USANA Health Sciences, Inc., a Utah corporation, was founded in 1992 by Myron
W. Wentz, Ph.D. We develop and manufacture high-quality, science-based nutritional
and personal care products with a primary focus on promoting long-term health
and reducing the risk of chronic degenerative disease. In so doing, we are committed
to continuous product innovation and sound scientific research. We have operations
in 20 markets worldwide, where we distribute and sell our products by way of
direct selling. We have chosen the direct selling distribution method as we
believe it is the most conducive to meeting our vision as a company, which is
improving the overall health and nutrition of individuals and families around
the world. Additionally, we are subject to the various laws and regulations
in the United States, China, and the other markets in which we operate with
respect to the products that we sell and to our method of distribution.
Our customer base comprises two types of customers: "Associates"
and "Preferred Customers." Associates share in our company vision
by acting as independent distributors of our products in addition to purchasing
our products for their personal use. Preferred Customers purchase our products
strictly for personal use and are not permitted to resell or to distribute the
products.
Our products are distributed and sold in 20 markets. We have organized our
markets into two geographic regions: (i) Asia Pacific, which includes three
sub-regions, and (ii) Americas and Europe, as noted below.
Asia Pacific
Asia Pacific is organized into three sub-regions: Greater China, Southeast
Asia Pacific, and North Asia. Markets included in each of these sub-regions
are as follows:
Greater China—Hong Kong, Taiwan, and China
Southeast Asia Pacific—Australia, New Zealand, Singapore, Malaysia, the
Philippines, Thailand and Indonesia(2)
North Asia—Japan and South Korea
Asia Pacific has driven our growth the last several years. Our most recent
market expansions in this region include our entry into Indonesia in late 2015.
Since our acquisition of BabyCare in 2010, our strategy in Asia Pacific has
been centered on generating growth in China. Consequently, our growth in Asia
Pacific over the last few years has been led by China, and we believe that China
will continue to drive our growth in this region going forward. We also expect
our business to grow in most of our other markets in this region.
Americas and Europe
Americas and Europe is our most mature region and has grown modestly on a
constant currency basis over the last several years due to sales and customer
growth in Canada and Mexico. We have not, however, generated sales and customer
growth in the United States over the last several years. We continue to implement
growth strategies in the United States and remain optimistic about our potential
to generate growth in this market.
2.21% 