Arbonne International

Arbonne International
Type Private
Industry Cosmetics and personal care products
Founded 1975
Headquarters Irvine
Founder Petter Mørck
Products Cleansers, Moisturizers, Sunscreens, Exfoliants, Nutritional supplements
Areas Served Australia, Canada, New Zealand, Poland, Taiwan United Kingdom, United States of America
Website www.arbonne.com/discover/

Arbonne International is a multi-level marketing company, headquartered in Irvine, CA. It specializes in the manufacture and distribution of health and skincare products.

History

The company was founded by Petter Mørck and chemist Pierre Bottiglieri in 1975. Mørck later moved to South Laguna in 1980 to establish the company's headquarters in America.[1][2][3]

Distributors (or, "independent consultants") sell the products and recruit other distributors. Incentive programs for distributors who reach certain sales rankings include a one-year lease of a white Mercedes-Benz vehicle,[4] or trips to France.[5] Arbonne's products are sold by distributors in America, Australia, the United Kingdom, Canada, Poland, New Zealand[6] and Taiwan. Global sales revenue is in excess of US $550 million.[7]

In 2018, Arbonne and its sister company Nature's Gate was acquired by worldwide cosmetics and beauty brand Groupe Rocher.[8] Jean-David Schwartz was appointed the new CEO.[9]

American operations

Arbonne was a subsidiary of Levlad Inc., which were acquired by Harvest Partners' holding company, Natural Products Group LLC for US $93 million in November 2004.[10] The company made US $200 million in sales in 2004. In 2005 there were 434,000 independent consultants, increasing to 612,000 in 2006. The company lost more than 500,000 consultants between 2007 and 2009. In January 2010, Natural Products Group LLC filed for bankruptcy protection in order to reduce company debts.[11] Harvest Partners were no longer involved, with Arbonne's new ownership being a combination of banks and private equity firms.[12] In February 2018, Groupe Rocher agreed to acquire Arbonne International and Nature's Gate from Natural Products Group.[7]

In 2006, Arbonne established distribution centers in Greenwood, Indiana,[13][14] and near Calgary, Alberta.[15] This was in addition to an existing distribution center in Mississauga, Ontario.

In 2012, The Arbonne Charitable Foundation was registered as a charity to support programs helping teenagers build and increase their self confidence.[16]

Products

Products are formulated at the Arbonne Institute of Research and Development (AIRD) in Switzerland, and produced in the United States. A 2006 article in The Virginian-Pilot highlighted questions about whether AIRD not having their own facilities, and that chemist Pierre Bottiglieri may have worked for multiple companies besides Arbonne.[17]

Recalls

In January 2009, Arbonne voluntarily recalled some production lots of branded peanut butter cups. This was due to the risk of possible Salmonella serotype Typhimurium contamination of peanut-based products consigned from a Georgia processing plant.[18] In September 2009, Arbonne voluntarily recalled a production lot of branded foaming sea salt scrub, due to the risk of contamination with the Pseudomonas aeruginosa organism.[19]

In January 2013, Health Canada advised of Arbonne's voluntary recall of one batch of branded facial moisturizer for men. Arbonne's testing found that the batch contained the bacterium Aerococcus viridans.

In January 2014, the Australian Competition & Consumer Commission (ACCC) recalled sample tubes of branded day cream due to the presence of bacteria Enterobacter gergoviae.[20] In June 2016, Arbonne voluntarily recalled multiple lots of branded liquid eye liner. The products contained unacceptable levels of bacteria: Staphylococcus saprophyticus, Staphylococcus xylosus, and Staphylococcus lentus.[21] In October 2017, the ACCC recalled one lot of branded body wash due to unacceptable levels of Staphylococcus cohnii bacterium.[22]

Lawsuits

In November 2009, the U.S. District Court for the Southern District of Indiana ruled that Arbonne International LLC violated federal law. The company refused to employ Lisa Wilson on the grounds of her disability (deafness). Arbonne paid a US $30,000 settlement to Wilson and were required to institute non-discrimination policies and training.[23]

In May 2017, Cynthia and Michael Dagnall raised a lawsuit against Arbonne in the Orange County Superior Court. They alleged that the company was an illegal pyramid scheme.[24] The case was dismissed in March 2018.

