XanGo
Encyclopedia
XANGO, LLC, founded in 2002, is a privately owned international network marketing company based in Lehi
Lehi
Lehi refers to:In Mormonism:* Lehi , a prophet in the Book of Mormon of the 7th-6th centuries BC* Lehi, son of Helaman, another prophet in the Book of Mormon of the late 1st century BC...

, Utah
Utah
Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...

. The company markets and distributes XANGO Juice, a blended juice product consisting of mangosteen
Mangosteen
The purple mangosteen , colloquially known simply as mangosteen, is a tropical evergreen tree believed to have originated in the Sunda Islands and the Moluccas of Indonesia. The tree grows from 7 to 25 m tall...

 and other juices, and skin care, personal care, energy supplement and nutritional supplement products formulated with botanical ingredients.

Executives

  • 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
  • Bryan Davis, Founder, Board of Directors

Revenue

XANGO is a privately held company and as such does not publicly disclose its financial statements. Company press releases in 2005-2006 stated that sales totalled $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.

XANGO now operates in 36 countries throughout the world and has over one million distributors.

Financial sponsorships and contributions

Before XANGO opened its doors and began marketing its proprietary health beverage called XANGO Juice, the founders felt it was important to give back to the community. They were unanimous in their decision to donate a minimum of 7% of all corporate profits to Operation Kids. The very first profit check that XANGO received was donated to Operation Kids. XANGO is involved with Operation Smile, and have also partnered with the McGruff House, ensuring children have safe places of refuge.

In November 2006, XANGO, LLC, became the official corporate jersey-front sponsor of Real Salt Lake
Real Salt Lake
Real Salt Lake is an American professional soccer club based in Sandy, Utah, a suburb of Salt Lake City. The team competes in Major League Soccer , the top professional soccer league in the United States and Canada. They currently play their home games at Rio Tinto Stadium. Real Salt Lake won...

, a MLS
Major League Soccer
Major League Soccer is a professional soccer league based in the United States and sanctioned by the United States Soccer Federation . The league is composed of 19 teams — 16 in the U.S. and 3 in Canada...

 soccer
Football (soccer)
Association football, more commonly known as football or soccer, is a sport played between two teams of eleven players with a spherical ball...

 team based in Salt Lake City, Utah, for four years, at a cost of between $500,000 and $1 million per year. In 2006, the company made a 5-year, $1 million grant to an Orem, Utah
Orem, Utah
Orem is a city in Utah County, Utah, United States, in the north-central part of the state. It is adjacent to Provo, Lindon, and Vineyard and is about south of Salt Lake City. Orem is one of the principal cities of the Provo-Orem, Utah Metropolitan Statistical Area, which includes all of Utah and...

 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
Orrin Hatch
Orrin Grant Hatch is the senior United States Senator for Utah and is a member of the Republican Party. Hatch served as the chairman or ranking member of the Senate Judiciary Committee from 1993 to 2005...

, contributing $47,200 in 2008 and $46,700 in 2006, according to the Center for Responsive Politics
Center for Responsive Politics
The Center for Responsive Politics is a non-profit, nonpartisan research group based in Washington, D.C. that tracks money in politics and the effect of money and lobbying activity on elections and public policy and maintains a public online database of its information.Their database...

.

Production and distribution

XANGO Juice is sold in the U.S. and (as of late-2011) exported to Australia, Austria, Belgium, Bermuda, Canada, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Kazakhstan, Latvia, Malaysia, Mexico, Netherlands, New Zealand, Norway, Philippines, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, Taiwan, Trinidad, United Kingdom and Ukraine. The company began operating in Taiwan as of October 2007.

The company sells XANGO Juice mainly using a nine-level multi-level marketing
Multi-level marketing
Multi-level marketing is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation...

 structure. In June 2006, the company said it had 350,000 distributors. In July, the company told the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...

 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.

In the United States, XANGO Juice sells for a retail price of $37.50 for a 750 ml (25.35 ounce) bottle.

XANGO Juice composition

XANGO Juice is a blend of mangosteen aril
Aril
An aril is any specialized outgrowth from the funiculus that covers or is attached to the seed. It is sometimes applied to any appendage or thickening of the seed coat in flowering plants, such as the edible parts of the mangosteen and pomegranate fruit, the mace of the nutmeg seed, or the...

 and pericarp purée
Purée
Purée and mash are general terms for cooked food, usually vegetables or legumes, that have been ground, pressed, blended, and/or sieved to the consistency of a soft creamy paste or thick liquid. Purées of specific foods are often known by specific names, e.g., mashed potatoes or apple sauce...

 with juice concentrates of eight other fruits: apple
Apple
The apple is the pomaceous fruit of the apple tree, species Malus domestica in the rose family . It is one of the most widely cultivated tree fruits, and the most widely known of the many members of genus Malus that are used by humans. Apple grow on small, deciduous trees that blossom in the spring...

