Wednesday, June 13, 2007

[MLM Survivors Club] Quixtar Out, Amway In

It appears official: The name change didn't work.

Wonder if this will confuse the connections with Dateline and MOD and
other negative PR over the last few years.

PW

http://www.woodtv.com/Global/story.asp?S=6652689

ADA, Mich. (AP) -- Quixtar is on its way out. Amway is on its way back.

Direct-sales giant Alticor Inc. confirmed Wednesday that it will scrap
its 7-year-old Quixtar Inc. label during the next 1 1/2 to two years
and focus on rebuilding its Amway brand in North America.

The Alticor name itself will be relegated to the back burner.

Employees received the news last week in an internal memo from company
Chairman Steve Van Andel and President Doug DeVos, The Grand Rapids
Press reported.

"We are going through a global transformation of our business," the
memo said. "This includes rethinking our global approach to products,
training, brands, and how we operate in all the countries in which
Alticor operates. As part of that, in 18 to 24 months, we're planning
to begin using the Amway name in North America to unite our business
opportunity under a single global brand."

Although no public announcement has been made, Alticor spokesman Rob
Zeiger confirmed the changes Wednesday, adding that he does not expect
any jobs to be lost as a result.

The company dropped the Amway name in the United States and Canada in
2000 as part of an overhaul that took what had started as a
door-to-door vitamin sales business into the world of online sales via
Quixtar.

The move also was widely viewed as a way of helping the company shed
some of the negative connotations the Amway name had acquired.

The Quixtar name, however, never resonated with the public.

"Research has shown us that the Quixtar name is weaker and less known
in the U.S. and Canada than we ever expected," the memo said.
"Meanwhile, even eight years after leaving North America, the Amway
name is stronger and better known than we realized."

The Amway name has enjoyed a resurgence overseas as the company
focused on expanding operations under that banner in Asia. Amway China
last year accounted for more than $2 billion of Alticor's $6.3 billion
in annual sales.

The Amway name began to re-emerge in the United States last year when
the company bought the naming rights to the arena in which Amway
co-founder Rich DeVos' Orlando Magic of the NBA play their home games.

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