History of Nature's Sunshine Products

How it all began

We all know about the beneficial properties of herbs, but not all of us are willing to put up with the unpleasant taste and smell of many of them, even for the sake of our own health. How can we combine pleasure with practicality? This is what the Hughes couple, who live in Provo, Utah, USA, thought about at the time. What if they tried to mask the unpleasant taste with some kind of dissolvable coating (such as gelatin), so that the medicine could be swallowed without grimacing and would dissolve quietly in the stomach?

No sooner said than done. For three nights in a row, the family packed red ground pepper into gelatin capsules by hand in their garage, filling three thousand capsules, which they then distributed into empty jars. Their first income was only four dollars and fifty cents, but consumers liked the product so much that more and more orders started coming in. This made it easier to mechanize production by hiring additional workers.

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

What does NSP produce?

However, the company specializes not only in the production of herbal medicines. The expanded product range now includes therapeutic cosmetics, vitamins, personal hygiene products, and natural remedies. As we can see, all production is based on purely natural ingredients, of which NSP has no fewer than 500.

And yes, it is one of the largest sales companies in the world, whose main goal is to produce biologically active supplements that can help support the health of each of us. The main rule here is that the most advanced technologies and methods are used to serve human health, and only the most renowned scientists and specialists are invited to participate in development. Not to mention the mandatory high level of control over products and production technology.

How did this giant leap from a kitchen table business to such a huge corporation happen? Perhaps it is worth going back in time to take a closer look at how it all happened. 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, the company's shares (in particular, its controlling stake) were sold for only one dollar. The first shareholders were relatives and friends, and the first product that the company produced in capsule form was Capsicum, which could be bought in nearby health food stores.

In that same first year, the business immediately took off, and it was then that the idea of mechanizing labor arose, so the first piece of production equipment was a machine that could fill capsules. Such automated equipment cost $80 for a month's use. The following year, due to significant sales growth, the company was renamed National Multi Corporation. Its products are now sold only with the mandatory label "Naturally" (in the American version, it sounds like "Naturally").

Such a huge leap in development required the implementation of a special marketing policy that would help sell the product to distributors. This was the plan that was adopted along with corporate obligations in 1974. Everything that happened next was simply impossible to predict: the very next year, sales exceeded the plan by 500%, and the company grew into a public company according to legal documents.

This allowed it to reach a new level, including in terms of space directly related to production. Thus, a 32,000-square-foot production facility was built in Spanish Fork (where, incidentally, the organization would move the following year). Many things are changing, including the name of the company (returning to the former name "Amtec Industries"). The staff is actively training—for example, the first conference is being held in Las Vegas. And finally, we can talk about an international name—the first such branch is opening in neighboring Canada, where residents are also interested in healthy lifestyles.

By 1978, the company's shares are actively being sold, and Arlen and Jean Liman, Jack Ritcherson, Judy Price, and Dell Appelnell appear among the top managers. It was in this year that the first large factory was opened, and at the same time, a specially created laboratory was established to monitor quality.

The following year saw a new record, this time in sales, which reached more than ten million dollars a year. Management rewarded the most successful distributors with a trip to the capital of Mexico. Incidentally, the increased focus on distribution led to the opening of a specialized center in Ohio.

As for products, in the same year, 1980, the company began producing vitamins and herbal concentrates. This focus on natural ingredients in its products led to the company changing its name to Natures Sunshine Products. What's more, the company's products were rapidly becoming a beloved brand, which required the development of a logo. This is how the organization's famous emblem came to be.

The company also engages in charitable activities, organizing various charity events. New distribution centers are opening, including one in California in 1982. And the founder of the company, Mrs. Hughes, shared the secrets of how they managed to achieve sales of two million dollars a month on a television news program. But there are no special secrets when you receive about six hundred orders a day, one of which becomes a million.

All these indicators only "push" towards the development of new production facilities (which, in fact, happened in 1983 and in subsequent years), as well as towards the use of "know-how", such as waterproof foil for sealing bottles. And news from the world of finance: in 1984, Forbes magazine reported on the company as the most incredibly dynamic in the world.

1985 was also a landmark year. Firstly, manufacturers drew consumers' attention to the wisdom of the East – the product range included Chinese herbs traditionally used in folk medicine. Secondly, the company "entered" Europe – the first Spanish branch was opened (and the first catalog in Spanish appeared the following year).

How many employees were working for the organization at that time? The figures show us that in 1986 there were already 1,508 (so 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, 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 a special check for radioactivity.

