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06.11.2012
Oil rose the most in more than five months in New York on speculation fuel demand will increase after Spain requested a European bailout to shore up its banks and China’s imports of crude climbed to a record.
Futures pared gains after advancing as much as 3 percent, the most since Jan. 3. Spain will seek 100 billion euros ($126 billion) from euro-area nations, Economy Minister Luis de Guindos told reporters in Madrid during the weekend. China, the world’s second-biggest crude consumer, increased imports of the commodity in May as costs fell, according to customs data. OPEC may maintain output quotas to keep prices at current levels when the group meets this week, a Bloomberg News survey showed.
Price risks are “shifting more to the upside,” Jeffrey Currie, head of commodities research at Goldman Sachs Group Inc. in New York, said today in a report. “As policy makers continue to address the European debt issue and the economic data stabilizes, markets will move substantially higher.”
Crude for July delivery increased as much as $2.54 to $86.64 a barrel in electronic trading on the New York Mercantile Exchange and was at $84.92 at 11:13 a.m. London time.
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06.11.2012
Grainger today reported sales results for the month of May 2012. Daily sales increased 13 percent versus May 2011. Results for the month included a 5 percentage point contribution from acquisitions and a 1 percentage point decline from foreign exchange. Organic sales on a daily basis increased 9 percent, including 6 percentage points from volume and 3 percentage points from price. May 2012 had 22 selling days, one more than May 2011. The 2012 second quarter will have the same number of selling days as the 2011 second quarter (64 days).
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06.08.2012
Sonoco, one of the largest diversified global packaging companies, announced today the commercial availability of its patented radial crush tester, which measures the radial strength of paper cores by simulating the pressures applied during the winding processes of rolled products such as plastic films and textiles.
According to David E. Rhodes, director of Global Industrial Technology, Sonoco's radial crush tester is the result of several decades of engineering development work.
"In response to the needs of our tube and core customers, we have been committed to understanding the properties of radial crush technology for many years," Rhodes said. "We developed radial crush testing so we could help customers prevent failures during the winding process and optimize tube designs. Today it remains an essential test for many of the cores we supply."
Sonoco's radial crush tester has been endorsed by the Composite Can and Tube Institute as an accepted test method (CCTI Standard Testing Procedure T-158). Each tester is manufactured by Sonoco, and order fulfillment requires approximately 12 weeks.
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06.08.2012
Nina Link, who guided the MPA--the Association of Magazine Media (formerly Magazine Publishers of America) through much transformation over the past 12½ years, announced her resignation this morning (June 7), effective at year-end. By then, Link would have surpassed her 1987-1999 predecessor Don Kummerfeld in longevity.
Link's since-Nov. 1999 tenure is most notable for magazines' shift to multimedia (especially digital) rather than print-only and enduring major recessions in 2000-2002 (exacerbated by the Sept. 11, 2001, attacks) and the Sept. 2008 financial crisis, where the effects continue.
In a statement, Link expressed a "mission accomplished" desire to return to her The Link Group consultancy. "MPA has worked effectively over the past two years to reposition itself and the industry. We rebranded and refocused the mission and priorities of MPA. We changed our management team. We changed how we engaged with our members....I decided that this was the ideal time to reestablish my consulting and product development firm.”
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06.08.2012
Evergreen Packaging announces the launch of choosecartons.com, an interactive website designed to educate and encourage consumers to consider the eco-friendly attributes of packaging in their purchasing decisions. Choosecartons.com raises awareness of the environmental benefits of paper carton packaging and promotes carton recycling.
"Consumers have conveyed that packaging is a major driver in their green purchases," states Erin Reynolds, senior marketing manager for Evergreen Packaging. "We believe it's important for consumers to be aware of the environmental attributes paper cartons offer, and choosecartons.com will help raise that awareness."
Cartons are light-weight and have a great product-to-package ratio. If consumers choose a product in a carton, they are taking home an average of 94% product and only 6% package. In addition, cartons are made with renewable materials - more than 70 percent of the Evergreen carton is made from paper, all from trees from responsibly managed forests.
Choosecartons.com provides a fun, resourceful platform for those already green-leaning consumers to promote cartons and a resource for others to get more information.
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06.08.2012
Transcontinental Inc. increased its revenues by 6 percent in the second quarter, from $498.7 million to $529.4 million, driven primarily by the acquisition of Quad/Graphics Canada, as well as numerous acquisitions and launches of community newspapers in Quebec, and new contracts such as Canadian Tire. This growth was mitigated primarily by the sale of its black-and-white book printing business, destined for U.S. exports, to Quad/Graphics last September and by lower volume from the non-recurring revenue from the printing contract for the Canadian Census last year.
For this same period, adjusted operating income decreased 7 percent, from $60.2 million to $55.8 million, driven primarily by a new provincial legislation in Quebec under Bill 88 that imposes greater recycling fees on publishers, lower volume from the non-recurring revenue from the printing contract for the Canadian Census last year and lower volume from its educational book publishing group due to the end of the school reform in Quebec. This decrease was partially offset by synergies from the use of its most productive assets.
Net income applicable to participating shares decreased from $32.7 million to a loss of $106.2 million. This decrease is mainly due to an impairment of assets of $180.0 million, in the newspaper and magazine activities of the Media sector, which is non-cash and non-operational. Excluding unusual items and discontinued operations, adjusted net income applicable to participating shares decreased 9 percent, from $39.1 million to $35.4 million.
