ViSalus: Difference between revisions
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In October 2008, [[Blyth, Inc.]] announced that it was acquiring ViSalus in a takeover, initially purchasing a 43.6% equity interest for $14.0 million.<ref name=10K2011>{{cite web | last=Edgar Online via Yahoo Finance | title=Blyth Inc. 10K - 4/18/2011 | url=http://yahoo.brand.edgar-online.com/DisplayFiling.aspx?TabIndex=2&FilingID=7853519&companyid=366&ppu=%252fdefault.aspx%253fcik%253d921503 | accessdate = 15 May 2012}}</ref><ref>{{cite web | last=DM News | title=Blyth Makes Two Acquisitions | url=http://www.dmnews.com/blyth-makes-two-acquisitions/article/113430/ | accessdate = 3 May 2012}}</ref><ref>{{cite web | last=Reuters | title=Blyth, Inc. Completes Third Closing of ViSalus Acquisition | url=http://www.reuters.com/finance/stocks/BTH/key-developments/article/2464013 | accessdate = 6 May 2012}}</ref> Blyth completed the second phase of the takeover in April 2011, investing an additional $2.5 million and increasing their ownership share to 57.5%. After the company was purchased by Blyth in 2008, it almost went bankrupt. [[Ryan Blair]], a former [[gang member]] and the current CEO of Visalus, invested $1 million in the company and eventually led its turnaround to $34 million income in 2010.<ref>{{cite web | last=Forbes | title= Entrepreneurship: Nothing to Lose and Everything to Gain | url=http://www.forbes.com/sites/danschawbel/2011/08/08/entrepreneurship-nothing-to-lose-and-everything-to-gain/ | accessdate = 3 May 2012}}</ref> In August 2012, Blyth, which by then owned a 73% share of Visalus, announced plans to spin off the company through an [[initial public offering]] worth up to $175 million, a move that led [[Moody's Investors Service]] to downgrade Blyth's stock to a [[Credit_rating#Corporate_credit_ratings|junk-grade B2]] corporate rating.<ref name=CBS1>{{cite news|title=Blyth shares down as Moody's wary of IPO plan|url=http://www.cbsnews.com/8301-505245_162-57517961/blyth-shares-down-as-moodys-wary-of-ipo-plan/|accessdate=09/23/2012|newspaper=[[CBS Marketwatch]]|date=September 21, 2012}}</ref><ref name=Bloomberg1>{{cite news|title=Moody's lowers outlook on Blyth|url=http://www.businessweek.com/ap/2012-09-20/moodys-lowers-outlook-on-blyth|accessdate=09/22/2012|newspaper=[[Bloomberg Businessweek]]|date=September 20, 2012}}</ref> |
In October 2008, [[Blyth, Inc.]] announced that it was acquiring ViSalus in a takeover, initially purchasing a 43.6% equity interest for $14.0 million.<ref name=10K2011>{{cite web | last=Edgar Online via Yahoo Finance | title=Blyth Inc. 10K - 4/18/2011 | url=http://yahoo.brand.edgar-online.com/DisplayFiling.aspx?TabIndex=2&FilingID=7853519&companyid=366&ppu=%252fdefault.aspx%253fcik%253d921503 | accessdate = 15 May 2012}}</ref><ref>{{cite web | last=DM News | title=Blyth Makes Two Acquisitions | url=http://www.dmnews.com/blyth-makes-two-acquisitions/article/113430/ | accessdate = 3 May 2012}}</ref><ref>{{cite web | last=Reuters | title=Blyth, Inc. Completes Third Closing of ViSalus Acquisition | url=http://www.reuters.com/finance/stocks/BTH/key-developments/article/2464013 | accessdate = 6 May 2012}}</ref> Blyth completed the second phase of the takeover in April 2011, investing an additional $2.5 million and increasing their ownership share to 57.5%. After the company was purchased by Blyth in 2008, it almost went bankrupt. [[Ryan Blair]], a former [[gang member]] and the current CEO of Visalus, invested $1 million in the company and eventually led its turnaround to $34 million income in 2010.<ref>{{cite web | last=Forbes | title= Entrepreneurship: Nothing to Lose and Everything to Gain | url=http://www.forbes.com/sites/danschawbel/2011/08/08/entrepreneurship-nothing-to-lose-and-everything-to-gain/ | accessdate = 3 May 2012}}</ref> In August 2012, Blyth, which by then owned a 73% share of Visalus, announced plans to spin off the company through an [[initial public offering]] worth up to $175 million, a move that led [[Moody's Investors Service]] to downgrade Blyth's stock to a [[Credit_rating#Corporate_credit_ratings|junk-grade B2]] corporate rating.<ref name=CBS1>{{cite news|title=Blyth shares down as Moody's wary of IPO plan|url=http://www.cbsnews.com/8301-505245_162-57517961/blyth-shares-down-as-moodys-wary-of-ipo-plan/|accessdate=09/23/2012|newspaper=[[CBS Marketwatch]]|date=September 21, 2012}}</ref><ref name=Bloomberg1>{{cite news|title=Moody's lowers outlook on Blyth|url=http://www.businessweek.com/ap/2012-09-20/moodys-lowers-outlook-on-blyth|accessdate=09/22/2012|newspaper=[[Bloomberg Businessweek]]|date=September 20, 2012}}</ref> |
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==Business Model== |
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Visalus sells its product by multi-level marketing through a network of independent distributors who pay a start-up package fee to join the company's sales force. Distributors who qualify for commissions are compensated based on sales of products and from sales made by any distributors they recruit. The company generates revenue through products sales, distributor signup up fees (which range from $49 to $999), and the sale of training and promotional materials to its distributors. |
