Dr. Cooper brings more than 25 years of career experience in e-commerce and direct selling to the NewAge leadership.

“We are pleased to welcome Dr. Cooper to the board and look forward to working closely with him to further the success of NewAge,” says NewAge Chairman of the Board Greg Fea. “His expertise in direct sales at the highest levels makes for a natural addition as we continue to execute our direct-to-consumer strategy. His track record in the industry is unmatched, which along with his diverse experience as a successful business owner, entrepreneur, and a former top executive of a publicly-traded company, significantly strengthens the NewAge Board.”

Dr. Cooper earned a B.S. in Finance, a B.S. in Psychology and a Ph.D. in Business Administration from the University of Utah, then spent more than a decade teaching entrepreneurship and statistics there.

“I’m excited to take on a new responsibility to help guide the strategic direction of NewAge, combining our global leading companies,” Dr. Cooper says. “I know and have worked personally with many of the new executives of NewAge and have a high level of confidence in their leadership and abilities. NewAge is well-positioned globally to drive growth, improve profitability, and reach more consumers than ever before. I look forward to playing a significant role to help further the company’s position in the global consumer market to create additional value for all of our representatives, consumers and shareholders.”

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The Golden Bridge Awards honors companies from every major industry in the world and recognizes companies in a variety of categories, including product management, marketing campaigns and customer satisfaction.

“Being recognized by the Golden Bridge Awards is truly an honor,” says ARIIX President Mark Wilson. “These awards speak to our ability to adapt to a changing business landscape, develop solution-oriented products to fill an immediate need, create a rewarding and industry-disruptive loyalty program, and lead with the shared passion of being a forward-thinking, social-selling company that not only transforms the marketplace but also transforms lives across the globe.”

ARIIX was recognized in the following categories:

GRAND WINNER | ARIIX

GOLD WINNERS

Dr. Fred Cooper | Lifetime Achievement Award

Deanna Latson | Woman of the Year | Consumer Products

Lifestyle Perks | Business Services

ARIIX | Achievement in Best use of Social Media

Lifestyle Perks | Milestone of the Year | Partners and Distribution Growth

SILVER WINNERS

Nutrifii Elite | Best New Product | Consumer Products

ARIIX: Most Innovative Company of the Year | Consumer Products

ARIIX: Company of the Year | Consumer Products

ARIIX: Company Rethinking of the Year

Puritii Home Detox | Best Product to Combat and Reduce the Impact of COVID-19

Honorees for these awards will be celebrated during a virtual presentation and ceremony in December.

The post ARIIX Wins 11 Golden Bridge Awards first appeared on Direct Selling News.

“We are very pleased to be able to fully converge these great companies now that the merger is complete,” says Brent Willis, NewAge Chief Executive Officer. “Both the revenue and cost synergies of the combined organization will start to be recognized immediately in Q4, in our financial results. Importantly, this merger represents a major strengthening for NewAge in its direct-to-consumer model where we see the most significant opportunities for growth and profitability. We believe we now have the scale, the team, the brands, and the financial strength to drive excellent growth and return for shareholders and all of our valued independent representatives and consultants worldwide.”

Together, the companies’ combined annual net revenue is expected to exceed $500 million, with a blended gross margin of 70 percent and an expected EBITDA of more than $30 million. ARIIX’s Chief Executive Officer Fred Cooper will now join the NewAge Board of Directors.

“Completing this merger with NewAge is a tremendous milestone for all of our independent representatives, employees, and customers who have been a part of ARIIX over the last nine years,” Cooper says. “We are better positioned than ever before to continue to disrupt the industry and further our strategy to become the world’s leading social selling and distribution company. We believe providing our representatives with access to more markets, more products, and more opportunities will accelerate our organic growth and incentivize our leaders to grow their businesses at an even faster pace. We believe we are very well positioned to take advantage of global consumer trends to buy direct and capture additional market share.”

The post NewAge and ARIIX Finalize Merger first appeared on Direct Selling News.

The company also won ten gold awards and one silver award. Winners will be celebrated and presented their awards during a virtual awards ceremony in December.

The One Planet Awards honor the best in business and professional excellence in every industry worldwide. Organizations from all over the world are eligible to submit nominations, including public and private, for-profit and non-profit, largest to smallest and new start-ups. Judges from a broad spectrum of industry voices from around the world participated and their average scores determined the 2020 award winners.