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06.08.2012
Verso Paper Corp. announced today that it has completed a preliminary assessment of the damage resulting from the recent explosion and fire at its paper mill in Sartell, Minnesota. The incident at the Sartell mill on May 28, 2012, which claimed the life of one Verso employee and injured four others, caused substantial damage to the mill's paper warehouse and important infrastructure including the electrical system. While a visual inspection of the mill's paper machine indicates that it was not damaged, the operability of the paper machine has not yet been confirmed. Based on the preliminary damage assessment, Verso has concluded that a period of several months would be required to complete the necessary repairs to the mill. Verso intends to continue the damage assessment and will make a decision on the mill's future once the assessment is completed.
Verso has determined that over 5,000 tons of finished paper and work-in-process inventory were destroyed by the explosion and fire at the Sartell mill. Verso is working closely with its customers to provide alternative paper supplies in an effort to meet their needs in a timely manner. "Verso is appreciative of the cooperation and flexibility that our customers have demonstrated as we work together to resolve the production, supply and logistical issues resulting from this unfortunate, unforeseen event," said Mike Weinhold, Verso's Senior Vice President of Sales, Marketing and Product Development.
"The tragic loss of our employee, Jon Maus, makes this an especially difficult time for Verso and our employees," said Dave Paterson, Verso's President and Chief Executive Officer. "Our collective thoughts and prayers continue for Jon's wife Lucy, their children, and the rest of the Maus family." Verso also continues to offer counseling services for all employees affected by the Sartell incident.
Parallel with the damage assessment, Verso has begun an investigation into the origin and cause of the explosion and fire at the Sartell mill. "Our top priority is to determine why this unfortunate event happened and to make sure that nothing like it ever happens again," said Paterson. The Sartell mill has consistently achieved "Star" status in the Voluntary Protection Program sponsored by the federal Occupational Safety and Health Administration, which recognizes employers and employees who have demonstrated exemplary achievement in the prevention and control of occupational safety and health hazards.
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06.08.2012
Rite Aid Corporation today announced sales results for May.
For the five weeks ended June 2, 2012, same store sales increased 1.1 percent over the prior-year period. May front-end same store sales increased 1.3 percent. Pharmacy same store sales, which included an approximate 406 basis points negative impact from new generic introductions increased 1.0 percent. Prescription count at comparable stores increased 2.6 percent over the prior-year period.
Same store sales for the 13-week period ended June 2, 2012 increased 2.5 percent over the prior-year period. Front-end same store sales increased 2.7 percent while pharmacy same store sales increased 2.4 percent. Prescription count at comparable stores increased 3.0 percent over the prior-year period.
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06.08.2012
Every good turn deserves another. After enjoying considerable success with its first iBookstore book in the Apple e-book section of iTunes, Saveur magazine has made a regular feature of reviewing and highlighting the best in cooking and design books available for iOS devices. Saveur Easy Italian digital book appeared this spring and has been a bestseller in iTunes for ten weeks. The more recent follow up, The Way We Cook (currently #46 among cookbooks) is a densely illustrated tour of kitchens and their chefs.
In the newly launched Saveur Digital Feast section of the magazine and site, the editors choose a small list of titles each month that stand out in the iBookstore. This month the titles include April Bloomfeld’s A Girl and Her Pig and Thomas McNamee’s biography of Craig Claiborne.
The selections are going to appear in the print magazine as well as on the Saveur site and in special section of iTunes itself. All of the titles have buy buttons leading direct to the iTunes store, but Saveur tells us that it derives no revenue from the click through or purchases. The program is entirely editorially driven. According to the magazine, Apple approached Saveur with the project.
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06.08.2012
HP today announced that Vertis Communications Inc., a results-driven marketing communications company, has adopted HP Print Module technology to complete its full-service suite of advanced color-personalization capabilities.
By integrating 4.25-inch wide, four-color HP C500 imprinting stations into its existing direct-marketing production operations in Chalfont, Pa., Vertis can offer its clients the benefits of HP technology for more cost-effective, full-color and high-volume personalization solutions.
“We keep our customers ahead of the competition with innovative technologies that maximize their return on investment,” said David Colatriano, chief operating officer, Direct Marketing, Vertis Communications. “Our installation of HP inkjet technology provides best-in-class solutions that engage customers and provide economy of scale for the ultimate level of personalization and customization.”
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06.08.2012
Holmen Paper has signed a deal to sell PM 61 at its mill in Madrid. The buyer, Albayrak Turizm, will dismantle and move the machine to Turkey. The dismantling is set to begin at the end of the summer and will be completed in the first
six months of 2013.
Holmen ceased production on the machine in Madrid in 2011.
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06.08.2012
Fry Communications won the coveted Gold Award in Sappi’s North American Printers of the Year competition for 2012, sponsored by Sappi Fine Papers. Fry’s outstanding production of Style.com, published by Conde Nast, merited gold in the “Magazines – web offset” category.
“Winning this Gold Printer of the Year Award validates the investments we’ve made in training, technology, and services over the past few years. It is an honor to be recognized as one of the best from the prestigious pool of printing companies in North America,” said Steve Grande, Vice President of Sales.
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06.08.2012
Fortress Paper Ltd., announces that its wholly-owned subsidiary, Landqart AG, a leading manufacturer of banknote and security papers, has had a material banknote order reinstated. This order was unexpectedly suspended in the fourth quarter of 2011 which negatively impacted the financial results of Landqart’s operations in the first half of 2012.
