The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, May 12, 2010, Page 1
TOURISM UP FOR PR BIDS
Dept. of Tourism is reviewing its mid-six-figure public
and media relations account with an open RFP through May
is $650K, including all fees and expenses. Firms can be
located anywhere in North America but must have an office,
staff or strategic partner within a two-hour drive of Augusta.
RFP issued April 30 calls for development and implementation
of a comprehensive PR program to attract visitors and raise
the state's profile with the "traveling public."
That includes consumer PR, travel trade media relations,
social media, internal comms. support and special projects.
year-long contract starting in July is planned with two
The selected PR firm will be expected to work with the state's
ad, interactive and research agencies.
are due May 27. RFP: odwyerpr.com/rfps.
POWERS RUSSIAS U.S. NUKE PUSH
Worldwide has a $3M one-year agreement with Rosatom, Russia's
state-owned nuclear holding company, to create and promote
a positive image in the U.S.
sees major opportunity in the U.S. commercial sector as
President Obama supports a re-start of America's nuclear
power sector as a move to reduce greenhouse gas emissions.
is to position Rosatom as a leading provider of nuclear
technologies and reliable supplier for the U.S. energy market,
according to its contract.
message is targeted at law-making authorities, business
and financial circles, public and academic community and
wants APCO to help overcome existing and political trade
barriers to set the stage for a joint venture with U.S.
power companies for a plant based on Russian nuclear know-how.
U.S. and Russia entered an agreement in '93 in which low
grade uranium from dismantled Russian nukes was shipped
here for processing.
has an agreement with the International Atomic Energy Agency
to create a uranium fuel bank to bolster demand for nuclear
Davis, VP of corporate communications
for The Pepsi Bottling Group, has moved on to lead the Alcoa
the charitable arm of the New York-based aluminum giant.
Shell report to newly installed VP of corporate affairs
Nick Ashooh at Alcoa and serve as president of the foundation.
SOLD FOR $1.1 BILLION
Health, the healthcare marketing conglomerate that includes
Chandler Chicco Cos. and Chamberlain Healthcare PR, has
been acquired by private equity firm Thomas H. Lee Partners
board agreed on the deal that will give shareholders a 52%
premium over the March 25 closing price of $17.15. A handful
of PE firms submitted bids for the company.
feel fortunate to have found an investment partner that
understands the complexities of the healthcare industry
and that is committed to working with inVentiv to help us
achieve our long-term vision for growth, said inVentiv
CEO Blane Walter.
deal is expected to close in the third quarter and was announced
on the same day inVentiv reported first quarter revenue
rose five percent over 2009 to $269.4M. Profit ticked up
to $19.3M for Q1, up from $7.9M for the first quarter of
'09. Its communications division which includes PR saw revenue
rise 24% to $88.1M.
GROUP COUNSELS BP
Group is working with oil giant BP as the company navigates
global attention stemming from the Gulf oil spill.
has worked with the company in the past and wields a PR
presence in New York, Washington, D.C., and London, where
BP is based.
is the No. 3 oil company in the world and is banking on
a complicated engineering maneuver to stem the flow of oil
from the Deepwater Horizon rig, which the company leased
and sunk after a large fire late last month.
CEO Tony Hayward has met with Obama Administration officials
and has made the media rounds accepting responsibility for
WILL BLAST TYLENOL MYTHS
book called The Tylenol Mafia, written by a former eight-year
employee of Johnson & Johnson, is scheduled for release
is subtitled, "A true story of marketing, murder and
Johnson & Johnson." http://americanfraud.com/contact.aspx.
Bartz, who worked as a J&J sales representative and
at J&J facilities from 1999-2007, said he is seeking
a publisher for his book of approximately 320 pages but
will publish it himself if necessary.
view is that Tylenol capsules were contaminated in 1982
and 1986 at J&J facilities and not at the retail level
as claimed by J&J and others.
on page 7)
Edition, May 12, 2010, Page 2
FUND WANTS TO BOUNCE OMC'S
A top New York money fund
is urging investors to vote against the re-election of Omnicom
CEO John Wren to its board of directors because he is a
prime beneficiary of controversial option grants
made to top executives of the ad/PR conglom.
Ruane, Cunniff & Goldfarb,
which owns a one percent stake in OMC, is upset over the
March 31, 2009 decision of the board to grant options to
buy 22.6M shares of stock-an amount representing more than
seven percent of outstanding shares-at the weighted exercise
price of $23.73.
In its Dear Client
letter, RC&G calls the size and timing of this
grant objectionable. The board made the grant
very close to the bottom of the stock market trough and
just three months after making another grant of 3.5M options
at the exercise price of $25.48.
Prior to the two grants,
OMC had not issued options since 2003. It resumed grants
to retain top execs during the Great Recession and compensate
them for bonus cuts. RC&G acidly notes: Shareholders
received no such emolument.