, pear
Pear
The pear is any of several tree species of genus Pyrus and also the name of the pomaceous fruit of these trees. Several species of pear are valued by humans for their edible fruit, but the fruit of other species is small, hard, and astringent....

 (juice and purée), grape
Grape
A grape is a non-climacteric fruit, specifically a berry, that grows on the perennial and deciduous woody vines of the genus Vitis. Grapes can be eaten raw or they can be used for making jam, juice, jelly, vinegar, wine, grape seed extracts, raisins, molasses and grape seed oil. Grapes are also...

, blueberry
Blueberry
Blueberries are flowering plants of the genus Vaccinium with dark-blue berries and are perennial...

, raspberry
Raspberry
The raspberry or hindberry is the edible fruit of a multitude of plant species in the genus Rubus, most of which are in the subgenus Idaeobatus; the name also applies to these plants themselves...

, strawberry
Strawberry
Fragaria is a genus of flowering plants in the rose family, Rosaceae, commonly known as strawberries for their edible fruits. Although it is commonly thought that strawberries get their name from straw being used as a mulch in cultivating the plants, the etymology of the word is uncertain. There...

, cranberry
Cranberry
Cranberries are a group of evergreen dwarf shrubs or trailing vines in the subgenus Oxycoccus of the genus Vaccinium. In some methods of classification, Oxycoccus is regarded as a genus in its own right...

 and cherry
Cherry
The cherry is the fruit of many plants of the genus Prunus, and is a fleshy stone fruit. The cherry fruits of commerce are usually obtained from a limited number of species, including especially cultivars of the wild cherry, Prunus avium....

. Other ingredients include citric acid
Citric acid
Citric acid is a weak organic acid. It is a natural preservative/conservative and is also used to add an acidic, or sour, taste to foods and soft drinks...

, natural flavor, pectin
Pectin
Pectin is a structural heteropolysaccharide contained in the primary cell walls of terrestrial plants. It was first isolated and described in 1825 by Henri Braconnot...

, xanthan gum
Xanthan gum
Xanthan gum is a polysaccharide, derived from the bacterial coat of Xanthomonas campestris, used as a food additive and rheology modifier, commonly used as a food thickening agent and a stabilizer...

, sodium benzoate
Sodium benzoate
Sodium benzoate has the chemical formula NaC6H5CO2; it is a widely used food preservative, with E number E211. It is the sodium salt of benzoic acid and exists in this form when dissolved in water. It can be produced by reacting sodium hydroxide with benzoic acid.-Uses:Sodium benzoate is a...

, and potassium sorbate
Potassium sorbate
Potassium sorbate is the potassium salt of sorbic acid, chemical formula C6H7KO2. Its primary use is as a food preservative . Potassium sorbate is effective in a variety of applications including food, wine, and personal care products....

. XANGO claims its juice contains xanthonoid
Xanthonoid
A xanthonoid is a chemical natural phenolic compound formed from the xanthone backbone. Many members of the Clusiaceae contain xanthonoids.Xanthonoid biosynthesis in cell cultures of Hypericum androsaemum involves the presence of a benzophenone synthase condensing a molecule of benzoyl-CoA with...

 compounds from the mangosteen pericarp.

The Associated Press commissioned the Linus Pauling Institute
Linus Pauling Institute
The Linus Pauling Institute is a research institute located at Oregon State University with a focus on health maintenance. The mission statement of the institute is three-fold. First, to determine the functional roles of micronutrients and phytochemicals in promoting optimal health and to treat or...

 to measure the in vitro
In vitro
In vitro refers to studies in experimental biology that are conducted using components of an organism that have been isolated from their usual biological context in order to permit a more detailed or more convenient analysis than can be done with whole organisms. Colloquially, these experiments...

 antioxidant strength of XANGO Juice against retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...

 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 in question, as there is no current evidence that antioxidant phytochemical
Phytochemical
Phytochemicals are biologically active chemical compounds that occur naturally in plants . Phytochemicals are the molecules responsible for the color and organoleptic properties . For example, the deep purple color of blueberries and the smell of garlic...

s 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
In vivo
In vivo is experimentation using a whole, living organism as opposed to a partial or dead organism, or an in vitro controlled environment. Animal testing and clinical trials are two forms of in vivo research...