Chadwick Wasilenkoff, Chairman, Chief Executive Officer and President of Fortress Paper, commented "The recommencement of this previously delayed order will provide Landqart with momentum to realize additional orders and maximize operating efficiencies. This important order allows Landqart to better optimize the overall mill and should provide a meaningful contribution to its margins compared to recent quarters.”
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06.08.2012
Digital ad tech company PubMatic announced this week that it raised a big chunk of funding— $45 million—led by August Capital. The infusion, says the company, will allow it to fortify its balance sheet, but also continue to make acquisitions in a market that is clearly heating up.
PubMatic's current investors—the company raised a $7.5 million series C in 2010, at the time brining total capital investment to $18 million—Draper Fisher Jurveston, Nexus Venture Partners, Helion Ventures and Silicon Valley Bank were also part of the mezzanine deal.
The company helps publishers manage and sell their ad inventory through a real-time bidding engine. According to PubMatic, revenues have shot up 150 percent year-over-year, and it recently launched PubLink, a mobile monetization platform.
Depending on your perspective, the at tech market is either consolidating, and PubMatic's acquisition plans bear that out, or there are some public offerings in the near future—or both. "The marketing automation landscape is overly fragmented with too many point solutions," notes PubMatic co-founder and CEO Rajiv Goel in a statement. All Things D's Peter Kafka points out that Google bought PubMatic competitor AdMeld last year and two other big ad tech firms AppNexus and the Rubicon Project are jockeying for a public offering.
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06.08.2012
As the evolving media landscape continues to change, so does the way in which media owners measure a brand's reach and impact across various properties. To stay competitive—and relevant—in the marketplace as an auditing authority, BPA Worldwide has changed its rules on several aspects of magazine reporting.
One of the most notable changes is that the auditor will no longer require that members use the BPA proprietary tag powered by Nielsen.
“The change was prompted by the member feedback,” says Glenn Hansen, president and CEO of BPA Worldwide. “We had hit close to 700 sites and we have nearly 2,000 members. The question to the other 1,300 was what’s preventing you from doing this? Some had said they were using other analytics providers. The two that were named more often than not was Google Analytics and Omniture.”
Beginning July 1, BPA will now work with other existing Web analytics tags, including Omniture SiteCatalyst tags and or Google Analytics. The auditor decided to make these changes based on comparative analyses of tested data, recommendations from its members and a vote of approval from the BPA board.
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06.08.2012
Zondervan has announced Zondervan First, a new direct-to-digital publishing imprint. The new imprint launches today with the acquisition of the first fiction title, Love in Three-Quarter Time by Dina Sleiman . Zondervan First will provide fresh and relevant content across all reading devices. Authors who publish under this model will have the same access to the Zondervan editorial and marketing teams as those published traditionally, which sets this program apart from other direct-to-digital publishers.
“We are thrilled to launch Zondervan First,” notes Scott Macdonald , President and CEO. “This digital imprint will give voice to notable content utilizing our editorial, marketing and creative expertise.”
Love in Three-Quarter Time, a historical novel set in 1817 Virginia by Dina Sleiman will be the first title published through Zondervan First. "Dina's novel represents the type of story we are looking for in our fiction offerings via Zondervan First, and I am delighted Dina’s novel will soon be available,” said Sue Brower , Executive Editor.
Zondervan First will initially focus on fiction but will eventually branch out to all the categories the company currently publishes. Submissions will be accepted for fiction, non-fiction and Bible material suitable for kids, teens and adults in addition to manuscripts geared for curriculum, church resources, academic and reference books. By publishing through the new imprint, authors will have the full backing of the Zondervan brand.
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06.08.2012
Publishers Weekly (PW) magazine and Aptara announce that initial results from the 4th Annual eBook Survey of Publishers, conducted in April, reveal a 100% year-over-year increase in the number of publishers making greater than 10% of their annual revenues from eBooks (36% of eBook publishers surveyed as compared to 18% in 2011). This marks the first year since the survey was initiated in 2009 that eBooks are making meaningful contributions to publishers’ top lines.
“eBooks have reached a tipping point,” said Dev Ganesan , President and CEO of Aptara. “The ‘more than 10% of revenue’ barometer has been used by analysts to indicate when eBooks will be considered big business for publishers. With more than a third of eBook publishers already there, I’d say it’s official.”
The further maturing of publishers’ eBook operations and the eBook market in the last year has also resulted in:
• four out of five publishers now producing eBooks
• with the majority doing so for more than half of their entire catalog,
• yet standard operating procedure is still to release a print and digital edition, with only 11% of publishers issuing primarily digital-only editions
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06.08.2012
AAA’s Fuel Gage Report as of 6/08/12
National Unleaded Regular:
Current Average - $3.555/gallon
Month Ago Average - $3.750/gallon
Year Ago Average - $3.748/gallon
Highest Recorded Average - $4.114/gallon on 7/17/08
Diesel:
Current Average - $3.850/gallon
Month Ago Average - $4.070/gallon
Year Ago Average - $3.993/gallon
Highest Recorded Average - $4.845/gallon on 7/17/08
Current Exchange Rates as of 6/7/12
American Dollar to Canadian Dollar = 0.976963 (120 day high - 1.01905 on April 26, 2012; low 0.961252 on June 5, 2012)
American Dollar to Chinese Yuan = 0.157139 (120 day high – 0.159363 on May 2, 2012; low 0.156996 on June 1, 2012)
American Dollar to Euro = 1.2595 (120 day high - 1.3454 on February 28, 2012; low 1.2322 on June 1, 2012)
American Dollar to Japanese Yen = 0.0125849 (120 day high – 0.0131387 on February 2, 2012; low 0.0119026 on March 21, 2012)
American Dollar to Mexican Peso = 0.0717515 (120 day high – 0.0793808 on March 14, 2012; low 0.0691788 on June 1, 2012)
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06.08.2012
Oil fell a second day in New York, heading for the longest run of weekly losses in more than 13 years, on speculation the economies of the U.S. and China, the world’s biggest crude consumers, will slow and curb fuel demand.