The double option grant,
according to RC&Gs letter, issued amid the
tumult of a severe bear market in stocks do not represent
appropriate treatment of shareholders. With OMCs
stock closing at $43 on May 3, the options are in
the money by approximately $500M, yet the stock price
was simply approaching its pre-crisis level of August 2008.
The fund urges shareholders
to vote no on the election of compensation committee
members Gary Roubos (ex-Dover Corp. chairman), Linda Johnson
Rice (CEO of Johnson Publishing Co.), Michael Henning (ex-deputy
chairman of Ernst & Young), Alan Batkin (vice chairman
of Eton Park Capital Management), Susan Denison (partner
at Cook Associates) and Leonard Coleman (former advisor
to Major League Baseball).
RC&B gives a thumbs
down to Wren because we do not believe Mr. Wrens
behavior in this matter qualifies him to represent the interests
of shareholders as a member of the board.
LEVICKS LAWRENCE LEAVES
Dallas Lawrence, global social & digital practice chair
at Levick Strategic Communications, has moved to Burson-Marsteller's
Proof Integrated Communications.
Prior to Levick, Lawrence was VP-communications & new
media for the National Assn. of Manufacturers.
Lawrence is a five-year veteran of the Bush Administration's
Defense Dept. He served as director of the office of communications
relations and public liaison.
That service, under Secretaries Don Rumsfeld and Robert
Gates, included a stint as spokesperson and regional media
outreach director for the Coalition Provision Authority
PIC, a digital shop, is headed by Jay Leveton, who hails
Lawrence as a pro skilled in integrating social media, issue
advocacy and crisis management. It is the result of the
merger of Burson-Marsteller's Marsteller ad unit with Penn
Schoen Berlands PSBcreative arm.
MDC ACQUIRES ALLISON
MDC Partners CEO Miles Nadal has acquired a majority stake
in Allison & Partners, the No. 9 listed independent
firm on ODwyers rankings.
Nidal told ODwyers last month that he was eying
firms in the rankings.
A&P CEO Scott Allison reported a 12.1 percent jump
in 2009 fees to $14.7M for 2009. He told this NL that the
firms positioning as an entrepreneurial shop that
provides clients with a constant influx of fresh ideas
that uncover new business opportunities proved to
be a blessing in the lean 2009 economy.
Clients were looking for less bureaucracy and a focus
on quantifiable results. Allison reported growth across
its consumer, technology and healthcare sectors.
The firm picked up business from LOreal USA, Johnny
Rocket's and the Hard Rock Hotel San Diego and more work
from long-term clients including Best Western (NASCAR and
Jonas Brothers promotion), Progressive Insurance and the
Hard Rock Hotel and Casino Las Vegas.
San Francisco-based Allison has offices in New York, Los
Angeles, San Diego, Seattle, Phoenix, Atlanta and Washington.
MDC acquired a majority stake in New York financial comms.
firm Sloane & Co. last month.
PRSA LEADERS REVOLT VS. APR
A committee including Richard Edelman of Edelman, Art Stevens
of StevensGouldPincus, and Dave Rickey, bylaws revision
chair of PRSA, is collecting signatures on a petition to
remove APR as a condition for being a national director
Members who support the move may do so by e-mailing Sandra
Fathi of Affect Strategies, New York, a member of the committee,
or by signing an online petition set up for the effort.
The goal is to obtain at least 1,000 signatures and present
them to the Assembly Oct. 15 in Washington, D.C.
Some senior members believe that non-members and ex-members
should also sign the petition since the Societys position
is that it not only represents members but all PR people
worldwide and sets ethical standards for PR people worldwide.
A press release was sent to PR websites and publications,
the 110 chapter presidents and the 16 section chairs.
by 'Small Minority'
Called The Committee for a Democratic PRSA,
the group says it does not believe that democracy
is being served as long as a small minority of its members
can hold elective office. We believe that many worthy members
who meet national leadership criteria in many other ways
are being deprived of the opportunity to serve the organization.
APR members have made up less than 20% of the membership
for many years. About 120 new Society APRs are created each
There has been a steep decline in annual new APR members
since a multiple choice test was installed as of July 1,
Edition, May 12, 2010, Page 3
GOES ON AUCTION BLOCK
Washington Post Co. has put Newsweek on the auction
block, retaining media savvy investment firm Allen &
Co. to supervise the sale of the money-losing magazine.
Donald Graham said that despite the heroic efforts
on the part of Newsweeks management and staff, we
expect it to still lose money 2010. We are exploring all
options to fix that problem.
told Newsweeks New York staffers that he sees no
path to continuing profitability under our management,
and takes the blame for not seeing early enough and
reacting in the right way to the changes that have come
to our industry.
magazine group lost $29.3M in 2009 and $16.1M in 08.
called Newsweek a lively, important magazine and website
that might be a better fit elsewhere.
launched in 1933 and the Post Co. purchased it in 1961.
