AdvoCare

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AdvoCare International
TypePrivate
IndustryNutrition & Skin Care products
FoundedCarrollton, Texas (1993)
Founder(s)Charles E. Ragus
HeadquartersPlano, Texas, United States
Area servedUnited States
Key peopleRichard H. Wright, President & Chief Executive Officer
ProductsWeight management, nutritional supplements, sports nutrition, personal care
RevenueUS$ 400 million (est.) (2013)[1]
Employees247 (est.) (2013)[2]
Websitewww.advocare.com
 
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AdvoCare International
TypePrivate
IndustryNutrition & Skin Care products
FoundedCarrollton, Texas (1993)
Founder(s)Charles E. Ragus
HeadquartersPlano, Texas, United States
Area servedUnited States
Key peopleRichard H. Wright, President & Chief Executive Officer
ProductsWeight management, nutritional supplements, sports nutrition, personal care
RevenueUS$ 400 million (est.) (2013)[1]
Employees247 (est.) (2013)[2]
Websitewww.advocare.com

Coordinates: 33°00′38″N 96°40′37″W / 33.01053°N 96.676928°W / 33.01053; -96.676928

AdvoCare International, L.P. is an American multilevel marketing company which sells nutrition, weight-loss, energy and sports performance products. The company was founded in 1993 by Charles Ragus and employs around 250 people in the United States. Its corporate headquarters are in Plano, Texas.

The company distributes its products in the United States through a network of approximately 60,000 active independent distributors,[3] who participate in a compensation plan based on a direct sales model.[4] As of July 2013, AdvoCare had over 334,000 distributors.[citation needed]

History[edit]

Charles Ragus founded AdvoCare in 1993, as a direct sales company that distributes health and wellness products.[5][6][7] Before AdvoCare, Ragus worked as a regional vice president for Fidelity Union Insurance, and as a direct sales distributor for Herbalife. He also played professional American football for the Kansas City Chiefs. He died in 2001 at the age 58.[8][9]

In May 2007, Richard H. Wright became president and CEO of AdvoCare. Wright had previously been working as Chief of Staff for US Representative Jim McCrery.[5][10]

Since 2009 AdvoCare has been the title sponsor of the AdvoCare V100 Bowl (previously known as the Independence Bowl) in Shreveport, Louisiana.[11][12] AdvoCare has announced it will drop sponsorship of the bowl after the 2013 game.[13][14]

Starting in 2014, AdvoCare is also the title sponsor of the Texas Bowl.[15]

Products[edit]

AdvoCare offers more than 70 general nutrition, weight loss, energy and sports performance products including Trim, Active, Well, Performance Elite, and the 24 Day Challenge.[16][17]

Business[edit]

AdvoCare is a multilevel marketing company that uses direct sales for distribution.[4][6] In addition to profits from product sales, AdvoCare distributors can potentially earn additional commissions from sales by their 'downline' distributors. According to the company's 2012 Income disclosure statement, the average annual income, not including expenses, for AdvoCare independent distributors who have earned any compensation was $1,781.10.[18]

As of July 2013 AdvoCare had over 334,000 distributors.[citation needed] In a 2010 court case Advocare said that it had around 60,000 active distributors, and had sold approximately 350,000 distributorships since 2003.[3][better source needed]

AdvoCare is a member of the U.S. Direct Selling Association (DSA), and participated in the 2010 DSA Code of Ethics Communication Initiative.[19] AdvoCare President Richard Wright was elected to the DSA Board of Directors in 2011.[20]

Controversy[edit]

In July 2008, Olympic swimmer Jessica Hardy tested positive for the banned breathing enhancer, clenbuterol. Although other athletes had been banned for using clenbuterol, Hardy said she had never heard of the substance, attributing the positive result to either a tainted supplement or sabotage.[21][22] Hardy took AdvoCare supplements at the time and said in a suit that AdvoCare's product was tainted.[23] AdvoCare sued Hardy for making false claims.[24] An arbitration hearing reduced Hardy's suspension after a scientific expert testified that the AdvoCare product was tainted. AdvoCare disputed the panel's findings, saying that two independent laboratories had not found any evidence of Clenbuterol in the supplements.[25]

