening our capital structure. We appreciate the support of our lenders, who share in our strategy, as we move forward.”
In April, the company announced it was struggling to survive as a sales slump coupled with mounting debt were pushing it to the brink. At the time, the company said in a regulatory filing that “there is substantial doubt about the company’s ability to continue as a going concern due to anticipated non-compliance with financial covenants and inadequate liquidity to fund its operating costs and obligations in the near term.”
Tupperware warned that it could violate obligations in its credit, and that cash flow was a top priority. And for months, the company had been discussing financing options with advisers to avoid shutting down the iconic direct selling brand.
To help with ongoing debt issues, the company also appointed Brian Fox, a managing director with Alvarez & Marsal’s North American Commercial Restructuring practice in New York, as its chief restructuring officer.
The company’s recent problems also extended to the New York Stock Exchange, which sent Tupperware two noncompliance notices in the span of three months earlier this year. In June, the NYSE told the company it was in noncompliance because its market capitalization was too low, and that its average closing price of its stock was less than $1 over 30 consecutive trading days.
The NYSE gave Tupperware 45 days to submit a plan before potentially delisting the company.
Now, with a new lending deal in place, analysts and investors appear satisfied for the time being, as the company charts its future.
Share prices started rallying in late July, ahead of the lending deal’s announcement. That was when the company entered meme-stock territory with investors driving the value of Tupperware stock up five-fold before the restructuring deal was announced on Aug. 3. By Aug. 7 the stock had jumped to $5.23 from a 52-week low of 61 cents on July 20.
Tupperware stock was trading at $2.51 as of Aug. 24.
Along with its restructuring, Tupperware also announced on Aug. 24 that it had expanded the size of its board of directors to 13. As part of the lending deal, the company agreed to appoint an additional director with restructuring and turnaround experience.
To fill that role, Tupperware tapped Paul Aronzon, a strategic financial consultant who specializes in corporate reorganizations. He will chair the company’s “Transformation Committee,” which is focused on Tupperware’s restructuring.
After years of slumping sales, Tupperware seemed to be on track to regain its footing financially. The company, which sells products in over 70 countries through its independent sales force, launched an ambitious three-year turnaround plan in 2020. This included an executive shake-up aimed at rejuvenating its beleaguered brand after years of revenue declines and falling stock prices.
That same year, Tupperware reported its first year-over-year sales increase in a quarter since 2017, and the company’s stock rallied at the time in response. Things continued to look up, with retail giant Target starting to carry Tupperware products on store shelves in 2022.
But Tupperware has faced additional challenges in recent financial quarters, as pandemic trends bolstering their sales have softened: More people have returned to restaurants and eating outside the home again.
In 2022, sales dropped by 18% to $1.3 billion compared to 2021, and the company’s stock price has plummeted 86% since last June.
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The House Oversight Committee calls for more FDA action to ensure safe hemp product access
By: Stephanie Ramirez
“It's unfortunate that it's taken this long for Congress to finally get a sit down with the FDA to get the ball really rolling here, but we've had a relatively long leash with CBD.” —Nate Farnsworth, Co-owner, Factory6 Inc.
The Subcommittee on Health Care and Financial Services within the Committee on Oversight and Accountability (U.S. House of Representatives) held a hearing in late July, titled “Hemp in the Modern World: The Yearslong Wait for FDA Action,” to examine the failures of the Food and Drug Administration (FDA) to regulate CBD and hemp-derived products.
The backdrop of this hearing traces back to the pivotal 2018 Farm Bill, which not only ushered in the legality of hemp cultivation and the sale of hemp-derived goods but also affirmed the FDA’s jurisdiction over regulating these products.
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New survey sheds light on gig workers and their evolving roles in the trillion-dollar industry
By: Stephanie Ramirez
“Pre-Covid, people were saving the money they made from their gigs. Post-Covid, people are using their gig earnings to pay household bills. … If that continues, that's a major change.” — Dr. Robert Peterson, Professor of Marketing and Chair of Business Admin., The University of Texas at Austin
In a comprehensive effort to unravel the intricate dynamics of the gig economy, a new survey sponsored by PayQuicker and the Ultimate Gig Research Project has been released, providing critical insights into the ever-changing world of gig workers in the United States. The research, based on surveys conducted in July 2020 and April 2023, forms an integral part of the extensive Ultimate Gig Research Project, dedicated to empirically assessing gig economy trends to enhance business strategies and inform public policy decisions.