References

  1. ↑ Krino, Gary (14 November 1987). "The Norwegian Approach". The Orange County Register.
  2. ↑ Swift, Earl (21 June 2006). "Behind the gift of Arbonne". The Virginian-Pilot. Retrieved 2018-05-25.
  3. ↑ Di Martino, Mediha (20 June 2016). "Arbonne's new ambition". Orange County Business Journal. 39 (25): 1, 66. ISSN 1051-7480 – via Factiva.
  4. ↑ "First vehicle to a rising exec". The Morning Bulletin. 19 September 2008. p. 39.
  5. ↑ Magsaysay, Melissa (12 February 2011). "Social media creates beauty buzz". The Hamilton Spectator. p. C8.
  6. ↑ Di Martino, Mediha (13 June 2016). "Cosmetics maker stretches to New Zealand". Orange County Business Journal. 39 (24): 4. ISSN 1051-7480 – via Factiva.
  7. 1 2 "Arbonne acquired by Groupe Rocher". Household & Personal Products Industry. 55 (3): 88. 1 March 2018. ISSN 0090-8878 – via Factiva.
  8. ↑ Home.org, Business For. "Groupe Rocher Acquires Arbonne". Retrieved 2018-08-10.
  9. ↑ Driver, FashionNetwork.com, Robin. "Groupe Rocher vet Jean-David Schwartz takes over as Arbonne CEO". FashionNetwork.com. Retrieved 2018-08-10.
  10. ↑ "Levlad goes Natural". Cosmetics International. 28 (643). 10 December 2004. ISSN 0963-6137 – via Factiva.
  11. ↑ Brown, Rachel (19 March 2010). "Arbonne beyond bankruptcy". Women's Wear Daily. 199 (60): 6. ISSN 0149-5380 – via Factiva.
  12. ↑ Gomez, Alisha (28 June 2010). "Direct-seller Arbonne focuses on products after bankruptcy". Orange County Business Journal. 33 (26): 1. ISSN 1051-7480 – via Factiva.
  13. ↑ "Arbonne opens new Indiana DC to handle huge sales growth". Material Handling Management. 61 (5): 11. 1 May 2006. ISSN 1529-4897 – via Factiva.
  14. ↑ Thuermer, Karen E. (1 March 2007). "Where, why, and how many? Rapidly changing market forces require shippers to build flexibility and agility into their networks. That has a big impact on strategies for locating distribution centers". Logistics Management – via Factiva.
  15. ↑ Gallagher, Thomas L. (7 July 2008). "Arbonne Canada opens DC". Traffic World.
  16. ↑ "Arbonne International, LLC has created an official charitable...". Household & Personal Products Industry. 49 (6): 42. 1 June 2012. ISSN 0090-8878 – via Factiva.
  17. ↑ Swift, Earl (21 June 2006). "Behind the gift of Arbonne (story continued)". The Virginian-Pilot. Retrieved 2018-05-25.
  18. ↑ "More peanut butter recalls announced". Charleston Gazette. 25 January 2009. p. 5B.
  19. ↑ "Skin infections: body scrub recalled". The Advertiser. 9 September 2009. p. 14.
  20. ↑ "Arbonne Europe Sarl—RE9 Advanced Restorative Day Creme SPF 15 3mL Sample Tube". Product Safety Australia. 14 January 2014. Retrieved 2018-05-25.
  21. ↑ "Arbonne UK Ltd—Arbonne It's A Fine Line Liquid Eyeliner". Product Safety Australia. 28 July 2016. Retrieved 2018-05-25.
  22. ↑ "Arbonne UK Limited — Rescue & Renew Detox Body Wash". Product Safety Australia. 10 October 2017. Retrieved 2018-05-25.
  23. ↑ "Arbonne International to Pay $30,000 To Settle EEOC Disability Discrimination Suit". www1.eeoc.gov. 9 November 2009. Retrieved 2018-05-25.
  24. ↑ Madans, Hannah (3 June 2017). "Arbonne called pyramid scheme". The Orange County Register. ISSN 0886-4934.
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