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AdvoCare

Coordinates: 33°00′38″N 96°40′37″W / 33.01053°N 96.676928°W / 33.01053; -96.676928
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AdvoCare International
Company typePrivate
IndustryNutrition & Skin Care products
FoundedCarrollton, Texas (1993)
FounderCharles E. Ragus
Headquarters
Plano, Texas
,
United States
Area served
United States
Key people
Richard H. Wright, President & Chief Executive Officer
ProductsWeight management, nutritional supplements, personal care
RevenueUS$ <100 million (est.) (2009)[1]
Number of employees
247 (est.) (2009)[2]
Websitewww.advocare.com

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

AdvoCare International, L.P. is a nutrition, weight-loss, energy and sports performance products company. The company was founded in 1993 by Charles Ragus and employs around 247 people in the United States. In a statement, AdvoCare claims net sales of USD under 100 million in 2009[1] and its corporate headquarters are in Plano, Texas, USA.

The company distributes its products in the United States through a network of approximately 100,000 independent distributors, some of whom earn profit on product sales and additional commission from a multi-level marketing (MLM) compensation structure. The company slogan is, "We Build Champions."

History

In 1993, Charles Ragus founded AdvoCare as a multi-level marketing company[3] that distributes health and wellness products. Ragus was a Herbalife distributor from 1983 to 1989.[4] Charles Ragus died on June 1, 2001 at the age 58.[5]

In May 2007, Richard H. Wright joined AdvoCare as President and CEO.[1]

Products

The AdvoCare product categories include Trim, Active, Well, and Performance Elite. Several AdvoCare products[6] are certified by the INFORMED-CHOICE Certification Program to be regularly tested for substances considered prohibited in sport and that the products have been manufactured to high quality standards.[7] In 2011 AdvoCare OmegaPlex was found to pass Consumer Lab tests.[8] Advocare utilizes a "Sci/Med Board" to bolster credibility of their products. The Sci/Med Board consists of a group of people with varying experience and education in the medical, research, and sports fields. Even with their "Sci/Med Board", Advocare has never released any clinical trials or studies supporting their product claims for peer review. The best evidence for efficacy that Advocare promotes is only anecdotal.

Controversy

Olympic swimmer Jessica Hardy was notified on 23 July 2008 that her blood tests tested positive for clenbuterol. Although other athletes have been banned or suspended for using the breathing enhancer clenbuterol, Hardy has claimed innocence and said she has never even heard of clenbuterol,[9] attributing her positive drug result to either a tainted nutritional supplement or sabotage.[10] Hardy was taking AdvoCare supplements at the time, and sued AdvoCare, claiming that the supplements were tainted.[11] AdvoCare countersued Hardy for making false claims.[12] An arbitration hearing reduced Hardy's suspension after acknowledging that Hardy met the burden of proof that the AdvoCare supplements were tainted. AdvoCare disputed the findings of the panel. Allison Levy (AdvoCare General Counsel) said the testimony offered by Hardy's scientific experts is "in direct conflict with testing conducted by two independent laboratories, both of which found no evidence that Clenbuterol was present in the AdvoCare supplements consumed by Ms. Hardy." [13]

AdvoCare's product "KickStart Spark " formula was targeted to youth age 4-11 containing 60 mg of Caffeine and came under scrutiny from pediatricians for the high dosage of this stimulant. AdvoCare no longer offers this product.[14]

Regarding AdvoCare's weight loss program titled the 24-Day Challenge, Dr. Wendy Miller, a health expert at Beaumont Weight Control Center, says AdvoCare's cleanse is probably safe for many users. However she questions if the same results couldn’t be achieved without the products. “I’m not sure though you wouldn’t get the same results though if you just followed the healthy food guidelines, increased exercise and drink lots of water,” Miller said.[15]

Business

AdvoCare is a multi-level marketing company.[3] In addition to profits from product sales, AdvoCare distributors can earn additional commissions from sales by their 'downline' distributors.

Court documents from November 2010 [16] state that there are more than 60,000 active Advocare distributorships.

