MANAGER EXTRASeptember 2011

NSP QUALITYUNAdULTerATed

UNcomPromISINgUNrIvALed

At our June Strategic Summit—a gathering of Regional Managers and above in Las Vegas—Lynda Hammons, Vice President of Quality Assurance and Regulatory Affairs, gave a presentation where she drove home the point that quality has always been and will always be central to Nature’s Sunshine Products. What follows are her words.

Nature’s Sunshine has quality that is second to none. We guarantee every bottle we sell. It’s important to us that you consistently get the

best results with Nature’s Sunshine products. For that reason, you can be assured that we will always be committed to quality and excellence. Over a thousand companies produce or manufacture dietary supplements in the United States today. More than 85% of the brands on the market are made by small, contract manufacturers. They put pretty labels on bottles and sell them to big box stores, warehouse clubs and other companies that sell—but do not make or test—their own products. These sellers are not responsible for their quality. As a result, a lot of poor-quality products are on the market.

Doing it Right, Ourselves At Nature’s Sunshine, we design and manufacture our own products. We are in charge of our quality. We know what we put into every bottle. There is a huge gap between bad products and good products. And there is a big gap between the good products and Nature’s Sunshine’s highest quality products. Quality is not an accident. It doesn’t just happen! Nature’s Sunshine spends millions of dollars every year plus a lot of time, effort and expertise, assuring that we offer the highest quality products. I have never been asked to cut costs. We have the funding for testing because we need to test to ensure quality. Sometimes quality can mean the difference between life and death. Many of our distributors found Nature’s Sunshine because of a critical health issue. I am a cancer survivor of eight years, and I fully believe that I would not be here today if it weren’t for premium quality Nature’s Sunshine products. In my case, it was the difference between life and death.

Quality and

Commitment… in Her Own Wordsby Lynda Hammons, Vice President of Quality Assurance and Regulatory Affairs

September 2011, Manager Extra 1

Uncompromising Commitment to Quality NSP was built on quality and that will not change. Quality is built into the entire process, from the fields where our botanicals are grown, through the harvesting, cleaning, processing, to the moment the product goes out the door. It requires testing, testing and more testing. I have been with Nature’s Sunshine for 18 years, and I have never once been asked to compromise our quality. No one has ever said, “We don’t want to have this product go on backorder. Can you just accept a little dirt?” I have never been asked to do that. That is my commitment to you—we will NOT compromise on quality! I give you my personal commitment and the commitment of everyone at Spanish Fork, of everyone at the Home Office: we will continue to provide you with the highest quality supplements in the world. We are likewise committed to providing you the very best customer service. Believe me, with my health issues, I know how important it is to have the highest quality products.

You’re Invited We are very proud of our facility, and we invite everybody to see it. If you haven’t been here recently, please come back. Reacquaint yourself with the facility so you can tell everyone about it. We are open for tours Monday–Friday. If you’re coming to Utah for vacation or business, please schedule a tour. A personal guide will show you our state-of-the-art-equipment, where your products are made and where they’re tested. We look forward to seeing you!

2 Manager Extra, September 2011

The following information was taken from a recent presentation given by Lynda Hammons, Vice President of Quality Assurance and Regulatory Affairs for Nature’s Sunshine Products.

Consider the sourCe There’s a saying: “Garbage in, garbage out.” If you start with mediocre material, there’s nothing you can do during the manufacturing process to improve quality. Sourcing is critical to the quality of Nature’s Sunshine supplements. Every year, NSP scours the world in search of the best fields and crops for each botanical. Some companies own their own fields. But Nature’s Sunshine has decided not to own any fields, because if we did, we would have to go to those fields every year and get that crop, no matter how good or how bad it was. Instead, we go to different harvesters and find out where the best crop is that year.

the Best of faCilities, the Worst of faCilities NSP is committed to bringing our customers the very best botanicals from all over the world. And we don’t take our suppliers’ word for the quality of their facilities. We travel the globe to audit our suppliers firsthand and make sure they are building quality into their entire practice. Managers often ask about different geographic regions with regard to quality. Some of the best botanicals are grown in China. Lynda says, “I have seen some of the worst facilities in China, and I have seen some of the best facilities in China.” She adds that she has also seen some of the worst and best facilities right here in the United States. “Managers need not be concerned, because we audit our suppliers to make sure they follow good manufacturing practices,” she says. Nature’s Sunshine invests heavily in these audits.

