NEWSLETTER
NUTRITION
KNOW MORE
The Health Impact of Nudges, Influence and Community
The Connection Between Taste Perception and Obesity
Breaking the Shackles of Health Inertia
Herbalife Nutrition in the News
Excellence Awards Received in Asia Pacific
Full Year 2021 Earnings
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While the pandemic has encouraged more consumers to adopt a healthier lifestyle, some still struggle with incorporating positive routines into their lives.
Consumers see healthcare professionals and nutrition companies as torchbearers of the balanced nutrition and active lifestyle narrative.
A topic that has been increasingly referred to is Health Inertia, where people fail to take steps towards better holistic health despite knowing the recommended measures to do so. Herbalife Nutrition’s recent Health Inertia Survey revealed how the pandemic has impacted the health and fitness goals of individuals. Six in ten consumers said that their current mental and physical health were less than ideal. Many saw a deterioration in their physical health in the past year and attributed it to the lack of physical activity, eating more unhealthy food and lack of community support to keep up with exercise regimen.
The results are not surprising considering the mental and physical health impacts of the pandemic on the populations across countries. However, the situation is more complex because of the unique health issues that prevail in Asia Pacific. On one side, the direct adverse impacts of COVID-19 led to deaths, hospitalizations and long term health complications; the indirect health issues¹ such as prevention and treatment services for non-communicable diseases have also been severely disrupted by the pandemic. One of the ways to overcome the health inertia is improving public nutrition education. This is an area where consumers see healthcare professionals and nutrition companies as torchbearers of the balanced nutrition and active lifestyle narrative. The opportunities are there for consumers to take first steps towards lifelong healthy habits, and for stronger multi-sector collaboration across healthcare communities, private companies, academics and government agencies.
Current State of Health
Over 6 in 10 said that their Physical and Mental Health were less than ideal
Top Factors for Better Physical Health
Consuming healthier meals
Engaging in more exercise
Postive influence from family & friends
Top Factors for Physical Health Deterioration
Lack of physical activity
Eating more unhealthy food
Lack of community support
Top Factors for Mental Health Deterioration
Staying at home more
Lack of social interactions
Stress over work & uncertain economic situation
Top Factors for Better Mental Health
Better work-life balance
Excercising more
More personal time & space
1 in 2 consumers in Asia Pacific started eating healthier.
Classes on fitness channels on YouTube (42%)
Fitness trackers (39%)
Fitness and workout apps (34%)
Nutrition apps (31%)
Virtual fitness classes (20%)
Inspirational content - 60%
2 in 5 consumers in Asia Pacific started exercising more.
1 in 2 consumers used technology tools tosupport their healthy living regimen:
1 in 3 consumers said that social media had a positive influence on mental health. Top reasons include:
Kickstarting Healthy Active Living
Technology Tools for Healthy Active Living
Pandemic Effects on Healthy Active Living
Herbalife Nutrition Asia Pacific Health Inertia Survey²
Footnotes
SURVEY
69%
36%
26%
54%
53%
42%
61%
60%
Humorous content - 58%
Motivation from social media influencers - 50%
Herbalife Nutrition APAC Health Inertia Survey 2021, conducted with 5,500 consumers from Australia, Hong Kong, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam
1
2
Health at a Glance: Asia/Pacific 2020: Measuring Progress Towards Universal Health Coverage, Chap. 2, OECD iLibrary
https://research.cornell.edu/news-features/obesity-could-it-be-taste-buds
Dongli Liu, Nicholas Archer, Konsta Duesing, Garry Hannan, Russell Keast, Mechanism of fat taste perception: Association with diet and obesity, Progress in Lipid Research, Volume 63, 2016, Pages 41-49, ISSN 0163-7827, https://doi.org/10.1016/j.plipres.2016.03.002
ARTICLE
The ongoing pandemic, and its adverse impacts on the economic and healthcare status on the countries in Asia Pacific¹, has become a significant national agenda.
