MonaVie

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MonaVie
Type Private
Founded 2005
Headquarters Salt Lake City, Utah, United States
Area served North America, Australia, Brazil, New Zealand, Singapore, Japan, Israel
Key people Dallin Larsen, Henry Marsh, Dell Brown, Randy Larsen, Amy Cowley, Mark Iscaro
Industry Nutrition
Products Açai berry juice: MonaVie Original Blend, MonaVie Kosher Blend, MonaVie Active Blend, MonaVie Pulse Blend, MonaVie Gel Packs, MonaVie Active Gel Packs
Website MonaVie.com
MonaVie bottles.

MonaVie is a nutritional beverage company that distributes beverage products made from blended fruit juice concentrates with açaí pulp powder and purée through a multi-level marketing (MLM) business model. Marketing claims made about the products suggest that they provide antioxidants and health benefits. MonaVie has been the subject of recent media controversy, and several sources have questioned both the product's value and the legality of claims regarding its reputed health benefits. The manufacturer of MonaVie products, as well as some of its senior distributors, were involved in four lawsuits between 2007 and 2008.

Contents

[edit] Company overview

MonaVie juice was originally launched in January 2005 by MLM company Monarch Health Sciences, which was founded in 2003 as a distributor of diet and weight loss supplements. In 2005, the executives of Monarch founded MonaVie LLC/MonaVie Inc., a privately-held MLM company based in Salt Lake City, Utah. The newly formed company took over the bottling, distribution, and marketing responsibilities for MonaVie juice products. Monarch Health Sciences and MonaVie, Inc. were both founded by Dallin Larsen, who graduated from Brigham Young University with a B.S. degree in Finance.[1] Larsen previously held senior executive positions with the MLM companies Dynamic Essentials and Usana. According to company sources, MonaVie juice was originally developed by Ralph E. Carson, now the company's Chief Science Officer.

[edit] Executives

  • Dallin Larsen, Chairman and CEO[2]
  • Henry Marsh, Executive Vice President[3]
  • Randy Larsen, Executive Vice President/Chief Operations Officer (former)[3]
  • Charles Brink, Executive Vice President[4]
  • Dell Brown, Chief Operations Officer (current)[3]
  • Devin D. Thorpe, Chief Financial Officer[3]
  • Jeff Graham, Vice President of Product Development[5]
  • Amy Cowley, Executive Vice President [6]
  • Steven King, Vice President of Distributor Services and Human Resources[7]

[edit] Medical/Scientific Advisory Board

The Monavie Scientific Advisory Board[8] consists of the following members:

  • Nathan D. Wong
  • Penny Kris-Etherton
  • Alexander G. Schauss

The Monavie Medical Advisory Board,[9] which was replaced by the Monavie Scientific Advisory Board in 2009, consisted of the following members:

  • Ralph Carson (Chief Science Officer)
  • Mike Kennedy (Chief Medical Officer)
  • Denise Bruner
  • Lyle Mason
  • Jose F. Allongo
  • Vicki Berkus
  • Roger Rinn

[edit] Product overview

The MonaVie product line consists of three forms of bottled juice—MonaVie Original, MonaVie Active, and MonaVie Pulse—as well as gel pack versions of the products. The suggested retail prices for MonaVie Original, Active, and Pulse juice are $39, $45, and $45.25 respectively, per one 750-mL (25.5 oz.) bottle. The manufacturer's recommended daily serving size is 2 to 4 ounces.

MonaVie Original and Active juices list the following ingredients: blend of açaí (freeze-dried powder and whole juice); 100% fruit juice from concentrate (white grape, apple, acerola, aronia, purple grape, cranberry, passion fruit, apricot, prune, kiwifruit, blueberry, wolfberry (goji), pomegranate, lychee, camu camu); fruit purée (pear, banana, bilberry); citric acid, sodium benzoate. In addition to these ingredients, MonaVie Active lists d-glucosamine hydrochloride and esterified fatty acids as additives.

Monavie Pulse juice, launched on September 25, 2008, lists the following ingredients: blend of açai (freeze-dried powder and whole juice), reconstituted fruit juice blend (Concord grape blend, pineapple, apple, prickly pear, pomegranate, elderberry, yumberry, bilberry, blackberry, blueberry, cherry, cranberry, raspberry, aronia), puree fruit blend (acerola, strawberry, cupuaçu, camu camu), plant sterols (emulsified with corn syrup solids, polyglycerol esters of fatty acids, gum acacia), Apple Phyto-Phenolics (polyphenol blend), omega-3 (cranberry seed oil), resveratrol, natural flavors, potassium sorbate (preservative), sodium benzoate (preservative), citric acid. According to the company, 4 ounces of MonaVie Pulse provide 0.8 g plant sterols.

