Edition, October 10, 2001, Page 1
BK SERVES PR ACCT. TO WEBER
Burger King has selected
Weber Shandwick Worldwide for several global PR assignments,
according to Richard Taylor, VP-global advertising and promotion
at the $11.2 billion fast-food restaurant chain.
Gail Heimann, president
of WSW's global consumer marketing practice, heads the account
from the PR firm's New York office. She says Cathy Calhoun,
president of WSW/Chicago, and Christine Barney, who heads
the WSW office in BK's headquarters city of Miami, will
also work on the business.
Kim Miller is BK's PR
director. She said the contract with WSW has not yet been
finalized. The chain did not have an agency of record.
BK served up bad news
for WSW sister company, McCann-Erickson. It lost the chain's
$400 million ad account after a nine-month stint.
BK, a unit of Diageo,
suffered a 12 percent decline in operating profit for the
fiscal year ended June.
Diageo doesn't foresee
a rebound until next year. It has installed new management
to "restore market share and improve operating performance,"
according to its financial statement released last month.
GREENER LEAVES PN; GOULD TAKES
Porter Novelli's Chuck Greener has departed the Omnicom
unit for the senior VP-communications slot at Fannie Mae
Corp., the nation's largest source of financing for home
Rob Gould, U.S. director of the firm's global healthcare
practice, succeeds Greener as general manager of the Washington,
He will continue to work on the American Cancer Society
account and on anti-smoking campaigns. Gould began his PR
career at PN in 1984.
Greener was director of communications for the Republican
National Committee before joining PN in 1995. He also was
special assistant for legislative affairs during the Reagan
At PN, he counseled TheSteelAlliance, Robert Wood Johnson
Foundation and Nextel.
has signed a two-year contract worth $1 million to represent
The Gambia. "The focus is on economic development,
government affairs, media relations and to a lesser extent
tourism promotion," says John Aycoth, CEO of the Washington,
D.C.-based firm. The contract went into effect on Sept.
1. "We've already received payment in full for the
first year," Aycoth added.
MAGNET, HAVAS SLICE STAFF
Magnet Communications, a unit of France's Havas Advertising,
has cut 12 PR staffers in New York and California to cope
with the slash in spending for PR that has affected every
agency, says David Kratz, CEO of the firm. It also cut 11
Magnet laid off 36 staffers in June.
Havas stunned investors last week by announcing that it
lost seven million euros for the first-half of this year
compared to a 45 million euro profit a year ago. That news
dropped Havas' stock price to $5.34, a three-year low.
CEO Alain de Pouzilhac plans to lay off 1,200 staffers
or five percent of its global workforce.
Havas reduced its operating profit margin goal of 15 percent
to 10-12 percent this year because the firm expects a recession
in the U.S.
"We are living in a world that is in recession. When
there is a recession, one has to adapt to it," he said.
Havas expects U.S. ad spending will drop six to nine percent
this year, and possibly three percent in Europe.
H&K's GLICK JOINS RF
Ruder Finn has hired Nancy Glick, Hill and Knowlton's
top healthcare person in Washington, D.C., as executive
"I joined RF partly because it has a big cancer communications
practice," Glick, a survivor of a rare form of lymphoma,
told this NL.
Finding a cure for cancer is a cause that Glick is "passionate"
Glick is currently working on a campaign for Johnson &
Johnson's McNeil consumer healthcare group. It is a public
education campaign to highlight the importance of using
over-the-counter drugs responsibly. "Over the counter
drugs are sold right next to gum," she noted.
Glick will develop alliances with health, medical, nutrition,
consumer and patient groups.
The one-time press officer for the Food and Drug Administration
will also work on food and nutrition issues.
Glick had been at H&K since 1979. She is rejoining
Ken Rabin at RF. He is the former chairman of Burson-Marsteller's
health group, who left H&K as executive director/healthcare
to launch InterScience in 1992.
Edition, October 10, 2001, Page 2
RATING SERVICE DOWNGRADES
Fitch, one of the leading
credit rating services, has downgraded senior unsecured
debt of Interpublic from A to A- and its multi-currency
bank credit facility from A to A-.