Futures dropped as much as 3.3 percent. Federal Reserve officials need to assess the risk from Europe’s debt crisis and U.S. budget cuts before deciding on stimulus measures, Fed Chairman Ben S. Bernanke said to the Joint Economic Committee yesterday. China reports economic data tomorrow after cutting interest rates for the first time since 2008. Global crude supply is sufficient, Youcef Yousfi, Algeria’s energy minister, said before OPEC meets next week in Vienna.
“Finally the depth of the euro crisis is becoming clear,” said Christopher Bellew, senior broker at Jefferies Bache Ltd. in London, who correctly predicted earlier this week that oil would fall. “We are now seeing the effects of a decade of financial imprudence in Europe, and the extent of the re- structuring that is required is becoming obvious. The desperate state that Europe is in will lead to significantly lower oil prices in the short term.”
Oil for July delivery decreased as much as $2.82 to $82 a barrel in electronic trading on the New York Mercantile Exchange, and was at $82.30 at 12:02 p.m. London time. The contract yesterday slipped 0.2 percent to $84.82, the lowest close since June 5. Prices are down 4.9 percent this month and poised for a sixth weekly decline, the longest losing streak since December 1998. Oil has fallen 17 percent this year.
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06.08.2012
American Greetings Corporation today announced that it has acquired assets, through a subsidiary in the United Kingdom ("UK"), from Clinton Cards PLC and certain of its subsidiaries.
Clinton Cards, one of the largest specialty retailers of greeting cards in the UK, had approximately 750 stores and annual revenues of approximately $600 million before being placed into administration on May 9, 2012. As previously announced, through its UK subsidiary, American Greetings had acquired the senior secured debt of Clinton Cards for approximately $56 million. The legacy Clinton Cards business has been an important customer to American Greetings' international business for approximately forty years, and is one of American Greetings' largest customers.
The acquisition includes approximately 400 stores and related overhead as well as the Clinton Cards and related brands, representing approximately $315 million in annual revenues, or approximately $265 million excluding revenues generated from its sale of American Greetings products. The final number of stores acquired will be dependent on negotiations with landlords at each respective location. The other stores, assets and liabilities not acquired by American Greetings remain part of the administration process under the direction of the administrators, partners of Zolfo Cooper LLP ("Zolfo Cooper"). It is anticipated that the remaining assets will be liquidated and proceeds will be used to repay Clinton Cards' creditors, including American Greetings.
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06.08.2012
April 2012 U.S. commercial printing shipments were $6.672 billion in current dollars. For perspective, in April 2008, current dollar shipments were $8.636 billion, nearly $2 billion more, at a time when social media was gaining steam, the iPhone was just another gadget, and the iPad was barely a rumor. Compared to April 2011, shipments were down -$238 million, or -3.4%. For 12 of the last 13 months, shipments have declined compared to the prior year. Last month, the Commerce Department reduced its estimate of 2011 printing shipments by -$1.8 billion to $81.8 billion.
Forecast models are now showing a -4.0% decline for 2012 compared to 2011; we don’t necessarily believe it, but some models are forecasting steeper declines than that. Two of our more aggressive models, which weight recent trends more heavily than older ones, are forecasting declines of -6% and -9% compared to 2011. Remember, forecasting is a strategic tool for scenario development in planning, and forecasting models are notoriously bad for statistical precision. The models are capturing significant shifts in communications expenditures and the further division of the media use of consumers and businesses among more media choices. Ten or so years ago, we reminded readers that they were reading about print on the Internet. Today, they’re reading it through the Internet on numerous devices, often multitasking in the process. Managers need to be going through “what if?” scenarios in their planning sessions. Such downward pressure on printing shipments will stress even healthy print businesses, and will underscore the need for wise consolidations that allow for development of new business opportunities that could not be sought alone. Defensive consolidations, those that merge costs and don’t alter strategy, are not helpful in long-term scenarios.
On an inflation-adjusted basis, shipments were down -$397 million, or -5.6%. Inflation-adjusted shipments have declined for the last 14 months. For the first four months of 2012, current dollar shipments are down -3.8%, and inflation-adjusted shipments are down -6.3%.
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06.07.2012
MeadWestvaco Corporation, a global leader in packaging and packaging solutions, announced today that it is expanding its leading position in adherence packaging with the acquisition of AARDEX Group SA. AARDEX Group is the leader and pioneer in the design and use of electronic medication event monitoring systems and applications designed to measure, analyze, and manage patient adherence in clinical drug trials.
“This acquisition builds on MWV’s long-standing commitment and scientific approach to showing medication packaging’s impact as an important adherence intervention,” said Bruce Thomas, president, MWV Healthcare and Senior Vice President, Global Innovation. “We recognize the critical global need to create packaging solutions that address the issue of medication non-adherence. With the acquisition of AARDEX Group, MWV will now be able to provide customers with a complete range of packaging, data analysis and service solutions that address non-adherence to medications, from phase II clinical trials all the way through commercialization.”
