Herbalife Ltd. (HLF) has launched a new product line – Herbalife24 — for athletes in Canada, in order to fulfill the unique nutritional demands of an athlete. The Herbalife24 nutrition program includes five products that can be taken by athletes according to their specific sport, day-to-day needs and training demands.
Each of the five products, Formula 1 Sport, Hydrate, Prepare, Rebuild Strength and Restore, has been approved by an independent third-party laboratory (NSF International, Inc.) and do not contain any banned substances. Herbalife24 products also do not contain any artificial flavors or sweeteners. These products will be priced at Canadian dollars $38.60 and will be exclusively available through a network of independent Herbalife members.
In a separate development, this weight management and nutritional products company signed a long-term partnership with a national non-profit organization, Common Threads, to sponsor nutrition programs in elementary and middle schools across the country. The program will allow students in over 135 schools in Illinois, Washington, D.C., California and Florida to improve their understanding of healthy living and nutrition.
Herbalife, along with Common Threads, expects to enlighten students about good nutrition, healthy foods, meal planning and budgets for healthy meals. The company’s nutrition program will also help students to plant and harvest from a garden to make healthy meals.
Herbalife is a global nutrition company that sells weight-management, nutrition and personal care products in more than 90 countries to and through a network of independent members. However, since Dec 2012, the company has been facing continuous accusations by activist investor Bill Ackman, hedge fund manager of Pershing Square.
Ackman has been accusing Herbalife of being a pyramid schem. Ackman believes that the nutrition clubs run by Herbalife's distributors focus on recruiting instead of selling products. (Read: Herbalife Faces Another Ackman Attack). Ackman's back-to-back allegations have prompted investigations by the Securities and Exchange Commission, Federal Trade Commission, FBI and at least two state attorneys general. But none so far has taken any action. Herbalife, on its part, has been denying the charges since 2012 and has full confidence in its business model.
Herbalife is not the only company, which employs sales representatives to sell its products. Other multi-level marketing companies like Nu Skin Enterprises Inc. (NUS), USANA Health Sciences Inc. (USNA) and Avon Products Inc. (AVP) also follow the same distribution model.
Herbalife holds a Zacks Rank #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment