Amway in the 2000s: Growth of XS and home technology

A hand on the right of the frame gives a can of XS Energy Drink to a hand on the left of the frame. They are at the beach and a surfboard is visible on the left.

Editor’s note: 2019 marks Amway’s 60th anniversary. We’re celebrating with a series of blogs highlighting the company’s history, milestones, products and legacy. Join the conversation by leaving a hashtag comment on each blog. Published comments will be entered into a drawing for free products in our Amway through the Decades Giveaway*!

Millennium milestones

The new millennium saw Amway break a sales record for the company’s home tech division and the acquisition of the XS™ Energy brand, which continues to fuel the company’s growth with younger consumers.

An eSpring Water Treatment System sits on a counter in the background while a person cooks using iCook products in the foreground.

Innovation drives growth

Amway began selling cookware under the Queen brand in 1963, a few years after Rich DeVos and Jay Van Andel launched the company. Water treatment and air treatment systems joined the company’s home tech line in the 1980s.

Driven by continuous improvement and innovation, in the early 2000s those products evolved into the brands sold today: iCook, eSpring and Atmosphere. By the end of 2010, after expansion into several new markets, Amway’s global home tech division topped $1 billion in sales—a company milestone.

A woman and girl cook in the kitchen with an Atmosphere air treatment system in the background.

Needed energy

Meanwhile, two Amway Independent Business Owners (IBOs) were working on their own innovations. In 2002, David Vanderveen and Scott Coon founded XS™ Energy in California, an energy drink company selling sugar-free energy drinks loaded with B vitamins.

“We saw the trend of functional drinks,” Scott said. “And being active in the Amway business, we were always looking for more energy to get more work done.”

A year later, Amway saw the trend, too, and became the exclusive distributor of XS Energy drinks, rocketing them to success.

XS Energy Cofounder David Vanderveen on stage at an Amway event in Malaysia.

XS Energy Cofounder David Vanderveen at an XS event in Malaysia. facebook.com/xsnation

Beyond expectations

David remembers someone asking him a few years after launch if he and Scott had predicted their early success. At the time, XS had become Amway’s number one product in the U.S. by volume and sales.

“I said something like, ‘We are IBOs, and we believed in the possibility that we had something special and a unique way to support other IBOs with XS,’” David recalled. “’So, in one way we dreamed it was possible. But to see it actually happen, and so fast, was humbling, surprising and exciting beyond our expectations.’”

The XS effect

Amway opened up markets for XS products. And XS, with a focus on fun, adventure and wildly successful launch parties, infused Amway with energy and authenticity attractive to younger consumers.

“XS has made Amway more innovative and creative. The edginess of the brand, and the talented people behind it, has rubbed off,” Amway North America Managing Director Jim Ayres said. “On the other hand, our expertise has made the XS product line more profitable and sustainable. It’s been a great partnership.”

Two athletes display XS Energize bars, part of the brand's sports nutrition line.

Amway acquired the brand outright in 2015. Since then XS has nearly tripled its business through strong partnerships with IBOs and Amway affiliates around the world, David said. They expanded beyond energy drinks into the growing market of sports nutrition and are always working on new ideas.

“With a focus on digital, young leaders, tightened budgets and growth, we plan to continue to drive innovation and out-of-the-box thinking at Amway,” he said. “I think we continue to demonstrate that well.”

What’s your hashtag?

What hashtag describes the sales milestone for Amway’s home tech line? What hashtag describes the collaboration between XS and Amway?

Post your hashtag comment below and be entered to win an XS™ Energy Drink Variety Case. And come back to Amway Connections for more blogs marking Amway’s 60th anniversary with opportunities to win our Amway through the Decades Giveaway*!

 


*The Amway through the Decades Giveaway is sponsored by Amway Corp. and runs from April 18 – July 1, 2019. No purchase necessary. See official rules here.

13 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Seul votre prénom sera affiché lors de la publication du commentaire.