In addition to Grand Winner, ARIIX awards were:

GOLD AWARDS

• Dr. Fred Cooper | Lifetime Achievement Award
• Deanna Latson | Woman of the Year in Business & the Professions
• Riley Timmer | Operations Executive of the Year
• ARIIX | Most Innovative Company of the Year
• Lifestyle Perks | Milestone of the Year | Partners and Distribution Growth
• Digital Campaign of the Year | Online Community
• ARIIX Connect | Best Mobile Sites & Apps of the Year
• Puritii Home Detox | Best Product | To Combat and Reduce the Impact of COVID-19
• Puritii Home Detox | New Product or Service of the Year
• ARIIX Partner Support | Customer Service Team-Department of the Year

SILVER AWARD 

• ARIIX | Company of the Year

“We are excited to have been honored so highly in the One Planet Awards,” said Dr. Fred Cooper, ARIIX CEO. “This has been an outstanding year filled with lucrative partnerships, new products and a new way of doing business in 2020. In a year where virtually every business was in decline, we’ve continued to thrive. There’s nothing we can’t do together, with our Representative family, and these awards affirm our commitment to being the No. 1 social selling company in the world.”

The post ARIIX Named Grand Winner in 2020 One Planet Awards first appeared on Direct Selling News.

NewAge and ARIIX announced their plans to merge on July 20, 2020, which will create a combined company with pro forma revenues of more than $500 million with operations worldwide and access to both developed and developing markets in key areas of the world. Since the announcement, the company has been working on identifying and capturing synergies as part of the transaction and completing the audit of ARIIX’s financial statements to enable closing of the transaction. In addition to cost synergies of more than $20 million, NewAge also identified revenue synergies from cross-sales of brands and providing access for respective leaders to each other’s markets. The Brazil expansion is a realization of one of those revenue synergies.

NewAge established operations and its office in Sao Paulo in the second quarter and is now expanding operations to take advantage of the burgeoning opportunity there. ARIIX has recently commenced operations in Brazil.

“The building of the Brazil market is yet another important step in our strategy to bring our products and brands through our omni-channel strategy to emerging markets around the globe,” said Brent Willis, chief executive officer of NewAge. “Everything we have done with our Brazil expansion has been very local and very Brazilian, which is a must to be successful. Providing access to the market opportunity there for all our reps from all our partner companies is a great benefit for them, and a great growth opportunity for us.”

Fred Cooper, CEO of ARIIX commented, “Expansion to NewAge’s global market footprint was one of the great opportunities that we wanted to provide for our reps, and I am excited to see it happening so quickly. With all of the momentum that ARIIX is experiencing, coupled with the excitement of the announcement, we are drawing increased interest to join the NewAge ARIIX platform following the merger. Over the next several months, we will continue to locally register additional brands and products in Brazil and other Latin American market strongholds. Our ability to now ship products locally, direct to consumers, well positions us to be able to capitalize on the potential of this growing market.”

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The Colorado-based omni-channel social selling and distribution company stated that it expects to close the transaction no later than November 30, 2020.

Details of the amended and restated agreement and plan of merger are included in the Company’s Current Report on Form 8-K dated October 1, 2020, and the deadline for completing the audit of the ARIIX’s financial statements and completing the transaction has been extended until November 30, 2020.

“We think it is great for our shareholders to have increased clarity on the total cost of the ARIIX transaction, and to have agreed to terms on the future portion of the consideration, which represents a very attractive premium to the current share price,” said Brent Willis, chief executive officer of NewAge. “As a private company operating globally, the audit of ARIIX’s financial statements is taking time to complete, and we feel it is prudent to be thorough and have the audit materially completed before closing.”

NewAge communicated that it expects to capture approximately $20 million in additional annualized EBITDA in the first 18 months following closing in cost and revenue synergies in the areas of cost of goods sold, manufacturing efficiencies and scale, operational redundancy, cross-pollination of brands and market and channel expansion. NewAge has already identified more than $10 million in annualized synergies to be implemented this year from the combined group.

