Direct selling company Amway, which brings a number of nutrition-related products to market, has announced the acquisition of California-based energy drink brand XS Energy.
The company says the purchase will “expand the brand’s geographic reach and advance Amway’s strategy of connecting with young entrepreneurs”. It will also connect the company to the energy drinks market, which research suggests has grown seven-fold since 1999 and could continue at 13% annually until 2018.
Amway chairman Steve Van Andel said: “According to our research, no demographic is more positive about entrepreneurship than those younger than 35, which is the precise target group for the XS brand. Bringing Amway and XS together will strengthen our efforts in the years ahead and create more opportunities for aspiring business people.”
XS Energy’s co-founder, David Vanderveen, will assume the roles of vice president at Amway and general manager of the XS brand. He said: “Amway got me started in business twenty years ago and gave me the confidence to develop my own product. I’m humbled to be partnering with Amway on the future of XS, and couldn’t be happier about the opportunities we’ll create for young entrepreneurs.”
Amway has been the exclusive distributor of XS since 2003, during which time the brand has grown to $150 million in sales each year and is now in 38 markets around the world, the company reports.
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