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Herbalife (HLF) Launches Sports Drink with Cristiano Ronaldo

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Global nutritionist company Herbalife Ltd.HLF has launched a new sports drink 'CR7 Drive', in partnership with and according to the nutrition needs of soccer legend, Cristiano Ronaldo.

Herbalife is the official nutrition sponsor and has a multi-year agreement with Ronaldo. A team of Herbalife professionals work on Ronaldo's nutrition requirement on and off the field and provide expert recommendations.

The new drink CR7 Drive was designed to optimize Ronaldo's performance and address his specific nutritional needs, the company said.

CR7 Drive is an energizing sports drink and helps athletes refuel and rehydrate before and during exercise. It is designed to fulfil the nutrition need of all athletes at all levels. It does not contain any artificial flavors or sweeteners and supplies carbohydrates for energy. It is best suitable for players engaged in soccer, spinning, running, or other sports that significantly increase heart rate.

Like all Herbalife24 products, CR7 Drive has met the standards of NSF Certified for Sport program and does not contain any banned substances.

Herbalife, being a global nutrition company, is committed toward providing weight management, energy and fitness and personal care products through dedicated Independent Herbalife Members in more than 90 countries.

However, the company has been the target of activist investor William Bill Ackman, hedge fund manager of Pershing Square Capital Management since Dec 2012. Ackman believes that the company was running a pyramid scheme business model, in which profits are largely derived from recruiting new distributors and not from selling products. He also launched his $1 billion short position in Herbalife shares in 2012.

Since then Ackman has been trying every means to prove that Herbalife runs a pyramid scheme model. He also went public with his attacks on business television, in public settings and on his own website. Ackman also called on regulators to shut down the company. Various regulatory agencies have started probes into his allegations.

However, it seems that such accusations do not bother Herbalife now, as it knows these are Ackman's tactics to drive down its share price.

Herbalife, on its part, has been denying the charges since 2012 and has full confidence in its business model. In the recent months, Herbalife has strengthened its own public campaign against Ackman, prodding regulators to investigate Ackman's business practices.

Herbalife sports a Zacks Rank #1 (Strong Buy). It is not the only company, which employs sales representatives to sell its products. Other multi-level marketing companies like Nu Skin Enterprises Inc. NUS , USANA Health Sciences Inc. USNA and Avon Products Inc. AVP also follow the same model.

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AVON PRODS INC (AVP): Free Stock Analysis Report

NU SKIN ENTERP (NUS): Free Stock Analysis Report

HERBALIFE LTD (HLF): Free Stock Analysis Report

USANA HLTH SCI (USNA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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