A New Way of Business

Neways builds new reputation with proven products and 1.5 million distributors

Neways is ready for a new way — and a new reputation.

The direct-selling company has seen its share of negative headlines, but the recent news from Neways is positive and forward-thinking — rather than focused on the past hurdles of divorcing founders and tax-evasion allegations.

With 500 employees in Utah (most are in the corporate offices in Springville or the manufacturing plant in Salem) and $750 million in sales for 2007, Neways has been blazing economic growth in south Utah County since its incorporation in 1992.

However, the company’s economic influence is felt beyond these small Utah County towns — Neways has a presence in 29 countries.

“I have seen street people in Third World countries take our business plan and make a nice living,” says James E. Watson, vice president of human resources and organizational development at Neways.

He’s also seen conventions in Japan — the company’s most prolific country — that attract tens of thousands of attendees, such as a April 2007 conference in the Tokyo Dome.

“It’s an interesting feeling speaking in front of that many people,” James says. “You feel like a rock star.”

Adrenaline rush aside, James and other members of the board take as much satisfaction helping a small distribution base in Hungary as enjoying “rock star” Japan.

The growth-minded MLM benefited from two significant changes in 2006. In March, the Board of Directors named Eric Larsen as its chief executive officer. In November, the company was sold to Golden Gate Capital.

“We couldn’t be happier with (Golden Gate Capital),” James says. “They bring us a wealth of resources we didn’t have access to before.”

Golden Gate Capital kept the core executive team — including Eric and James — intact while adding people in specialized areas.

However, one change Golden Gate Capital did make was housing executives in the departments they oversee. For example, James’s office is near other human resources professionals and the public relations team rather than in a top-floor executive suite with the other vice presidents.

The change in ownership marked the end of the family-run aspect Neways had known since its beginnings being run by founders Thomas Mower Sr. and Dee Mower. The sale came as part of divorce proceedings between the two. And in stepped Golden Gate Capital.

“The changes we’ve made have made us more effective and efficient,” says James, who’s been with Neways for eight years. “Corporations are like sharks. They have to keep moving or they die.”

Neways is always adding products, but it is still dedicated to producing the highest quality cosmetics and the best health supplements on the market. It continues to utilize the multilevel marketing business plan popular with some of Utah County’s largest employers.

In fact, Neways success has stemmed, in large part, from its association with Utah Valley.

“This area has always been very entrepreneurial and people network well,” James says. “Plus, this area has wonderful assets in the labor base. We have a rich pool of people who speak a variety of languages and have actual life experience among a variety of cultures. They are educated — we have BYU and UVU right here. All those things have made this area a natural spring for our business.”

While Utah County has been a great home to Neways, James admits there are some misconceptions when he first approaches potential employees from other parts of the country. However, they are quickly cleared up if he can get people to come to the Wasatch Front.

“When they get here, they see the scenery, they meet the people and they realize what a great place this is,” he says. “When they move here, they are usually among the area’s biggest supporters.”

An outward manifestation of the company’s dedication to the area came in 2003 when the new corporate headquarters building opened off Exit 260 in Springville. The building quickly became a south county landmark.

A key to the company’s success has been its dedication to national and international distributors — numbering 1.5 million to date.

“We have to remember our success comes from the success of individual distributors around the world,” James says.

Whether in Japan, a Third World country or Springville.

Economy Drivers features Utah Valley entrepreneurs and is sponsored by Brent Brown Automotive Group. Brent Brown employs 400 and was named one of Utah Valley’s Top Revenue Companies in BusinessQ’s UV50.

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