AdvoCare ceased offering KickStart Spark, targeted to youth age 4-11, when it was scrutinized by pediatricians for containing 60 mg of caffeine.[26]

Health expert Wendy Miller said AdvoCare's cleanse is probably safe for many users, but she questioned if the same results could be achieved without the products.[27]

References[edit]

  1. ^ Barbara Seale (1 Sep 2013). "AdvoCare a two decade marathon". Direct Selling News. Retrieved 13 Nov 2013. 
  2. ^ / AdvoCare Profile
  3. ^ a b Advocare International v. Karen Ford, et. al PDF (11.0 MB) (page 23)
  4. ^ a b Sandra Zaragoza (16 Nov 2003). "Business model is formula for success". Dallas Business Journal. Retrieved 18 Oct 2013. 
  5. ^ a b "Three CEOs Reinvent Themselves With Second Careers". D Magazine. August 2010. Retrieved 2011-01-31. 
  6. ^ a b "AdvoCare Policies, Procedures, and the Compensation Plan". AdvoCare. Retrieved 23 Oct 2013. 
  7. ^ Candace Carlisle (19 Oct 2012). "Richard Wright and his wife don’t just run AdvoCare International, they’re customers". Dallas Business Journal. Retrieved 18 Oct 2013. 
  8. ^ Obituary Central Archive
  9. ^ Gary Abbot (4 June 2001). "AdvoCare Founder Charles Ragus, 58, passed away on Friday June 1". the Mat. Retrieved 18 Oct 2013. 
  10. ^ Candace Carlisle (19 Oct 2012). "AdvoCare CEO shares his secrets to health, business success". Dallas Business Journal. Retrieved 18 Oct 2013. 
  11. ^ Roy Lang (28 Jan 2010). "AdvoCare Recommits to I-Bowl". Shreveport Times. Retrieved 5 Nov 2013. 
  12. ^ "Dwight Jones of North Carolina Reinstated for Bowl Game". ESPN Go. 21 Dec 2011. Retrieved 5 Nov 2013. 
  13. ^ Goins, Adria (21 August 2013). "Longtime bowl expected to lose Advocare sponsorship". KSLA 12. Retrieved 6 November 2013. 
  14. ^ Dee, Chris (21 August 2013). "Advocare No Longer Title Sponsor For Annual Bowl Game". 1130am (Radio). Retrieved 6 November 2013. 
  15. ^ Barron, David (11 February 2014). "Texas Bowl gets a new sponsor in AdvoCare International". Houston Chronicle. Retrieved 4 April 2014. 
  16. ^ "Products". AdvoCare. Retrieved 1 Nov 2013. 
  17. ^ Dan Whitney (9 Apr 2012). "New business opens in Cherokee Tuesday". Cherokee Chronicle Times. Retrieved 5 Nov 2013. 
  18. ^ "2012 Income Disclosure Statement" (pdf). Retrieved 11 July 2013. 
  19. ^ "Code of Ethics in Action". Retrieved 27 June 2012. 
  20. ^ "2011–2012 DSA Officers, Board Members, Elected During DSA’s Annual Meeting". Retrieved 27 June 2012. 
  21. ^ "Olympic swimmer Jessica Hardy: 'I'm innocent'". USA Today. 2008-07-26. Retrieved 2010-11-14. 
  22. ^ "Hardy presses forward with tainted-supplement defense". Seattle Times. 2008-08-04. Retrieved 2010-11-14. 
  23. ^ "Swimmer Hardy blames company for failed drug test". USA Today. 2009-01-30. Retrieved 2010-11-14. 
  24. ^ "U.S. swimmer, supplement firm countersue". UPI. 2009-02-16. Retrieved 2010-11-14. 
  25. ^ "Supplement maker AdvoCare disputes Hardy panel findings". Seattle Times. 2009-05-05. Retrieved 2010-11-14. 
  26. ^ "A Sports Drink for Children Is Jangling Some Nerves". New York Times. 2005-09-25. Retrieved 2010-11-14. 
  27. ^ "Taking the 24-Day Challenge". 19 May 2011. ABC. WXYZ. http://www.wxyz.com/dpp/news/region/oakland_county/taking-the-24-day-challenge.

External links[edit]