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Company will earn royalty based on future sales of the Beauticontrol sales force, and sales of the Beauticontrol product.
By: Christine Esposito
December 18, 2017
Tupperware Brands Corporation has reached an agreement to sell Beauticontrol assets to Youngevity International, Inc., a Chula Vista, CA-based direct marketer of nutritional and lifestyle products. As part of the deal, Youngevity will integrate Beauticontrol's sales force into its company, marketing Beauticontrol branded products, as well as the other brands in Youngevity's product portfolio. Youngevity will also market Beauticontrol branded products to its existing member base. Tupperware will earn a royalty based on future sales of the Beauticontrol sales force, and sales of the Beauticontrol product line by the existing Youngevity members. “We couldn't be more pleased to reach this agreement with Youngevity. We feel Youngevity's 20-year history and impressive track record make them the ideal company to welcome Beauticontrol into its family of brands. The agreement will allow Beauticontrol's sales force to again be able to purchase many of the products that they and their customers love. As part of Youngevity, the Beauticontrol product line will have an even wider audience through its existing members and by joining Youngevity, the Beauticontrol sales force members will be able to enjoy a terrific direct selling earning opportunity. While likely to be modest in any particular year, monetizing these Beauticontrol assets is a win for Tupperware Brand's shareholders,” said Rick Goings, Chairman and CEO of Tupperware Brands. “We're thrilled and proud to enter into an agreement with Tupperware who has built an iconic and impressive global brand and company. We look forward to welcoming the sales force of Beauticontrol and expanding the innovative product development that Beauticontrol has become known for over the last 27 years,” said Steve Wallach, CEO and Chairman of Youngevity. In the third quarter 2017, Beauticontrol sales rose 25%, or $2.5 million, in connection with sales force stocking during the wind-down period, said Tupperware. Beauticontrol lost $3.2 million, $0.9 million and $2.6 million in the third and fourth quarters of 2016 and first seven months of 2017, respectively. It had $9.8 million and $11.5 million of sales in the third and fourth quarters of 2016 and $30.9 million the first nine months of 2017. Tupperware Brands Corporation also sells beauty and personal care products through the Avroy Shlain, Fuller Cosmetics, NaturCare, Nutrimetics, and Nuvo brands.
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