news

Hot List: January 2010

Jeannie O'Sullivan

1 Boomers Illuminated

The average baby boomer, at age 65, is able to see a quarter of what a 16-year-old can, notes the website www.allbusiness.com. Retailers have had to respond accordingly with:

1. Brighter product
2. Bigger lighting budgets
3. More contrast, less ambient light
4. LEDs as the future
5. Lockable light fixtures
6. Repetitive use of identifying color(s)

2 Millennial Myths

Millennial women shoppers—the children of baby boomers, born between 1979 and 1989—are one of the largest demographics in the U.S. and will soon be entering into a strong period of spending. According to Information Resources Inc. (IRI), many conventional views about this group are myths that need debunking.

CONSUMPTION

Myth:

They're recession-resistant.

Truth:

They have cut back even more than older groups and express pessimism about the economy.

HOUSE BRANDS

Myth:

They're less “into” store brands.

Truth:

Seven out of 10 consider store brands excellent quality.

3 Through Young Eyes

The Scarborough/Arbitron Teen Mall Shopper Insights White Paper reveals what young people glean from marketing efforts:

91%
notice poster display ads at the mall

85%
notice hanging advertising banners

77%
notice sampling

58%
notice promotional events

57%
notice TV/video screens

48%
notice interactive displays/kiosks

31%
notice moving images projected on the floor or walls

Essilor Acquires FGX

International Holdings Limited announced the signing of an agreement whereby Essilor will acquire FGX International, the leading designer and marketer of non-prescription reading glasses in the United States.

FGX International, headquartered in Smithville, R.I., will be merged with a wholly owned subsidiary of Essilor under the agreement. FGX International's portfolio includes Foster Grant, Magnivision, Angel, Gargoyles, Anarchy, SolarShield, PolarEyes, and Corinne McCormack. The company also holds licenses for brands such as Ironman, Levi Strauss Signature, Body Glove, and C9 by Champion.

“This acquisition is in line with Essilor's strategy of procuring the resources needed to provide a quality offering that covers different eyewear market segments around the world in order to meet a wide range of needs. It also strengthens the company's business base and enhances its growth prospects,” notes Hubert Sagnières, Essilor's COO and CEO designate.

The all-cash transaction, which is expected to close this year, is valued at approximately $565 million, including the repayment of FGX's net debt of approximately $100 million. This transaction price represents $19.75 per FGX International share. The company reported 2008 revenue of $256 million, generated mainly in the United States and Canada, and has approximately 375 full-time employees.

In addition to the merger agreement, certain shareholders representing approximately 33 percent of FGX's outstanding stock, including Berggruen Holdings North America Ltd. and the company's senior management, have signed support agreements committing to vote in favor of the transaction at the special meeting of shareholders that will be called to approve the transaction.

Safilo Secures HAL Deal

The Safilo and HAL Holding agreement is moving forward. After a challenging effort to gain buy in, HAL waived its minimum and opted to continue with the deal to acquire an equity stake in the eyewear manufacturer. Safilo Group S.p.A. has been informed that the European Commission has cleared, under the EU Merger Regulation, the proposed acquisition of an equity interest in Safilo Group S.p.A. by HAL Holding N.V.

The European Commission concluded that the transaction would not materially impede effective competition in the European Economic Area (EEA) or in any substantial part of it. Safilo Group S.p.A. extraordinary shareholders' meeting approved the recapitalization plan for the company and the adoption of a new Articles of Association.

The extraordinary shareholders' meeting also approved the proposals for a capital increase for consideration reserved to HAL Holding N.V. for a total amount of Euro 12,842,735.40 (inclusive of share premium). In addition, Safilo has settled a rights issue for consideration for a total amount up to a maximum of Euro 250,041,754 (inclusive of share premium).

Both the reserved capital increase and the rights issue were to have been carried out by Dec. 31, 2010.

The execution of the reserved capital increase and the rights issue, subject to the relevant authorizations, is expected to take place in the first quarter of 2010.

Eschenbach, Tura
Ink Agreement

Eschenbach Group of Nuremberg acquired U.S.-based eyewear player Tura in November, a move expected to bring annual sales for the Eschenbach Group to just under $210 million in 2010, according to company officials.

Eschenbach's product mix includes high-quality eyeglass frames, sunglasses, vision aids, consumer optics, and technical optics. The corporate group has developed at an above-average pace since Barclays Private Equity acquired a majority stake in Eschenbach in 2007, note company representatives.