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06.07.2012
QuadDirect, a division of Quad/Graphics, Inc., is setting new records in direct mail production and distribution savings at its Effingham, Ill., facility following a multimillion-dollar investment in new commingling mailing and inline manufacturing equipment and systems. A year-long expansion project – including two additional high-speed letter sorters for commingling operations – has helped make the 579,000-square-foot facility a direct mail powerhouse in Quad’s expanding direct mail platform.
“Effingham is one of the largest printing facilities in Illinois with a long history of direct mail and related commercial printing leadership,” said Joel Quadracci, Quad/Graphics Chairman, President & CEO. “Our latest investment in the plant has focused on state-of-the-art inline press personalization, selective inserting and on-site commingling capabilities. The result is a truly 21st-century facility with more of the technology direct marketers need to drive greater response while better managing production and distribution costs.”
The Effingham improvements build on Quad’s strengths like inline direct mail production and personalization. The additional commingling lines allow multiple direct mail projects to be combined into a single mailstream to drive greater postal savings and efficiencies. In particular, direct mailers executing versioned and personalized direct mail projects can now take advantage of Quad’s enhanced commingling and personalization capabilities while utilizing high-density mailing solutions and retaining discounts. Inline direct mail production drives further cost savings by producing an entire mailpiece in a single operation, from paper on one end to a finished mailpiece on the other, bypassing costly and time-consuming offline steps.
An additional project benefit is complete system redundancy for Quad’s direct mail platform to ensure backup flexibility, according to Steve Jaeger, President of QuadDirect. He said the Effingham plant’s capabilities mirror the company’s Pewaukee, Wis., facility for most direct mail applications.
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06.07.2012
The opportunities and mysteries of digital were at the center of the discussion of the panel, “Secrets from the Other Side: Lessons Learned from People Who Have Worked for Both Print and Digital Companies,” held June 5 at BookExpo America.
The panel, moderated by JVNLA, Inc. v-p Jennifer Weltz, covered a multitude of areas affected by digital, from distribution to data to pricing—not to mention the companies born from digital’s new opportunities.“We are all about marketing,” said Tina Pohlman, publisher of Open Road, a company that builds its marketing strategy around milestones like holidays and anniversaries, which in turn dictate what content is fed to which audience at what time. Byliner, another digital publisher represented at the panel by its editor-in-chief and co-founder Mark Bryant, has a strategy designed “to eliminate as many layers [between the author and reader] as possible.” Digital, among many other facets, has affected timing, and Bryant said that they were making last minute changes to their first release, “Three Cups of Deceit” by Jon Krakauer, about six hours before its release.
Digital has also changed selection. Whereas retailers once distinguished themselves by their different selections, now they want everything—not only every title, but every title in every possible format. And the retailers’ expectations for more have only increased because of the increased expectations on the part of consumers. “You have to give the customer the choice,” said Steve Kasdin, Curtis Brown’s director of digital strategy. Kasdin stated that we need to stop thinking in “versus,” i.e. “print vs. digital vs. audio,” and instead need to look at the different formats as different forms of a common product, because different consumers have different preferences and expect to have the choice.
Data has also become essential because of today’s digital influence, with metadata as the gateways for a publisher to unlock streamlined information. Larry Norton, senior v-p of business for Inscribe, said that while data isn’t new, the various types and the speed of data are. “The sources are beginning to explode,” he said, pointing to social media data and hourly updated Amazon rankings. And getting at the speed of today’s digital publishing world, Kasdin added that data from six months ago is “Jurassic.”
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06.07.2012
There's a separation of perception and reality in our industry that needs to be cleared up. Most ad agencies and clients are unfairly bundling magazines with newspapers in the print category, and as a result, magazines are having a difficult time selling advertising. This, at a time when their readership is actually increasing among younger adults.
I look around my agency and see young professionals reading both printed magazines and the digital versions on iPads. I see the same thing in my home with my teenage kids. When I travel, people of all ages are reading magazines. According to a MRI Data Report in 2011, magazine readership has increased in every age and gender category, compared to newspapers, in the last year, with the biggest gains in the 18-34 age bracket.
Yet my agency is creating fewer and fewer magazine ads for clients. That's a shame, because ads in magazines are a great way to target an engaged audience and build a brand in four color. I practice what I preach: Brownstein Group consistently advertises in local and regional magazines. That's in addition to a media plan for our agency that includes SEO, banner ads and e-mail marketing.
Magazines are considered "print," and many media planners/buyers want nothing to do with analog media. Many clients feel the same way. I often hear, "I want my target consumers to start a dialogue with my brand." That's fine, but the best way to achieve this is to create a compelling idea and reach customers on multiple platforms -- magazines, tablets, TV, social media, mobile, PC, events, etc. As I wrote in an Ad Age post, there's an irrational move away from any form of traditional media. Big mistake in my opinion. With 82% of the U.S. population reading one or more magazines a month, can we afford to ignore that loyal readership?
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06.07.2012
For the past three years, Courier Corp. has been producing digitally printed softcover books at its plant in North Chelmsford, MA. At drupa, the printer decided in favor of a new Diamant MC Digital bookline from Muller Martini and can now produce hardcover books in short print runs.
“Our digital printing business continues to grow,” says Joseph L. Brennan, vice president of engineering at Courier. “The new Diamant MC Digital will enable us to offer our customers digitally printed hardcover books.”
