Information on the Xocai discontinued direct selling program.
MXI Corp. is no longer operating under that name. Its Xocai business was acquired and renamed Well-Beyond in 2017, and the product operation later moved into MyDailyChoice, which is now inactive.
Original Npros business profile for Xocai, preserved below for archival purposes:
MXI Corp., formally Marketing Xocolate International, was a Reno, Nevada-based direct-selling company founded by Martin, Jeanette and Andrew Brooks. The company was incorporated on April 12, 2005, and marketed Xocaiâ€"pronounced "show-sigh"â€"as a line of health-oriented dark-chocolate products. Its assortment included chocolate Nuggets, X Power and XoBiotic squares, meal-replacement products, beverages and other items formulated with cacao and ingredients such as açaà berries and blueberries. Jeanette Brooks served as president and CEO, while Andrew Brooks served as chief financial officer.
Xocai products were sold through independent associates who earned retail profits and multilevel commissions based on personal and group sales volume. Court filings described a $39 application fee, a $25 annual renewal fee and recurring product purchases of either $110 or $220 every four weeks, depending on rank. The compensation program included sales and recruitment-related bonuses, rank advancement and commissions generated through an associate's downline organization.
MXI faced a major distributor class action filed in May 2015 alleging that its compensation structure encouraged inventory loading and operated as an illegal pyramid scheme. On February 28, 2017, a federal judge approved a settlement valued at approximately $7.7 million, including about $6.1 million in class relief, $1.6 million in attorneys' fees and costs, and $35,000 in service awards. The settlement covered U.S. associates who received less from MXI than they paid in fees and product purchases and who made payments between May 1, 2011, and November 3, 2016. Approximately 41,200 potential class members were identified. The settlement was a negotiated resolution rather than a judicial finding that MXI was liable.
The settlement also required MXI to stop encouraging associates to make purchases simply to remain commission-qualified and to phase in a requirement that at least 51% of group qualifying volume come from preferred-customer sales. Shortly afterward, Jeremy and Karen Reynolds, Jeff Graham, Porter Hall and Stephen Hall acquired Xocai on May 15, 2017, and renamed the operation Well-Beyond. Well-Beyond merged into MyDailyChoice in 2021, placing its chocolate products within that company's brand portfolio. MyDailyChoice's official website now states that it has ceased normal business operations and is inactive.
Additional information on MXI Corp
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Jeannette Brooks, President
Kurtis D. Nielsen, Vice President
Andrew N. Brooks, VP of Sales and Marketing
E. Wesley Huff, Director of Operations
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