Edition, August 29, 2001, Page 1
SLASHES 65 FOLLOWING $10M IBM LOSS
TSI Comms. is laying off 65 people in the wake of losing
its $10 million IBM account, according to Kelly Fitzgerald,
president of the IPG unit. Sixty-two of the staffers are
in New York, she told this NL.
The layoffs are effective Sept. 30 when the IBM contract
expires. Fitzgerald said the affected workers were notified
last week so they would have the "resources" of
the agency for about another 40 days.
TSI has also instituted 20 percent pay cuts for remaining
staffers until "we rebuild our book of business,"
Fitzgerald said business had been strong this year until
IBM announced its PR consolidation bombshell earlier this
month. TSI now has 32 staffers in New York, 10 in San Francisco
and five in London.
'INVEST' $720K IN MWW GROUP
The MWW Group has a $60,000-a-month PR contract with Invest
UK, the British government agency which promotes global
investment. The contract is for one year. The contract covers
a "perception audit," database and online marketing,
media and analyst relations, ambassador and role model development,
trade shows and creation of affinity relationships.
MWW is to be rated on the number of "qualified leads"
it develops in the technology, life sciences, financial
services, automotive and telecomms. sectors.
Applied Communications has lost the Oracle business,
one of its biggest accounts. The software giant has shifted
the estimated $1 million account in-house. Under CEO, Larry
Ellison, Oracle was a leader in "smashmouth PR."
Its stock, like other high-tech companies, now trades near
its 52-week low of $13 a share. Hewlett-Packard, Veritas
and the just acquired Verisign are AC's top accounts...GCI
Group received $375,000 from the British Tourist Authority
to counter media hysterics about "mad cow" "foot
and mouth," and other image disasters for the U.K.
The contract expires at the end of this month, according
to GCI's contract filed with the Justice Dept...The White
House Office of National Drug Control Policy has put
the $160 million anti-drug media campaign that is handled
by Ogilvy & Mather up for bid as the Justice Dept. is
probing O&M's billing practices...Kevin Pastel
has left Porter Novelli to become managing director at Publicis
Dialog's San Francisco office. Before PN, he was a VP at
EvansGroup, which was merged into PD.
B-M IS IN AT ORBITZ; KETCHUM IS OUT
Chicago, has given Burson-Marsteller an expanded role in
the handling of its Internet travel reservation website.
B-M, which was overseeing just government affairs, is now
Orbitz's agency of record.
B-M has named Nancy J. Friedman PR, a New York-based firm,
to provide media relations for Orbitz.
Friedman PR replaces Ketchum, San Francisco, which had handled
the website since it was launched three months ago.
Carol Jouziatis, who is Orbitz's VP of corporate communications,
met with Friedman PR on Aug. 20 to go over plans, which
are expected to include more media events, and sponsorship
of the Society of American Travel Agents' annual convention.
RETAINS RUDER FINN
Procter & Gamble has retained Ruder Finn, New York,
for a three-year PR assignment for a new over-the-counter
healthcare product that is still under wraps. RF beat out
five other firms in the review.
Mary Trudel, RF's EVP/director of consumer healthcare, said
details of the assignment will be disclosed in the near
Kathy Bloomgarden, CEO of RF, said it was a "high priority
assignment" that calls for the firm to handle the new
product launch via print and broadcast activities, promotions
and special events.
WESTHILL COUNSELS PACIFICA RADIO
Pacifica Radio has hired Westhill Partners' PA unit to boost
ratings for its five stations and provide counsel as the
company deals with employee-management conflicts and a national
grassroots campaign targeting its board.
"We're acting as counselors on a number of management
and branding issues," Michael Powell, a partner in
the PA practice who heads the account for Westhill, told
The Pacifica board is facing lawsuits from former staffers
and listeners and answering allegations of opposing union
organizing efforts and gagging on-air discussions-charges
which the board denies.