It is not cheap to travel so much. But it is critical to see exactly where the botanicals and materials are processed. Says Lynda, “We closely scrutinize all of their processes: how they harvest, how they process material, how they clean the herb material and their equipment. We take time to look at minute details that other companies may skip.”

evaluating vendor “faCilities” “When we first contact a supplier, they typically say, ‘We’ll put you down for an hour tour of the facility.’ We tell them, ‘It’s not a tour. This is an audit. It can take a minimum of a day, and it can take two days.’ “We look at their equipment. We look at their documentation. We look at every step throughout the process to make sure they are following good manufacturing practices. “One of the first places I check is the restrooms. I go to both the men’s and the women’s, and I look for soap and hot water. You would be surprised at the number of potential suppliers who fail an audit because they don’t have one of these. •DuringanauditinChina,thefacilitydidnothave

any soap because they said people would steal it. FAIL.

•Lastyear,wewenttoanauditinFlorida,andaPh.D.metwithus.Heknewtherawmaterial very well. I went into the restroom, and they had no hot water. It wasn’t even hooked up! The worst part was that they did not appear to realize they needed hot water for personal hygiene and to clean their equipment. We didn’t even complete the audit. FAIL.

“Many suppliers ask, ‘What are you going to the restroom for?’ Obviously, other companies are not going into their restrooms during audits. “I’ve earned a nickname in the industry—The Terminator—because it is very hard to pass one of my audits. I’m proud of that because it means Nature’s Sunshine quality is extremely difficult to match.”

You Get What You Pay ForA Few More Reasons Why NSP Quality Is Unbeaten

September 2011, Manager Extra 3

sustainaBility is Key As a manufacturer and distributor of natural products, NSP feels it has a stewardship to help maintain the environment and preserve natural resources for future generations to enjoy. Last September, Nature’s Sunshine personnel traveled to the Atlantic Coast in Canada to observe the wild-crafted kelp harvest. The upper portions of kelp float on top of the water. Lynda and NSP’s Manager of Purchasing, Ellen O’Neal, spent some time with a local harvester traveling in the boat. The man used a special rake to cut off only the top of the kelp. If he had pulled the roots out, the crop could not continue tothrive.Hisharvestingtechniqueallowedthe kelp to grow back, and in several years they can harvest again from the same location. We also worked with a biologist the company has on staff who travels to each of the harvest sites and documents where that company is harvesting every year and how much they harvested, so they will not go back there too soon. That company is taking steps to make sure they have kelp and other sea products available for the future. Sustainability measures are something we consider on every audit.

HARveStING IS tRIckY the timing and technique of the harvest can also play a role in quality. •Ifyouharvestpeppermint

on a shady, cool day, it has different actives than if it’s collected on a sunny, warm day.

•Theheatlevelincayennepeppers varies according to the temperature at which it is grown. Good cayenne peppers need very hot days and cool nights. A supplier in Puerto Rico tried to grow cayenne peppers there. they sent them to us for testing. the peppers looked beautiful—very red and shiny. But when we bit into them, there was no heat. Puerto Rico’s climate did not have the cool nights the peppers needed to grow properly and produce the correct amount of capsaicin.

MotHeR NAtURe

DoeSN’t AlWAYS cooPeRAte

A couple of years ago, NSP had a difficult time sourcing

black walnut because it had been so rainy. We received black walnut material from a supplier, but it did not contain the active constituents in the proper ratios. So it was rejected. We can assure our customers that with every lot you’re going to get the

same beneficial active components because

we test for them in every lot.

Observing the wild-crafted kelp harvest

4 Manager Extra, September 2011

Nature’s Sunshine produces the highest quality natural supplements. But, what does quality really mean? Our quality boils down to three things: purity, safety and potency. We can proclaim our products’ purity, safety and potency with confidence because we test for these things every step along the way. In fact, we have over 600 tests at our disposal to ensure that our customers get the very best.

NSP Products Are Pure Purity testing is absolutely critical. One aspect of purity testing includes making sure that we obtain and offer the correct species and part of the plant that offers the most health benefits. A few years ago, NSP tested a sample of St. John’s Wort that was purchased from a large national retail store. Our testing revealed that it was the wrong species of St. John’s Wort. That particular bottle may have been inexpensive, but it was also an ineffective product! Nature’s Sunshine has the labs, and we test every lot of material. You can be 100% assured that you will get the correct species and the correct part of the plant. Purity testing also guarantees that you get what is listed on the label and nothing else. What else might you get with lower quality brands? Try dirt, rock or insects. NSP’s suppliers tell us that if they can meet

our standards, they can meet any standards because ours are the highest in the industry. We pay more to our suppliers because we require our raw materials to be cleaned. This is an extra step in the harvesting process, but we aren’t looking for the cheapest raw materials, we’re looking for the purest raw materials.