Jon Meacham undertook an overhaul of Newsweek last year.
He is replacing Bill Moyers on PBS.
slashed its circulation rate base guarantee from 2.6M to
1.5M in January.
BLOOMBERGS KIRK HEADS
Jim Kirk, who was in charge
of Bloomberg News Washington bureau, is the new managing
editor of the Chicago News Cooperative.
The non-profit CNC provides
local news for the New York Times and WTTW-TV, a
public TV station. It launched last fall.
Kirk is a former columnist
and associate managing editor of the Chicago Tribune.
He also had a column at the Chicago Sun-Times and
served as midwest managing editor for Adweek.
Mark Silva, a Tribune
D.C. staffer, is joining Bloomberg to replace Kirk.
MURDOCH MOVES ON PAYWALLS
News Corporation CEO Rupert
Murdoch plans to unveil details about plans to erect paywalls
for his publications within a month.
Murdoch told investors
on May 4 that News Corp is in final discussions with
a number of publishers, device makers and technology company
and soon well deliver an innovative subscription model
that will deliver content to consumers whenever, wherever
they want it.
Murdoch envisions an online
He noted that the WSJ
charges $4 a week for the Wall Street Journal on
Apples iPad. He imagines the price will creep up over
the years without costing a penny in incremental expense.
News Corp. said last week
that fiscal third quarter revenue was up 19% over 09
to $8.8B with strong results from its film, cable, newspapers
and information services units.
Satellite TV was among
its units that posted losses for the period.
Net income for the quarter
was $839M, down from $2.7B in 09, a period that included
a gain of $2.4B from the sale of its NDS Group stake and
a tax benefit.
Murdoch beamed that the quarterly results show that no
content company is stronger than News Corporation.
division posted Q1 revenue of $131M, up from $29M last year.
A 25% increase in ad sales
at the Wall Street Journal and an ad upturn in the
U.K. fueled the division, which also benefited from cost
containment efforts, the company said.
GANNETT RETREATS FROM HAWAII
Gannett has sold the Honolulu
Advertiser to Honolulu Star-Bulletin owner David
Black, ending a 39-year run in Hawaii.
Both papers are to merge
to make Honolulu the latest one paper city. The combination
is expected to cost 300 jobs.
The new entity, called
the Honolulu Star-Advertiser, will have a circulation
in the 140K range. Dennis Francis, S-Bs publisher,
admits to angst in the community about the loss
of a paper, but noted that readers and advertisers decided
long ago that the community could not support two papers,
according to a report in the Advertiser.
Gannett says the Advertiser
lost money in recent years, but is now profitable. The S-B
lost a combined $100M since Black took it over in 01.
TIME WARNER SEES Q1 GAINS
Time Warner posted a five
percent jump in first quarter revenue to $6.3 billion compared
with 2009 on the strength of its networks like HBO and Turner
Broadcasting and filmed entertainment units.
Net income rose to $725M
for the quarter, compared with $660M for Q1 of 09.
Revenue at its publishing
division fell to $799M for Q1 from $806M for the same period
of '09, a one percent decline.
Advertising revenue, however,
rose five percent boosted by U.S. print magazine and online
properties, and subscriptions were up two percent mostly
on favorable exchange rates as U.S. subs actually declined.
A long-term deal with
CBS and Turner for the NCAA basketball tournament rights
and the high-profile signing of Conan OBrien to host
a late-night show on TBS were among its quarterly highlights,
said CEO Jeff Bewkes.
SMARTMONEY NAMES DILLER PUB
Ed Diller, a Wall Street
Journal sales exec in San Francisco, has been named
publisher of SmartMoney, the personal finance magazine
of the WSJ.
He is to foster tighter
marketing integration between the publications.
Diller joined Dow Jones
in 03, and worked at CBS MarketWatch before it was
acquired by DJ. Previously, he was at Lycos and AOL.
Diller takes the New York
post on July 1.
news continued on next page)
Edition, May 12, 2010, Page 4
AIDE EXITS FOR BLOOMBERG
Feinberg, a West Wing advisor to the president and senior
staffer to chief of staff Rahm Emanuel, is leaving the White
House for a director role in D.C. with Bloomberg L.P. overseeing
all D.C.-based communications for the company.
said she will assume a senior leadership position in its
new BGov division that will offer a comprehensive
information service about the business implications of government
action and public policy to be made available broadly starting
early next year.
work under former aide to Mayor Mike Bloomberg Kevin Sheekey,
who heads government relations and public affairs and chairs
the new division.
who is married to W.H. communications director David Plouffe,
has been a special assistant to the president and senior
advisor to Emanuel handling economic issues, press and communications.
is a former communications director of the House Democratic
Caucus working with Emanuel since 2005 and was a press secretary
for former Senate Majority Leader Tom Daschle (D-S.D.).