A patent application for the freeze-dried açaí powder (Opti-Açaí) used in MonaVie was submitted to the World Intellectual Property Organization in 2004 by developers Alexander G. Schauss and Kenneth A. Murdock.[10] WIPO’s Preliminary Report on Patentability deemed that many of the claims in the patent application did not support the novelty, inventiveness, or industrial applicability of the process,[11] and as of 2008, the patent had not been approved. Opti-açaí is marketed by K2A International, a business partnership between Schauss, Murdock, and MonaVie vice-president Jeff Graham.[12]

[edit] Product research

A study on the antioxidant activity of MonaVie Active juice reported that it had an ORAC score of 22.8 μmol/mL and that it contained 0.47 μg/mL total proanthocyanidins and 1.48 mg/mL total phenolics.[13]

A randomized, double-blind, placebo-controlled, crossover study in 12 healthy adults suggested that consumption of MonaVie Active led to a modest increase in the resistance of red blood cells to in vitro oxidation by hydrogen peroxide, which was demonstrated using the authors' newly developed "CAP" assay method.[13] ORAC in serum was not increased nor was serum lipid peroxidation significantly inhibited in test subjects who consumed MonaVie.

[edit] MORE Project

The company founded and operates a charitable organization known as The MORE Project or MonaVie's Operation Rescue.[14] based in South Jordan, Utah. The organization's current director is Katy Holt-Larsen, who took over the position from Charles Brink (now serving as Chief Counsel for Monavie LLC).[15]

[edit] Criticism

Critics of MonaVie include physician Andrew Weil and nutritionist Jonny Bowden, who claim that MonaVie’s nutritional and health benefits are not proven and that the product is exorbitantly priced relative to more cost-effective conventional antioxidant-rich foods, such as blueberries, raspberries, and pomegranates. Weil states that organic anti-oxidant rich foods such as blueberries are a more cost-effective alternative to Monavie, yet Weil does not provide any specific costs for quantities of these foods that would provide a comparable level of antioxidant intake. Bowden does not provide any specific information regarding Monavie's antioxidant capacity, but infers that a bottle "at $37 a pop" is more expensive than conventional fruits. Bowden does not mention that a bottle of Monavie contains thirteen 2 ounce servings, nor does he equate that to any quantity of whole fruits.[16][17] According to Men’s Journal, a nutritional analysis conducted by ChromaDex,[18] a contract-testing laboratory, showed that MonaVie Active juice “tested extremely low in anthocyanins and phenolics” and that “even apple juice (which also tested poorly) has more phenolics”.[19] The report also noted that “MonaVie’s vitamin C level was 5 times lower than that of Welch’s Grape Juice.”

Bowden, Newsweek correspondent Tony Dokoupil,[20] and Palm Beach Post reporter Carolyn Susman[21] commented on the use of misleading promotional testimonials by MonaVie distributors in which the product was said to prevent and treat a variety of medical conditions. Dokoupil noted that “the FDA warned MonaVie about medicinal claims on its Web site” in reference to the Food and Drug Administration's action against MonaVie distributor Kevin Vokes in July 2007. According to the FDA's warning notice, Vokes had promoted MonaVie as a drug in violation of the Federal Food, Drug, and Cosmetic Act [21 U.S.C. § 321(g)(1)] by claiming that it was effective for treating inflammation, high cholesterol, and muscle and joint pain.[22] In a 2008 article in Forbes magazine, reporters Emily Lambert and Klaus Kneale described MonaVie as a pyramid scheme and noted that a MonaVie video testimonial by distributor Louis “Lou” B. Niles implied that the product could cure cancer.[23] In a Bloomberg News interview in 2009, Monavie executive vice-president and cofounder Randy Larsen stated that "the company is struggling with independent distributors who promote the juice as a miracle drug."[24]

MonaVie CEO and founder Dallin Larsen was previously a senior executive with an MLM company that sold a similar juice product prior to being shut down by the FDA for illegal business practices. According to Newsweek correspondent Dokupil, Larsen, who was “a 20-year-veteran of the multi-level marketing industry", "left a senior post at another juice company in 2002, a year before the FDA destroyed the company's ‘bogus products’ that were being falsely promoted to treat ‘cancer, arthritis and attention deficit disorder’." The company in question, Dynamic Essentials, distributed an MLM juice product known as Royal Tongan Limu juice.

[edit] Litigation

On July 11, 2007, Monarch Health Sciences, the company that originally launched MonaVie, filed a lawsuit with the Utah district court against rival açaí juice manufacturer Amazon Thunder,[25] alleging that owner/founder Todd Reum had made “harmful, false, and defamatory statements" about MonaVie which "purportedly injured Monarch’s reputation”.[26] The suit sought $75,000 in damages. On November 15, 2007, the Utah district court ruled to dismiss the case against Reum.