Fred Cooper, CEO of ARIIX said, “The strength of our two companies coming together will have significant benefits to all our stakeholders around the globe. We have been working closely with Brent and his team and have identified several key areas within our organizations where we can gain efficiencies and enhance our overall business performance very positively impacting both the top and bottom lines. Historically ARIIX has delivered close to $20 million in EBITDA annually. With the convergence of the two organizations, the anticipated synergies of $20 million, the improved profitability of NewAge now that their retail brands have been sold, and the global organic growth we are experiencing, we believe both our top and bottom line outlook look extremely attractive.”

On July 20, 2020, NewAge, Inc., announced the signing of an agreement to acquire ARIIX and four other e-commerce/direct selling companies. The combination is expected to create a company with expected annual revenues of more than $500 million, a blended gross margin of 70%, and expected EBITDA of more than $30 million.

The post NewAge Updates Merger Agreement with ARIIX first appeared on Direct Selling News.

With Dr. Fred Cooper and Brent Willis as the CEOs, NewAge, Inc. is now a global firm with an estimated pro forma revenue in excess of $500 million. Together they have created a global enterprise—and the only omnichannel company in direct selling with access to e-commerce and direct-to-consumer channels in more than 75 countries. Recently, I had the pleasure of a Zoom interview with both of these dynamic gentlemen.

In just three short years, NewAge Beverages saw growth from $2M to $254M for the year ended December 31, 2019, and with the merger, you will now be over $500 million in combined revenue. Can you share what you consider to be the factors of your success?

Brent Willis: The keys to our success for both companies are threefold. Both NewAge and ARIIX are very purpose-driven companies. We stand for something, and it is at the very core of our being and what we stand for. Number two, we cascade that purpose to all of our teams to build a very powerful culture. It is a culture of winning, a culture of performance and doing whatever it takes to be successful. The third key to success is about disruption. We have a disruptive strategy and strive to flawlessly execute that strategy. Being purposedriven, having a strength of culture and being disruptive in every aspect of the businesses have led to our success.

Dr. Fred Cooper: I want to add that NewAge and ARIIX both have an inherent belief that the field is first at all costs. It is the primary principle that governs us. We believe that our reps are our business. They create our brand and our image. We can only do well and succeed when the reps know they are of paramount importance to us.

With the recent mergers and acquisitions, what are your plans and predictions for the rest of 2020 and beyond?

Dr. Fred Cooper: We want to see a milestone pinnacle that has never been accomplished in direct sales. We want to merge two dominant organizations, both of which are successful. We will merge cultures, philosophies and bring them together so that instead of two families—we have a united blended family. We want to set an example that two organizations can come together and that blended families do work, and they work very effectively.

Brent Willis: When I look at the rest of 2020 into 2021 and beyond, one word comes to mind—MORE—more growth, more opportunity for everybody, more markets, more brands. I feel like we are very inclusionary and accepting as a group. We love all of the different aspects, and we champion all of the different brands in our group (from LIMU, MaVie, Zennoa and Noni). We want everyone to share in the wealth creation and monetization of this very strong public company. We have the right public and financial foundations. This translates to wealth creation for our reps that earn shares and for all of the other companies or brands that want to join us. We want to be seen as a very productive, inclusionary harbor. For all of the ships in the industry, in a sea of increasingly choppy economic water—we can be that safe haven for them. A haven where everyone sees the benefit of being bigger and protected while still maintaining your identity and monetizing it for your people—that is attractive! We want to be inclusionary going forward, and we want more! More growth and resources for everyone in our fields.

What approach will set NewAge apart?

Dr. Fred Cooper: We want to build $100 million global brands within our direct sales umbrella—a house of brands of sorts, where individuals can affiliate with particular brands and services they want. With this model, you can have a smorgasbord of your choice of products you love, which have made a difference in your life and you can advocate for others to use. There is also the product lifecycle to consider. As the retail sector sees the demand and introduce, like products, the prices fall. Direct sellers are left with a conundrum. How can we lower the price and pay commissions and not be left with an overpriced product? So, we have become a house of brands, and our field is learning about new brands.

Innovation through the collaboration of scientists, research organizations and product development companies, they introduce their products in the U.S. We introduce them exclusively to our brands and representatives. They always have something novel and new to talk about.

