USANA Health Sciences develops and sells nutritional supplements, functional foods, and personal care products through three distinct business units. The core business, which represents roughly 80% of net sales, is a global direct selling operation where independent distributors called Brand Partners sell products — primarily vitamin and mineral supplement packs, targeted supplements, meal replacement foods, and skincare — to end consumers. Brand Partners earn commissions based on sales generated by their networks, keeping the sales force cost variable. About 62% of core direct sales volume comes through an auto-order subscription program. China is USANA's largest market, representing roughly 41% of total net sales, and is operated through a subsidiary called BabyCare under a hybrid distribution model due to Chinese restrictions on multi-level compensation structures. The core direct selling segment has faced declining active customer counts in recent years, driven by softness in China and broader post-COVID headwinds in the direct selling industry. In December 2024, USANA acquired a 79% stake in Hiya for approximately $405M. Hiya sells children's health supplements — primarily a chewable multivitamin — through a DTC subscription model in the U.S., with expansion into Canada, the U.K., and Target retail in 2026. USANA also owns Rise Wellness, acquired in 2022, which makes protein bars, powders, and ready-to-drink beverages sold through retail partners including Costco and Target. USANA manufactures roughly 56% of its products in-house in Salt Lake City and Beijing, and is transitioning Hiya's production in-house to improve margins.
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