History of Nature's Sunshine Products

How It All Began

We all know about the beneficial properties of herbs, but not everyone is willing to tolerate the unpleasant taste and smell of many of them, even for the sake of their own health. How can we combine the pleasant with the useful? The Hughes family, living in the town of Provo, Utah, USA, once pondered this question. What if we tried to cover the unpalatable properties with some kind of dissolvable coating (for example, gelatin), so that such medicine could be swallowed without wincing, and it would dissolve calmly in the stomach?

No sooner said than done. For three consecutive nights in their garage, the family manually packed ground red pepper into gelatin capsules—a total of three thousand pieces—which they then packaged into empty jars. Their first profit was only four dollars and fifty cents; however, the product appealed to consumers so much that more and more orders began to arrive. Therefore, it soon became easier to mechanize production by hiring additional hands.

And then things went so well that the Hughes family's endeavor turned first into a small company, and then into a large international corporation with distributors in fifty US states, South American countries, New Zealand, Canada, and many European and CIS countries.

What NSP Produces

However, the company specializes not only in the production of herbal remedies. The expanded product range includes therapeutic cosmetics, vitamins, personal care items, as well as natural remedies. As we can see, all production is based on purely natural ingredients, of which NSP uses at least 500 varieties.

And yes—it is one of the largest direct-selling companies in the world, whose main goal is the production of dietary supplements specifically designed to help support the health of each of us. The main rule applies here: the highest technologies and the most "advanced" methods are put at the service of human health, and only the most renowned scientists and specialists are invited for development. Not to mention the mandatory strict control over the products and production technology.

How could this giant leap from a kitchen table business to such a huge corporation happen? Perhaps we should travel back in time to see exactly how everything happened chronologically. Are you ready?

The Beginning of the Company's Development

So, let's start with 1972, when the Hughes Development Company was created at home. At that time, shares of the company (specifically, the controlling stake) were sold for just one dollar. The first shareholders were relatives and friends, and the first product the company produced in encapsulated form was Capsicum, which could be purchased at local health food stores.

In that very first year, the business immediately "took off," which is when thoughts about mechanizing labor arose; therefore, the first piece of production equipment was a machine that could fill capsules. Such automated equipment cost $80 for a month's rent. And the very next year, due to significant sales growth, the company was renamed National Multi Corporation. Its products were now sold exclusively with the mandatory label "Naturally".

Such a giant leap in development required the implementation of a special marketing policy that would help sell goods to distributors. It was exactly this plan that was adopted along with corporate commitments in 1974. Everything that happens next was simply impossible to predict: the very next year, sales exceeded the plan by 500%, and the company legally grew into a publicly traded corporation.

This allowed it to reach a new level—including in terms of areas directly related to production. Thus, a 32,000-square-foot manufacturing facility was built in Spanish Fork (where, by the way, the organization would relocate the following year). Much changed—including the company name (reverting to a former variant, Amtec Industries). Staff were actively trained—for example, the first conference was held in Las Vegas. And finally, an international presence emerged—the first such branch opened in neighboring Canada, where residents were also interested in a healthy lifestyle.

By 1978, the company's shares were actively traded, and names like Arlen and Gene Liman, Jack Ritchason, Judy Price, and Dell Applénalt appeared among top management. It was in this year that the first major factory opened, and simultaneously, a specially created laboratory was established to monitor quality.

And the next year brought a new record. This time in sales, which reached over ten million dollars a year. Management rewarded the most successful distributors for this work with a trip to the capital of Mexico. By the way, increased attention to distribution led to the opening of a specialized center in Ohio.

As for the products, in that same year of 1980, the company began producing vitamins and herbal concentrates. Such attention to the natural contents of its goods led to the company changing its name to Nature's Sunshine Products. Furthermore, the company's products were rapidly transforming into a beloved brand, which required the development of a logo. And so, the organization's famous emblem was born.

The company also did not forget about charity, organizing various festivities. New distributor delivery centers opened—in particular, one was opened in California in 1982. And the founder of the production herself, Mrs. Hughes, shared secrets on a television news program about how they managed to achieve an income of two million dollars a month. But there are no special secrets when about six hundred orders arrive daily, one of which becomes the millionth.

All these indicators only "pushed" both towards the development of new production facilities (which, in fact, happened in 1983 and subsequent years) and towards beginning to use "know-how," such as waterproof foil for sealing bottles. And news from the financial world—in 1984, Forbes magazine reported the company as one of the most incredibly dynamic growing companies in the world.

The year 1985 also became a landmark. First, the manufacturers drew consumers' attention to the wisdom of the East—Chinese herbs traditionally used in folk medicine were introduced among the products. And secondly, the company "entered" Europe—the first Spanish branch opened (and the very next year the first catalog in Spanish appeared).

How many employees were involved in the organization's work at that time? The numbers show us that in 1986 there were already 1,508 of them (then it is not surprising that the indicators were 5 orders per person per hour). And how many products could be named? According to the inventory conducted, in 1987 there were four thousand items and 100% product accuracy (which was achieved in exactly 100 days). By the way, the entire range of manufactured products undergoes special testing for radioactivity.

However, it was not without losses, when Richard Smith Hughes died in a car accident in 1987. This led to Pauline Hughes joining the board of directors.