However, there were also losses, such as the death of Richard Smith Hughes in a car accident in 1987. This led to Paulina 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 allowed the company to reach $5,000,000 in sales. It even had to introduce its own automated telephone line and expand the Spanish Fork facility. The company fulfilled its two millionth order in 1990, and its total assets amounted to $20 million (such growth rates contributed to the loyalty of shareholders, who invested about $40 million in the company). By that time, the company had already opened 360 production lines.

Meanwhile, 1991 saw new achievements, such as the opening of the first branch in South America as part of the company's international development. Financial World ranked the organization 48th in the US, and Forbes even awarded it 77th place in its list of the 200 best small companies. Incidentally, the following year, Forbes ranked the company 44th. And in 1993, Worth magazine recommended the company's shares as one of the hundred best. It was in that year that Christine Hughes was named Businesswoman of the Year.

This was probably due to changes in the marketing plan, which helped NSP open new markets in Brazil, Costa Rica, and even Japan in 1994. The company is not standing still, both in terms of employee training (special conferences for managers are held regularly) and in terms of popularity: for example, Financial World ranks the company 54th on its list of the top 200 companies that successfully sell shares on the American stock exchange. Incidentally, these shares are more expensive than the famous Coca-Cola, Pepsi, Avon, and others. And in the investor rating, NSP ranks alongside such famous companies as Walt Disney, Blockbuster Video, and others.

This is not surprising, considering that every day, for example, in 1995, the company processed 300-375 orders and employed nearly 6,000 managers and 96,000 distributors in America alone. Just as the managers themselves actively participate in various conferences, foreign delegations are happy to visit the head office. And the international market continues to expand with the addition of South American markets. It is interesting to note how much product was manufactured in those days. No less than 22 million! Among them were 104 million capsules and 60 million vitamins, and all this in just one month! A special line for women is also being launched. By the way, NSP makes no secret of its technologies, talking about their high quality in the media.

Results of 25 years of NSP's work

What did NSP have to show for its 25 years of activity in 1997? Four hundred international representative offices and operations in nine countries. The company continues to grow dynamically and has even launched its own online resource, www.nsponline.com, in line with the demands of the times. The management does not forget to donate to charity, as was the case, for example, when it provided aid to Honduras and Nicaragua after the hurricanes in 1998 (despite its own losses due to the earthquake a year earlier).

The company is so popular that even many famous people (such as Michael Jordan's mother) have expressed their desire to become its official representatives. And all this is not just empty words — the products are truly natural and help you lose weight effectively (in particular, the Fat Grabbers supplement). By the way, those who want to buy it and other products can now do so not only in retail stores, but also online. And finally, on the eve of the new millennium, the market in Russia is opening up.

The new millennium for the company

What did the 2000s bring to NSP? First, more and more international markets are opening up (in particular, in Israel), and the management plans to increase the number of production tools. And in 2001, the company acquires another organization, Synergy, and launches a fourth-generation cosmetic line called Optima. The new cosmetics lines "Tropical Mists" and "Natria" appeared in 2002 and 2003, respectively. And in the same year, 2002, NSP became "Manufacturer of the Year" — a nice gift for its 30th anniversary.

New markets are actively being conquered: in 2003, warehouses appear in the Republic of Kazakhstan and Mongolia, and in 2004, in Lithuania.

The manufacturers never cease to amaze: in 2005, a new product called Zambroza appeared, which became a bestseller immediately after its release. And in 2007, it became the best-selling beverage.

It's amazing how time flies—in 2009, NSP celebrated its tenth anniversary of operating in the CIS, Baltic, Asian (particularly Mongolia), and Caucasus markets. That same year, the idea of producing natural detergents and energy drinks was conceived, which also came to fruition.

The company did not forget about men, who also want to use natural products to care for their appearance. Thus, official cosmetics for men 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 new unique cosmetic line called "Bremani."

Incidentally, the first official representative office in the Belarusian capital, Minsk, was also opened that year.

NSP today

Perhaps no other organization has as many awards and certificates that truly confirm its benevolent 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 world 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 NSF that awarded NSP with a certificate attesting to Good Manufacturing Practice (GMP). This means that the production of products has undergone the most rigorous testing in all respects, from personnel to the equipment used.

All this allows NSP to confirm its global position as one of the largest companies producing the most environmentally friendly dietary supplements in the food, cosmetics, household chemicals, vitamins, and hygiene products industries. The quality of the products has been proven by more than 42 years of practice and branches in more than 90 countries around the world, including the United States, Japan, Mexico, Canada, Great Britain, Ecuador, Malaysia, Chile, Norway, Ukraine, Kazakhstan, South Korea, Venezuela, Colombia, Brazil, Peru, Israel, Argentina, Russia, New Zealand, Belarus, and many other countries.

If you choose a healthy lifestyle, you choose NSP!

Company financial indicators

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

For more details, see the company's annual reports on the website.