WW International


WW International, Inc., formerly Weight Watchers International, Inc., is a global company headquartered in the U.S. that offers weight loss and maintenance, fitness, and mindset services such as the Weight Watchers comprehensive diet program. Founded in 1963 by Queens, New York City homemaker Jean Nidetch, WW's program has three options as of 2019: online via its mobile app and website, coaching online or by phone, or in-person meetings.
In 2018, the company rebranded to "WW" to reflect "its development from focusing on weight loss to overall health and wellness."

Company history

Inception

Weight Watchers was conceived by Jean Nidetch, a housewife and mother living in Queens, New York City, who had been overweight most of her life and had tried pills, hypnosis, and numerous fad diets, all of which only led to regained weight. In 1961, at the age of 38, she weighed 214 pounds and an acquaintance mistook her for being pregnant. She entered a free 10-week weight-loss program sponsored by the New York City Board of Health's obesity clinic. The program was called the "Prudent Diet" and had been developed in the 1950s by Dr. Norman Jolliffe, head of the board's Bureau of Nutrition. The plan included the dictums "No skipping meals. Fish five times a week. Two pieces of bread and two glasses of skim milk a day. More fruits and vegetables." and eating liver once a week. It prohibited alcohol, sweets, and fatty foods, included a list of allowed foods and the quantities allowed, and encouraged weighing portions.
Although Nidetch lost 20 pounds on the ten-week program, she did not like the way the clinic's leader imparted information at the weekly meetings. Discussion was discouraged; in addition, Nidetch's motivation was threatened by her urge to binge on Mallomar cookies. She therefore began a weekly support group in her apartment, initially inviting six overweight friends, which within two months grew to 40 women each week. She introduced the "Prudent Diet", a single page from the New York City Board of Health, to her fellow weight-loss seekers, and the group provided empathy, rapport, mutual understanding, support, and sharing of stories and ideas. The meetings also included a weekly weigh-in, and Nidetch developed a rewards system including prizes for weight-loss milestones. In October 1962, Nidetch achieved her target weight of 142 pounds, and maintained the weight loss; according to her she never exceeded 150 pounds thereafter.
As interest grew, Nidetch coached groups in other neighborhoods. One group was at the home of Al and Felice Lippert, and after the Lipperts successfully lost weight, Al, who was a businessman in the garment industry, talked Nidetch into making a business out of her endeavor.

Launch, IPO, and sale to Heinz

Nidetch and the Lipperts launched Weight Watchers Inc. in Queens in 1963 with Nidetch as president and evangelist. They rented public meeting venues and charged participants $2 per weekly meeting; the first official meeting, in May 1963, attracted 400 attendees. Nidetch led groups and trained others to lead groups as well.
Al Lippert, in charge of the business end of the company, franchised it in 1964, using a razor/razorblade model of an inexpensive franchise fee offered to graduates from the company's programs who had kept the weight off, with 10% of gross earnings as royalties to the parent company. By 1967, the company was international, with 102 franchises in the United States, Canada, Puerto Rico, Great Britain, and Israel.
Felice Lippert was in charge of recipe development, nutrition, and food research; the first Weight Watchers cookbook, published in 1966, sold more than 1.5 million copies. By January 1968, the company had more than one million members worldwide, and, with the help of Matty Simmons' and Leonard Mogel's Twenty First Century Communications, Inc., Weight Watchers Magazine was launched, publishing 300,000 copies of its first issue.
By 1968, the company had 91 franchises in 43 states, and to expand further overseas Al Lippert took the company public as Weight Watchers International Inc.; the initial 225,000 shares, offered at $11.25 a share, began trading enthusiastically, rising to over $30 by the end of the first day. Lippert also initiated lines of Weight Watchers prepared food, spas, camps for overweight kids, and weight-loss products such as scales and travel kits.
Nidetch, with her slim, well-dressed image, charisma, and flair for motivational speaking, remained the public face of the company. In 1970 she published The Memoir of a Successful Loser: The Story of Weight Watchers, which documented the original Weight Watchers plan. In 1973 she resigned as president of the company to devote herself to public relations – traveling, being interviewed, and speaking to large audiences about the program's success.
In the mid-1970s, the company moved away from simply dieting and more toward "eating management", developing tailored options to meet the varying needs of its members, including a specialized food plan for the management of weight-loss plateaus, and a maintenance plan.
In 1975, the publication of Weight Watchers magazine was taken over by Family Media.
By the late 1970s, the company and its operations and divisions had grown too large and complex for Lippert to manage, and it was sold, along with its food licensees, to the H. J. Heinz Company in 1978 for $72 million. Lippert remained chairman and signed on to remain CEO for a few years, and Nidetch remained in her role as consultant. In the late 1980s, the company's three divisions – support-group meetings division, food line, and publications and media – were still increasingly profitable year-over-year.

