Forbes is Usana's latest critic

Business and finance publication Forbes has just dealt another setback to Usana Health Sciences, a vitamin company with thousands of distributors in New Zealand which – as NBR reported last month – is already facing shareholder lawsuits, falling stock prices and an FBI investigation.

Under the headline “Hard to Swallow,” Forbes quoted industry and government experts who raised questions about Usana’s business practices as well as its products.

The article is significant because for the last three years Forbes has listed US-based Usana as one of America’s 200 best small companies, and Usana has showcased its Forbes listing as one of its strongest selling points in promotional materials and recruitment meetings all over the world.

NBR contacted Usana spokesman Joseph Poulos about the Forbes article, and he wrote back a brief e-mail saying it was “wrong” on one point – concerning a bank loan – but didn’t comment otherwise about it.

This week’s Forbes piece is just the latest development in what has been a troublesome year for Usana.

Although the company’s sales profits have consistently increased and its last quarterly report beat analysts’ expectations, its share price has tumbled from a high of nearly $US62 to less than $US35.

The Forbes article follows only weeks after an NBR investigation of Usana. Meanwhile, Usana is still looking for a replacement for its long-time auditor, Grant Thornton, LLP, which quit last month.

In earlier statements, Usana has blamed its recent problems on “false and defamatory statements” made in the press and by short sellers who profit when the company’s stock falls.