As those products go into the product life cycle, price becomes the competitive factor. We have what we call value pricing for additional purchases that are made by a representative. Now, they don’t make as much commission on those particular products, but they make more commissions because we have a greater wallet share coming out of each representative. So, the consumer feels like they are getting a better value, and the reps are not taking a pay cut on commissions.

Brent Willis: Just as we’re innovating in terms of product, product lifecycle and portfolio of healthy products, we’re also innovating in route to market. This is really what omni-channel is. We’re not just a direct selling company. We are a direct selling company. We are e-commerce. We are direct-to-store, and we have access to traditional retail. Consumers don’t just shop in the direct selling channel. They buy off of Amazon. They buy off of individual websites and shop now from Instagram. So, the entire shopping behavior worldwide with millennials and Gen Z’ers, which is more than 50 percent of the global population, is changing.

From a route-to-market standpoint, our goal is to be at every single one of those consumer touchpoints. We know that you can’t sell one brand or one product in more than one channel because you have anarchy, but you can have dedicated products for dedicated channels and meet all of those consumer touchpoints. This is what we do. We hope to provide our reps earnings streams from more channels.

That is very different and unique if you can provide multiple earnings streams for your reps by giving them access to sales and in different channels versus just their networks. This is a way that’s really differentiated and innovative, and one of the things that the reps love about where we’re taking the company going forward.

What factors make NewAge see direct selling as an essential sales channel?

Brent Willis: If you look at every single region in the world, North America, Europe, Latin America and Asia, the largest driver of purchase intent for consumers is word of mouth in their social feeds. This makes this a perfect unique time for our industry. That’s why we are doubling down on the direct selling and e-commerce aspects of our business because it is how consumers are making their purchase decisions. We want to be the Uber for CPG as part of this new shared economy. We see it very differently of where consumers are going in the future, not just in terms of how they purchase, but also for the needs of millennials and Gen Z’ers. Everybody needs a little bit of extra income these days, and we provide that opportunity in a very low cost of entry. We’re really focused on putting reps first, and we try to make it successful for them. We really want to provide that respite for consumers. That’s why we’re seeing people joining our system worldwide in droves.

Dr. Fred Cooper: In terms of the attractiveness of this business model versus other kinds of business models, we realize that word of mouth is it in advertising. We are letting our reps know that it is more than just recruiting someone into multi-level marketing—it is about the acquisition of customers who have no intent on earning commissions but have a genuine conviction because they have had a transformational experience with those particular products. What we are going to be doing in the future is pushing this customer acquisition platform—not because of legal requirements or regulator concerns—but because we believe in the products.

Brent Willis: We’ve got more than 400,000 reps in our company now working. Joining us because we have, what we stand for, our bill of rights for reps and the condition systems that we think are the most attractive in the industry. But going forward, we’ll still build on that number of reps, but as Fred talked about, we want to build more customers.

We want hundreds of thousands of reps and hundreds of millions of consumers. —Brent Willis

This issue of DSN is focused on Innovation. Can you describe how NewAge is innovative in the industry?

Brent Willis: Innovation doesn’t come from looking at the future. Innovation comes from looking around, and Fred looked around and said, “Here are the problems I see in industry.” He went to go fix that with the Bill of Rights for reps, with a unique compensation system, with an ability to acquire and integrate companies and to drive growth. We did similar things on the NewAge site. So together, we are taking this disruptive by design model and having growth through collaboration. So, this is a winning team with a great vibe. We are looking for advance through collaboration and disruptive innovation!

Can you share your strategies and thoughts on branding and product diversity?

Brent Willis: Our branding approach is that we want to build $100 million-dollar brands and invite other scale brands to join in. As a public company, one of our greatest assets are the intangible assets on our balance sheet which comes from brand value. We focus on three omni-channel brand platforms: Health and Wellness, Inner and Outer Beauty and Nutritional Performance. We never compromise on the efficacy and quality and superior functionality of each one of our products. So, we try to be the best in what we do in terms of true functional performance. We are following consumer trends with sustainable packaging, clean ingredients and addressing fundamental human needs states. We are working toward multiple organic growth initiatives: Noni/immunity shot, TeMana Shape expansion, Noni + CBD expansion, the LUCIM skincare launch and the core brand Tahitian Noni evolution.

