Herbalife

Overview

Herbalife was founded in February 1980 by Mark R. Hughes, launching with its Formula 1 protein shake mix, which remains a core product line today. The company has since expanded its catalog to include meal-replacement shakes, protein and sports-nutrition products, weight-management supplements, energy and fitness products, and personal-care items, sold under the Herbalife Nutrition brand. The company operates as a direct-selling business, distributing products through a network of independent distributors (referred to as members) rather than traditional retail, with compensation tied to both personal product sales and the performance of distributors they sponsor. Herbalife Ltd. is incorporated in the Cayman Islands (originally as WH Holdings (Cayman Islands) Ltd., later renamed) and trades on the New York Stock Exchange under the ticker HLF since its December 2004 listing, with corporate offices in Los Angeles, California. Herbalife describes itself as operating in roughly 90-plus countries across the Americas, Europe, Asia-Pacific, and Africa/Middle East, supported by manufacturing and distribution facilities in multiple regions. In 2016 the company reached a settlement with the U.S. Federal Trade Commission requiring changes to its distributor compensation structure and business practices; it continues to operate as a multi-level marketing company under revised compliance terms.