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==Products== |
==Products== |
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Revision as of 02:48, 15 November 2012
| File:Visalus Logo.jpg | |
| Parent Company NYSE: BTH | |
| Industry | Multi-level marketing |
| Founded | March 1, 2005 |
| Headquarters | , USA |
Number of locations | 2 |
Area served | USA, Canada |
Key people | Ryan Blair, Co-Founder, Chief Executive Officer; Blake Mallen, Co-Founder and Chief Marketing Officer; Nick Sarnicola, Co-Founder and Chief Sales Officer; |
| Products | Dietary supplements |
Number of employees | 275[1] |
| Parent | Blyth, Inc. |
| Website | Company Homepage |
ViSalus is a multilevel marketing company headquartered in Los Angeles, California with offices in Troy Michigan.[2] ViSalus, a subsidiary of Blyth, Inc., markets weight management nutritional products, dietary supplements, and energy drinks in the United States and Canada. The company's weight-management products, which include Vi-Shape meal replacement shake and Vi-Trim Clear Control Drink Mix, form the bulk of its sales.[3] ViSalus' 90 day Body by Vi Challenge is a program in which participants can win prizes for purchasing products and losing weight.[4][5]
History
ViSalus Sciences was incorporated as a Troy, Michigan-based limited liability corporation in March 1997. The company was founded by Nick Sarnicola and Blake Mallen, who were, at the time, distributors for another multi-level marketing company called The Free Network—a firm that went under because it provided obsolete services in long distance calling, dial-up Internet access, and paging. After The Free Network folded, Mallen and Sarnicola devoted their time to promoting ViSalus in Northern California.[2]
In October 2008, Blyth, Inc. announced that it was acquiring ViSalus in a takeover, initially purchasing a 43.6% equity interest for $14.0 million.[3][6][7] Blyth completed the second phase of the takeover in April 2011, investing an additional $2.5 million and increasing their ownership share to 57.5%. After the company was purchased by Blyth in 2008, it almost went bankrupt. Ryan Blair, a former gang member and the current CEO of Visalus, invested $1 million in the company and eventually led its turnaround to $34 million income in 2010.[8] In August 2012, Blyth, which by then owned a 73% share of Visalus, announced plans to spin off the company through an initial public offering worth up to $175 million, a move that led Moody's Investors Service to downgrade Blyth's stock to a junk-grade B2 corporate rating.[9][10]
Products
The company's weight-management products, which include Vi-Shape meal replacement shake and Vi-Trim Clear Control Drink Mix, form the bulk of its sales.[3] Other products include Vi-Pak, an energy supplement, and Neuro, an energy drink, which were developed by Dr. Michael Siedman.[2] Visalus products are available only in North America.[3] Visalus promotes its products through the Body by Vi Challenge, a weight loss initiative that encourages people to lose weight and achieve fitness goals within a 90 day period.[3][11]
Visalus has made various health claims about their products; however these claims have been supported mostly by anecdotal evidence, which is "cause for concern" according to Michael Shermer, publisher of Skeptic magazine.[2]
Other activities
Visalus promotes the Body By Vi Community Challenge, a program in which the company matches distributors' contributions of Visalus products to regional food banks a program,[12][13] and sponsored a one-day children's summer camp in Memphis, Tennessee.[14]
References
- ^ ViSalus. "ViSalus Careers. About Us". Retrieved 6 May 2012.
- ^ a b c d "Pill Power". Metroactive. Retrieved 3 May 2012.
- ^ a b c d e Edgar Online via Yahoo Finance. "Blyth Inc. 10K - 4/18/2011". Retrieved 15 May 2012.
- ^ "Supplement Maker's Slaes Appear Up to 'Challenges'". Los Angeles Business Journal: 10–12. 30 April 2012.
- ^ "The Changing Face of Commerce". Nutrition Business Journal. XVII (4). Direct Sales Channels: Internet, MLM, Media: 3–4. 1 April 2012.
{{cite journal}}: CS1 maint: date and year (link) - ^ DM News. "Blyth Makes Two Acquisitions". Retrieved 3 May 2012.
- ^ Reuters. "Blyth, Inc. Completes Third Closing of ViSalus Acquisition". Retrieved 6 May 2012.
{{cite web}}:|last=has generic name (help) - ^ Forbes. "Entrepreneurship: Nothing to Lose and Everything to Gain". Retrieved 3 May 2012.
- ^ "Blyth shares down as Moody's wary of IPO plan". CBS Marketwatch. September 21, 2012. Retrieved 09/23/2012.
{{cite news}}: Check date values in:|accessdate=(help) - ^ "Moody's lowers outlook on Blyth". Bloomberg Businessweek. September 20, 2012. Retrieved 09/22/2012.
{{cite news}}: Check date values in:|accessdate=(help) - ^ Kitt Walsh. "Be a kick butt entrepreneur". CNN Money. Retrieved September 25, 2012.
- ^ My Ambassador Academy. "Giving Back - The Body By Vi Community Challenge". Retrieved 8May 2012.
{{cite web}}: Check date values in:|accessdate=(help) - ^ Visalus. "Visalus Community Challenge". Retrieved 6 May 2012.
- ^ Yahoo News. "Percy Miller, Romeo Miller, Ryan Blair and Urban Born Founder Johnell Langerston Team Up To Help Kids". Retrieved 6 May 2012. (press release)