Herbalife Progresses in China

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Herbalife Ltd. said Monday that it has received a license from China’s Ministry of Commerce to sell its products in Jiangsu province.


In March, the Los Angeles-based supplement and health food company received a similar licence to sell products in Suzhou and Nanjing.


Herbalife currently operates 47 stores and 37 service centers in 28 provinces in China. The company operates a unique direct-selling model in China that allows it to conduct business outside of its retail locations.


Herbalife Ltd. said Monday that it has received a license from China’s Ministry of Commerce to sell its products in Jiangsu province.


In March, the Los Angeles-based supplement and health food company received a similar license to sell products in Suzhou and Nanjing.


Herbalife currently operates 47 stores and 37 service centers as well as a manufacturing facility in Suzhou. The company operates a direct-selling model there that allows it to conduct business outside of its retail locations which accounted for $38 million in sales during the fourth quarter of 2006.


Other companies, such as Avon Products Inc. and Nu Skin Enterprises Inc., also have licenses to sell products outside of a retail location in China.


There are 13 cities in the 61 counties of Jiangsu. The province’s population is about 90 million people.


Shares in Herbalife closed up 29 cents to $40.70 Monday in trading on the New York Stock Exchange.

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