Dr. Fred Cooper: The bottom line is when you are going after consumers—they only care about two things. Value and that get what the pay for—conformance to specification. And fitness for use. It does what we claim it will do. No more, no less. In our industry, hyping people up on a product that doesn’t work to earn money isn’t going to work anymore. That’s got to change. So, the big passion has to be—look, try our products and see if you notice a difference. Then share your story and success. When we focus on it in this matter— that’s when the money comes.

What is the goal for the future of NewAge?

Brent Willis: Combined NewAge now has a greater global reach in our focus markets in Japan, China, Europe and the Americas. We have penetration in over 75 markets and by having a larger global footprint benefits each channel which contributes to overall growth. We also have exposure in emerging markets. We have a new office in Brazil, which is one of the largest direct selling markets, and a focus in South Africa. Through this system, we are building and driving this disruptive portfolio and disruptive route to market to enable ourselves to win and grow the business.

Is there anything else that you would like to share?

Brent Willis: We have only been working together for a couple of months, but it is so easy and symbiotic. We each have relative strength, and we are building on those strengths. We share the same view that reps come first.This isn’t about an acquisition or a merger. All of that is very paradigm language. This is about two major companies coming together because we know we can do more. We know we can do more for the leaders. We know we can take the best of everything we have and build on that and become much more disruptive and much more powerful, much stronger for the benefit of all the leaders and everybody that touches this company. We have this very good public company that we think is the best public company structure in the entire industry. Everybody can benefit from that. I feel it every day that is just so easy with this partnership between Fred and the rest of the leadership team because we’re just focused on doing whatever it takes to win. It’s just easy.

Dr. Fred Cooper: Our company has been acquiring companies, learning and getting better at this as we bring them all together.

This isn’t about we take you over—It is about you join us. This is a message of invitation. So, sit back and see if this merger isn’t everything we said it was. See if it becomes a team. -Dr. Fred Cooper

And if that’s the case, you might want to consider that you can be part of a larger organization. People will see that …I can be my brand. I can promote and take care of my field. I can monetize and be apart of a larger infrastructure. Consider joining the team because it really is all about winning and not about competing or being right. That’s what we’re trying to establish. I have been the company that’s been doing acquiring other companies, and by all means, now my company has been converted to NewAge. So, what was good for the goose has been good for the gander, and I hope people will watch that in the industry and say, “Wow, ARIIX was doing it—now it has been to them.” It will be like a moth to a flame. People will see that fire burning in us and be attracted to it

The post Q&A With Brent Willis and Dr. Fred Cooper of NewAge, Inc. first appeared on Direct Selling News.

The CEO World Awards are an annual industry and peer recognition program honoring CEOs, executives, entrepreneurs and innovators from organizations in every industry and of every size from around the globe. The annual awards program, now in its eighth year, recognizes individuals and teams who set industry benchmarks for excellence.

Dr. Fred Cooper, the co-founder of ARIIX and current Board member for NewAge, Inc., was awarded a Lifetime Achievement Award.

“It’s an honor to be named a Lifetime Achievement winner,” said Dr. Cooper. “I’m grateful for the accolade, and I still have many more lifetimes to achieve—so do ARIIX and NewAge! The awards ARIIX has garnered demonstrate our innovative and Representative-focused approach that’s always been at the core of what we do. NewAge shares the same passions, and our combined synergies make the future more promising than anyone can imagine.”

The CEO World Awards Grand Trophy is awarded to organizations that have won the greatest number of awards, demonstrating the highest excellence in business. ARIIX awards included:

GOLD  

• Most Innovative Company of the Year | ARIIX
• Lifetime Achievement Award | Dr. Fred Cooper
• Outstanding Executive of the Year in Finance | Jeff Yates
• Best New Product or Upgrade of the Year | LIMU BLU FROG^®

SILVER

• Company of the Year | ARIIX
• Best Product to Combat and Reduce the Impact of COVID-19 | Puritii Home Detox 

Winners will be celebrated and presented their awards during a virtual awards ceremony in November. For a complete list of the 2020 CEO World Award winners, click here.

The post ARIIX Wins 7 CEO World Awards first appeared on Direct Selling News.

The combination will create a global firm with estimated pro forma revenues in excess of $500 million across more than 75 countries worldwide.