AdvoCare is an active member of the Direct Selling Association (DSA). The company was a DSA Award recipient in 2002 for the DebtBuster System [17] in 2008 for the AdvoBus program,[18] and was a participant in the 2010 DSA Code of Ethics Communication Initiative.[19]

In June 2011, AdvoCare President and CEO Richard Wright was elected to serve on the DSA Board of Directors.[20]

Sports endorsement

AdvoCare has a number of professional athletes, coaches, and entertainers that endorse the use of at least one of AdvoCare's products.[21]

On March 30, 2010, AdvoCare announced that it had signed a three year agreement with New Orleans Saints quarterback Drew Brees to serve as the company's national spokesperson.[22]

Sponsorships

  • On May 21, 2009, AdvoCare became the title sponsor of the NCAA college football Independence Bowl, renaming it to the AdvoCare V100 Independence Bowl.[23] AdvoCare has extended its title sponsorship of the Independence Bowl through 2011.[24]
  • AdvoCare pledged $250,000 in 2010 and 2011 to support U.S. troops and their families through Operation Homefront, a military support nonprofit.[25] AdvoCare donated $100,000 during their Success School national conference in February 2011 and pledged a total of $250,000 in support.[26]
  • AdvoCare provided the founding grant to help establish the College Football Assistance Fund (CFAF) in 2010. The College Football Assistance Fund (CFAF) is a non-profit tax exempt organization dedicated to the support of football players who have sustained serious injuries through college football.[27]
  • In 2012 Advocare announced a sponsorship deal of NASCAR Driver Austin Dillon.
  • In 2012 FC Dallas announced a sponsorship deal with Advocare [29]

References

  1. ^ a b c "Three CEOs Reinvent Themselves With Second Careers". D Magazine. 2010-08. Retrieved 2011-01-31. {{cite web}}: Check date values in: |date= (help); Italic or bold markup not allowed in: |publisher= (help)
  2. ^ Hoovers / AdvoCare Profile
  3. ^ a b AdvoCare Policies, Procedures, and the Compensation Plan - pdf
  4. ^ TheMat.com
  5. ^ Obituary Central Archive
  6. ^ "Informed-Choice certified products -AdvoCare". Retrieved 31 May 2011.
  7. ^ "About Informed Choice". Retrieved 31 May 2011.
  8. ^ "A Smart Guide to Buying Supplements". Retrieved 27 June 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  9. ^ "Olympic swimmer Jessica Hardy: 'I'm innocent'". USA Today. 2008-07-26. Retrieved 2010-11-14. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  10. ^ "Hardy presses forward with tainted-supplement defense". Seattle Times. 2008-08-04. Retrieved 2010-11-14. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  11. ^ "Swimmer Hardy blames company for failed drug test". USA Today. 2009-01-30. Retrieved 2010-11-14. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  12. ^ "U.S. swimmer, supplement firm countersue". UPI. 2009-02-16. Retrieved 2010-11-14. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  13. ^ "Supplement maker AdvoCare disputes Hardy panel findings". Seattle Times. 2009-05-05. Retrieved 2010-11-14. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  14. ^ "A Sports Drink for Children Is Jangling Some Nerves". New York Times. 2005-09-25. Retrieved 2010-11-14. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  15. ^ "Taking the 24-Day Challenge". 19 May 2011. ABC. WXYZ. {{cite episode}}: Missing or empty |series= (help)
  16. ^ "Advocare International v. Karen Ford, et. al" (PDF).
  17. ^ "Past recipients of the DSA Education for Life Award". Retrieved 27 June 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  18. ^ "Past recipients of the DSA Industry Innovation Award". Retrieved 27 June 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  19. ^ "Code of Ethics in Action". Retrieved 27 June 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  20. ^ "2011–2012 DSA Officers, Board Members, Elected During DSA's Annual Meeting". Retrieved 27 June 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  21. ^ AdvoCare Endorser List - pdf
  22. ^ "AdvoCare and NFL World Champion Drew Brees Take Relationship to the Next Level". AdvoCare Press Release. 2010-03-30. Archived from the original on 4 December 2010. Retrieved 27 June 2012. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help); Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  23. ^ "2011 Corporate Sponsors". Independence Bowl. Retrieved 27 June 2012.
  24. ^ "AdvoCare Extends Title Sponsorship of I-Bowl". Retrieved 27 June 2012.
  25. ^ Emmert, J.M. (March 2010). "Putting the Care in AdvoCare". Direct Selling News. p. 36. Archived from the original on 5 December 2010. Retrieved 2010-11-19. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  26. ^ "OH.NET: Highlights". Operationhomefront.net. Retrieved 2011-05-11.
  27. ^ "College Football Assistance Fund". Cfafund.org. 2011-01-10. Retrieved 2011-05-11.
  28. ^ "AdvoCare To Sponsor Labor Day Weekend NASCAR Sprint Cup Series Night Race At Atlanta Motor Speedway". Retrieved 31 May 2011.
  29. ^ "FC Dallas signs multi-year, multi-million dollar jersey deal with AdvoCare".
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