Pacifica holds licenses to listener-sponsored stations in
New York, Washington, D.C., Houston, Los Angeles and Berkeley,
with the public affairs show "Democracy Now!"
among its programming.
Westhill previously handled crisis communications for Jesse
Jackson and Bob Kerry.
Edition, August 29, 2001, Page 2
PROS RATE CONDIT'S PERFORMANCE
This newsletter asked PR pros how Rep. Gary Condit fared
in his interview last week with Connie Chung on ABC.
Bill Huey, president, Strategic Communications, Atlanta,
said the "'limited modified hangout' has never worked.
Not during Watergate, not now.
"Condit's canned non-denial denial about his affair
with Chandra Levy looks innocuous enough in print, but in
front of a camera it reeks of the media advisor and the
"Condit should come clean and do it quick. If he has
nothing to hide, he has nothing to fear," he said.
Michael Marinello, director of corporate development
at the GCI Group, said that nobody has hit upon the line
of questioning Connie Chung should have pursued. Chung's
questioning should have begun with: "Congressman Condit,
how do you reconcile your harsh criticisms of President
Clinton during the Lewinsky scandal, and your current actions?",
Condit Was "Programmed"
Lee Laino, a New York-based PR consultant, said:
"You would think Condit would have learned something
"He came across as totally programmed, out of touch
with what the American people wanted to hear, and evasive
throughout on the core issues.
"He even spoke of Chandra in the past tense which did
nothing to assuage a perception of culpability. His situation
"From a PR standpoint his strategy failed," he
Richard Nicolazzo, president/CEO, Nicolazzo &
Assocs., Boston, said Condit's interview was "well
choreographed but lacking in substance."
Joyce Newman, president of The Newman Group, New
York, presentation and media training firm, said Condit
was "too plastic and over-rehearsed...he sounded as
if hoarse...I would flunk him on his presentation."
Carol Ruth, president of The Ruth Group, New York,
said that Condit "split too many hairs" in describing
exactly what he told Chandra Levy's mother about his relationship
"He's underestimating the public," said Ruth.
She feels that his relationship with Chandra makes him a
"terrible role model" for the U.S. "Our elected
leaders should exhibit the highest forms of behavior,"
Lou Rena Hammond, president of Lou Hammond &
Assocs., said the interview brought "nothing new to
Jerry Schwartz, president of G.S. Schwartz &
Co., said there were "many discrepancies" between
what Condit told Chung and what has already been reported
in the media. The police have said he told them he had an
affair with Chandra but Condit himself will not admit this
to the public, perhaps because of legal reasons, said Schwartz.
FRANKEL'S USPS LEAFLET RILES REFUGEES
The U.S. Postal Service is discarding a new brochure showing
the Vietnamese flag after a former South Vietnamese soldier
living in San Jose, Calif., protested the use of the communist
Gerry Krienkamp, a USPS spokesman, said the multilingual
pamphlet, "A World of Services to Meet Your Needs,"
was created by Frankel & Co., a Chicago-based marketing/PR
The pamphlets, which are being removed from 11,900 post
offices, used national flags to denote text in English,
Italian, Tagalog, Polish, Spanish, Vietnamese and Korean.
The flag issue was raised by Thiem Chanh Le, who came to
San Jose after 11 years in a communist reeducation camp.
In a letter to the postmaster general, Hung Quoc Pham, president
of the Vietnamese American Community of Northern California,
called the use of the flag "a disgrace" and "similar
to raising a Nazi flag to the Jews."
GRAND JURY GETS GRUBMAN CASE
A grand jury in Riverhead, N.Y., has begun hearing evidence
on whether to indict New York PR professional, Lizzie Grubman,
for backing her car into 16 people at a nightclub in Southampton,
An indictment and conviction could lead to up to 25 years
in prison for Grubman, of Lizzie Grubman/ Peggy Siegel PR.
Suffolk County prosecutors are expected to call several
witnesses-from forensics experts to waiting-line witnesses-to
prove Grubman had intentionally backed her 2001 Mercedes
SUV into a crowd of people who were standing outside the
Conscience Point Inn on the evening of July 7.