ISRAEL TAPS ARAB MEDIA LIAISON
Israeli Prime Minister
Benjamin Netanyahu has created a new public diplomacy post
to make the countrys case to Arabic media and, in
turn, the Arab world.
said last week that the PM tapped Ofir Gendelman, a former
Arabic spokesman for the Israeli Foreign Ministry, to fill
the new post.
This is an important
and unique position that has been filled on instruction
from [Netanyahu] in order to deal with recent media developments
in the Arab world and especially in light of global developments
regarding Arabic-language television stations, National
Information Directorate head, Nir Hefetz, said in a statement.
Israel wants its positions
represented directly in the Arab press and hopes the new
post can increase Arab exposure to Israeli content and initiatives
on security, economic, social and cultural issues, Netanyahus
office said in a press release announcing the post.
Gendelman has worked in
the Foreign Ministry since 1998 and was recently the first
director-general of the Israel-Palestinian Chamber of Commerce
BOSMAN TAKES PUBLISHING BEAT
Julie Bosman, a political
reporter at the New York Times, is taking over the
book publishing beat at the paper
Motoko Rich, who handled
that coverage, is moving to economic coverage in the Times
Bosman is a former staff
assistant to columnist Maureen Dowd in the Times' D.C. bureau.
TESTER UNVEILS PUBLIC ONLINE
Sen. Jon Tester (D-MT)
has introduced the Public Online Information Act to require
all government-held information that is public to be posted
online in an effort to end the nightmare of tracking down
federal information. The bill gives government agencies
three-years to develop capabilities to put all new information
An advisory board composed
on members of the executive, legislative and judicial branches
will create guidelines for info sharing. POIA contains commonsense
exceptions for disclosure, such as national security
Rep. Steve Israel (D-NY)
has a companion bill in the House.
The Federal procurement
sector and others opposed to the measure say the bills are
too vague and implementation could be expensive.
AOLS FRANKEL TUNES INTO
Matthew Frankel, senior
VP for corporate communications at AOL, is moving to Current
Media in a new position that carries that same title at
the content company started by Al Gore.
Current, known for its
web-based user-generated content and now beamed into 70M
households under cable TV deals, said Frankel is to serve
as its chief spokesperson and communications strategist
at it moves to aggressively expand its global brand.
Based in New York, he
reports directly to CEO Mark Rosenthal, who, in a statement,
called Frankel a brand builder, recognized industry
leader and strategist with experience in cable, digital
media, entertainment and public affairs.
Frankel started out in
Democratic politics before moving into corporate PR.
He was previously VP of
corporate comms. for seven years at Cablevision Systems
programming subsidiary Rainbow Media, and was chief communications
officer and senior VP of corporate affairs at The Weinstein
He was communications
director for centrist Democratic Leadership Council and
worked press positions for Sen. Debbie Stabenow (D-Mich.)
and Rep. Dick Gephardt (D-Mo.).
TWITTER UNVEILS EMBEDDED TWEETS
Twitter unveiled a new
feature last week that allows tweets to be embedded in posts
on the web, instead of forcing bloggers and content producers
to take screen shots and post them as images.
Before unveiling the new
service on May 4, Twitter pointed to an article on ReadWriteWeb
that used tweets as quotes, which, Twitter says, helps
chunk the piece both visually and logically;
we think it makes it easier to read.
The move could make it
more visually appealing (and easier) for journalists and
bloggers to cite tweets in online pieces gauging public
opinion or to get a quick reaction to an event.
With high-profile Twitter
accounts now verified by the company, quoting prominent
sources like entertainers or athletes could also be easier
and conceivably eliminate so-called middle men
like PR reps or agents and lawyers.
Writers and journalists
could simply insert the code generated through the Twitter
widget where a quote appears in a story.
Edition, May 12, 2010,
OF PR FIRMS
PA DIRECTOR SETS UP SHOP
Perini, a 36-year Air Force veteran who directed public
affairs for NORADs popular annual Santa tracking program,
has set up a Woodland Park, Colo., PR firm.
retired colonel, Perini served in both military and civilian
posts in the Air Force, including senior PA posts at NORAD,
U.S. Northern Command and U.S. Space Command, among others.
That included leading the largest military PA operation
in the aftermath of Hurricane Katrina.
said his firm, Perini & Associates, has associates in
Orlando, St. Louis and Seattle.
whos active in PRSA and IABC, had recently been executive
director of the National Institute of Science, Space, and
Security Centers at the Univ. of Colorado, Colorado Springs.