NewAge and ARIIX have agreed to create a leading health and wellness firm, with an omni-channel route to market, depth in the e-commerce and direct selling channels, a team of more than 400,000 independent representatives and a portfolio of healthy products. Merging into the combined company are:

• NewAge: One of the fastest-growing beverage companies worldwide with penetration in over 60 countries and a unique omni-channel route to market
• ARIIX: One of the fastest-growing direct selling companies with over 17% CAGR 2015-2019, penetration in over 35 countries and a leading nutritional performance portfolio
• Zennoa: Established in 2016 with its largest presence in Japan and a portfolio of superfood-based dietary supplements, beverages and fermented foods
• LIMU: Global leader in fucoidan-rich, seaweed-based nutritional products and beverages with over 2,000 independent research studies on its proprietary supernutrient
• MaVie: DNA mapping and wellness company with predictive genomic sequencing and a range of nutritional products customized to individuals’ DNA makeup
• Shannen: Award-winning Indonesian skincare and beauty company founded in 2018 with sales of over $25 million in its first two years of operations

NewAge CEO Brent Willis, who will be the CEO of the newly combined company, said, “We are very excited that these companies are coming together to create a powerful global enterprise with tremendous growth potential. We will have the team, the scale, the profitability, the brands and the reach to drive superior growth and return for shareholders and all of our valued independent representatives and consultants worldwide.”

Key Highlights

• Increases scale with expected pro forma revenue in excess of $500 million, with increased free cash flow and positive net income
• Enhances the combined company’s global footprint, adds to the core markets of China, Japan and Europe, and expands market access to over 75 markets worldwide
• Furthers the omni-channel route-to-market strategy with over 80% of products ordered and fulfilled online and over 80% delivered direct to consumers’ homes
• Strengthens portfolio of healthy brands with major new additions to category platforms of Health and Wellness, Healthy Appearance and Nutritional Performance

ARIIX was founded nine years ago by former direct selling senior executives, led by Dr. Fred Cooper and Mark Wilson. The company has garnered over 200 awards in business, leadership, branding and has grown to more than $200 million in revenue and $15 million in EBITDA in 2019.  Cooper, who is chief executive officer of ARIIX, will be joining the Board of NewAge as part of the merger.

“We are in an excellent position to accelerate organic growth with our direct business model, our expanding market access, and our healthy product portfolio, and are confident as a result of this merger,” said Cooper.

NewAge has grown from $2 million to over $250 million in less than four years. The company has developed a platform of healthy functional brands sold through its omni-channel route to market across more than 60 countries around the world. The combined entity expects to reach pro forma revenues of over $500 million, with a blended gross margin of approximately 70 percent, and adjusted EBITDA of more than $30 million for 2020.

As part of the combination, NewAge expects to capture approximately $20 million in EBITDA in the first 18 months following closing in cost and revenue synergies in the areas of cost of goods sold, manufacturing efficiencies and scale, operational redundancy, cross-pollination of brands, as well as market and channel expansion.

Consideration for the acquisition will consist of a combination of cash, common stock and convertible notes. At closing, NewAge will pay $25 million in cash and will issue 18 million shares of the Company’s common stock. NewAge will also issue a convertible note for $10 million that matures six months from closing and a convertible note for $141.25 million that matures 24 months from closing. Details of the transaction are included in the Company’s Current Report on Form 8-K dated July 20, 2020. Closing of the transaction is expected to occur in the third quarter of 2020.

The post NewAge Enters into Agreement to Acquire ARIIX first appeared on Direct Selling News.

“It’s an honor to receive such esteemed recognition and to be named the consumer products Company of the Year by the One Planet Awards,” said ARIIX CEO and Founder Dr. Fred Cooper. “As we embark on our eighth year of business, I am more excited than ever about what the future holds for the company and the thousands of Representatives, customers and employees that make up the global ARIIX family.”

The One Planet Awards Grand Trophy is given to organizations that have won the greatest number of gold, silver and bronze awards in one year. ARIIX gold awards included Company of the Year; Marketing Executive of the Year, Vivian Chung, vice president of Marketing; Innovator of the Year, Dr. Fred Cooper, CEO and founder; and Lifetime Achievement Award, Mark Wilson, president and founder. The company also received a silver award for Woman of the Year in Business & the Professions, Deanna Latson, chief product officer and founder.

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