Scott Conlon, the club's security supervisor, was scheduled
to testify on Aug. 22, according to Mike Paul, who is handling
PR for Conlon and his attorney.
Those outside the nightclub told police Grubman backed her
father's SUV into the crowd after arguing with Conlon.
Conlon, who was injured in the crash, alleges that he was
called "white trash" by Grubman after he asked
her to move her car from the fire lane and she refused.
Conlon's attorney later accused Grubman of being on drugs
at the time and said Conlon was joining a number of other
crash victims in suing Grubman, her father, entertainment
lawyer Alan Grubman, and Mercedes-Benz for more than $90
The grand jury's deliberations, which are secret,could take
two weeks, said Drew Biondo, spokesman for Suffolk County
District Attorney James Catterson.
Tony Sapienza, who has been president of Miller/Shandwick
Technologies, Boston, since 1998, has left the agency, which
is part of the Interpublic Group of Cos.
He could not be reach for comment.
Edition, August 29, 2001, Page 3
EDITOR'S PARENTS ASK FOR HELP
The parents of Claudia Kirschhoch-former editor with Frommer's
Travel Guides who disappeared in Jamaica last May 27
while on a press trip-have asked U.S. and Jamaican officials
for help in keeping the investigation alive.
The Morristown, N.J., couple met Aug. 15 in separate meetings
with Sue McCourt Cobb, after she was sworn in as the new
U.S. ambassador to Jamaica, and Richard Bernal, the Jamaican
ambassador to the U.S.
Rep. Rodney Frelinghuysen (R-NJ), who arranged and attended
the meetings, said Ambassador Cobb indicated she was committed
to talking and meeting with the Jamaican prime minister
and Jamaican authorities to find out what happened to Kirschhoch.
Bernal has promised to establish a contact for the Kirschhochs
within the Caribbean island nation's law enforcement organizations.
Over the past 15 months, the Kirschhochs have circulated
fliers, set up a website seeking clues by e-mail and established
a toll-free number for tips.
The 30-year-old editor disappeared after having breakfast
with Tania Grossinger, who was on the same trip, at a hotel
in the western resort town of Negril.
Kirschhoch's father said he still suspects a resort hotel
bartender who took Claudia to a reggae concert the night
before she disappeared. The bartender, who was given a lie
detector test, has denied knowing anything about her disappearance.
JOINS BUSINESS WEEK'S TV SHOW
Bill Tucker was named the host and managing editor of "BusinessWeek,"
a weekly TV personal finance and business program set to
debut in the fall.
The program, which currently airs on Sunday mornings as
"MoneyTalks," will be relaunched in October as
BusinessWeek with Tucker and Jill Bennett, the current co-host,
sharing anchor duties.
Tucker, 47, was previously a reporter and anchor for TechTV,
where he covered the financial side of the technology revolution,
and a business news reporter and anchor at CNN for 18 years,
where he helped pioneer the network's coverage of business
and financial news. In 1987, as producer of "Moneyline
with Lou Dobbs," Tucker won the George Foster Peabody
Award for coverage of the stock market crash.
Neal Cortell is senior producer/director of the nationally
syndicated show, which is based on Business Week
The program is carried on ABC stations in New York, Los
Angeles, Chicago and San Francisco, and the McGraw-Hill
Broadcasting Group's owned ABC affiliates in San Diego,
Denver, Indianapolis and Bakersfield.
Amanda Bennett, who left The Wall Street Journal
three years ago after 23 years there as a reporter to join
The Portland Oregonian as managing editor of special
projects, is leaving to become editor of The Lexington
She will succeed Pam Luecke, who will teach business journalism
at Washington & Lee University.
Betsy Wade has stopped writing the "Practical
Traveler" column for The Sunday New York Times.
The column is being assigned to other writers by Nancy Newhouse,
Joshua Levin, formerly senior editor of Forbes,
is now a contributing editor.