DIMEO OPENS AGAIN
Bernie DiMeo, who shuttered
Chicago firm DiMeo & Co., has opened a new shop with
former staffers which he says will blend traditional PR
with new media.
"I may be an old
dog but I have learned some new tricks," DiMeo said,
invoking the new agency's tagline.
Robin Boesen (VP), Keith
Romero (VP) and Nick Ulivieri (A/E) are among staff for
the new shop, known as Bernie DiMeo Communications.
Clients include the Lake
County Fielders baseball team slated for a June debut, Gold
Coast Tickets, and ad agency ESW Partners.
MIDDLEBERG EYES SPORTS PR
has aligned with the boutique firm of former New York Yankees
PR hand Marty Appel as Don Middleberg builds a sports PR
division of his New York firm.
Appel, wholl serve
in an of-counsel role to MC, headed PR for the Yankees for
several years before moving into a PR and executive producer
role with the Turner Broadcasting station that carried Yankees
games WPIX in New York.
Middleberg has been expanding
his firm beyond its technology base over the past year,
most recently adding consumer and entertainment capabilities
with the November '09 acquisition of The Dowd Agency.
Middleberg said Appel
has been in sports PR longer than anyone he knows. I
can think of no one better than him to offer us strategic
counsel as we form our sports business group, he said.
Appels clients include
sports franchises like the New York Rangers and Giants,
as well as The Topps Co., Major League Baseball Players
Association and Steiner Sports Marketing.
2012 Ryder Cup, the biennial golf event that pits
the U.S. against Europe, has tapped Edelman
after a competitive review to handle the event slated for
Medinah Country Club outside of Chicago. ...The Smoky Mountain
Convention & Visitors Bureau has awarded marketing and
PR pacts to Tennessee firms Akins
Crisp Public Strategies and Tombras
Group following an RFP process.
Finn, New York/Tropicana Las Vegas, as AOR for the
hotel and casino as it rebrands following a $165M renovation.
The annual retainer is in the mid-six figures, RF said.
Gail Moaney, executive VP and director of RFs travel
and economic development practice, said the property, once
known as the Tiffany of the Strip, will have
a South Beach feel and offer amenities the firm
believes will entice consumer, travel, gaming, lifestyle,
entertainment and business media.
J. Friedman PR, New York/Sheraton Hotels & Resorts
Worldwide, for brand PR, and Visit St. Pete Clearwater,
as AOR for PR.
Hackensack, N.J./CoStar Group; Fletcher Thompson; Frontier
Beverage Co.; Monarch at Ridge Hill; Intellect Neurosciences;
Keystone Property Group; Pro-Tech Energy Solutions; Raw
Foods International; The Residences at Palmer Square, and
Simeone & O'Sullivan LLP (law firm).
PR, Raleigh, N.C./Ajinomoto AminoScience, amino acids
for biotech and pharma companies, for PR.
Communications, Atlanta/Widevine, digital entertainment
services, for PR.
PR, Atlanta/Comergence Compliance Monitoring, third-party
originator monitoring and due diligence, for PR.
Quell Group, Troy, Mich./Automotive Industry Action
Group, for branding and strategic comms.
Lane, Phoenix/Arizona Lottery, as AOR for marketing
comms. The firm, which handled the work from 1995-05, beat
three finalists for the account, which is worth $80M over
five years and starts July 1. It is subcontracting with
Lopez Negrete Communications for multicultural work as that
firm opens a Phoenix office.
& Wolfe, San Francisco/Grid Net, smart grid and
smart home software for utilities and other customers; Neato
Robotics, venture-funded start-up focused on robots performing
household chores, and Wellcore, wireless products for everyday
Los Angeles/Sani Sport, sports equipment sanitation machines
to reduce spread of infectious diseases among athletes,
as AOR for strategic PR centered on media relations. Formula's
sports and entertainment unit handles the work.
Marketing & PR, Irvine, Calif./Stephen Frank
Garden & Home and Stephen Frank Table & Pantry,
La Guna beach boutiques, for PR including media and community
relations, and social media.
PR, Austin, Tex./Carinos Italian and Rudy's
Country Store and Bar-B-Q, restaurant chains,
for social media and marketing PR.
PR Worldwide, Singapore/Eu Yan Sang Intl, healthcare,
as AOR for local and regional PR following a four-agency
Edition, May 12, 2010, Page 6
CUTS BACK ANONYMITY
A Reporter Out, the online service journalists use to get
sources for stories, has removed its anonymous query
feature which allowed reporters to mask their publication
and identity when asking for input.