More and more employees were involved in the company's work—in 1989, the number of managers reached 2,200, which made it possible to reach the $5,000,000 sales mark. They even had to introduce their own automated telephone line and increase the size of Spanish Fork. The company fulfilled its two millionth order in 1990, and its total assets amounted to $20 million (such growth rates promoted loyalty from shareholders, who invested about forty million dollars in the company). By that time, three hundred and sixty production lines had already been opened in the company.

Meanwhile, new achievements could be noted in 1991—for example, in terms of international development, the first branch opened in South America. Financial World ranked the organization 48th in the US, and Forbes awarded it 77th place on the list of the 200 best small companies. By the way, the very next year, the company ranked 44th in Forbes. And in 1993, Worth publication recommended the company's stock among the top hundred. It was in this year that Kristine Hughes was recognized as the best businesswoman of the year.

Perhaps this happened due to changes in the marketing plan, which helped open new markets for NSP in Brazil, Costa Rica, and even Japan in 1994. The company did not stand still either in terms of employee training (special conferences for managers were constantly held) or in terms of popularity: for example, Financial World gave the company 54th place in the list of the 200 best successfully trading stocks on the American stock exchange. By the way, these very shares cost more than the famous Coca-Cola, Pepsi, Avon, and others. And in the rating for investors, NSP stood alongside such famous companies as Walt Disney, Blockbuster Video, and others.

This is not surprising, considering that every day, for example, in 1995, 300-375 orders were processed in the company, and almost six thousand managers and ninety-six thousand distributors worked in America alone. Just as the managers themselves actively participated in various conferences, foreign delegations gladly visited the main office. And the international market continued to be replenished with South American countries. Interestingly, how many products were produced in those days? No less than 22 million! And among them—104 million capsules and 60 million vitamins, and all this in just a month! A special line for women was also opened. By the way, NSP makes no secret of its technologies, speaking about their high quality in the media.

Results of NSP's 25 Years of Work

What do we have by NSP's twenty-fifth anniversary of operations in 1997? Four hundred international representative offices, 9 countries in which it operates. The company continues to grow dynamically and even launches, in accordance with the demands of the times, its own online resource www.nsponline.com. The management does not forget to donate to charity, as, for example, happened to help the victims of hurricanes in Honduras and Nicaragua in 1998 (and this despite their own losses due to an earthquake a year earlier).

The company is so popular that even many famous people (such as Michael Jordan's mother) express their desire to become its official representative. And all this is not unfounded—the products are truly natural and help safely lose weight (in particular, the Fat Grabbers product). By the way, those wishing to purchase it and other products can now do so not only in retail but also via the Internet. And finally, on the eve of the new millennium, the market opens in Russia.

A New Millennium for the Company

And what did the 2000s bring to NSP? First, more and more international markets opened (in particular, in Israel), and management planned to increase the number of production tools. And already in 2001, the company acquired another organization—Synergy—and launched a fourth-generation cosmetics line called Optima. New cosmetics lines Tropical Mists and Natria appeared in 2002 and 2003, respectively. And in that same 2002, NSP became the "Manufacturer of the Year"—a good gift for its thirtieth anniversary of operations.

New markets were actively conquered—in 2003, warehouses appeared in the Republic of Kazakhstan and Mongolia, and the following year, in 2004, in Lithuania.

The manufacturers never tire of surprising—in 2005, a new product called "Zambroza" appeared, which immediately after release became a bestseller. And in 2007, it became the best-selling beverage.

It's amazing how time flies—in 2009, NSP celebrated the tenth anniversary of its work in the CIS market, the Baltic States, Asia (specifically Mongolia), and the Caucasus. In the same year, the idea of producing natural detergents and energy drinks arose, which were also brought to life.

The company does not forget about men, who also want to use natural products for personal care. Thus, special cosmetics for them appeared in 2008. In the same year, the process of product certification began in Uzbekistan and Tajikistan.

And in 2010, NSP released more and more new home care products, as well as a unique new cosmetic line called Bremani.

By the way, the first official representative office was opened in the capital of Belarus—the city of Minsk—that same year.

NSP Today

Perhaps no other organization has so many awards and certificates that truly confirm its good mission in the world. Among them is GMP from NSF. What does this mean?

NSF International is a non-governmental and non-profit organization that is a global leader in product quality certification. It is the leading auditor of all organizations involved in the production of products for human health and safety. It was this organization that awarded NSP the certificate testifying to Good Manufacturing Practice (GMP). This indicates that the production of goods has undergone the strictest verification in all respects, starting from personnel and ending with the equipment used.

All this allows NSP to confirm its global position as one of the largest companies producing eco-friendly dietary supplements, vitamins, hygiene products, as well as products in the field of food, cosmetic, and industrial household chemicals. Product quality has been proven by more than forty-two years of practice and branches in more than 90 countries worldwide, including the USA, Japan, Mexico, Canada, the UK, Ecuador, Malaysia, Chile, Norway, Ukraine, Kazakhstan, South Korea, Venezuela, Colombia, Brazil, Peru, Israel, Argentina, Russia, New Zealand, Belarus, and many others.

If you choose a healthy lifestyle, you choose NSP!

Financial Performance of the Company

Nature's Sunshine Products sells its shares on the NASDAQ stock exchange and is obliged to publish full reports of its activities.

Read more in the company's annual reports on this page.

Disclaimer: The information provided is for educational and informational purposes only. It is not intended as medical advice or guidance. Dietary supplements are not intended to diagnose, treat, or prevent any disease. Consult a healthcare professional before using any supplements.