Protracted earnings weakness
could result in "further weakening of credit protection
measures," it said.
notes, of which IPG has $540 million outstanding, were downgraded
from A- to BBB+, and commercial paper (short term loans)
was downgraded from F1 to F2. F1 is the highest rating given
by Fitch, one of the major rating services along with Moody's
and Standard & Poor's.
The ratings change, dated
Sept. 17, cites "IPG's weakening earnings trends combined
with sizable cash costs to implement a restructuring and
IPG's stock has fallen
from a high of $58 in January 2000 to around $20 currently.
Its market capitalization has gone from $17 billion+ to
Revenues fell 4% in the second quarter and are flat for
the first half, "trailing the performance of major
competitors," said Fitch.
It says cost cuts have
not kept pace with lower revenue trends resulting in a "significant
decline in operating cash flow."
Means $500M Charge
IPG will take $500 million
in charges in the second and third quarters to integrate
its True North acquisition, reorganize other agencies, and
reduce operating costs.
The charges, which are
"significantly larger than previously anticipated,"
will involve staff cuts of 3,500 and the closing of some
75 offices worldwide. These cuts follow layoffs of 2,200
in the first half for a total of 5,700, or about 10% of
The "Negative Rating Outlook," says Fitch, "reflects
uncertainties about the time and degree of recovery of client
advertising and concerns about the ability of the company
to smoothly effect the largest-ever realignment of its business
amid the current market slowdown."
IPG is trying to conserve
cash over the near term but "protracted earnings weakness
could result in further weakening of credit protection measures,"
IPG, which has $7 billion+
in revenues, as of June 30 had $1.4B in long term debt;
$1.3B in short term debt and $540M in convertible bonds.
Fitch notes that IPG's
client base is large, diverse and highly stable, giving
it "distinct competitive advantages in the acquisition
and retention of clients." But it is also afflicted
with the "lack of tangible asset protection associated
with a service business."
COKE MOVES TO PROTECT SCHOOL
Coca-Cola has hired Holland
& Knight to ward off Federal restrictions on "vending
machines" in schools, according to the firm's Lobbying
Sen. Patrick Leahy, who
represents dairy state Vermont, has introduced a bill that
would prohibit schools participating in the national school
lunch program from selling soda and candy.
"The Better Nutrition
for School Children Act of 2001" tightens U.S. agriculture
rules under the lunch plan. It requires that "sodas
and other unhealthy snacks not be sold or given to students
in school during meals."
Leahy, when introducing
the bill, noted that many schools earn revenue via exclusive
contracts with soft drink companies and commissions on sales.
The Democrat, however,
said children should "not pay the price when we give
soft drink companies free reign to market their products
in schools," said Leahy.
H&K partner Michael
Hatcher along with Weldon Latham, Amy Nee and Susan Santana
are lobbyists for Coke.
BROCADE SIGNS WITH BENJAMIN
The Benjamin Group has
picked up the Brocade Communications Systems account in
a pitch that began in July with about 20 PR firms in the
running. Voce Communications, which is located in Brocade's
San Jose home city, had handled the account.
Benjamin, an Interpublic
unit, will handle corporate and product positioning for
Brocade, which chalked up $84 million in net earnings on
$530 million in revenues for the fiscal year ended July.
Chris Bateman, who is general manager of Benjamin's Silicon
Valley office (Campbell), handles the account. He is assisted
by Jodi Baumann in the firm's San Francisco office.
The NASDAQ-listed company
traded as high as $133.71 per-share during the past year,
but has tumbled to the $13 range with the overall collapse
of the high-tech market. Morgan Stanley, last month, lowered
its 12-month target price for Brocade from $36 to $22. It
did laud the company as the "leader in the storage
area marketspace," while cutting its forecast due to
"uncertain economic conditions."
EX-REP. MOLINARI JOINS KETCHUM
Former New York Congresswoman
Susan Molinari has been named president/CEO of Ketchum's
Washington Group lobbying wing.
Molinari will enable
WG to "offer a strong campaign style approach to public
affairs," said Ray Kotcher, CEO of Ketchum.
She had been running
her own lobbying firm in Washington.
Staten Island and Brooklyn in Congress from 1990 to 1997.
She made her mark on the national stage when she delivered
a keynote address at the Republican National Convention,
nominating Bob Dole for president.
Molinari is married to former Congressman Bill Paxon from
upstate New York.