Did You Know? Raw botanical materials are paid for by weight. Some suppliers will grind up dirt, stems and rocks that are attached to the botanicals because it adds weight. It also lowers the amount of beneficial active ingredients. NSP routinely rejects these adulterated raw materials.

NSP Products Are Safe Our customers are concerned about their health. Many have compromised immune systems. Offering safe products is essential, and we have built our reputation on that. NSP tests for foreign materials and for micro-contamination, such as salmonella and E. coli. When harvested, botanicals need to dry properly; if they are milled while wet they are susceptible to yeast and mold. We test for these too. NSP also tests for heavy metal contamination, pesticides, herbicides, fungicides and PCB.

Quality through Testing

Purity, Safety

September 2011, Manager Extra 5

Testing Is the Only Guarantee Organic growers strive to offer crops free of chemical additives. But even organic material requires extensive testing because pesticides can travel in the air. The recent E. coli outbreak in Germany that killed over 20 people came from an organic sprout farm. An organic label isn’t a guarantee of safety. An NSP label, backed by extensive testing is your safety guarantee.

NSP Products Are Potent Potency testing guarantees that every lot is going to have the same beneficial active constituents in the same beneficial amounts. A potent product assures consistent results.

What Didn’t Make the Grade One of the most common questions Lynda Hammons is asked involves rejecting material. Currently NSP rejects about two percent of raw material every year. The Quality Assurance department and the Purchasing team have worked very hard to reduce that number over the years by finding the highest quality suppliers and developing strong partnerships with them.

Some Examples of Recent Rejections: • An incoming

lot of slippery elm failed the gel test, which means it didn’t meet activity criteria. The inner bark of slippery elm is the active ingredient. In this case, the inner bark was mixed with the outer bark and it didn’t have the correct activity and potency levels. So it was rejected.

• One particular lot of oat straw was rejected for mercury and dirt contamination. • A shipment of ginseng contained the

pesticide quintozene and was rejected.

Hallmarks of High QualityInternational Compliance NSP is fully compliant with all FDA regulations and international regulations. That means you can be assured that as you grow a global business, Nature’s Sunshine meets all regulations.

Innovation NSP works continually to develop and improve products, equipment and processes. Over 10 years ago, we used a piece of equipment called a DCP for testing mineral purity. The DCP could detect contaminants down to parts per million. We subsequently upgraded to an ICP that could test for parts per billion. Today we use an ICP mass spectrometer that can test for parts per TRILLION, which is the equivalent of one drop of water in five Olympic-size swimming pools!

Responsibility NSP always pays its bills on time. This not only makes us a good company with which to work, but it assures quality. For example, if a crop is limited one year, our suppliers come to us first with their best materials.

NSF Certified In 2009, NSP received the prestigious NSF certification. NSF is an independent international certification company. They visit twice a year to inspect and audit Nature’s Sunshine’s manufacturing facility, procedures and products.

6 Manager Extra, September 2011

Nature’s Sunshine is changing the way we help you grow your business! Rather than have Home Office personnel oversee a geographic area, we are assigning a person to help you based on the way you do business, or your daily method of operation (DMO). This means that NSP will be able to help you build your business in very specific ways, tailored to your DMO—retail sales, consulting, home parties or network marketing. This new, innovative concept makes NSP unique in the industry and gives you a competitive advantage in the market. The same Corporate Regional Managers you know and love are still here to help you. But they have different titles (Sales Manager) and assignments. And they are eager to work with you to discover and implement best practices to help you build your business your way. Contact your Sales Manager with your business questions or specific needs. And if your successline members do business differently, let them know which person to call for business-building help!

Doug Jensen has been promoted to Director of Field Sales. He will oversee all sales and business development activities relating to the field for U.S. English. Doug is a great leader with terrific talents. He and his group will focus on business builders—those who really want to work at growing their NSP business. They’ll do their best to help you in very specific ways. In time, we’ll have promotions, training and business development tools, education (including webinars), recognition and event qualifications specific to each DMO! NSP is charting new territory, but we are very excited, and managers are too! We introduced this concept at our June Strategy Summit, and nearly 90 percent of our Regional Managers and above loved the idea.