Shankman, founder of the service, said some people have
been abusing the feature and as more than half
checked the anonymous box in submitting a query,
responses fell by more than 50% as sources were hesitant
to share knowledge without knowing who they were dealing
nixed the anonymous option on May 10.
noted that the service masks email addresses and will still
allow journalists to be unanimous, but their queries will
be subject to approval before running.
the end, we think less anonymous queries are actually better
for everyone - both sources, who know who they're pitching,
as well as journalists, who will get double, triple, or
even quadruple the query responses if a source knows who
they're pitching, Shankman wrote on his blog.
BW TAPS WEBB FOR CANADA EXPANSION
Darlene Webb, has been
named country manager for Business Wire in Canada, based
She heads sales, editorial
and media relations activities for the company north of
Greg Castano, president
of BW, said the company has ambitious plans
to grow its market share in Canada and sees Webb playing
a key role in that effort.
Webb was previously director
of PR and communications at Vineland Research and Innovation
Center and manager of corporate comms. at Royal Bank of
She was previously an
A/E for CNW Group, the Canadian news release dissemination
WESTGLEN MARKS 40 YEARS
Broadcast and digital
PR company West Glen Communications, New York, will mark
its 40th anniversary on May 15.
The company started out
in 1970 distributing sponsored 16mm films to schools and
other outlets, along with public service announcements and
the VNR precursor known as newsfilms.
WG president Stan Zeitlin
cited the company's ability to embrace change as key to
its long run. He thanked clients for the loyalty and friends
that helped the company mark its fourth decade.
STRAUSS ADDS STAFF
Strauss Radio Strategies,
the Washington, D.C., radio PR company, has added three
executives to its ranks.
Laura Lucia and Ebony
Wilder have signed on as assistant A/Es handling radio outreach,
writing and editing. Wilder has experience from WBOC-TV
(Md.) and Washington Post Interactive while Lucia interned
at Clear Channel Communications.
Caroline Rana, a former
Strauss intern, is the company's new office manager and
executive assistant to founder and president Richard Strauss.
Andriano, senior VP at Redpoint Marketing PR, to
Susan Magrino Agency, New York, as VP, travel and lifestyle.
She handles clients like One&Only Resorts, The Cosmopolitan
of Las Vegas, Fontainebleau Miami Beach and La Palina Cigars.
She was previously VP at KWE Associates and VP at Rubenstein
Elliott, director of PR and public affairs, Pennsylvania
Builders Association, to the Pennsylvania Housing Finance
Agency, Harrisburg, as manager of communications.
Wingate, Citigroups head of federal government
affairs, has left after seven years to lead a D.C. presence
for Nomura Holding America, New York, as managing director
of public affairs. Bloomberg reported last week that Nomura,
which bought Lehman Bros. Asia and Europe units, has
been working to shed its image as a Tokyo-centric brokerage.
Jenkins, former intern at Bailey Gardiner, San Diego,
joins as an AC. The firm has promoted Kevinie Woo to A/E
to lead the San Diego Museum account and support Electra
Bicycle Co. and Se San Diego Hotel.
OBrien, A/C, One Tribe Creative, to JohnstonWells,
Denver, as an associate.
Carter and Keith
Yazmir to partners, Luntz, Maslansky Strategic Research,
New York, part of Omnicom. The firm is taking a new name
- maslansky, luntz + partners - as it provides a wider range
of consulting services. Moscow, a former PBS and MSNBC producer,
is manager of the firm's D.C. office, while Carter and Yazmir
are based in New York.
Courtney to senior VP of PR for Major League Baseball,
New York, upon the retirement of Richard Levin at the end
of the year. Commissioner Bud Selig made the announcement.
Courtney, who joined MLB in1992 as a PR assistant, will
serve as principal spokesperson for Selig and oversee the
day-to-day operations of the MLB PR dept.
Steiner to director, media strategy and client services,
Harden Communications Partners, Oakland, Calif. Also, John
Lopez, who worked for Sen. Barbara Boxer and San Diego Mayor
Jerry Sanders, joins as an A/E.
Pérez, principal, VPE PR, Los Angeles, to
the Public Relations Global Network, as president. Pérez
will lead the network of 40 independent firms, taking over
for José Luiz
Schiavoni of São Paulo, Brazil-based S2 Comunicação
Integrada. PRGN has also named Francine
Robbens, partner and consultant at Brussels-based
PRP/PR Partners, as president-elect.
Edition, May 12, 2010, Page 7
BLASTS TYLENOL (contd
from page 1)
Bartz cites statements
by FBI personnel, medical doctors and police officials that
the cyanide used in the Chicago area and Yonkers, N.Y.,
murders could be invisible in the capsules for an indefinite
period and was not necessarily placed in Tylenols at the
J&J contended that
the cyanide would cause the capsules to visibly deteriorate
in less than a month.
of Tylenol capsules from the market in 1982 has been cited
numerous times in recent weeks as admirable corporate behavior.