WG has done work for
Bridgestone/Firestone, Microsoft, Kodak, Boeing, Americans
for Consumer Education & Competition and the E-Fairness
Edition, October 10, 2001, Page 3
AND WSJ STAFFERS RELOCATE
The "Nightly Business Report" has temporarily
reopened its New York bureau at Ketchum/New York, 711 Third
ave., according to Mark Landsman, who is NBR's assignment
manager in Miami.
The bureau had been in 74 Trinity pl., which is two blocks
away from what was the World Trade Center. The bureau was
closed in the aftermath of the Sept. 11 attack.
For almost two weeks following the attack, the New York
newsroom staff of 12 was operating out of the Doubletree
Hotel in Times Square, until the temporary office space
was found at Ketchum.
Scott Gurvey, senior correspondent who handles New York
story assignments, is using the office.
Susie Gharib has been co-anchoring live from the New York
Stock Exchange since Sept. 17.
Landsman said publicists should call Althea Thompson, one
of the producers, to pitch information. She can be reached
WSJ at Five Locations
The Wall Street Journal, which had to be evacuated
from 1 World Financial Center on Sept. 11 as the Twin Towers
across the street fell, now has reporters and editors working
out of five newsrooms.
Paul Steiger, managing editor of the Journal and other top
editors are still using offices in South Brunswick, N.J.,
where Dow Jones has a production plant, but other staffers
are being relocated to offices in Manhattan.
The landlord for 1 World Financial Center expects to have
the building ready for occupancy by mid-November.
Some 150 reporters, including the entire staff of the "Money
& Investing" section, are being moved to 100 Sixth
ave., a building in SoHo.
The Journal also is relocating staffers to 1155 Sixth ave.,
where DJ already had four floors.
Editorial writers and the staff of the "Weekend Journal"
will move to a Seventh ave. building, and some reporters
are working from Dow Jones Newswires office in Jersey City.
has published the first issue of its New York edition.
The paper also publishes a Boston edition. Both monthly
papers will feature profiles of women business and professional
leaders in all fields, including PR.
The New York edition's area of coverage is N.Y., N.J., and
Conn. The Boston edition covers Mass., N.H., and R.I.
Stacey Corso is editor of WBNY. She is located at 880 Third
ave., New York; 212/980-5777; fax: 980-4434.
Helen Graves is editor of the Boston edition. Her office
is located at 1 Pond Park rd., Hingham, Mass.; 781/749-8500;
More information is available on the paper's website at
The Las Vegas Review-Journal
has started a quarterly magazine, called Cerca,
which is Spanish for "close" or "nearby."
The magazine will focus on scenic destinations in southern
Nevada, which are within reach of urban Las Vegas.
A.D. Hopkins is editor of the magazine, which will be sold
in bookstores and on newsstands and mailed to more than
The Chicago Tribune
has started a new employment section, called "CareerBuilder."
The section's content includes advice on career planning
and job searching; profiles of prominent Chicago-area business
people, and local and national job listings.
Publicists can submit information to the section by fax
(312/222-4328) or e-mail ([email protected]).
Trades Publishing Inc.,
Lambertville, N.J., will begin publishing a new magazine
called Jobsite- Tools and Materials for the Framing &
The magazine will be published six times per year beginning
with the December 2001/January 2002 issue.
The publication, which will be aimed at contractors and
distributors of framing and drywall, is a repositioning
of TPI's current Interior & Exterior Wall, Ceiling
and EIFS title.
The format will still focus on tools and materials but will
be broken down into the following sections: metal framing,
wood framing, drywall installation, drywall finishing, decking,
add-ons, and accessories.
David Cane is editorial director. He can be reached at 609/397-5601.
issue, which hits newsstands in mid-October, has
a revamped beauty department, additional health and nutrition
columns, and more information on money and careers.
Cindi Leive, who replaced Bonnie Fuller as editor last May,
has remade the beauty and fashion section to focus on service,
with columns including "How Can We Help You?"
(answering readers' beauty queries) and "Fashion Workbook,"
which reports on affordable clothing for readers interested
in the designer-wear shown in Glamour's pages, and tips
on how to mix and match.
She has also revived a column called "How to Do Anything,"
which shows women how to do things from changing tires to
Carol Abaya, who started
The Sandwich Generation magazine in 1992, has started
a website: www.TheSandwichGeneration.com.
