Herbalife Promises Cambodians Health, Wealth
The offices of Herbalife, a so-called multilevel marketing company that has moved into the protein powder market in Cambodia, stand like a beacon of promise in Phnom Penh’s Prampi Makara district: Six stories of glass and white paneling, crisp lime-green signage and a four-story-high banner of Portuguese football star Cristiano Ronaldo. And since the offices officially opened last month, hundreds of Cambodians hoping to tap into the Herbalife business model have streamed in and out every day. “I use the products to make myself healthy, and then I can recruit some friends who trust me and they also sell the product and we all make money,” said Herbalife supervisor Heng Sompiseth outside the offices on Wednesday. … On a video posted to YouTube by a Herbalife employee and titled “Herbalife Cellular Nutrition,” Dr. David Heber, an American expert in nutrition and a member of Herbalife’s Nutrition Advisory Board, proclaims the benefits of the protein shake. … The points that Mr. Sompiseth refers to are the key to rising through the ranks at Herbalife, he says, essentially granting the collector cheaper rates of purchase and the capacity to make more money. … Since its founding in 1980, Herbalife has faced a number of battles over its legitimacy as a sustainable business model, with critics labeling it a pyramid scheme, which are illegal in many countries. Most recently, the U.S.-based hedge fund manager William Ackman has conducted a high-profile campaign against Herbalife, calling it a scam akin to “Robin Hood in reverse” and encouraging investors to bet against the company’s stock. Last week, a two-year legal battle in Belgium over Herbalife’s operations came to a head, with the Belgian Appeals Court overturning a lower-court finding that Herbalife was an unlawful pyramid scheme. As a result, shares in the New York Stock Exchange-listed company rose 6.7 percent to $76.65 a piece. And in February, the Los Angeles Times cast some doubt over the relationship between Herbalife and Dr. Heber, the nutrition expert, reporting that Herbalife disclosures showed that a firm Dr. Heber is affiliated with collects an annual payment of $300,000 from Herbalife. Bui Quoc Thang, Herbalife’s country manager in Cambodia, on Thursday defended his company against any allegations of operating unlawfully. …
Matt Blomberg
http://www.cambodiadaily.com/news/herbalife-promises-cambodians-health-wealth-48828/