Private-equity acquisition and second IPO

In 1990, with competition from Jenny Craig, Slim-Fast, Healthy Choice, and Nutrisystem, earnings began to decline. The Heinz parent company competed by introducing newly developed Weight Watchers "Smart Ones" frozen meals. In 1997, to replace its previous system of counting and weighing food, Weight Watchers introduced the POINTS system, an algorithmic formula which quantifies a food portion for the purposes of healthy weight loss based on carbohydrates, fat, and fiber content.
In 1999, Heinz, while retaining the rights to the Weight Watchers name for use in certain
food categories, sold the company to the private equity firm Artal Luxembourg, for $735 million in a leveraged buyout led by the Invus Group, which manages Artal and which is run by Raymond Debbane. Artal put up $224 million and Weight Watchers financed the rest of the buyout with debt. Debbane became chairman of Weight Watchers. In 2001 Debbane organized an initial public offering for Weight Watchers and took it public again. As of 2018, Artal remains the company's largest shareholder.
In 2000, the new owners reacquired the license to publish Weight Watchers Magazine from Time Inc., where Heinz had offloaded it in 1996 and where it had performed poorly; circulation recovered quickly, and the magazine was redesigned in 2003.
In 2001, the company launched WeightWatchers.com. In 2007, it launched Weight Watchers Online for Men. Competitor Nutrisystem, Inc. also had a men's line.
In late 2010 Weight Watchers overhauled its POINTS system and replaced it with PointsPlus ; under the new system, fruits and non-starchy vegetables were zero points, and processed foods had higher points than they did before.
From 2012 to 2015, although it had its own app and e-tools since 2009, the company faced stiff competition from free smartphone fitness apps, many of which included a social-media group-support system, and from wearable fitness monitors such as Fitbit.

2014–2018

In April of 2014, Tech Crunch leaked Weight Watchers was in talks to acquire virtual fitness training startup Wello. Weight Watchers confirmed the acquisition the following month, which spurred a series of acquisitions in the digital therapeutics space. One year later, in April and May of 2015, Weight Watchers also acquired 5 minute fitness app Hot 5 and the online community and "selfie startup" Weilos. Features of Weilos would later be relaunched as Weight Watcher's Connect product, an online community in-app and on the web.
In October 2015, Oprah Winfrey partnered with Weight Watchers. Winfrey bought a 10% stake in the company, became its spokesperson, joined its board of directors, and lost weight on the program, plus she helped launch a new holistic lifestyle and fitness program called "Beyond the Scale". The late-2015 Oprah effect did not prevent a subsequent downward trend in 2016, largely attributed to challenges from Nutrisystem and the proliferation of free apps and websites aimed at helping people manage their weight, but linked also by some, to a faulty initial tech rollout of the new program's app. CEO James Chambers resigned on September 30, 2016. He was replaced as CEO in July 2017 by Mindy Grossman, who had played a role in growing digital sales revenue for HSN.
In December 2017, the company introduced WW Freestyle, which allows people to carry over unused "SmartPoints" through the week, and lists more than 200 zero-points foods, including various lean proteins, that do not need to be tracked. In February 2018 CEO Grossman announced a new direction and purpose for the company: to move beyond mere dieting to being a "partner in health and wellness" and inspiring healthy habits for real life. Subscriptions to Weight Watchers rebounded significantly by mid 2018, credited to Winfrey's influence and to Grossman's tri-fold efforts of revamping the program, improving tech offerings, and giving the company a more broad-based appeal.
In August 2018, the company acquired Kurbo, Inc, rebranding the free mobile app directed at children and teenagers as Kurbo by WW.
In September 2018, the company re-branded itself WW International, Inc., as it shifted its focus more broadly to overall health and wellness, including fitness. It adopted a new tagline, "Wellness that Works". The company stopped requiring users to have a weight loss goal in order to join and renamed its in-person meetings to Wellness Workshops. WW's app was relaunched with features to track other health-related goals. Its FitPoints system has been marketed as allowing individuals to choose activities which have the biggest impact on their health. At that time the company also began a partnership with the meditation app Headspace to offer customized mindfulness content for members.
As part of the rebrand, WW introduced a new program, WellnessWins, that rewarded members for behaviors that encourage healthier habits, which were redeemable for products, services, and experiences. The company also announced Connect, a digital community, which would include micro-community Groups.