.

In 2002, XANGO founders Aaron R. Garrity, Gordon A. Morton, and Joseph C. Morton (doing business as DBC, LLC) applied for a United States patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....

 (#6730333) for XANGO Juice; however the application was rejected by the United States Patent and Trademark Office
United States Patent and Trademark Office
The United States Patent and Trademark Office is an agency in the United States Department of Commerce that issues patents to inventors and businesses for their inventions, and trademark registration for product and intellectual property identification.The USPTO is based in Alexandria, Virginia,...

 on April 21, 2005. On November 3, 2008, the U.S. Court of Appeals for the Federal Circuit ruled that the decision of a patent appeals board to deny XANGO's patent application would still stand.

Claims of health benefits

The company's distributors had 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 rind 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
American Cancer Society
The American Cancer Society is the "nationwide community-based voluntary health organization" dedicated, in their own words, "to eliminating cancer as a major health problem by preventing cancer, saving lives, and diminishing suffering from cancer, through research, education, advocacy, and...

 profile of mangosteen juice states there is no reliable evidence that mangosteen juice, purée, or bark is effective as a treatment for cancer
Cancer
Cancer , known medically as a malignant neoplasm, is a large group of different diseases, all involving unregulated cell growth. In cancer, cells divide and grow uncontrollably, forming malignant tumors, and invade nearby parts of the body. The cancer may also spread to more distant parts of the...

 in humans.

The company's website states that "research shows xanthonoid
Xanthonoid
A xanthonoid is a chemical natural phenolic compound formed from the xanthone backbone. Many members of the Clusiaceae contain xanthonoids.Xanthonoid biosynthesis in cell cultures of Hypericum androsaemum involves the presence of a benzophenone synthase condensing a molecule of benzoyl-CoA with...

s (components of XANGO Juice) possess potent antioxidant
Antioxidant
An antioxidant is a molecule capable of inhibiting the oxidation of other molecules. Oxidation is a chemical reaction that transfers electrons or hydrogen from a substance to an oxidizing agent. Oxidation reactions can produce free radicals. In turn, these radicals can start chain reactions. When...

 properties that may help maintain intestinal health, strengthen the immune system, neutralize free radicals, help support cartilage
Cartilage
Cartilage is a flexible connective tissue found in many areas in the bodies of humans and other animals, including the joints between bones, the rib cage, the ear, the nose, the elbow, the knee, the ankle, the bronchial tubes and the intervertebral discs...

 and joint function, and promote a healthy seasonal respiratory system"; however, they also add a footnote
Footnote
A note is a string of text placed at the bottom of a page in a book or document or at the end of a text. The note can provide an author's comments on the main text or citations of a reference work in support of the text, or both...

 with the following disclaimer: "These statements have not been evaluated by the FDA. This product is not intended to diagnose, treat, cure or prevent any disease." Furthermore, there is increasing scientific understanding that xanthones or other polyphenols from plant foods do not serve antioxidant roles in the human body.

In 2007, the Mayo Clinic stated there was laboratory evidence that mangosteen xanthones had anti-inflammatory activity, but there was no evidence demonstrating such anti-inflammatory effects in humans.

A scientific advisor for the company, David A. Morton, PhD (whose brothers Joe and Gordon helped found the company), made the unfounded statement in 2006 that "emerging evidence that mangosteen has anti-inflammatory, antioxidant, and anti-microbial properties" exists, yet acknowledged the only study of humans consuming mangosteen pulp juice was conducted as a test of dysentery therapy in Singapore in 1932. "I don’t think there are plans to study mangosteen in humans in the near future," Dr. Morton said in 2006, because "there’s much too much that still needs to be studied in the lab."

In 2009, David Morton participated in a four-part debate on the asserted claims of mangosteen health benefits.

U.S. FDA warning

On September 20, 2006, the United States Food and Drug Administration issued a Warning Letter
FDA Warning Letter
The United States Food and Drug Adminstration defines a Warning Letter as "...a correspondence that notifies regulated industry about violations that FDA has documented during its inspections or investigations...

 to XANGO LLC International in response to the company's promotion of XANGO Juice as an aid to treat and/or cure various diseases. The agency's letter further warned that XANGO Juice had not been properly tested for safety and efficacy, and as a proposed new drug it could not be legally sold in the U.S. without prior approval of the FDA, and that the company could face enforcement action including seizure and/or injunction of products or suspension of business. Under FDA drug labeling rules, XANGO, LLC, as manufacturer, is responsible for satisfying scientific criteria to make health claims on its product labels and all marketing materials. As of September 2008, the case remained open.