Tylenols have been in
the news since more than 60 million bottles of Tylenols
and other J&J products have been recalled because of
The Food & Drug Administration
in late April charged lack of quality control in the production
of J&J childrens drugs and said punitive actions
could include criminal penalties. The FDA said it took the
supposedly speedy J&J 20 months to answer certain complaints.
Media writing about the
latest recalls expressed surprise at such failings in a
company whose handling of the murders in 1982 was said to
have set the gold standard for crisis management.
Wrote New York Times
reporter Natasha Singer May 3: J&J is considered
a model for the consumer products industry for its fast
and adept handling of a Tylenol scare in 1982 in which seven
people in Chicago died after taking capsules that had been
laced with cyanide.
columnist Al Ries wrote May 3 that the Tylenol brand was
so strong that even seven murders could not inflict much
damage on it. He did not mention the murder of 23-year-old
Diane Elsroth of Peekskill, N.Y., in 1986 via poisoned Tylenols.
The Motley Fool, covering
the current recalls, said May 6 that Since its Tylenol
recall in the 1980swhich wasnt its faultJ&J
has always been the poster child for how to correctly handle
a crisis. Now were going to get a chance to see how
it handles things when the problem apparently is its fault.
The Christian Science
Monitor on Jan. 15 said, In a moment of startling
corporate clarity, J&J recalled all its Tylenol from
U.S. store shelves in 1982 after its tampered capsules were
linked to seven fatalities
three decades later, the
move is still regarded as a shining example of corporate
Whether J&J was at
fault in selling Tylenols in vulnerable capsules, as charged
by the families in 1982, was never settled in a court of
The families said J&J
should have known and warned consumers via messages on packaging
that the capsules were susceptible to tampering. J&J
fought them for eight years, only settling out of court
on May 13, 1991 in Cook County Circuit Court just as jury
selection was to begin. Bruce Pfaff, lawyer for the families,
said J&J did not make its first offer until a week before
the trial was to begin.
Terms of the settlement
were not disclosed.
Pfaff said both sides
asked Judge Warren Wolfson to keep secret the amounts of
any payments to the families. Wolfson agreed, saying that
settlement terms could have an adverse impact on public
health and well-being. Also kept secret were certain
documents and pretrial testimony. J&J had obtained a
court order allowing it to keep such materials secret unless
the case went to trial. The settlements included funding
college educations for eight children of the victims.
Kniffin said: Though there is no way we could have
anticipated a criminal tampering with our product or prevented
it, we wanted to do something for the families and finally
get this tragic event behind us.
Asked why it took eight
years to settle, Kniffin said: We reached settlement
as soon as we could.
Is Key, Say Critics
J&J may have asserted
ignorance about possible tampering in 1982, critics now
say, but such an excuse didnt work in 1986 when Elsroth
was murdered by Tylenols.
That case was declared
still open in February 2009 by the Yonkers police.
The FBI had re-opened the case in Chicago.
The Elsroth family sued
J&J but lost on Nov. 16, 1988. Federal Judge Gerhard
Goettel said J&J could not be held liable for a
wrong that they did not truly commit.
Bartz, who operates the
website americanfraud.com, contends that the Tylenols were
poisoned at some point in the manufacturing process. He
notes that the capsules that poisoned Elsroth came from
the same Jewel Food facility that handled the poisoned Tylenols
Seals Not Broken
Michael Notamicola, in
whose house Elsroth was staying, testified that the flaps
to the Tylenol box were glued shut, the shrink seal on the
bottle did not appear to be disturbed, and the foil seal
further securing the capsules had not been broken.
J&J spokespeople claimed
cyanide had to be introduced at the store level because
the poison would cause the capsules to deteriorate in
less than a month. But americanfraud.com quoted FDA
Commissioner Dr. Frank Young as saying the cyanide in the
capsules that killed Elsroth could have been put there months
previously and that there were no time restrictions
on the capsules showing deterioration.
Westchester District Attorney
Carl Vergari on Feb. 18, 1986 said Federal investigators
found no evidence that the triple seals on the bottles had
been broken after they left the factory.
Notamicola had purchased
a bottle of Tylenols from an A&P in Bronxville and another
poisoned bottle was found in a nearby Woolworth store several
days after Elsroth died. The FBI at first said no tampering
occurred but later reversed its position after making tests
it would not describe.
A paper on the Tylenol
murders by John J. Pauly, now provost of Marquette University
and previously nine years with the communications dept.
of St. Louis University, said the fact that J&J only
offered $100,000 for information on the killer was a move
by the company to distance itself from the idea that
the tampering occurred internally.