On March 17, 2008 MonaVie preemptively filed a lawsuit with the Utah district court asking for a ruling as to whether Quixtar Inc. and Amway Corp. had been over-reaching the boundaries of its non-compete agreements and address whether or not such agreements are enforceable for independent distributors.[27] On March 18, 2008, Quixtar North America filed a multi-count federal court complaint against the MonaVie company and 16 of its distributors (John Brigham Hart, Lita Hart, Jason Lyons, Carrie Lyons, Lou Niles, Farid Zarif, and 10 anonymous defendants) for unfair competition.[28] The complaint alleged that MonaVie competed unfairly by making false claims about its products.[29] According to a company press release, MonaVie filed to dismiss the Amway/Quixtar lawsuit on April 15, 2008. [30] On November 12, 2008, MonaVie et al. filed a lawsuit in the Colorado District Court against Quixtar[31]

On May 5, 2008, the MonaVie company, its board of directors, and several of its senior distributors were sued by Imagenetix, Inc. for $2.75 billion over trademark infringement arising from false claims that Monavie Active juice contained the ingredient Celadrin.[28][32] The case was settled out of court and the lawsuit was dropped on May 20, 2008.[33]


[edit] References

  1. ^ "Usana Health Sciences Inc · DEF 14A For 5/27/99 [Filed 04/12/1999; SEC File 0-21116; Accession Number 927356-99-647]". sec.edgar-online.com. http://www.secinfo.com/dS9Jj.6k8.htm. Retrieved on 2007-09-15. 
  2. ^ "The Monavie Executive Team". http://www.ultimatehealthclub.net/opportunity_team.htm. Retrieved on 2008-12-19. 
  3. ^ a b c d "MonaVie Executive Team". http://www.monaviebackoffice.com/Web/US/en/executive_team.dhtml. Retrieved on 2008-12-19. 
  4. ^ "Monavie on the Move (Oct. 2006)". http://media.monavie.com/PDF/onthemove/mag2.pdf. Retrieved on 2009-06-06. 
  5. ^ "MonaVie: On The Move -- Friday Afternoon and Breakout Sessions". http://onthemove.monavievo.com/default.asp?PageID=95. Retrieved on 2008-12-19. 
  6. ^ "MonaVie Executive Team: Amy Cowley". http://www.monaviebackoffice.com/Web/US/en/amy_cowley.dhtml. Retrieved on 2009-03-20. 
  7. ^ "MonaVie Names Steven King VP Of Distributor Services And Human Resources". http://www.1888pressrelease.com/monavie-names-steven-king-vp-of-distributor-services-and-hum-pr-78541.html. Retrieved on 2009-03-20. 
  8. ^ http://www.1888pressrelease.com/monavie-appoints-recognized-experts-to-new-scientific-adviso-pr-99047.html
  9. ^ http://www.docstoc.com/docs/533121/Monavie-Presentation
  10. ^ "Jucara and açai fruit-based dietary supplements (WO 2004/084833). K2A Inc. (Application Number PCT/US2004/008739).". World Intellectual Property Organization (WIPO). http://wipo.int/pctdb/en/wo.jsp?IA=US2004008739&wo=2004084833&DISPLAY=DESC. Retrieved on 2008-08-21. 
  11. ^ "Jucara and açai fruit-based dietary supplements (WO 2004/084833). International Preliminary Report on Patentability Chapter II". World Intellectual Property Organization (WIPO). http://www.wipo.int/pctdb/images4/PATENTSCOPE/48/1f/08/001f08.pdf. Retrieved on 2008-08-21. 
  12. ^ "[http://www.buildthejuice.com/pdfs/jeff_graham.pdf Acai expert Jeff Graham speaks on MonaVie and Acai]". www.buildthejuice.com. http://www.buildthejuice.com/pdfs/jeff_graham.pdf. Retrieved on 2009-03-21. 
  13. ^ a b Jensen GS, Wu X, Patterson KM, Barnes J, Carter SG, Scherwitz L, Beaman R, Endres JR, Schauss AG (2008). "In vitro and in vivo antioxidant and anti-inflammatory capacities of an antioxidant-rich fruit and berry juice blend. Results of a pilot and randomized, double-blinded, placebo-controlled, crossover study" (pdf). J Agric Food Chem 56 (18): 8326-33. http://pubs.acs.org/cgi-bin/sample.cgi/jafcau/2008/56/i18/pdf/jf8016157.pdf. 
  14. ^ M.O.R.E. Project, retrieved July 28, 2008