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Urban Retreat’s unusual solution
By: Jenna Lang Warford
“Often we don’t trust our field enough, and sometimes they just need permission. That doesn’t mean they’re going to do it, but when they don’t have permission there’s resistance.” – Shellie Sullivan, Chief Sales Officer, Urban Retreat
The devastating fire that burned Urban Retreat’s distribution center in the U.K.—and all its inventory—to the ground came just 73 days after the launch of business in the U.S. and Canada. (The company had a presence in 25 countries total and a well-established field in the U.K.) In the weeks following, it became clear to the executive team that it would be about six months before the company was operational again.
Chief Sales Officer Shellie Sullivan, knowing she had field members who were relying on the income they had created with Urban Retreat, made a bold move. “I reached out to a couple of friends of mine in the industry—one in the U.S. and one in Canada—and said, ‘I have this crazy idea. Here’s what I’d like to do. I’d like to have the two of you come in front of my community, and I want you to foster my people. I want to tell them it is okay to work with you.”
This was a particularly bold move because one of those companies, BELLAME, is a direct competitor, vying for the same caliber of consultant. Sullivan was particularly touched by BELLAME’s founder and CEO, Melissa Thompson. “Melissa said, ‘First I’m going to tell you that I am so proud of you. And second, yes, I’m in. I will absolutely do this with you.”
Bonnie Yunt, an executive with Canada’s GelMoment, was also fully on board with the unusual approach.
A Foster System
Sullivan set up a video call with Yunt, Thompson and the field. “On the call I said to the field, ‘These are my friends. I trust them. They have graciously offered to welcome you into their business, knowing full well you may not stay, knowing full well that you might decide to come back to Urban Retreat in six months.”
The response was mixed. “I had consultants that were upset by it because—and it’s a beautiful thing—they love our brand so much and said ‘I can’t put another skincare product in front of my customers.’ I had some that didn’t understand it. But I had many that did. I do know I have one leader who isn’t coming back in September.
“I knew that was a risk, and I had to be okay with it. Is it challenging sometimes to look at social media and see my people recruiting or promoting another brand? Yes. But we encouraged them to find what they needed to take care of their families for the next six months and let them know that we would welcome them back with open arms no matter what.”
Urban Retreat has an open policy, with no restrictions on who Consultants can represent, a policy many Gen Z and Millennials view as opening stakes when considering companies to partner with, according to research done earlier this year by the Bridgehead Collective.
Sullivan says, “I think Melissa’s the one that coined the term ‘omni marketing.’ I’m a firm believer in that. Often we don’t trust our field enough, and sometimes they just need permission. That doesn’t mean they’re going to do it, but when they don’t have permission there’s resistance. Omni marketing, having an open policy, removes that resistance.”
Leader Concerns
Not surprisingly, Sullivan encountered leaders who were worried about the risk of partnering with the other companies. “I told them a lot will happen in six months. And you know what the two most likely outcomes are? That they are going to have an experience that doesn’t match up (with Urban Retreat’s), and they’re going to come back, or the other is they go somewhere that’s a perfect match for them, and they make tons of money and they’re super happy. How can you grieve that? How can you be upset over that? Really? Is it sad that you no longer have that person on your team? Sure. But did you just watch somebody thrive?”
Sullivan and her team have been ramping up for the September relaunch, with the distribution center relocated to France, where the manufacturing is. “One of the surprising outcomes that I’m pleased with is the number of consultants who have been so loyal and committed during all of this,” she says. “We kept our Facebook community open and alive. It was kind of quiet and almost eerie when I didn’t have a lot to say in April. Then I began going in every week. And I partnered with Brandon Barber who has been doing a weekly training. Now there’s a consultant every single day doing a live training, and I have a waiting list of consultants that want to train in our group.
“I’m amazed that there are still a thousand active people in that group. That was my hope and my vision, but I’ve been amazed that it worked and that they’re there and still so excited—some still promoting products that they can’t even sell yet.”
Sullivan adds, “I didn’t have a roadmap here. Figuring out how much to communicate, how much freedom and space to give them, how/what kind of conversations to have; the results of all of that remains to be seen. But from past experience, I’ve learned you always have to follow your gut and your heart, speak up and say what you need to say.”
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Veteran leaders share insight on keeping distributors during tough times
By: Jenna Lang Warford
“Denying or disregarding the issue at hand only prolongs the crisis.” —Al Bala, CEO and President, Mannatech
Though the U.S. direct selling channel had $40.5 billion in sales in 2022, it seems like every month there is a company facing negative publicity—some from company crises, others from docu-dramas, the Federal Trade Commission, class action lawsuits, or from aspersions cast by Truth in Advertising (TINA), even a groundswell from social media.