Amy Barnett, Philadelphia bureau chief for Business
Week, has returned from maternity leave, working from
her home office, 856/616-9520.
Debbie Tennison, 51, who covered economic issues
for The Wall Street Journal's London bureau in the
early `80s, and then became a PR practitioner in California,
writes a column under the name of "Selacia" for
the Sedonna Journal of Emergence!, magazine for New
Age followers. She also offers PR services, using New Age
philosophy to communicate messages. Her website is TheGoldenWay.com.
a website that covers events, will hold a trade show Oct.
11 at the Javits Center, featuring 125 companies that help
make up the city's special events business. BizBash is run
by David Adler, former PR head at Primedia.
InternetWeek will unveil three new
editorial sections and an updated website on Sept. 17.
The Manhasset, N.Y.-based publication's new section will
emphasize the 'why' and 'how' of delivering e-business results,
while the new website will focus on breaking news, case
studies, product reviews, and research.
Rob Preston is editor-in-chief of InternetWeek, which
is published by CMP Media.
Classic American Home, which began as Colonial
Homes in 1975, will be shut down by Hearst Magazines.
The magazine was published every two months, and had a circulation
rate base guarantee of 500,000.
The July-Aug. number is the last issue.
AlleyCat News, a magazine that stopped publishing
last March after more than three years as a monthly, is
back in business.
An 88-page issue, with 42 pages of ads, has been mailed
to members of the New York New Media Assn. It is also sold
on newsstands in Manhattan.
It will compete against Silicon Alley Reporter.
Anna Wheatley, editor-in-chief, and Barbara Con-gelosi,
managing editor, are at 580 Broadway, #1110, New York, NY
10012; 212/966-4242, ext. 107.
news continued on next page)
Edition, August 29, 2001, Page 4
MUST REVEAL FINANCIAL TIES
Nature magazine, which focuses its coverage on scientific
research findings, will require researchers to disclose
any financial interest related to their studies when they
submit articles for publication.
The new disclosure policy, which will affect papers submitted
after Oct. 1, will allow authors the option of not disclosing
their financial interests, such as stock in companies that
stand to gain from publication or consulting fees from organizations
with a stake in publication. Nature will still publish the
article in question, noting the author's refusal to make
Philip Campbell, editor of the London-based journal, said
the goal is to "help the public form judgments"
about the research by making authors' financial interests
The New England Journal of Medicine is preparing
to announce a new policy that will require drug companies,
who sponsor clinical trials, to permit researchers involved
to publish the results even if they are not favorable.
PICKS TOP TECH WRITERS
Technology Marketing said the most influential journalists
that cover the tech business are:
Stephen Wildstrom, columnist for Business Week; Walter
Mossberg, columnist for The Wall Street Journal;
Bob Evans, editor-in-chief of Information Week; Jai
Singh, editor-in-chief of News.com;
Michael Miller, editor-in-chief of PC Magazine; Ron
Insana, anchor of CNBC; Stephen Manes, contributing editor,
Forbes/PC World/PBS, and Chris Shipley, editor of
The magazine, which recently changed its name from Marketing
Computers, said the "hottest tech media" were
The Wall Street Journal, Business Week,
Fortune, Information Week, USA Today,
CNBC, New York Times, Forbes, C/net,
and Red Herring.
The rankings were published in its July issue.
OF WWD.COM DELAYED
Fairchild Publications has delayed the start of WWD.com,
the online version of Woman's Wear Daily, which had
been scheduled to start on Sept. 10.
Mary Berner, Fairchild's president/CEO, said "the current
business climate and market conditions" were reasons
for putting the website on hold.
Fairchild had planned to charge $895 per year for an online
Rochelle Udell, former editor of Self magazine, is
president of Fairchild Internet.
CNN TO ADD SECOND MORNING SHOW
CNN plans to start a new New York-based business and general
news show on Sept. 10, anchored by Jack Cafferty, who currently
anchors a morning show on CNNfn, which does not have a big
Cafferty's new show, called "CNN Money Morning,"
will air from 6 to 7 a.m. on CNN and 6 to 8 a.m. on CNNfn.