In North Chelmsford, the company prints only digital products under the brand name Courier Digital Solutions (CDS) which predominately manufactures textbooks for schools and universities, as well as specialty trade books. In addition to the Diamant MC Digital, CDS also utilizes Muller’s SigmaBinder/Tower/Trimmer, an Acoro A7 perfect binder and three SigmaFolder/Collators with SigmaControl.
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06.07.2012
The average person will spend $117.14 on dad’s gifts this year, up 10% from $106.49 last year, closing the gap between its biggest competitor: Mother’s Day (consumers planned to spend an average of $152 on the holiday), according to the National Retail Federation’s 2012 Father’s Day spending survey, conducted by BIGinsight. Total spending for Father’s Day is expected to reach $12.7 billion.
According to the survey, more people this year will treat dad to a special outing, such as golfing, eating out or heading to a sporting event ($2.3 billion versus $2.0 billion in 2011). They will also invest in electronic gift items ($1.7 billion versus $1.3 billion last year) and apparel ($1.7 billion versus $1.4 billion in 2011). Others will splurge on gift cards ($1.7 billion), sporting goods ($641 million) and books or music ($645 million).
Department stores will be the location of choice for shoppers this Father’s Day – four in 10 (41.6%) say they will look for dad’s gift there. Others will shop at discount stores (34.0%), specialty stores including greeting card/gift and electronics stores (28.6%), and specialty clothing stores (10.7%). Online retailers will see their fair share of “traffic” this year as well – nearly three in 10 (28.4%) will shop online, up from 22.1% who said so last year.
More than one-quarter of those who own a tablet (25.2%) say they will use their tablet to make a Father’s Day purchase. Overall, more than half (54.6%) of tablet owners will use their device to research products and compare prices, redeem coupons and look up retailers’ information such as store hours and location.
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06.07.2012
Greif, Inc., a global leader in industrial packaging products and services, today announced results for its second quarter, which ended April 30, 2012. The company reported second quarter net sales of $1,095.3 million, operating profit of $74.3 million and net income attributable to Greif, Inc. of $36.8 million, or $0.63 per diluted Class A share. EBITDA was $111.3 million. Operating profit before special items was $85.6 million and net income attributable to Greif, Inc. before special items was $44.9 million, or $0.77 per diluted Class A share.
Net sales were $1,095.3 million for the second quarter 2012 compared with $1,050.7 million for the same period in 2011. The 4 percent increase was due to higher sales volumes (5 percent), increased selling prices (2 percent) primarily resulting from the pass-through of higher raw material costs offset in part by the negative impact of foreign currency translation (3 percent). The 5 percent increase in sales volumes included an 8 percent increase from acquisitions partially offset by a 3 percent decrease in sales volumes on a same-structure basis. This decrease was principally due to weak market conditions in the Rigid Industrial Packaging & Services and Flexible Products & Services segments, primarily in Europe, compared with a year ago. Sales volumes in the Paper Packaging segment increased by 6 percent during second quarter 2012 compared with the same period last year.
Gross profit decreased to $203.1 million for the second quarter 2012 from $207.3 million for the same period in 2011. Gross profit margin was 18.5 percent for the second quarter 2012 versus 19.7 percent a year ago. The decline in gross profit margin was principally due to lower volumes and market pressure in Europe in the Rigid Industrial Packaging & Services and Flexible Products & Services segments, which was partially offset by higher volumes and lower input costs in the Paper Packaging segment compared with a year ago. There was also a charge of $2.8 million in the second quarter 2012 for a correcting adjustment related to third-party containerboard trades in a prior period in the Paper Packaging segment.
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06.07.2012
Cascades Tissue Group is proud to announce that its cascades® ultra soft bathroom tissue, the only one on the market to combine ultra softness and recycled fibers, was voted Product of the Year 2012 by Canadian consumers. This honor was given by the Product of the Year Awards, based on the votes of more than 5,300 Canadians under the supervision of Rogers Connect Market Research. This internationally recognized award highlights the innovative nature of consumer products chosen by the public.
The cascades® ultra soft tissue paper was honored in the Personal Care category of the contest. The product differed from the competition because of its popularity amongst consumers and because of its innovative nature, since it is soft to the touch and soft on nature. Almost half of the surveyed people said they were seriously considering buying the product. Established in France 25 years ago, the Product of the Year contest is now operating in 32 countries. In Canada, it accepts entries from consumer products companies of all sizes that demonstrate innovation in design, function or packaging. Smirnoff Premium Vodka and Cadbury, among others, are part of the 2012 winners.
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06.07.2012
Oil traded near the highest price in four days in New York as policy makers in the U.S. and Europe indicated they may take steps to boost their economies and Iran signaled it will take a hard line in nuclear talks.
Futures were little changed after rising as much as 0.9 percent. Federal Reserve Vice Chairman Janet Yellen said the U.S. remains vulnerable to setbacks that may warrant additional monetary stimulus, while European Central Bank President Mario Draghi said officials are ready to act as the euro area’s outlook worsens. Oil may rebound on policy measures, according to Goldman Sachs Group Inc. Iran pulled back from an agreement on nuclear inspections before talks this month.
“The market is hoping for a new money bazooka from the central banks and rescue funds,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark, who predicts oil prices will remain near current levels. “In recent days we’ve seen some decent volume during every upward move, and that indicates some clear buying interest.”