Tura, which will continue to operate as an autonomous company, has been active on both the U.S. and Canadian markets for more than 70 years as one of the top providers of eyeglass frames and sunglasses. Eschenbach has been marketing its frames and sunglasses in the United States since 2001 through its subsidiary BBH Eyewear Inc.

Company officials say the addition of the Eschenbach collections to the Tura brand portfolio is expected to significantly strengthen joint sales of all product lines and accelerate growth at Tura.

Tura president John Weir and the current executive management team will remain unchanged, as will Tura's sales network, distribution structure, and support staff.

The Vision Council Launches Online CE

The Vision Council has announced a new continuing education portal— available at www.thevisioncouncil.org/ecp/CE—developed specifically for eyecare practitioners.

Combining industry research and data with subject matter experts on a variety of optical topics, the online initiative allows ECPs convenient access to accredited courses.

For its launch, the portal will offer three continuing education courses: “A Systems Approach to Prescribing and Selling AR Lenses,” “Increasing Your Rx Capture Rate,” and “Lenses and Lifestyles.”

Each course is one hour long and is approved for one hour of ABO credit, organization representatives note.

“The Vision Council's continuing education courses focus on sales, marketing, communication and business building skills for eye care professionals,” says Rene Soltis, The Vision Council's director of training and education. “By bringing our programs online, we are able to reach a broader audience and provide resources for eyecare professionals that can be accessed any time, anywhere.”

For more information, contact Soltis at 703-740-1096 or via email at rsoltis@thevisioncouncil.org.

VEL Fire Cause Determined

Vision-Ease Lens has determined that an electrical short in a piece of production equipment is what caused the recent fire in the company's Jakarta, Indonesia, facility.

Rebuild contracts are in place and work has begun on the new facility, which is expected to re-open before the end of summer 2010, company officials say. Significant parts of the infrastructure housing major components, such as generators, were untouched, which Vision-Ease Lens anticipates will speed recovery.

Specific inventory scenarios and contingency plans have been communicated directly to Vision-Ease Lens customers, and Vision-Ease Lens will continue to increase production in Ramsey, Minn. Temporary suspension of finished single vision lines, including Tegra, Tegra AR, Continua, Continua Tintable, Continua AR and Safety, semi-finished single vision Continua Tintable, and SFSV Continua 71 and 75mm, as well as a ship-or-cancel status on glass lenses, are effective immediately.

Safilens Prepares to Enter U.S. Market

Safilens Safe Gel contact lens technology is poised to enter the U.S. marketplace. Six months after the European patent approval, a U.S. patent has been issued and FDA approval is in the works. “To remain competitive in the market there are only two keywords: research and innovation,” says Fernando Garbellotto, Safilens' president. “Investments we pursue will also allow us to penetrate the U.S. market with Safe Gel technology, a true innovation in the field of contact lenses and patient comfort.”

According to the company, hyaluronic acid-releasing technology provides advanced comfort while natural biopolymer hyaluronic gel maintains and renews tear film mucin, resulting in a constant, unaltered tear film and balanced oxygenation. Two Towers Frames is the exclusive distributor of Safe Gel technology in the United States, Canada, and Central America.

OLA Wrap Up

The OLA 2009 show, themed “Forming the Perfect Union,” ran Dec. 4 and 5, 2009 at the Gaylord National Resort and Convention Center in Washington, D.C.

The hot topic was the possible co-location of the OLA 2010 show with The Vision Council at International Vision Expo West and/or merging the OLA with The Vision Council (see separate story below).

The show entailed two days of lab-focused education and exhibitors, with special networking and awards events.

Elections placed the following OLA officers for 2009-2010: Kevin Bargman, president; Jonathan Jacobs, president-elect; Mike Francesconi, vice president; Virginia Lesher, treasurer; and J. Larry Enright, immediate past president. Directors for 2009-2011 are Jason Blue, Bill Harding, Drake McLean, Steve Swalgen, and Richard P. Tinson. Directors continuing their term include John Haigh, Jacqueline Honstrom, Keith Pulling, and Bob Way.

Hall of Fame honorees were Edward A. Dietz, III; James W. Drain; Morley Gwirtzman; Don Rahn; Henry Shyer; Ralph L. Woythaler; as well as Brian Barnes and Mike DiSanto posthumously.