Articles by J&J VP-PR
Lawrence Foster and Prof. Carole Gorney of Lehigh University
in the Fall 2002 Strategist of PRSA do not mention
Edition, May 12, 2010,
Committee for a Democratic PRSA (page two)
is trying to overturn an historic inequity at the Society--the
rule by a small minority of less than 20% of the members
since the mid-1970s.
people in charge, the APRs, won't let the reform group publicize
this to the max with the 21,000 members.
is the very issue at stake--governance by the few. The few
won't allow reformers access to the full membership.
and h.q. are saying thus far that this is just another bylaw
change that must go through normal procedures.
this is a huge news story that deserves the widest possible
dissemination on Society media. It's news when the head
of the world's largest PR firm (Richard Edelman), the winner
of the 2008 Patrick Jackson Award (Art Stevens), and the
head of the Society bylaws task force (Dave Rickey) get
together to change a policy that dates back to the mid-1970s.
obstinacy of Society leaders and the staff flies in the
face of the Code of Ethics that says "We respect all
opinions and support the right of free expression."
core principle is "protecting and advancing the free
flow of accurate and truthful information."
2006 bylaw change sought by Central Michigan to give the
Assembly power over the board (as it is for medical, legal
and accounting professions) never got anywhere.
Michigan Was Blocked
is because not a word of it appeared in any Society publication
or on its website even though the proposed change was sent
to the national board in April of 2006. The board and staff
were doing what they do best-suppress information.
2006 Assembly defeated Central Michigan's reasonable quest
by a 261 to 19 vote. Not one chapter publicly supported
it. The chapter was never able to publicize its aims to
the membership because h.q. controls the Society press and
uses it to its own advantage rather than for the advantage
of all members.
control of the chapters was demonstrated in 2006. The chapter
presidents-elect are treated to a weekend in New York each
June and we believe they are thoroughly politicized there.
to national is put forth as the supreme value rather than
loyalty to members. The chapter members get $500 in cash
to help defray expenses.
The "Leadership Rally" this June 4-5 can easily
be converted to an Assembly if the board desires this, which
weekend costs $100,000 or more at a time when the Society
cannot afford to waste money. PRS is the only national professional
group whose assembly meets once a year. All the others meet
twice a year. The Assembly has virtually no experience in
being an Assembly.
Spur Reform Group
the root of the Committee's initiative is revulsion over
such practices as withholding the transcripts of the last
five Assemblies; moving h.q. downtown for 13 years with
no input from the general membership; killing the printed
directory of members with no input from the members; refusal
now to PDF a copy to members or digitize it and refusal
even to discuss these two alternatives; the waste of an
entire year last year on the failed attempt by the board
to remove from the Assembly the power to elect board and
officers, add 30 or so national committee heads to the Assembly,
and remove district representation from the board; use of
56 proxy votes in the 2009 Assembly when all parliamentary
rules forbid proxy voting including Robert's.
abuse was refusal to report all the tabulated votes during
the Assembly which is required by Robert's Rules because
the votes were actions and the "minutes" of a
meeting must report any actions.
is only the start of a list of various governance and communications
abuses at the Society. That is the reason for trying to
wrest control from the APRs.
numerous myths surrounding the PR of the Tylenol murders
in 1982 and 1986 are starting to unravel with the help of
PR professors who are taking a second look at this most
quoted of all PR "success" stories (page one).
& Johnson has nothing to be proud about in the way it
reacted to the murders in 1982 because it re-introduced
a product that was fatally flawed.
should never have marketed easily spiked capsules in the
main reason for using capsules rather than pills was that
the ingredients in a Tylenol are expensive to convert to
ingredients in aspirin lend themselves to tableting but
the acetaminophen in Tylenols is made up of crystals that
are hard and brittle and fracture easily.
must be added to overcome this problem.
CEO James Burke led the decision in 1973 to market Tylenols
in capsules via the newly created McNeil Consumer Products
Co. Previously, Tylenol was only available at medical facilities.
Propelled Tylenol Capsules
A massive ad campaign
with PR supplied by Burson-Marsteller helped to establish
Tylenols as the No. 1 analgesic.
Burke, whose career skyrocketed
at J&J based partly on the success of Tylenols in capsules,
was loathe to give them up even after seven people were
murdered via poisoned capsules in 1986.
Former employee Scott
Bartz will publish a book this summer that will provide
a 180-degree different view from the way the Tylenol story
is usually told.
Reports on his website
cast doubt on whether the Tylenols were poisoned after being
delivered to store shelves, which is the way the story invariably
An explanation is needed
as to why the FBI at first said there was no evidence of
tampering of two poisoned bottles sold in the Yonkers area
in 1986 (leading to the death of 23-year-old Diane Elsroth)
but later reversed this opinion. When giving the second
opinion, the FBI refused to discuss what new means were
used for the basis of such an opinion.
In any case, we hope the
media will stop referring to J&J's actions before and
after the Tylenol murders as anything but deplorable.