Oil for July delivery was at $84.90 a barrel, down 12 cents, in electronic trading on the New York Mercantile Exchange at 10:34 a.m. London time.
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06.07.2012
Berry Plastics Corporation is proud to introduce Polyken® 36H, the latest addition to its premium aerospace tape line-up, offered through the Company's Polyken Tape Products brand.
Polyken 36H meets Boeing BMS5-173 Type 1, Class 1, Grade A specifications for mounting decorative plastic and metal trim pieces, decals, placards, and more to the interior of aircrafts. In addition, Polyken 36H's high-performance adhesive makes the tape ideal for similar applications on boats, recreational vehicles, and the like.
"Our goal was to develop a product that could be used for a broad range of applications and to meet the requirements of the Boeing specification," explained Mark Britton, Aerospace Sales Manager for Berry Plastics. "The development process of Polyken 36H yielded a product with amazing versatility, making it an ideal choice for a wide variety of OEM and MRO interior applications in both business and commercial aviation."
Polyken 36H is constructed on a 48 gauge polyester film and coated with an aggressive acrylic adhesive on both sides which delivers excellent shear strength, superior peel adhesion and good performance over a wide temperature range. The 36H features a 60lb bleached kraft liner for easy release and application. The specialty adhesive used for 36H provides high-performance anchorage to various substrates including plastics such as polyethylene, polystyrene, polypropylene, TPO, and ABS as well as EPDM, ether, esther, and polyurethane foams. Additionally, the tape is flexible and conformable and resists humidity and plasticizer migration.
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06.07.2012
Global mobile ad spending totaled $5.3 billion last year, according to a report by the Interactive Advertising Bureau's Mobile Marketing Center of Excellence in the U.S., IAB Europe and IHS Screen Digest, a London-based research firm. The report is the first initiative by the IAB to determine the size of the global mobile ad market.
The largest mobile ad market last year was the Asia-Pacific region ($1.9 billion), followed by North America ($1.7 billion) and Europe ($1.4 billion). Latin America and the Middle East and Africa each generated less than $200,000 in mobile ad revenue.
The report included mobile ad spending on digital, search and text messaging formats.
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06.07.2012
(Industry Intelligence) - Twin Rivers Paper Company of South Portland, Maine, is to increase prices of freesheet grades next month.
In a June 1 letter circulated to the industry, Director of Sales Jason Courter informed customers that prices of the following grades would increase by $40.00/ton or $2.00/cwt: Pharmopaque®; Snowbrite Pharm; Pharm Brite 92; Custom Brite®; Custom Plus®; Snowbrite Opaque®.
The increases are effective with shipments on or after July 1, the letter stated.
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06.06.2012
Asia Pulp & Paper Group (APP) has today published its Sustainability Roadmap for 2020 and beyond, a period in which it aims to put conserving Indonesia’s natural resources at the heart of its business strategy.
The publication of APP’s Roadmap follows just two weeks after the Group committed itself to the internationally-accepted principles of High Conservation Value Forest (HCVF), and suspending natural forest clearance on its own plantations. Current independent suppliers will have until the end of 2014 to comply with APP’s new HCVF rules.
The Sustainability Roadmap and milestones extend APP’s commitments to improving environmental performance, biodiversity conservation and protection of community rights.
Highlights of the Roadmap are:
• By 2015, APP will have the capacity to be wholly reliant on raw materials from plantations.
• By 2015, all current APP suppliers will operate by the standards of High Conservation Value Forest (HCVF), providing the most robust protection for biodiversity, rare ecosystems and local community rights.
• By 2020, all current APP suppliers will have credible certification for Sustainable Forest Management (SFM) – matching global best practice in this field.
• As part of its SFM commitments, APP will also introduce carbon measurement and evaluation for its plantations – above and below ground. It will put the company at the forefront of the global pulp & paper industry’s contribution to tackling climate change, in support of the President Susilo Bambang Yudhoyono’s pledge to reduce Indonesia’s greenhouse gas emissions by 26 per cent by the end this decade.
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06.06.2012
Consumer confidence in the economy remained flat in May, while lower gas prices gave a slight boost to spending intentions, in particular for summer vacation plans. The Discover U.S. Spending Monitor, a nearly five-year-old daily poll tracking economic confidence and spending intentions of nearly 8,200 consumers throughout the month, declined 1.2 points to 95.5 in May.
The percentage of respondents who said the U.S. economy was improving held steady at 33 percent in May, even though slightly fewer respondents said their personal finances were improving. Overall, 37 percent said their personal finances were good or excellent, a 2-point decline from the month earlier.
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06.06.2012
Walgreens had May sales of $5.98 billion, a decrease of 1.6 percent from $6.08 billion for the same month in fiscal 2011.
Total front-end sales increased 0.3 percent compared with the same month in 2011, while comparable store front-end sales decreased 1.0 percent. Customer traffic in comparable stores decreased 2.3 percent while basket size increased 1.3 percent.
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06.06.2012
Transcontinental Inc. today announced that since January it has renewed and expanded six multi-year agreements valued at over $1.5 billion in revenues with major Canadian retail customers in the food, hardware, consumer goods and pharmaceutical verticals. These customers are both from its newly acquired customer base, from its Quad/Graphics Canada, Inc. acquisition closed on March 1st, as well as its long standing customer base. These agreements have been extended for periods varying from three to six years and besides printing, include flyer distribution through its renowned Publisac in Quebec and often include many other products and services from the Corporation’s new marketing and media services, such as e-flyers, email marketing, mobile solutions, database analytics, premedia and custom communications.
