What Else Are They Making?
From mlive.com, an interview with Steve Van Andel and Doug DeVos on the state of Amway. Here’s a quote from the end of the article:
A number of years ago we made the decision to begin contract manufacturing here and we did that because our volume here was small enough we needed to fill up the capacity here.
Today, it looks like half the business we do here is contract, the other half we do is Amway business. We expect as time goes on that will always shift a little bit to make sure we’re competitive.
I touched on this topic before in the past, but I never got a satisfactory answer on the nature of these contract products and the identities of the third-party customers. Anyone have any additional information to share?
Also, does “half the business we do here is contract” mean $4.1 billion out of the $8.2 billion sales figures came from contract manufacturing not tied to the Amway business? Somehow I don’t think that’s the case, but the way the quote is worded makes it seem that way.
Like I said in my earlier post, it makes sense for the corporation to do contract work if they have the resources and availability. I would like to see more light shed on these third-party deals that have in place. What third-party products are manufactured by Amway and how much do these rebranded products cost?