RetailAaron Wengert801-342-4692

aaronw@natr.com

ConsultingScott Terry

801-342-4516scottt@natr.com

Home PaRtiesRay Lambert

801-342-4487rayl@natr.com

netwoRk maRketingTBA/Doug Jensen

801-342-4691djensen@natr.com

Changing our approach to help you Build a

Better Business

September 2011, Manager Extra 7

Here’s what a few managers think:

“I am amazingly excited about this new concept. To have a coordinated system with customizable, promotional items a store can use is great.”

—Laurence Smith, Regional Manager, retailer

“Excited is an under-statement. This will really help us recruit those in the medical field, chiropractors, etc.”

—Jay Vanden Heuvel, Ph.D., Regional Manager, consultant

“I’m a consultant and a retailer. But I could never get enough people trained fast enough to duplicate me as a retailer or consultant. Network marketing is the simplest way to build an income. This new focus will be fantastic.”

—Al Garcia, Regional Manager, network marketer

“I’ve been in this business for over 20 years. For the first time, people are saying ‘I think I want to do what you do’ instead of ‘I don’t think I could ever do what you do.’ I see men, retired folks, young moms…a wide variety of people look at this as a real possibility.”

—Jerene Olsen, Area manager, party presenter

In order for the Sales Managers to focus solely on business building, please call Customer Service with questions regarding promotions, events and other day-to-day items. And call your new Sales Manager with your business-building questions.

“My team is here to support all of the managers and answer your questions. We have even hired new people who are trained and ready to help you with your needs.”

—Leann Beardall, Director of Customer Support

If you haven’t already done so, please contact Customer Service at 1-800-223-8225 to indicate your primary DMO, current email address and cell phone number (for future text messages).

Doug Jensen, new Director of Field Sales, says, “We realized that a blanket approach to business doesn’t work for everyone. We really believe that the best ideas come from the field, not from Home Office, and we plan to identify people having success and discover their best practices. Then share them with everyone. Along the way, we’ll form Manager committees to create and implement new tools, education, promotions, incentives…everything based on your DMO.” Each Sales Manager is passionate about what he does and about Nature’s Sunshine. We believe this will be a great success for the company and for our nationwide sales force. NSP realizes a change like this requires a transitional period. We plan to honor all commitments and scheduled items for 2011. We ask for your patience in the transition process.

On Friday, June 3, U.S. Senator Orrin Hatch of Utah visited NSP’s manufacturing facility. During his visit, Senator Hatch toured the facility, met with NSP executives and gave a speech to NSP employees, which was followed by a standing-room only question and answer period. Senator Hatch has long been a champion of the dietary supplement industry. He was the principal author and sponsor of the Dietary Supplement Health and Education Act (DSHEA), which gave manufacturers the responsibility for ensuring the safety of dietary supplements and ingredients and regulated labeling of dietary supplements. Since DSHEA, Senator Hatch has continued to support and defend supplement manufacturers. During his visit to Nature’s Sunshine headquarters, Senator Hatch revealed that he uses NSP supplements every day. He also reaffirmed his commitment to keeping DSHEA alive.

Senator Orrin Hatch Visits Nature’s Sunshine

8 Manager Extra, September 2011

Senator Hatch shakes hands with CEO Michael Dean

Senator Hatch addresses NSP employees at the manufacturing facility.

September 2011, Manager Extra 9

2011 Natural Health and Education SeminarsAttend a Natural Health and Education Seminar in your area, featuring four brand-new topics: • The Brilliant Body—Respiratory • The Brilliant Body—Hepatic • Loving your Lungs: Conquering Asthma and Allergies Naturally • Building Your Business Step by Step Cost is just $35 for this all-day educational event and includes incredible training materials. Please visit our website for the latest seminar information and locations.

e v e n t s C a l e n d a r

a n n o u n C e m e n t s

For complete details, go to www.naturessunshine.com. Call Customer Service at 1-800-223-8225 to register for a school or seminar. For information on seminars in Spanish, visit our website, or call 1-800-321-4652. Dates and locations are subject to change.

September17 Birmingham, Ala. 24 Columbus, Ohio

Denver, Colo. El Segundo, Calif.

October1 Newport News, Va.

Tampa, Fla.8 Altoona, Pa.

Boise, Idaho Hutchinson, Kan. Indianapolis, Ind.