The new show will replace "Ahead of the Curve,"
also a New York-based business and general news program,
which is viewed on average in about 81,000 homes.
Cafferty, a veteran New York news anchor, will deliver the
day's headlines and pre-stock market activity, plus related
WEEK TO LAUNCH OPTIMIZE
CMP Media's Information Week, will launch Optimize,
a monthly magazine for business technology executives. The
new publication, which debuts with the Nov. 2001 issue,
will reach 70,000 CIOs, CTOs, VPs/IS and technology-involved
Brian Gillooly, editor-in-chief of InformationWeek Events,
was named editor-in-chief of Optimize.
Gillooly said the magazine will cover new business technology
theories, strategies and ideas.
a free distribution weekly published by The Miami Herald,
has named Jessica Sick to oversee features about new products,
Editor Jim Murphy said the paper, which has a circulation
of 72,000, is targeted at 18 to 34-year-olds.
Murphy said Sick can use information about new gadgets,
gizmos, fashions, accessories, etc. "Just about anything
really, as long as it's hip and trendy," he said.
All submissions must include art (jpg preferred).
Send information to: 1401 Biscayne blvd., 2nd flr., Miami,
FL 33132; 305/376-4459; [email protected].
Public Radio is cancelling "Talk of the Nation,"
a midday call-in show. The last show is Aug. 30.
The four-day-a-week show was heard on 180 stations by 2.2
Juan Williams, a former reporter for The Washington Post
who had been host of the show for only 18 months, will become
a senior correspondent for NPR news, appearing twice monthly
on "Morning Edition" and "Weekend Edition."
YM magazine's new address is 15 East 26th
st., 4th flr., New York, NY 10010. The new phone number
is 646/758-0430; fax: 758-0808.
Commonwealth Business Media, Los Angeles, is buying
the Journal of Commerce Group for about $45 million. The
group consists of JoC Week, formerly the daily Journal
of Commerce, Traffic World, Air Cargo World,
Florida Shipper, Gulf Shipper and Shipping
Digest magazines, as well as databased publishing, websites
Edition, August 29, 2001, Page 7
FIGHTS TAKEOVER BID
Medialink executives and staffers are continuing business
as usual despite a takeover bid by United Business Media,
London, which also owns PR Newswire among many other companies.
UBM is offering $5 a share for Medialink's 5.8 million shares
or about $29 million.
Since Medialink's sales were $56.5 million in 2000, this
would be a bargain price for UBM. Communications firms often
sell for at least the value of their annual sales.
The company, which specializes in video and audio services,
went public in 1997 at $9 a share and saw this reach $28.75
in 1998. Recent low was $2.18. Following UBM's bid on Aug.
14, the stock rose close to the $5 price.
Laurence Moskowitz, Medialink CEO, said the firm is providing
its usual "excellent services" to clients and
that it remains "the employer of choice for our 310
valued staff members."
UBM Undergoing Major Changes
UBM is listed on NASDAQ (UNEWY), where its stock has shown
little growth since 1994 (rising from about $7 to $8 currently).
It undertook a massive sale and closure of certain publishing
assets in 2000, reporting a gain of about $3.1 billion from
such sales. Revenues decreased 9% to about $2.8B. At the
end of 2000, UBM had $3.15 billion in cash and short term
investments. Investments in the first half brought this
down to about $1.5B. (Pound = $1.45.) UBM said in early
August that it is purchasing Roper Starch Worldwide for
$88M in cash.
UBM said in late 1999 that it was ridding itself of many
assets in order to concentrate on the "New Media"
markets. One purchase included CMP Media, owner of Information
Week, Computer Reseller News and Network Computing
and which also operated 60 Internet sites such as TechWeb,
the EDTN Network and Channel Web.