Like the magazine, and her syndicated newspaper column,
the site addresses aging and elder/parent issues. Abaya
can be reached at 732/536-6215.
news continued on next page)
Edition, October 10, 2001, Page 4
FIRST AMENDMENT CTR. TO CLOSE
Stock market losses have
forced the Freedom Forum to close four offices and its First
Amendment Center at 580 Madison ave. in New York.
The offices, which included
an auditorium and state of the art video services, were
used by other groups, including the Overseas Press Club.
The other offices being
shut are in London, Buenos Aires, Hong Kong and Johannesburg.
The First Amendment operations
will be shifted to the Freedom Forum's headquarters in Arlington,
The foundation said stock
market losses have amounted to about 30% of its $1 billion
endowment, which consists of 200 stocks.
The Freedom Forum was
started in 1991 by Al Neuharth, who founded USA Today,
while he was head of the Gannett Co. The forum, which replaced
the Gannett Foundation, is not affiliated with the Gannett
Co., which owns USA Today.
Last year, the foundation paid the District of Columbia
government $100 million for property on Pennsylvania ave.
near the Capitol to build its new headquarters, which will
include offices, a restaurant, retail space, condominiums
and the Newseum. The Freedom Forum plans to relocate to
Washington in 2005.
MADEMOISELLE EXITS AFTER 66
The November issue of Mademoiselle, a fashion magazine
for young women that was first published in 1936, will be
its last, according to Steven Florio, president of Conde
Nast Publications, which is owned by the Newhouse family.
Newhouse has owned the magazine since 1959.
The magazine's subscription list will be fulfilled by Glamour,
also published by Conde Nast.
Glamour will raise its rate base-the amount of
circulation it guarantees advertisers-by 100,000 to 2.2
million in January.
The afternoon Syracuse (N.Y.) Herald-Journal, also
owned by the Newhouse family, printed its last edition on
Sept. 29. The paper began its existence in 1839 as the Western
State Journal and merged with the Herald in 1939.
Its Sunday edition, the Herald-American, will bear
the name of The Post-Standard, a morning newspaper.
NEW WEEKLY TO COVER N.Y.'S
The Manhattan Media Group, which publishes four weekly
papers, is planning to start a new paper with an investigative
bent to cover New York City government.
Tom Allen, CEO, said the paper may start as a monthly
and a daily fax, with Sydney Schanberg as editor-in-chief.
The tentative name of the paper is City Hall.
MMG's other weekly neighborhood papers are Our Town,
West Side Spirit, Chelsea-Clinton News and
the West Sider.
Schanberg, a former reporter for The New York Times
and a columnist for Newsday, whose wife is a reporter
for The New York Daily News, said the new paper is
being started in the "belief that the mainstream papers
don't do a particularly good job" covering New York
He said the mainstream papers are "leaving lots of
gaps, avoiding stories on an ever-expanding roster of sacred
Schanberg, who is currently writing a column for the other
weeklies, has begun to hire and assign stories for the new
paper. He can be reached at Our Town's offices at 242 W.
30 st. 212/268-8600.
introducing a new design and content. Editor-in-chief
Wes Mann said the paper will expand business and management
coverage in the first section; add a third story to its
front page, along with color photos, charts and data displays;
and increase the number of items in its "To the Point"
A quarterly custom
magazine, called State Tech, will be produced
by Ziff Davis Custom Media for CDW Government, a subsidiary
of CDW Computer Centers.
The magazine, which debuts this month, will be sent to 100,000
senior-level information technology professionals at state
and local government agencies. It will include articles
about current issues and challenges, such as privacy and
The magazine will provide case studies of technology deployments
along with interviews with CIOs who are using technology
to streamline government processes.
Carol Venezia, who is editor-in-chief of ZDCM, in New
York, will oversee State Tech.
The American Marketing
Assn., Chicago, has started a new website for marketers
Marketers can access a variety of information on the free
site, including white papers, business articles, and the
latest news in marketing.
The New York Times
is accepting registrations for its free online financial
news site, which will debut on Oct. 9.
The Times said the new daily e-mail report, called "DealBook,"
will provide the "latest and most complete news about
It also will print news reports from the Times
and dozens of other publications including The Wall Street
Journal and The Financial Times.