15 Houston, Texas Lafayette, La. Oak Brook, Ill.

22 Ann Arbor, Mich. St. Henry’s Ohio

November5 Arlington, Texas

Ellicottville, N.Y. Orlando, Fla.

12 Antigo, Wis. Charlotte, N.C. San Jose, Calif.

19 Nashville, Tenn. Philadelphia, Pa.

Product Training FREE NSPWebinars Join the Product Focus Webinar. Tune in live at 11:00 a.m. on Tuesday, or watch the Webinar at your convenience through Friday of the same week. Register at www.NSPwebinars.com. Listen by phone: Dial 1-712-432-0453, PIN# 8626 (not a toll-free call).September 13 Energy

Coming EventsHerb ConferenceSaturday, Oct. 8Joplin, Mo.Holiday InnSpeakers: Lynda Hammons, Janey HigginsonContact: Bonnie Clayton, Janey Higginson, Dale Scott.Call 1-800-262-4417 to register. Pre-register and save.

Education WeekNov. 14–21

Final Months to Qualify for Hawaii Don’t miss NSP’s National Convention in HAWAII! Join us March 5–9, 2012 for an unforgettable experience at the fabulous Hilton Hawaiian Village. Be part of the fun as we celebrate our 40th anniversary of helping people live healthier, happier lives. Qualifications are different this year and continue through October 31, 2011. Make sure you’ll earn the points you need so you can join us! Visit www.naturessunshine.com for complete details and to review your qualification progress.

Share the Quality Message Managers visiting the Nature’s Sunshine manufacturing facility always tell us how much they love the “quality stories.” Our quality truly sets us apart from the competition. We have devoted several pages of this magazine to quality and have included things we’ve never shared before. We invite you to communicate this information with your group members, customers, party friends, etc. Tell them why NSP products are a better investment in their health and why you get what you pay for. Feel free to copy these articles, or download them from our website library.

Wanted to Buy Distress Remedy. Cynthia Harrell, 1-501-791-7477. SynerProtein, Hayfever–Pollen Homeopathic, Natria Sunscreen. Nanette Gil, 1-661-323-4658.

All-New A to Z Product Guide Now Available It’s here! Our totally redesigned A to Z product guide is now available and better than ever! This alphabetical listing of NSP products has been painstakingly overhauled to include benefit statements, how the product works, ingredients, recommended usage, cautions and complementary products for each entry. This manual also includes a helpful glossary of terms, an updated listing of NSP sales aids plus general information on all 10 body systems. Get your new manual today! Order a few extras for your customers. They’ll love it!

Stock No. Product Direct

CostQV

PointsSugg. Retail

2720-7 NSP A to Z Product Guide (English) $2.75 0.00 $4.15

2722-2 NSP A to Z Product Guide (Spanish) $2.75 0.00 $4.15

New Master Order Form Enclosed Due to manager requests, our master order form/price list has been returned to its previous design. We wanted every Manager to have one as soon as it became available! Note: Prices have not changed since June 1.

Nature’s Sunshine Products, Inc.P.O. Box 1000Spanish Fork, Utah 84660

NSP Manager Extra, September 2011, is published by Nature’s Sunshine Products, Inc., 75 East 1700 South, Provo, Utah 84606. Copyright 2011. Printed in the USA. All rights reserved.

ChangingSeasons, ChangingHabits

The changing of seasons is always a good time to clean house and body. This fall make a clean start on health. Our most popular, two-week cleanse program supports natural waste elimination to provide a sense of improved energy and well-being. It contains powerful nutrients that help cleanse and detoxify the body. Drink packets feature: •Psylliumhulls—provides10gramsof

fiber and absorbs bowel toxins. •Highlyabsorbentbentoniteclayto

support colon health. •Aloeverajuice,whichsoothesbowel

tissue. •Chlorophyll,tohelppreventodorand

counteract bowel toxins.Pluscapsulepackets! •Enviro-Detox® cleanses the body of

many common environmental pollutants. •LBSII® combines strong, purgative

herbs and protective, gentle and soothing herbs to enhance elimination, increase production of digestive enzymes and soothe the digestive tract.

Programcontains28dailydrinkpacketsand28capsulepackets.Choosefromapple/cinnamon or wild berry flavors. stock

no. Product Direct Cost

QV Points

mem. to mem.

sugg. Retail

3993-8 Cleanstart wild Berry (14-day) $45.95 45.95 $52.85 $68.95

3992-6 Cleanstart apple/Cinn. (14-day) $45.95 45.95 $52.85 $68.95