Against this backdrop, choosing a healthier life is easy to wish for but much harder to attain, especially in an environment with many unhealthy choices so readily available. It is critical to ensure that economic pressures - either during or after the pandemic has ended - do not divert already limited resources away from essential health services. With more and more countries and governments¹ in the region expressing their concern over the public health issues and their preparedness to manage them, a more holistic and widespread approach is needed.
of Nudges, Influence and Community
There are multiple factors that impact healthy lifestyles and overall wellbeing of the society, at macro and micro environmental levels.
There is enough evidence available now suggesting that there are multiple factors, beyond medication or nutrition awareness, that impact healthy lifestyles and overall wellbeing of the society, both at macro and micro environmental levels². And there is merit in exploring and evaluating the factors that can help in creating aware and healthier societies. When it comes to behaviour molding at a community level, all the four categories of environment in the ANGELO Framework³ play a significant role. There lies an opportunity to leverage nudges, incentives, and power of community to achieve the desired health and wellbeing status – an aspect which nutrition companies, and healthcare professionals (HCPs) can help facilitate and drive.
The Health Impact
The Health Impact of
by Dr Kent Bradley, M.D., MBA, MPH, Chief Health and Nutrition Officer, Herbalife Nutrition
Social Bonds and Exercise: Evidence for a Reciprocal Relationship, A. Davis, J. Taylor, E. Cohen. Aug 2015. https://doi.org/10.1371/journal.pone.0136705
3
4
5
Impact of color-coded and warning nutrition labelling schemes: A systematic review and network meta-analysis. Jing Song, Mhairi K. Brown et al., Oct 2021. https://doi.org/10.1371/journal.pmed.1003765
Obesity Prevention in Scotland: A Policy Analysis Using the ANGELO Framework. Mooney JD, Jepson R, Frank Jg/10.1159/000438500
Nieuwendyk LM, Belon AP, Vallianatos H, et al. How perceptions of community environment influence health behaviours: using the Analysis Grid for Environments Linked to Obesity Framework as a mechanism for exploration. Health Promot Chronic Dis Prev Can. 2016 Sep;36(9):175-84. doi: 10.24095/hpcdp.36.9.01. PMID: 27670920; PMCID: PMC5129776.
Health at a Glance Asia/Pacific 2020, OECD iLibrary, Chapter 2: The impact of the COVID-19 outbreak on Asia-Pacific health systems
While further research is needed in these areas to derive ideal outcomes and impact, a few of these tactics have proven to be beneficial:
Nudges and Influence
Friendships and Communities
The HCPs Impact
Perhaps those with the greatest power to impact consumer lifestyle behavior are the likes of coaches, experts, and HCPs. HCPs command a fair share of respect and credibility among the public as far as the nutritional information and awareness is concerned. As influential members of their respective communities, HCPs have a deeper understanding of the beliefs, practices, attitudes, awareness as well as behavior of their audiences. This knowledge can help them spread information among their stakeholders and to nudge more people towards a healthier lifestyle. Herbalife Nutrition is on the right side of these efforts. Our commitment to improving lives and our communities has remained at the core of everything we do. One of our key initiatives last year was the Herbalife Nutrition Dialogue Series, a compilation of nutrition-related educational videos aimed at closing the nutrition knowledge gaps among Asia Pacific consumers and equipping them with credible nutrition information. The series featured leading experts discussing topics like diabesity, heart health, healthy aging and the need for multi-sector collaboration to drive public nutrition education. Leading a better lifestyle is a matter of choice, commitment, and support, and at Herbalife Nutrition, we are fulfilling our mission by providing not one but multiple nudges, influences, and communities such as fitness camps, mentorship programs and educational efforts to help people make smart decisions, stay active and achieve their personal goals.
