places, particularly China. Did you know that most of the vitamin C consumed in the U.S. is produced in China? Same with Royal Jelly, Evening Primrose Oil, Chlorella, Glucosamine, Creatine and many teas. There’s just no escaping the fact that today’s business world is international in scope and many distant countries are better suited for growing or manufacturing certain types of natural food products. In December, 1998 our Vice President at the time, Al Powers, made an official visit to China to solidify a customer relationship and promote the sale of NOW lecithin products. Al had been NOW’s Vice President for many years and Elwood’s choice to succeed him when he retired. So in response to the Chinese customer’s insistence that NOW send over its highest official, Al agreed to go and had a very unusual visit to China. The plan was for Al to be part of a media blitz to help educate the masses and sell more lecithin. NOW’s importing customer was very well connected within the government and he had arranged for a press tour involving about 10 speeches in both Beijing and Shanghai. Al’s speech, which was repeated identically ten times, had to be submitted to the government for screening and approved for public use before an assembly could be legal! Many cameramen and dignitaries attended these speeches and some were broadcast on national TV and radio. Each speech was constantly interrupted so that an interpreter could explain every word in Chinese as well. In Beijing, a huge neon sign had been put up that said, “Welcome NOW Foods!” It looked a little like Times Square in New York City and NOW was made out to be a U.S. brand similar in size to Coca-Cola or McDonald’s. Al was able to accomplish his own personal goal of citing NOW as a “Christian Principled Company” and mentioning the name of Jesus Christ on communist television. In the end, the Chinese customer wanted NOW to pay for these extravagant marketing expenses – after the fact – and our relationship soon crumbled when we couldn’t agree on a seven figure marketing fund without purchasing guarantees. Perhaps to recoup promotional losses, the customer found a loophole in the next letter of credit payment and a container load of lecithin sat somewhere in China, unpaid, while we tried to make a deal with the customer. Eventually, the customer bought the container load at public auction, probably for pennies, and NOW was left holding an empty bag, while the customer continued to pirate NOW’s name on lecithin products all over China. We learned an expensive and bitter lesson in international business, something like, “Put not your trust in princes, in a son of man, in whom there is no help.” (Psalm 146:3) In 2002, NOW made a deal with Galilee Herbal Remedies, a kibbutz in Israel, to sell a co-branded line of vegetarian, kosher and organic herbal formulas. The paperwork required to consummate this deal was extraordinary. Galilee Herbal Remedies (GHR) had a line of products that needed NOW’s marketing muscle and NOW is always looking for opportunities that can offer value to customers on quality products. After nearly a year of discussion, certifying, and sourcing issues, the new line launched in 2002 with production and distribution provided by NOW. The resulting premium line is the very type of business that NOW seeks to provide: Superior quality, unique products, alliances with leading suppliers throughout the world and excellent value. Though the line did not sell well, and was dropped three years later, NOW is committed to improving many existing products to be vegetarian, organic and possibly kosher. 90 BEATING THE ODDS