Grinding through these reputation management crises can test the mettle of any executive, but by prioritizing several things, an executive team can maintain the confidence of the field as well as its customers.
PEOPLE ON THE MOVE – August
August 01, 2023
Jen Orlando, Arbonne
Arbonne International, owned by Groupe Rocher, has promoted Jen Orlando to CEO. Orlando returned to the Arbonne executive team in March as chief growth and innovation officer after serving as chief sales officer at Plexus Worldwide. She has worked more than 18 years in sales and marketing and within beauty and wellness.
Jean-David Schwartz, Groupe Rocher
Group Rocher, owner of Arbonne, has named Jean-David Schwartz as CEO. Schwartz will take on the role previously performed by Bris Rocher, who is delegating his executive duties to concentrate on group strategy as chairman. Schwartz will be responsible for operational management.
Jeff Singer, doTerra
DoTerra has hired Jeff Singer in the role of chief operating officer. Singer will join the company’s Executive Council. He has spent more than 20 years helping companies grow top-line revenues in a wide range of industries, including NASDAQ, SAP, and YBA Kanoo, in the U.S. and in the Middle East.
Travis Garza, Juice Plus+
Juice Plus+ has appointed Travis Garza to global CEO. Garza is a channel veteran with over 20 years’ experience driving strategy, growth, and innovation. He last served as president of global sales, marketing, and customer success at Plexus Worldwide and will now focus on driving global orders through new business and field engagement.
Vanessa Davis, LegalShield
LegalShield has appointed Vanessa Davis as vice president of product management. The legal services technology veteran will head product development and implementation. Davis has held numerous senior corporate leadership roles, spending 12 years at LegalZoom as well as working at Litera Microsystems and One Legal.
David Liddicoat, Partner.Co
David Liddicoat has joined Partner.Co as chief financial officer (CFO). Liddicoat has over 25 years of finance and operations experience. Most recently, he spent nearly nine years at Genesys after working with Intuit and Symantec. As CFO, he will focus on building a financial organization to prepare for the company’s growth plans.
Steven Lee Elder, Mannatech
Mannatech has hired Steven Lee Elder as senior vice president of sales and marketing. Elder will lead and implement the company’s sales and marketing strategies, with the goal to increase its brand presence and drive growth. He brings over 20 years of executive experience to his role, including time with Pure Haven and Xyngular.
Wolfgang Klaer, PM-Intl.
PM-International has named Wolfgang Klaer as chief administrative officer. Klaer most recently served as area general manager. He joined PM-International in 2003 as assistant to the founder and has worked in sales and international services. Klaer will lead strategic planning, international sales and global human resources.
Arturo Montalván, Oriflame
Arturo Montalván has joined Oriflame as general manager of its Peruvian market. With a background in finance and marketing, Montalván has worked in industries such as FMCG, retail, and beauty, serving as executive director for three companies. He specializes in P&L management, customer centric transformation, and team building.
David Sokolowski, Tranont
David Sokolowski has joined Tranont as vice president of technology. Sokolowski has spent over 25 years within information, security, and technology, working with brands such as Unicity and Modere. He will oversee IT, including back-end systems, front-end website and replicated sites, global infrastructure, and information security.
Liliya Amaro, APLGO
APLGO has hired Liliya Amaro as marketing manager of its U.S. region. In her new role with APLGO, Amaro will head marketing in product updates, site localization, communications, and events. Prior to joining APLGO, she had marketing roles in companies such as Tupperware, Jeunesse Global, ACCO Brands, and MGA Entertainment.
Carmen Lopez, APLGO
Carmen Lopez has joined APLGO as general manager of its U.S. business. She has over 20 years’ experience, having worked as a regional and district sales leader for Avon Products, Rodan + Fields and Isagenix. Lopez brings expertise in business development, client relationship cultivation, and strategic partnership building.
Kevin Guest, DSEF
Kevin Guest has been named chairman of the Direct Selling Education Foundation (DSEF). Guest joined USANA in 1992 and currently serves as executive chairman. He also served as DSA chairman for the past two years. Guest will now work with the academic community to support research related to direct sales.
New Board Officers, DSA
DSA elected 2023 officers for its board of directors. Serving one-year terms are: Chairman: Danny Lee, president and CEO, 4Life; Vice Chairman: Cindy Monroe, founder, Thirty-One Gifts; Vice Chairman: Joni Rogers-Kante, founder and CEO, SeneGence International; Treasurer: David Merriman, executive vice president, ACN; Immediate Past Chairman: Kevin Guest, executive chairman, USANA Health Sciences; Past Chairman: Ryan Napierski, president, Nu Skin Enterprises.