As humans, we are wired for social connection, and science has provided evidence that social connections have a positive impact on people’s lives. According to researchers from the Harvard Center for Population and Development Studies, people with meaningful social relationships tend to have better health behaviors, like eating healthy foods and being physically active. Group activities⁵ and exercises for instance, are known to enhance social bonding; and social bonding in turn leads to a proven enhanced exercise performance. Another research study published in the British Journal of Sports Medicine found that people who regularly walk in groups have lower blood pressure, resting heart rate, and total cholesterol. The recent Herbalife Nutrition Virtual Run successfully motivated more than 25,000 consumers to form a common-purpose community that clocked a total of 1.57 million kilometers, enough to circle the earth almost 40 times! Civil society, government and public policy have a significant role to play on how incentives are applied to create a healthier environment. The potential solutions call for a more holistic approach that effectively integrates the various groups mentioned. The impact of unhealthy populations is not limited to just the consumers; they run much deeper with social, political, and economic implications.
Nutrition labeling⁴ is a proven potential method to encourage consumers to improve dietary behavior. Many industries have been adopting images and labels on packaging of food items as an indicator of its calorific value as well as its impact on health. Different formats of such labeling have been experimented in the past such as colored coding, warning imagery, keywords indicating healthy choice, fiber rich and symbols. Endorsements and certifications by credible authorities also have a great deal of influence in helping consumers make healthier food and lifestyle choices. Government endorsements spanning sustainable agriculture, sourcing, food quality standards and supply chain best practices have been instrumental in building the accurate and authentic perception for brands across. For instance, Herbalife Nutrition Taiwan received the Symbol of National Quality (SNQ) endorsement, a well-known certification for wellness and health supplements. Similarly, Herbalife Nutrition Vietnam too has been receiving the Golden Product for Public Health Award by the Vietnam Association of Functional Food (VAFF) since 2017.
Perhaps those with the greatest power to impact consumer lifestyle behaviour are the likes of coaches, experts, and HCPs. HCPs command a fair share of respect and credibility among the public as far as the nutritional information and awareness is concerned. As influential members of their respective communities, HCPs have a deeper understanding of the beliefs, practices, attitudes, awareness as well as behaviour of their audiences. This knowledge can help them spread information among their stakeholders and to nudge more people towards a healthier lifestyle. Herbalife Nutrition is on the right side of these efforts. Our commitment to improving lives and our communities has remained at the core of everything we do. One of our key initiatives last year was the Herbalife Nutrition Dialogue Series, a compilation of nutrition-related educational videos aimed at closing the nutrition knowledge gaps among Asia Pacific consumers and equipping them with credible nutrition information. The series featured leading experts discussing topics like diabesity, heart health, healthy aging and the need for multi-sector collaboration to drive public nutrition education. Leading a better lifestyle is a matter of choice, commitment, and support, and at Herbalife Nutrition, we are fulfilling our mission by providing not one but multiple nudges, influences, and communities such as fitness camps, mentorship programs and educational efforts to help people make smart decisions, stay active and achieve their personal goals.
As humans, we are wired for social connection, and science has provided evidence that social connections have a positive impact on people’s lives. According to researchers from the Harvard Center for Population and Development Studies, people with meaningful social relationships tend to have better health behaviours, like eating healthy foods and being physically active. Group activities5 and exercises for instance, are known to enhance social bonding; and social bonding in turn leads to a proven enhanced exercise performance. Another research study published in the British Journal of Sports Medicine found that people who regularly walk in groups have lower blood pressure, resting heart rate, and total cholesterol. The recent Herbalife Nutrition Virtual Run successfully motivated more than 25,000 consumers to form a common-purpose community that clocked a total of 1.57 million kilometers, enough to circle the earth almost 40 times! Civil society, government and public policy have a significant role to play on how incentives are applied to create a healthier environment. The potential solutions call for a more holistic approach that effectively integrates the various groups mentioned. The impact of unhealthy populations is not limited to just the consumers; they run much deeper with social, political, and economic implications.