Andrew Sorkin, who is the paper's merger and acquisitions
reporter, will be editor of the service.
magazine, based in Austin, Tex., has suspended
publication. The magazine was published by Grand Adventures
Tour & Travel Publishing Corp.
Edition, October 10, 2001, Page 7
Airlines pilot advised passengers not to be submissive when
a hijacker makes his presence known on a plane, said Peter
Hannaford, partner in the former Deaver & Hannaford
PR/PA firm of Washington, D.C., and now in his own company,
Hannaford Enterprises, D.C.
department has said it has been unable to reach the pilot
of Flight 564 Sept. 15 from Denver to Dulles Airport outside
first told the Washington Times and other media that
there was no Flight 564 that day.
media relations director of the parent UAL, told this newsletter
Oct. 1 he does not doubt Hannaford's story but that he has
not been able to confirm it. He said PR has been having
difficulty in getting a response from the pilots' group.
been swamped by phone calls in recent weeks and has had
to let go two PR pros because of budget cuts, leaving only
four PR pros to service the parent UAL and the airline,
he added. UAL and its units have 80,000 employees.
has been suspended as UAL's nationwide PR counsel because
of lack of funds, he said. Also suspended is Schenkein PR
said he not only has the ticket stubs for the flight but
UAL has a computer record of it on its passenger information
to Hannaford, the pilot told passengers not to believe a
hijacker who said he had a gun or a bomb.
he said, passengers should stand up and throw anything they
can at the hijackers and any accomplices.
a blanket over him and wrestle him to the floor and keep
him there," the pilot further advised, according to
Hannaford. The captain further emphasized that the pilot
and passengers were in charge of their own fates once they
were in the air and not bound by rules, said Hannaford.
Escaped from Tower 2 Sept. 11
said his son, Richard, was in Tower 2 on Sept. 11 working
on the 84th floor for Euro Brokers. He had previously worked
for Cantor Fitzgerald on a higher floor but left six months
ago. About 700 of Cantor Fitzgerald's 1,000 employees died
in the WTC attack.
who was with D&H from 1975-77 and then with The Hannaford
Co., said his son and others headed downstairs after the
explosions in Tower 1.
the 44th floor mezzanine, the public address system announced
that the building was secure and advised workers to go back
to their offices," said Hannaford.
son said he thought over that advice about one-half second
and continued down the stairs," said the PR/PA executive.
GONRING LEAVING BAXTER
Matthew Gonring, who joined Baxter International, Deerfield,
Ill., as VP, corporate communications 13 months ago from
Arthur Andersen, is leaving between now and the end of the
He said he resigned his post to seek a new employer "that
believes that PR can make a difference." Baxter has
about $8 billion in annual sales.
Gonring, who is noted for his expertise in media relations,
was VP-CC at USG Corp. from 1993-97 before joining Andersen.
He was director of external communications for United Airlines
and UAL from 1986-88.
He is a board member of PR Seminar, the Arthur Page Society
and the Institute for PR, and is a faculty member at Northwestern
University's Medill School of Journalism.
B-M WANTS PIECE OF NYC REAL
Burson-Marsteller has hired real estate development pro
Alisa Feinstein as director in its New York practice to
navigate knotty communications issues regarding the rebuilding
of the city.
Richard Mintz, chair of B-M's PA practice, called real
estate development a "political hot potato" in
Feinstein is to help developers on siting and land-use
issues. She has worked for Vornado Realty Trust and served
as assistant director of legislative affairs in the New
York City Mayor's Office.
INFO WEEK AD PAGES STILL DECLINING
Information Week, the fourth largest publication
in terms of high-tech ad revenues in 2000 (exceeded only
by the Wall Street Journal, Business Week
and PC Magazine) disclosed Oct. 2 that its ad pages
for August were down 180 pages or 51%.
All nine CMP publications listed in a release via sister
company PR Newswire had ad page losses. CMP and PRN are
units of United Business Media, London-based company that
now derives more than 75% of its revenues from U.S. businesses.
UBM has made an offer to buy Medialink but Medialink has
yet to accept it.
