Herbalife International's vice president for Southeast Asia, Joe Wojcik, said yesterday the company's operating costs increased to a level where it was forced to increase its prices.

However, its performance in the first quarter of this year remained strong, especially in Thailand, where it has achieved its sales targets for six consecutive quarters, Wojcik said. He declined to reveal sales figures.

He said the reason for the growth in Thailand is the hectic Thai lifestyle that does not allow people to eat food that really benefits their health. Herbalife's food supplements offer them an alternative means of maintaining their good health.

In the Asia-Pacific region generally, Herbalife has enjoyed good sales, although it faces intense competition both within the direct-sales market and from retail businesses. The direct-sales market also grew by 5 per cent to 15 per cent last year, Wojcik said.

This year, Herbalife International has entered two new markets, in Malaysia and Costa Rica.

The company now operates in 62 markets around the world, and is thinking of making it 63 next year.

Herbalife's worldwide net sales last year amounted to US$1.6 billion (Bt60.2 billion), with 20 per cent sales growth in Asia and the Pacific. Its five top markets are Mexico, the US, Brazil, Taiwan, and Italy. Thailand is its third-largest market in the Asia-Pacific region and its 18th largest market in the world.

Next month, Herbalife plans to hold its regional business seminar, called 2006 Asia Pacific Extravaganza - Bangkok, at Impact Exhibition and Convention Centre. It will be the third time that the company hold the regional event in Bangkok.

Thailand Convention and Exhibition Bureau's executive committee chairman Kajit Habanananda estimated that participants at the event would spend Bt300 million in Thailand.

Nitida Asawanipont

The Nation