Nutrition labeling⁴ is a proven potential method to encourage consumers to improve dietary behaviour. Many industries have been adopting images and labels on packaging of food items as an indicator of its calorific value as well as its impact on health. Different formats of such labeling have been experimented in the past such as coloured coding, warning imagery, keywords indicating healthy choice, fiber rich and symbols. Endorsements and certifications by credible authorities also have a great deal of influence in helping consumers make healthier food and lifestyle choices. Government endorsements spanning sustainable agriculture, sourcing, food quality standards and supply chain best practices have been instrumental in building the accurate and authentic perception for brands across. For instance, Herbalife Nutrition Taiwan received the Symbol of National Quality (SNQ) endorsement, a well-known certification for wellness and health supplements. Similarly, Herbalife Nutrition Vietnam too has been receiving the Golden Product for Public Health Award by the Vietnam Association of Functional Food (VAFF) since 2017.
by Dr David Heber, M.D., Ph.D., FACP, FASN, Chairman, Herbalife Nutrition Institute
Taste Perception and Obesity
The Connection Between
In the medical community and in the general public, we’ve all heard the reasons and rationales as to the cause of the current obesity epidemic.
Genetics. mass migrations to urban centers where fast food chains and cheap, unhealthy, high-calorie options abound. Too much time seated in front of computers and mobile devices. Too many kids who spend less time outdoors and nearly every waking hour online. There’s some truth to all of these points. But there’s also another, less discussed element that we each have built into our biology: our taste buds.
SALTY
SWEET
SOUR
BITTER
UMAMI
Yet just because our sense of taste helps us know whether we like or dislike certain flavors or foods, does that really mean they determine who winds up overweight and who doesn’t?
A growing body of literature says the answer is “yes.” Researchers have found that obese patients may experience decreased taste sensitivity². Their findings suggest that people with a dulled sense of taste might be tempted to seek out foods richer in sugar, salt, and fat, or to take in more calories in order to achieve the same level of satisfaction as anyone else.Other studies¹ have confirmed this hypothesis, noting that any irregularity in a person’s taste buds may contribute to excess energy intake and obesity. What’s more, sensory systems, like taste, play a major role in the control and enjoyment of food consumption – and there’s a direct link between increased intake, decreased taste, and obesity.
Does this mean that overweight individuals with damaged taste buds are simply out of luck? Not at all. There is evidence that taste changes with changes in dietary pattern, especially for salt and fat. And for those of us who counsel people who are overweight and obese, understanding differences in taste can provide a greater insight into the causes of weight gain. It will ensure we see and understand the whole picture of a person’s physiology and the full complement of factors at play in his or her life. This sort of knowledge is essential to our understanding of the obesity crisis, why it persists, and how to address it. Now it’s a matter of using this information to improve people’s health, wellbeing, and lives.
Nudges, Influence and Community
A growing body of literature says the answer is “yes.” Researchers have found that obese patients may experience decreased taste sensitivity². Their findings suggest that people with a dulled sense of taste might be tempted to seek out foods richer in sugar, salt, and fat, or to take in more calories in order to achieve the same level of satisfaction as anyone else. Other studies¹ have confirmed this hypothesis, noting that any irregularity in a person’s taste buds may contribute to excess energy intake and obesity. What’s more, sensory systems, like taste, play a major role in the control and enjoyment of food consumption – and there’s a direct link between increased intake, decreased taste, and obesity.
On the surface, it makes complete sense. Our taste buds are related to what we eat. They are responsible for perceiving the differences between foods that are salty, sweet, sour, bitter and umami. They function as a nutrient sensing system¹, determining which items seem safe or nutritious to consume. The connection seems obvious.