  15. ^ "The MORE Project". themoreproject.org. 02/11/2008. http://web.archive.org/web/20080211091410/http://www.themoreproject.org/viewmore.php. Retrieved on 2009-01-01. 
  16. ^ Andrew Weil (2/8/2008). "Thumbs Down on MonaVie?". drweil.com. http://www.drweil.com/drw/u/QAA400351/Thumbs-Down-on-MonaVie.html. Retrieved on 2008-08-24. 
  17. ^ Johnny Bowden (June 11, 2008). "New Rules: No More Claiming Mona Vie Cures Cancer!". The Huffington Post. http://www.huffingtonpost.com/dr-jonny-bowden/new-rules-no-more-claimin_b_106562.html. Retrieved on 2008-08-24. 
  18. ^ "ChromaDex Inc. Homepage". http://www.chromadex.com/. Retrieved on 2008-12-12. 
  19. ^ Jamie Beckman (December 04, 2008). "Superjuices on Trial". Men’s Journal. http://www.mensjournal.com/superjuices-on-trial. Retrieved on 2008-12-12. 
  20. ^ Tony Dokoupil (August 2, 2008). "A Drink’s Purple Reign". Newsweek. http://www.newsweek.com/id/150499/page/1. Retrieved on 2008-08-24. 
  21. ^ Carolyn Susman (July 16, 2008). "On Health: FDA checks product claims on the Web". Palm Beach Post. http://www.palmbeachpost.com/health/content/accent/epaper/2008/07/16/a3d_susman_0716.html. Retrieved on 2008-09-04. 
  22. ^ Jennifer A. Thomas (July 6, 2007). "FDA warning letter to MonaVie distributor Kevin A. Vokes". FDA Center for Food Safety and Applied Nutrition Division of Enforcement. http://www.fda.gov/cder/warn/cyber/2007/UTVokes.pdf. Retrieved on 2008-08-24. 
  23. ^ Emily Lambert and Klaus Kneale (August 11, 2008). "Climb to the Top". Forbes. http://www.forbes.com/forbes/2008/0811/050.html. Retrieved on 2008-09-09. 
  24. ^ Adriana Brasileiro (May 14, 2009). "‘Superfood’ Promoted on Oprah’s Site Robs Amazon Poor of Staple". Bloomberg News. http://www.bloomberg.com/apps/news?pid=20601086&sid=ai8WCgSJrhmY&refer=latin_america. Retrieved on 2009-06-06. 
  25. ^ United States District Court for the District of Utah, Central Division (July 11, 2007). "Monarch Health Sciences, Inc. vs. Amazon Thunder, Inc. et al.". www. dockets.justia.com. https://ecf.utd.uscourts.gov/cgi-bin/show_public_doc?2007cv0509-15. Retrieved on 2008-09-28. 
  26. ^ United States District Court for the District of Utah, Central Division (November 15, 2007). "Monarch Health Sciences, Inc. vs. Amazon Thunder, Inc. and Todd Reum". https://ecf.utd.uscourts.gov/cgi-bin/show_public_doc?2007cv0509-15. Retrieved on 2008-09-27. 
  27. ^ "Monavie LLC vs. Quixtar, Inc./Amway Corp". United States District Court for the District of Utah, Central Division. March 17, 2008. http://media.monavie.com/legal/Complaint.PDF. Retrieved on 2008-09-16. 
  28. ^ a b Laura Hancock, "MonaVie Sued for 2.75B", Deseret News, May 16, 2008
  29. ^ "Quixtar Inc. Plaintiff, vs. MonaVie, Inc., MonaVie LLC, John Brigham and Lita Hart, Jason and Carrie Lyons, Lou Niles, Farid Zarif, John Does 1-10,". United States District Court for the District of Utah, Central Division. March 18, 2008. http://www.amquix.info/pdfs/monavie/2-08-cv-00209-db-02.pdf. Retrieved on 2008-08-24. 
  30. ^ "MonaVie Files to Dismiss Quixtar Lawsuit". eMediaWire. April 16, 2008. http://www.emediawire.com/releases/monavie/quixtar/prweb867764.htm. Retrieved on 2008-12-12. 
  31. ^ "Mona Vie, Inc. et al. v. Quixtar Inc. [Case# 1:2008cv02464". United States District Court for the District of Colorado. November 12, 2008. http://dockets.justia.com/docket/court-codce/case_no-1:2008cv02464/case_id-110216. Retrieved on 2008-12-12. 
  32. ^ "Imagenetix, Inc. vs. Monavie LLC et al.". United States District Court for the Southern District of California. May 05, 2008. http://www.mlmwatchdog.com/files/imagenetix_monavie_1/Imagenetix_MonaVie_Complaint.pdf. Retrieved on 2008-09-20. 
  33. ^ "Trademark Suit Against MonaVie Dropped", May 20, 2008

[edit] Further reading

[edit] External links

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