UBM, saying that business conditions in the first six months
of 2001 "have been extremely tough," reported
a loss of 8.9 million pounds on revenues of 490.7 million
pounds for the half.
CEO Clive Hollick said he expects no U.S. upturn this year.
News distribution (including PRN) brought in 21.2M pounds
in profit in the first half, up 1%, on sales of 66.9M pounds,
UBM recently dropped 700 employees, or 9% of its staff,
and said more layoffs may be necessary.
Biggest sub-division of United is Miller Freeman, tradeshow
organizer and business magazine publisher. It handles 450
exhibitions and conferences and has nearly 440 publications.
Kekst and Co. handles PR for UBM including the offer to
buy Medialink. No formal tender offer has been submitted
Major Owners Listed
Major owners of Medialink include Moskowitz, with 360,011
shares; Brown Capital Mgmt., Baltimore, with 1,541,300 shares;
FMR Corp., Boston, with 567,100 shares; DFA Investments,
Santa Monica, Calif., with 320,200; New York State Retirement
Fund, with 261,585, and Vanguard, with 115,500.
The company had net of $2,057,000 for the year ended Dec.
31, 2000, or 35 cents per diluted share. Its revenues were
$26.8M for the first half of 2001 vs. $28.6M for the same
2000 period. Net loss for the six-month period was $935,000,
or 16 cents a share, including one-time charges of $408,000.
Net for the first half of 2000 was $1.3M or 21 cents per
Current debt is $4 million.
The Delahaye Group, research firm, was acquired on March
12, 1999 for 185,666 shares worth $2.8M. Delahaye had 1998
sales of $4,002,930 and a net loss of $989,981.
Medialink entered into a joint venture with Business Wire
on Aug. 1, 1999 to form Newstream, which connects clients
to multimedia Internet news sites as Newstream.com. The
service allows reporters and editors to seek or have sent
to them news of industries in which they are interested.
Each company made an initial capital investment of $2M plus
Newstream had revenues of $940,000 in 2000, an operating
loss of $2,228,000, and a net loss of $2,152,000.
Stockholdings, Salaries Listed
Executives with major stockholdings, besides Moskowitz,
include J. Graeme McWhirter, executive VP, CFO, secretary
and a director, 202,729 shares, and Richard Frisch, SVP
and executive officer, Medialink MCTV division, 73,586.
Mark Manoff, former executive VP/U.S., who is now a consultant
to the company, had 90,014 shares as of April 13.
Moskowitz was paid $401,648 in salaries and bonus in 2000;
Frisch, $563,383; McWhirter, $346,241; Manoff, $376,188,
and Nicholas Peters, SVP/broadcast services, $201,575.
EARNINGS REPORT IS MIXED
WPP Group said its profit before interest and tax rose 73%
to $399.9 million for the six months ended June 30 despite
tough economic conditions.
Revenue rose more than 65% to $2.875 billion and up over
58% in constant currencies.
WPP said the prospects for revenue growth for the latter
half of 2001 may be even more difficult, although industry
projections for advertising market growth in 2002 look slightly
better than 2001.
"The over-riding concern is that what has essentially
up to now been a business-to-business recession will spill
over into the consumer sector," WPP said.
The report said the recession had "most significantly"
affected the PR sector, with like-for-like revenues falling
by over 3%. The company attributed the drop to a slowdown
in technology, media and telecommunications.
As a result of acquisitions, PR and PA revenues rose by
105% in the first six months, WPP said.
Edition, August 29, 2001, Page 8
Business Media, London, owner of PR Newswire, which is mounting
a hostile takeover of Medialink (page 2), one of PR's
service firms, is itself undergoing momentous changes.
sold more than $3 billion of its assets in 2000 and wound
up with $3.15B in cash and short term investments as of
Dec. 31, 2000. This was cut to about $1.5B as of June 30,
2001 via acquisitions. UBM CEO Clive Hollick says the company
"is driving to become the leading provider of market
information services in its chosen high growth sectors."
stock on NASDAQ (UNEWY), currently around $8, has shown
little improvement since January 1994 when it was about
$7. It spiked to around $20 this spring but quickly fell
would no doubt like to add more companies like PR Newswire
in the U.S.