Critical assessments of XANGO Juice

The Mayo Clinic
Mayo Clinic
Mayo Clinic is a not-for-profit medical practice and medical research group specializing in treating difficult patients . Patients are referred to Mayo Clinic from across the U.S. and the world, and it is known for innovative and effective treatments. Mayo Clinic is known for being at the top of...

 said in October 2005 that "there are no published clinical trials showing evidence that either the fruit or its juice — marketed under the name XANGO Juice — is an effective treatment for arthritis, cancer or any other disorder in humans."

In February 2006, the U.C. Berkeley Wellness Newsletter, sponsored by the University of California at Berkeley, said that "Mangosteen marketers make farfetched and unsubstantiated claims for their products." The newsletter notes that "there are no clinical trials, and what happens in a test tube or animal may not occur in a human. Any reported benefits in humans have been anecdotal. No one even knows if the processed fruit juice and capsules retain the potentially beneficial compounds. What’s more, the juice is typically a mix of fruit juices — with an undisclosed amount of mangosteen in it."

Dr. Ralph Moss, author of several books and newsletters on cancer research, has said of mangosteen juice:

"In my opinion, what we have here is simply an overpriced fruit drink. Fruit drinks are often healthful beverages. But the only reason I can see that the promoters of mangosteen can get away with charging $37 for this product is that they are playing on patients' hopes and fears in a cynical way. Without the health claims, open or implied, the product could only be sold for at most $5 or $6 (which, for example, is the cost of antioxidant-rich pomegranate juice)."

A 2008 medical case report
Case report
In medicine, a case report is a detailed report of the symptoms, signs, diagnosis, treatment, and follow-up of an individual patient. Case reports may contain a demographic profile of the patient, but usually describe an unusual or novel occurrence....

 described a patient with severe acidosis
Acidosis
Acidosis is an increased acidity in the blood and other body tissue . If not further qualified, it usually refers to acidity of the blood plasma....

 possibly attributable to a year of daily use (to lose weight, dose not described) of mangosteen juice (brand not described) infused with xanthonoid
Xanthonoid
A xanthonoid is a chemical natural phenolic compound formed from the xanthone backbone. Many members of the Clusiaceae contain xanthonoids.Xanthonoid biosynthesis in cell cultures of Hypericum androsaemum involves the presence of a benzophenone synthase condensing a molecule of benzoyl-CoA with...

s, as occurs in the manufacture of XanGo juice. The authors proposed that chronic exposure to alpha-mangostin
Mangostin
Mangostin is a natural xanthonoid, a type of organic compound isolated from various parts of the mangosteen tree . It is a yellow crystalline solid with a xanthone core structure...

, a xanthone, could be toxic to mitochondrial function, leading to impairment of cellular respiration
Cellular respiration
Cellular respiration is the set of the metabolic reactions and processes that take place in the cells of organisms to convert biochemical energy from nutrients into adenosine triphosphate , and then release waste products. The reactions involved in respiration are catabolic reactions that involve...

 and production of lactic acidosis
Lactic acidosis
Lactic acidosis is a physiological condition characterized by low pH in body tissues and blood accompanied by the buildup of lactate especially D-lactate, and is considered a distinct form of metabolic acidosis. The condition typically occurs when cells receive too little oxygen , for example...

.

Litigation

Tahitian Noni International (TNI), a rival MLM beverage company, sued XANGO, LLC, and several of its top executives in February 2003 in the 4th District Court
Courts of Utah
Courts of Utah include:State courts of Utah*Utah Supreme Court**Utah Court of Appeals***Utah District Courts ***Utah Juvenile Courts***Utah Justice CourtsFederal courts located in Utah...

 in Provo, Utah
Provo, Utah
Provo is the third largest city in the U.S. state of Utah, located about south of Salt Lake City along the Wasatch Front. Provo is the county seat of Utah County and lies between the cities of Orem to the north and Springville to the south...

, alleging that XANGO executives stole TNI's concept for a mangosteen-based supplement while they were employed by TNI's parent-company. After a countersuit against TNI was launched by XANGO, LLC, the two parties settled out of court. A joint statement by TNI and XANGO said that they had "agreed to resolve their disputes and the litigation between them and their founders" but the particulars of the settlement were not disclosed.
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