AWARDS
MALAYSIA
Sustainability and CSR Awards Malaysia 2021
VIETNAM
2021 Golden Product for Public Health Award
SOUTH KOREA
2022 The Most Trusted Brand Awards (health functional food category) for 11 Consecutive Years
NEWS
Herbalife Nutrition Korea expands partnership with Korean Nutrition Society to encourage nutrition knowledge sharing
Bokeun News, October 2021
Tempo.co, November 2021
By Dr Rimbawan, Ph.D, Herbalife Nutrition Advisory Board Member
CSR Wire, November 2021
By Tin Nhanh Chung Khoan, November 2021
The Active Age, January 2022
By Dr Alex Teo, Ph.D, Regional Director, Research & Development and Scientific Affairs, Asia Pacific, Herbalife Nutrition
Positive mindset and behavioral change important for diabetes patients
Herbalife Nutrition’s Global Responsibility Journey: Committing to 50 Million Positive Impacts Campaign: Corporate Social Responsibility
Herbalife Vietnam and General Department of Physical Education and Sports implement the project "Making a healthier and happier Vietnam"
Nutritious food helps improve mental health during pandemic
EARNINGS
Full Year 2021
Global Net Sales
Increased 4.7% vs 2020
APAC Net Sales
Increased 18% vs 2020
37 Individual Markets Set Annual Net Sales Records
4% NAM
11% EMEA
18% APAC
YOY Increase
Reported
EPS
and Adjusted¹
Diluted EPS
Adjusted¹
$4.13
$2.77
$4.79
$3.71
2020
2021
For additional information regarding Q4 and full year 2021 results, refer to our complete earnings release issued on the date hereof available at ir.herbalife.com. This document contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Additionally, many of these risks and uncertainties are, and may continue to be, amplified by the COVID-19 pandemic. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following: the potential impacts of the COVID-19 pandemic on us; our Members, customers, and supply chain; and the world economy; our ability to attract and retain Members; our relationship with, and our ability to influence the actions of, our Members; our noncompliance with, or improper action by our employees or Members in violation of, applicable U.S. and foreign laws, rules, and regulations; adverse publicity associated with our Company or the direct-selling industry, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws; changing consumer preferences and demands and evolving industry standards, including with respect to climate change, sustainability, and other environmental, social, and governance matters; the competitive nature of our business and industry; legal and regulatory matters, including regulatory actions concerning, or legal challenges to, our products or network marketing program and product liability claims; the Consent Order entered into with the FTC, the effects thereof and any failure to comply therewith; risks associated with operating internationally and in China; our ability to execute our growth and other strategic initiatives, including implementation of our transformation program and increased penetration of our existing markets;; any material disruption to our business caused by natural disasters, other catastrophic events, acts of war or terrorism, cybersecurity incidents, pandemics and/or other acts by third parties; our ability to adequately source ingredients, packaging materials, and other raw materials and manufacture and distribute our products; our reliance on our information technology infrastructure; noncompliance by us or our Members with any privacy laws, rules, or regulations or any security breach involving the misappropriation, loss, or other unauthorized use or disclosure of confidential information; contractual limitations on our ability to expand or change our direct-selling business model; the sufficiency of our trademarks and other intellectual property; product concentration; our reliance upon, or the loss or departure of any member of, our senior management team; restrictions imposed by covenants in the agreements governing our indebtedness; risks related to our convertible notes; changes in, and uncertainties relating to, the application of transfer pricing, income tax, customs duties, value added taxes, and other tax laws, treaties, and regulations, or their interpretation; our incorporation under the laws of the Cayman Islands; and share price volatility related to, among other things, speculative trading and certain traders shorting our common shares. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. 1Adjusted diluted EPS and adjusted EBITDA are non-GAAP measures. See Schedule A – “Reconciliation of Non-GAAP Financial Measures” in our earnings release issued on the date hereof for a detailed reconciliation of these measures to the most directly comparable GAAP measure, and a discussion of why we believe these non-GAAP measures are useful. Available at ir.herbalife.com
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