News Distribution group, which includes PRN, brought in
about $95M in the first half and had operating profits of
about $30M. Other income of UBM in the first half included
about $450M from professional media and about $110M from
market research. It had a loss for the first half of about
$15M on revenues of about $750M (British pounds have been
translated into dollars at $1.45). Annual revenues had been
running at a rate of around $4.5B until UBM made the gargantuan
of its assets.
executives, while not thrilled by the proposed takeover,
nevertheless must show they are living up to their fiduciary
duties. Merger experts say they are probably trying
to find a "white knight" that will offer more
than the $5 a share UBM is offering.
has grown importantly via acquisitions and not all of them
have been moneymakers. Its low stock (falling from $28.75
to $2.18) made it a sitting duck for a takeover attempt.
This holds true for the other "aggregators" in
the communications field. When Young & Rubicam's stock
dipped from $70 to $40 last year, it was quickly snapped
up by WPP Group. Interpublic has seen its stock dip from
$58 to the mid $20's, cutting about $8 billion from its
a conglomerate's stock falls too low, it becomes a tempting
prize for the takeover crowd since its parts, which are
more valuable than the whole, can be purchased en masse
and sold off piecemeal.
Online wrote about Omnicom, Interpublic and WPP Aug. 20
and there is no indication that any of the top execs at
the three conglomerates talked to reporter Dimitra DeFotis.
None are quoted. The article says there appears to be "skepticism"
about the ad/PR group because of current tight ad budgets.
Omnicom is trading at 21.5 times cash flow for the past
12 months, well below its historic multiple of 24 times
trailing cash flow and far below its peak of 33.6 times
trailing cash flow, the article noted, quoting Thomson Financial/Baseline.
Robert Coen of Universal McCann (part of Interpublic) told
Barron's that ad revenues in the second half will show a
gain from last year's second half because the dot-coms heavily
spent on ads last year until the second half of 2000.
DeFotis said OMC is outperforming IPG and WPP (more than
50% off their all-time stock highs) because of successful
acquisitions and growth
from existing clients.
containers, which have been bragging in recent years about
"1%" or "2%" fat content,
are now switching to "low fat" and "reduced
fat" claims and away from numbers under new rules of
the Food & Drug Administration.
"1%" and "2%" claims were specious because
buyers were not told (except on the back of the milk cartons)
that whole milk only contains about 3% fat. Most people
we talked to thought "1%" meant the milk contained
1% of the normal fat content when in reality it contained
about 33% of normal fat content. Under
the new FDA rules, milk with up to 37.5% of normal fat content
can now be called "low fat milk" and "reduced
fat milk" can contain about two-thirds of normal fat.
sales have been in a tailspin for decades, falling from
34 gallons per capita in 1955 to 23 today. The "milk
moustache" campaign via BSMG Worldwide appears to have
stopped the decline, according to statistics of the independent
Beverage Marketing Corp. Growing at a 16% annual rate are
bottled water sales. Americans downed 18 gallons on average
in 2000 and soon will be drinking more bottled water than
milk. The water is highly profitable for all concerned.
At one New York movie theater, a bottle of soda and a bottle
of water the same size each sold for $1.85. Some consumers
are so intent on not drinking soda that they'll pay an outrageous
price for mere water! Soda sales were flat in 2000 at 55
gallons per capita.
Jack" tells all. General Electric CEO Jack
Welch--who is expected to be retired by October--addresses
the Williams Club on Oct. 12 about his golden career at
GE. He also is expected to tell why GE remains dead set
against dredging the Hudson River in light of Bush Administration
support for the plan. The breakfast
event will be held at The Columbia Club. Jack will be handing
out "Jack: Straight from the Gut," his soon to
be published management memoir that earned him a $7 million
advance. CNN's Walter Isaacson will lead the discussion.