Avon Products Inc. (ticker: AVP, exchange: New York Stock Exchange (.N))
News Release -
Avon Announces $5 Million Additional Commitment for China Earthquake Reconstruction
Also Plans Direct Selling Mobilization for Continuing Fundraising
NEW YORK, June 4 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) today
announced that it is committing an additional $5 million (35 million RMB) for
long-term reconstruction efforts in the aftermath of the devastating
earthquake in Sichuan Province in China. The company said that the money will
be donated through a specially established China Earthquake Reconstruction
Fund within the Avon Foundation and that the money will be disbursed to
priority rebuilding initiatives as needs are identified.
In addition, the company said that it plans to mobilize its China direct
selling channel of approximately 600,000 Sales Promoters and a large network
of Beauty Boutique owners to raise further funds in local communities through
sales of a specially developed fundraising product, with net profits going to
the reconstruction. The company said it has had significant success with
these types of fundraising efforts in the past, including a U.S. fundraising
product in 2001 which raised $7 million to aid children impacted by the tragic
events of Sept. 11th.
Avon said that the $5 million contribution and funds raised through the
sale of the fund-raising product will be on top of the company's previously
announced donations in the immediate aftermath of the disaster. Avon's
earlier donations to China earthquake support included:
-- $500,000 (3.5 million RMB) cash donation to the China Red Cross
Foundation to assist children who have lost their parents and elderly
who have lost daughters and sons;
-- $98,000 (688,226 RMB) in personal donations from Avon Sales Promoters
and Beauty Boutique owners in China;
-- $86,000 (600,000 RMB) worth of urgently needed supplies and provisions,
including tents, umbrellas, first aid kits and personal care products;
-- $68,000 (471,843 RMB) in personal donations from Avon China Associates
to the China Red Cross Foundation and the Guangdong Charity Foundation.
Andrea Jung, Avon's chairman and chief executive officer, said: "Avon is
firmly committed to providing significant humanitarian assistance to the long-
term reconstruction of China. While our earlier contributions aimed to
provide relief in the immediate aftermath of this devastating tragedy, our
latest commitment of $5 million and our plan to harness the power of our grass
roots direct selling channel is intended to aid in the longer-term rebuilding
of the impacted areas."
Ms. Jung continued: "Avon has been a committed partner to the People's
Republic of China since we entered the market in 1990 and we intend to
continue our support for the people of China and to provide significant
additional funding for helping to rebuild the areas affected by the
Avon, the company for women, is a leading global beauty company, with
$10 billion in annual revenue. As the world's largest direct seller, Avon
markets to women in well over 100 countries through 5.4 million independent
Avon Sales Representatives. Avon's product line includes beauty products,
fashion jewelry and apparel, and features such well-recognized brand names as
Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals and Mark.
Learn more about Avon and its products at www.avoncompany.com.
SOURCE Avon Products, Inc.
/CONTACT: media, Victor Beaudet, +1-212-282-5344, Sharon Samuel,
+1-212-282-5322; investors, Renee Johansen, +1-212-282-5320/
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/Web site: http://www.avoncompany.com /