Xango, LLC, (sometimes referred to as XANGO and XanGo) was an American multi-level marketing company founded in 2002. It was acquired by Zija International in May 2017. The company marketed and distributed Xango juice, a blended juice product consisting of mangosteen and other juices, and skin care, personal care, energy supplement and nutritional supplement products. The company was warned in 2006 by the FDA for illegally marketing more than 20 human health benefits for Xango juice.
Company overview
Executives 2008–2012 Gary Hollister, founder, chairman emeritus, former chief executive, former chairman of the Board Aaron Garrity, founder, chairman of the board, CEO, former president Joe Morton, founder, board of directors Gordon Morton, founder, board of directors Kent Wood, founder, board of directors
Revenues 2003–2012 Xango was a privately held company and as such did not publicly disclose its financial statements. Company press releases in 2005–2006 stated that sales totaled $40 million in 2003 and $150 million in 2004, and that 2005 sales were more than twice those of 2004. In October 2007 the company said that cumulative sales since its inception five years earlier were over $1 billion and by November 2008 had exceeded $1.5 billion. In December 2012, Direct Selling News reported that Xango concluded its first ten years of operation in November 2012 with sales operations in 43 countries, 27 office locations, 49 distribution centers, more than two million distributors, and about $2 billion in cumulative revenues. Xango's revenues and annual reports have fueled much public and legal speculation that it is a pyramid scheme.
Financial sponsorships and contributions In November 2006, Xango, LLC, became the official corporate jersey-front sponsor of Real Salt Lake, an MLS soccer team based in Salt Lake City, Utah, for seven years, at a cost of between $500,000 and $1 million per year. Xango's contract with Real Salt Lake ended after the 2013 season. In 2006, the company made a 5-year, $1 million grant to an Orem, Utah arts council for naming rights to what is now called the "Xango Grand Theater". Xango, LLC, has been the top contributor to the political campaign of Utah senator Orrin Hatch, contributing $47,200 in 2008 and $46,700 in 2006, according to OpenSecrets.
Products Xango Juice was sold in the U.S. and (as of late-2011) exported to Australia, Canada, Germany, Japan, Malaysia, Mexico, Singapore, Sweden, and the United Kingdom. The company began operating in Taiwan as of October 2007. The company's business model was direct sales via multi-level marketing rather than retail sales, mainly using a nine-level multi-level marketing structure. In June 2006, the company said it had 350,000 distributors. In July, the company told the Federal Trade Commission that there were "roughly 500,000 distributors worldwide", and in November, it reported having more than 600 employees at its Lehi headquarters and more than 500,000 independent distributors in 15 international markets. In July 2007, it said it had about 700,000 distributors, of whom an estimated 70 percent simply use their status to buy the juice at the discounted membership price. In October 2008, it said that it operated in 24 countries and had more than 1 million independent distributors. As of 2013, the company stated that it operated in 43 countries. In the United States, Xango Juice sold for a retail price of $37.50 for a 750 ml (25.35 ounce) bottle.
Xango Juice composition Xango Juice was a blend of mangosteen aril and pericarp purée with juice concentrates of eight other fruits: apple, pear (juice and purée), grape, blueberry, raspberry, strawberry, cranberry and cherry. Other ingredients include citric acid, natural flavor, pectin, xanthan gum, sodium benzoate, and potassium sorbate. Xango claimed its juice contains xanthonoid compounds from the mangosteen pericarp. Associated Press commissioned the Linus Pauling Institute to measure the in vitro antioxidant strength of Xango Juice against retail fruit juices. The antioxidant strength of XanGo Juice measured slightly higher than cranberry juice but lower than black cherry and less than half the value for blueberry juice. However, the value of in vitro analysis of antioxidant strength is questionable, as there was no current evidence that antioxidant phytochemicals present in Xango or other fruit juices actually have functions inside the human body. The measurements of antioxidant strength apply to test tubes, but consumed juices are affected by stomach acids that would neutralize or destroy antioxidant value preventing the same biological effects in vivo.
False advertising claims
Pericarp xanthones and potential health effects According to a 2006 warning by the US Food and Drug Administration, XanGo's distributors had illegally used marketing materials to promote mangosteen juice claiming more than 20 human health benefits, including "anti-inflammatory," "anti-microbial," "anti-fungal," "anti-viral," "anti-cancer," "anti-ulcer," "anti-hepatotoxic," "anti-rhinoviral," and "anti-allergic" effects. Promotional literature for the product cites antioxidants from the inedible pericarp of the fruit as providing health benefits. None of these claims, however, has scientific proof established by peer-reviewed research and human clinical trials, as discussed below. The American Cancer Society profile of mangosteen juice stated there was no reliable evidence that mangosteen juice, purée, or bark is effective as a cancer treatment in humans. As of April 2013, it also stated that the mangosteen "fruit has been shown to be rich in antioxidants. Very early laboratory studies suggest it may have promise as a topical treatment for acne. Early small laboratory and animal studies suggest that further research should be done to determine whether it can help to prevent cancer in humans." In 2009, XanGo scientific adviser, David Morton, participated in a four-part debate on the disputed claims of mangosteen health benefits.
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