Annual report pursuant to Section 13 and 15(d)

Related Party Transactions

Related Party Transactions
12 Months Ended
Dec. 29, 2018
Related Party Transactions [Abstract]  
Related Party Transactions


The Company’s Founder and Chairman of the Board, Myron W. Wentz, PhD is the sole beneficial owner of the largest shareholder of the Company, Gull Global, Ltd. As of December 29, 2018, Gull Global, Ltd. owned 42.12% of the Company’s issued and outstanding shares.  Dr. Wentz devotes much of his personal time, expertise, and resources to a number of business and professional activities outside of USANA. The most significant of these is the Sanoviv Medical Institute, which is a unique, fully integrated health and wellness center located near Rosarito, Mexico that Dr. Wentz founded in 1998.  Dr. Wentz’s private entity, Sanoviv S.A. de C.V. (“Sanoviv”), contracts with Amarevita S DE RL DE CV (formerly Medicis, S.C.) (“Amarevita”), an entity that is owned and operated independently of Dr. Wentz, to conduct the operations of the Sanoviv Medical Institute.  Sanoviv leases the medical building to Amarevita and Amarevita carries out all of the operations of the medical institute, which include employing all of the medical and healthcare professionals who provide services at the medical institute. The Amarevita medical and healthcare professionals possess expertise in the fields of human health, digestive health, nutritional medicine, lifestyle medicine and other medical fields that are important to USANA.

Amarevita performs research and development of novel product formulations for future development and production by USANA, and they also perform research and development of improvements in existing USANA product formulations.  In addition to providing contract research services, Amarevita provides physicians and other medical staff to speak at USANA Associate events.  Finally, Amarevita performs health assessments and physical examinations for the Company’s Executives.  In consideration for these services, USANA paid Amarevita $322,  $337, and $162 in 2016, 2017, and 2018, respectively.  The Company’s agreements with Amarevita were approved by the Audit Committee in advance of the Company’s entry into the agreements.  USANA’s collaboration with Amarevita is terminable at will by USANA at any time, without any continuing commitment by USANA. 

The Company has had a long-standing relationship with Drive Marketing, a promotional product distributor located in Sandy, Utah.  Drive Marketing provides the Company with customized products for Associate recognition.  The Company paid Drive Marketing $523,  $781, and $804 in 2016, 2017 and 2018, respectively.  Nathan Guest is a sales representative for Drive Marketing’s various direct selling accounts, including the Company's account.  Nathan Guest is the son of Kevin Guest, the Company’s CEO.  Drive Marketing is one of many promotional product distributors utilized by the Company.  The Company’s relationship with Drive Marketing is terminable at will by the Company at any time without any continuing commitment.

The Company has had a long standing contractual relationship with Shane Farmer, the sole owner of Dark Horse Rowing, LLC located in San Diego, California.  Mr. Farmer provides consulting and other advisory services to the Company related to its development of nutritional products.  The Company paid Dark Horse Rowing, LLC $136,  $135, and $136 in 2016, 2017 and 2018, respectively.  During 2017, Shane Farmer became the stepson of Dr. Wentz, the Company’s founder and Chairman of the Board.  Mr. Farmer is one of many consultants and experts utilized by the Company to advise on nutrition.  The Company’s relationship with Dark Horse Rowing is terminable at will by the Company at any time without any continuing commitment.