VIVA International....sold to the leading health, vision, dental insurer

[Chris Ryser]

In todays news:


2005-01-13 - Highmark to Acquire Viva Int’l Group

Highmark Inc., one of the largest health insurers in the United States, announced last December a definitive agreement to acquire the privately held eyewear manufacturer Viva International Group.

The leading health, vision, dental and life insurer said its addition of Viva International Group to its family of subsidiaries will enhance its position in the health care specialty business, making it one of the largest fully integrated vision care providers in U.S.A.

Mitchell Barkley, the recently named CEO of Viva International Group, says Viva will operate as a separate company within the Highmark group. Harvey Ross, Viva’s founder and chairman, will remain as a consultant to the company for a period of several years. He is happy with this agreement offering to the eyewear distributor a platform for expanded services and a tremendous opportunity for continued growth. Don Coulson, Viva’s national sales manager in Canada, shares his enthusiasm. “This acquisition is a good thing for the company which will go full steam ahead.”

Beginning in 2005, Viva will be distributing Givenchy, Fila, Furla, Etro and Escada in North America per agreements with DeRigo S.p.A.
“Fila, Furla and Escada will be the first brands to be distributed in Canada,” says Coulson.

[harry888]

Highmark also owns or is "associated with" Davis Vision.


Looks like the Davis tower will now be all Viva.

Harry

[Uncle Fester]

Viva in my opinion has made a big miscalculation unless their motive was to let their exec's put a big paycheck in their pocket. When Luxottica bought Lenscrafters I stopped carrying their product. Their plea that it was only to more effectively market eyewear by using the multi million dollar Lenscrafters advertising budget; and there was no intention of discounting eyewear, fell on my deaf ears. Sunday papers circulars prove me right. Armani is now moving to Safilo I believe. Could it be that many independent shops stopped carrying his line? (FYI He still owns a significant percentage of Luxottica stock) Now he can again be sold elsewear without the Luxottica yoke.
Viva now needs to be fitted with a yoke.
We were Davis Vision Providers for many years. There reimbursement rate is insulting. The OD's I work for, finally, 3 years ago took the advice of our bookkeeper and me and dropped them. Sure enough the bottom line didn't change. At best you break even with Davis. I feel sorry for Viva's rep's.

[eyecare4U]

Thanks for all the Davis Providers, with low reimbursements to them they where able to afford buying Viva and squeeze us independent to mare slavery and working for less. Optical Industry is going to changes. Question is does this help the welfare of the public, built a fair and healthy competition?

[walleye]

Davis Vision is a subsidiary of Clarity Vision which is owned by Highmark, Inc. the largest vision care insurer in Pennsylvania with 4 million lives. Several years ago Highmark announced they had 2 billion in cash reserves! Their Davis Tower has 20- 30 Viva frames on it and now will probably be all Viva product. As discussed in another thread the other day Davis is controlling the supply chain as does Luxottica. But I can see Viva losing alot of independents who now buy Viva frames so as not to contribute to the bottom line for Davis/Highmark.

[Spexvet]

Does the Davis tower have just core Viva/Savvy frames, or does it have any of the "designer" lines on it?

[PAkev]

I don't do a whole lot of VIVA product but have a fair representation of their Magic Clips. The rep called me the other day to shedule a time to go over my frame boards and I told her before bringing any additional product in, I wish to let the smoke clear from the Highmark, Davis marriage and develop an understanding of VIVA's position is in the whole thing. Believe it or not .... She didn't know what I was talking about. She indicated VIVA has not conveyed any of this info to the reps and unless she was playing actress, she seemed quite surprised.

Now this in my opinion, is another BIG mistake by VIVA since you would think they would empower the reps with lots of goodwill training information to make the process seem as painless as possible. But no it seems they are getting right down to turning the knife they stabbed in the backs of both their reps and the accounts. :finger:

[eyecare4U]

I'm with you. I do well with Ecko, but quess what, Ecko could hit the Road and I will spend my hard earn money somewhere else. Now its our time to merge as one big buyer and voice out to tell the corporate world we are tire of being use for thier personal gain. VIVA your outto here. Davis NO THANKS buddy.

THANK YOU very much

[For-Life]

Okay, a question with this merger for this ignorant Canadian. So Highmark is buying Viva, and Highmark owns Davis Vision, and Davis Vision is an insurance dealer for the US vision. So the conflict of interest is that these vision plans are only offered in certain stores (mainly chains). So in Canada there is no conflict of interest?

[Chris Ryser]

So in Canada there is no conflict of interest?

It does not look that there is. But do you want to wait until there is some?

In the US a we have found out on another thread the insurance company is using optical retailers to make minimal profits, and therefore boost their own business.

We have plenty and a lot of good independent optical wholesalers in Canada you can support.

Have yourself a coffe or a tea and sit in your thinking chair, relax and turn on the thinking machine and reflect on the idea of continuing to support a supplier that is not the same as he was yesterday.

:( :(

[Andrew Weiss]

A Viva rep called today to try to bring new lines into our office. We presently carry Candies' and Tommy Hilfinger. I told her, politely but clearly, that I did not want to expand Viva's presence in my office after its takeover by Highmark, and was considering removing Viva entirely.

Within minutes I got a call from the territory manager -- Viva is clearly sensitive on this subject, eh? He went to great lengths to assure me that, short of Viva's CFO reporting to Highmark, that Viva would remain a separate entity. I reinterated my perception that Davis Vision is an insult to the optical profession, its reimbursement rates are a joke, and its presence in the market drives down wages in our profession. He kept on his theme that there was no way Davis was going to influence Viva, and vice versa. He also said that Viva's licensing agreements with its designer lines would prohibit them from putting those frames on the Davis board in any event.

Why do I have a difficult time believing this? Is it just "once burned (by Luxottica), twice shy?" Or are my years of work and training as a lawyer (ouch, I did have to reveal that on this board, didn't I?) kicking in here?

How can a company be owned by a holding company like Highmark and not have some kind of financial relationship to another company owned by the same Highmark? Yes, I can see technically how one could set up that kind of corporate structure. I can even see how a large company might want to keep some of its divisions financially separate; makes it easier to cut them off if they aren't profitable. But my doubts rise here again: If Viva is profitable, it helps Highmark's bottom line, and if Davis needs more funds to expand its reach, will those extra profits generated by Viva go to that purpose?

Right now, too many unanswered questions. I'm going to watch all this for 6 months or so. Right now, the Viva/Highmark transaction is in its "due diligence" phase. They aren't one, yet. Let's see what happens. If it runs as my legal-mind suspects, Viva's outta here.

[walleye]

I completely agree with the points Andrew makes regarding Viva/Davis. We take that plan and I noticed the Savvy 218 frame which is very popular had its name changed about 6-8 months ago to the SAV 218 by Advantage Eyewear and not Savvy. So Davis' frame company must have had the frame copied at their factory in China and got rid of the Savvy frame. Hmmmm.

[Chris Ryser]

Right now, too many unanswered questions.

Andrew you got a good pint...................................

Check my post with the latest press release by Luxottica going into some agreement with Oakley for 2005.

By 2006 Oakley might be Loxottica the way the works right now. And you opticians who will be around in 10-15 years will all be emplyees of 2-4 companies.

You will be able to b...tch only against 3 of the major suppliers for whom one or the other works on this optiboard who will belong to one of them.

.