1. OLA directors stand to take the oath of office; 2. Dan Torgersen (l), winner of the Director's Choice award, catches up with Tom Puckett; 3. Katz & Klein's Mike Francesconi (l) and Encore Optical's Paul Zito enjoy opening night festivities; 4. Economic futurist Jeff Thredgold spoke on the past, present, and future economy; 5. A crowd turned out for Jeff Thredgold, Economic Futurist, during a general session

OLA/The Vision Council: Perfect Union?

The Optical Laboratory Association and The Vision Council are holding ongoing discussions to explore ways to combine efforts to benefit respective members and best serve the industry.

An open forum to review synergies was held at the OLA 2009 annual meeting on December 4, 2009, with representatives from both organizations. A proposal to co-locate the OLA annual meeting at International Vision Expo West in 2010, as well as the possibility of a future membership merger, were discussed.

Some merger advantages cited by OLA leadership included increased member services; strength in numbers; increased and more effective advocacy, outreach, and clout; reduced expenses; and a more focused mission. Under the current proposal, the OLA name, identity, board of directors, products and services, and autonomy would remain intact. The merger would entail shared dues structure, administration, and office space.

Both organizations continue to collect member feedback on the changes. The organizations aim to have a final proposal to membership by the end of the first quarter of 2010.

And the Winners Are…

Awards of Excellence winners included Best in Dress Frames: Randy Jackson 1013, Zyloware; Best in Specialty Frames: Trendsetter TR3095, Uvex by Sperian; Best in Children's Frames: Nickelodeon SpongeBob SquarePants Exploration, Nouveau Eyewear; Best in Lens Design: Individual, Carl Zeiss Vision; Best in Marketing: Drivewear Glare Wheel Demonstrator, Younger Optics; Best in Lens Materials and Treatments: Coppertone Polarized Lenses, Vision-Ease Lens; Best in Software Tools: Job Bob, Digital Vision; Best in Surfacing Equipment: (co-winners) VFT Orbit Generator, Satisloh, and HSC Sprint Generator, Schneider Optical Machines; Best in Surfacing Materials and Tools: Lumina Polish Pad, DAC Vision; Best in Finishing Equipment: Dimension Tracer, National Optronics; Best in Finishing Materials and Tools: Stellar Block, DAC Vision; Best in Lens Treatment Equipment: Ultra-Rx Coater, Ultra Optics; Best in Accessory Products: Double Lens Lined Envelope, E-Z Pack, and Best Exhibitor: Schneider Optical Machinery.

License Lineup

Safilo Group has announced a global licensing agreement with the Tommy Hilfiger Group through 2015 with an optional five-year extension.

This agreement is for the exclusive design, development, production, and distribution of Tommy Hilfiger ophthalmic and sunglass products, available Fall 2010.

The optical line will be available in optical stores; the sunglass collection will be available in global Tommy Hilfiger retail stores and optical stores as well as department and specialty stores.

“We are very pleased to begin this new and exciting partnership with one of the world's leading premium lifestyle brands,” said Roberto Vedovotto, CEO of Safilo Group.

Signature Eyewear, Inc., has renewed its golf-inspired Cutter & Buck Eyewear collection license through December 2011.

Originally signed in 2006, this agreement extends Signature Eyewear's exclusive right to design, manufacture, and distribute the brand's optical and sunglass collections featuring sport and fashion styles for men and women globally.

STAR Gazers

Who needs sunglasses more than vampires? Jackson Rathbone, who plays mysterious Jasper Hale in the “Twilight” movie saga, shields his brooding gaze with Michael Kors style MKS133L by Marchon. Some legends see eye to eye. Soap queen Susan Lucci, who has played “All My Children's” Erica Kane since 1970 and has racked up an impressive 21 Emmy nominations, is wearing Revlon style RV558, by Altair, in Auburn Pearl. With her quirky pins and pricey shoes, Sarah Jessica Parker's Carrie Bradshaw burst into the millennium with style. Now she's setting the eyewear pace with Jee Vice's “Heated” sunglass on the set of the “Sex and the City” sequel. While Taylor Lautner's “Twilight” character Jacob Black may not be a vampire, this star still stays sun-safe with Carrera “Jocker” sunglass by Safilo. Katie Holmes totes daughter Suri around town in style. Mrs. Tom Cruise is wearing Vogue style 3676 by Luxottica.