Newsday said Oct. 3 that "sources" are
saying that CMP could lay off as many as a "couple
of hundred" staffers. CMP is located in Manhasset,
CMP spokeswoman Alix Raine was quoted as saying there
would be cuts but they would not be "significant."
Information Week did not give out the decline in
terms of ad revenues.
UBM also disclosed ad page declines in August in the following
CMP publications: EE Times, down 143 pages or 32%;
Internet Week, down 47 pages or 37%; Dr Dobbs,
down 11 pages or 14%; Network Computing, down 43
pages or 28%; Electronic Buyers News, down 131 pages
or 45%; Network Magazine, down five pages or 6.8%;
CRN, down 94 pages or 32%, and VAR Business,
down ten pages or 9%.
Edition, October 10, 2001, Page 8
reporter Howard Kurtz has quoted military sources as saying
the war that the U.S. is waging will be "the
most information-intensive war that you can imagine."
The source allegedly
told Kurtz: "We're going to lie about things...certainly
the bad guys will lie."
It's no great shock that
the military and civilian governments sometimes lie about
things or withhold information in the interests of national
A giant whopper told
during World War II was that the U.S. needed people to "Buy
War Bonds" so that it could afford guns, tanks, etc.
That was nonsense. The
real reason for selling bonds was to remove excess money
from the economy and avoid inflation. Workers were making
good money and consumer goods were in short supply.
citizens know that their governments and other institutions
often "fudge the facts." Wise citizens take "official"
announcements with a grain of salt. They know that sometimes
the officials don't know what they're talking about.
Thus, workers in World
Trade Tower 2 who ignored the official advice to "stay
in their offices" after Tower 1 was hit saved their
lives while those who took the advice perished. One of those
ignoring the advice was Richard Hannaford, son of veteran
PR/PA pro Peter Hannaford (story on page 7).
Ray Bartels, who worked
on the 47th floor of Tower 2, told the New Jersey Record
he got a similar message as he headed down the stairs. Linda
Lopez, also heading down the stairs, told the Record that
one person said, "That's crap," after hearing
the "return to your offices" and "stay where
you are" messages on the P.A. system.
The point is that good
or bad information can mean the difference between life
was another factor. Survivors of Tower 2 complained
that nothing came over the P.A. for at least ten minutes
after Tower 1 was attacked and when messages finally came,
they were false.
does PR fit in the current wartime atmosphere? It
certainly does feel like wartime in New York since we see
Grand Central Station surrounded by police officers and
vehicles every day and ditto for the Con Edison power plant
on 38th st. and First ave., which we walk by each day.
PR started out in companies
at the turn of the century as "truth bureaus"
that would give straight answers to the press and public
instead of the usual propaganda. The armed forces and government
adopted the same model, installing public information officers.
But, over the decades, PR moved more and more to the sales
side so that marketing PR and IR are what are mainly practiced
now. PR people who dispense good and bad news about an employer
or client with equal fervor and with speed are a rarity.
PR pros are forced to check with multiple superiors and/
or marketing teammates before confirming anything.
with such responses, the media have developed attitudes
toward PR that were evident in a Sept. 27 New
York Times article headlined, "After Tragedy, Publicists
Are Hyper About Hype." It generally mocked the industry
and its "happy-face press releases." It called
New York's PR industry "the most prodigious conflation
of communications representatives and spin managers on the
planet." Quoted in behalf of PR were Jack Bergen of
the Council of PR Firms, and PR counselors Dan Klores and
Howard Rubenstein. Bergen said companies should donate to
WTC charities and take out newspaper and magazine ads expressing
did not look good on stories about the United Airlines flight
where the captain advised passengers to "throw things"
at a hijacker (page 7). UAL PR pros at first denied there
was any such flight. Then they said they were unable to
find out who was piloting the plane. The current wartime
conditions, where the public is hyper sensitive to spin
and misinformation, present an opportunity for PR pros to
go back to their original mission of providing straight
stories quickly and working with the media.
agree this will be the "most information-intensive
war" ever (i.e., stories will be spun and "framed"
as never before). Americans have to learn all they can about
the Mid East and its conflicts. The Internet provides an
array of worldwide viewpoints and information sources. We
have been accessing, among others, the Jerusalem Post
post.com); South China Morning Post (SCMP.com);
an "aggregator website," provides access to hundreds
of columnists and media in the U.S. and worldwide.