“These renewals were accelerated by the closing of our Quad/Graphics Canada, Inc. transaction. They are a testament to the strength of our customer relationships and the confidence they have in our ability to execute their integrated marketing communication programs, the quality of our state-of-the-art national printing platform and of our flyer distribution network, the reach of our national media properties and the success of our strategy to expand our product and service offering into new marketing and communication services. In fact, our customers are convinced, as are we, that we can help attract, reach and retain their customers by ramping up the use of our new marketing services over time, in response to consumers’ changing needs. We are delighted to have extended and expanded our partnerships with them as they provide a winning combination: higher marketing ROI for our customers and more revenue streams in our new marketing products and services offering, in line with the pursuit of our transformation,” said François Olivier, President and Chief Executive Officer.
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06.06.2012
The number of traditionally published print books rose 6% in 2011, to 347,178, according to preliminary figures released Tuesday morning by Bowker. For the first time, this year Bowker combined self-published titles with books from mainstream houses in the traditional column and the increase in output was led by self-published books, Bowker said. The number of print books published by traditional houses was about flat in the year. (The number of all self-published titles released by Bowker Sunday, 211,269 includes print and e-books).
Total book output from traditional and nontraditional companies fell 63% in 2011, to 1,532,623, due to the steep decline in books from reprint/POD houses that specialize in public domain titles sold mainly on the Web. The number of nontraditional titles fell 69%, to 1,185,445. The growth in that field had been unsustainable, noted Kelly Gallagher, v-p Bowker Market Research; even with the decline in 2011, the output from nontraditional companies rose 3,532% between 2002 and 2011.
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06.06.2012
Colorfx announced the acquisition of Acme Printing. The long-time printing company, also based in Des Moines, provides digital and sheetfed printing, along with complete finishing services.
With a long history of outstanding customer service and customer loyalty, Acme Printing will join with Colorfx to offer its customers enhanced marketing solutions and access to a more robust printing platform, as well as digital and social media services, graphic design, professional photography and video services.
“We are excited to be partnering with Acme Printing to bring new value to their customer base. Bringing together two of Des Moines’ longest standing printing companies will allow us to pass efficiencies along to our customers while giving them access to a more complete set of marketing services such as design, photography, and social and digital media marketing,” said Jon Troen, president of Rock Communications and Colorfx (#68, with $74.8 million in sales, on the Printing Impressions 2011 Top 400 ranking).
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06.06.2012
Lecta, the second largest coated fine paper manufacturer in Europe, confirms downtimes at several paper machines during next months.
In the face of current market conditions Lecta is committed to adjusting its production to current and expected order entry levels.
The global downtimes of all Lecta's CWF paper machines will represent a reduction of around 10% of quarterly production capacity.
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06.06.2012
The number of retailers that fell victim to organized retail crime groups increased in the past, according to the National Retail Federation’s Organized Retail Crime Survey.
Of the 125 retail companies surveyed for NRF’s eighth annual survey, a record-setting (96%) said their company has been the victim of organized retail crime in the past year, up from 94.5% last year. Another 87.7% said ORC activity in the United States has grown over the past three years.
"What this tells us is that as retailers and law enforcement become more aware of and more proactive in pursuing organized retail crime gangs, criminals have become more desperate and brazen in their efforts, stopping at nothing to get their hands on large quantities of merchandise,” said NRF VP loss prevention Rich Mellor.
On a more positive note, the survey found that more retailers believe law enforcement is aware of and understands the severity and complexity of the issue (40% this year versus 32.3% in 2011). More than half (54.4%) said top management at their company is aware of the problems associated with organized retail crime.
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06.06.2012
Finch Paper is one of the first uncoated paper mills to recognize and respond to the extended size breakthroughs made by the fastest, leading electrophotographic production presses on the market today. New 14×20 and 14×26 sizes have been added to the Finch digital portfolio to meet the demands of OEM partner solutions such as the Xerox iGen4 and Kodak NexPress.
NEW! Finch Fine Color Copy now available in 14×20 and 14×26 sizes
Optimized for dry-toner print production, Finch Fine Color Copy – the best value for digital printing – is one of the smoothest and brightest papers for full-process color printing and copying.
Now available in 14×20 and 14×26 sizes to meet the demands of newer digital solutions available from OEMs, this high-quality sheet is ideal for both office and digital production printing, features FSC® and SFI certification, and 10% post-consumer recycled fiber.
The Finch Fine Color Copy line serves a variety of leading print engines, including:
Canon imagePRESS and Canon CLC® series; Kodak NexPress; Konica Minolta bizhub® PRESS C6000, C7000, C8000, and Konica Minolta bizhub PRO series; Ricoh Pro C751/C751EX/C651EX and Ricoh Pro C901 (using the coated matte setting); Xerox iGen3™ and iGen4™ series, and the Xerox Docucolor® series.
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06.06.2012
Facebook will allow marketers to choose whether Sponsored Stories will appear on fans' desktop News Feeds, mobile News Feeds, within the sidebar, or in any combination of the three, said a Facebook spokesperson.
“The basic key takeaway from today's news is that now Facebook is making it easier for people to buy the ads they want and giving more delivery choices,” the spokesperson said. “Previously, mobile ads were purchased as part of Sponsored Stories, with the advertiser not being able to say where they wanted their Sponsored Stories to run – now they can choose desktop, mobile or both.”
Sponsored Stories are updates from Promoted Posts, a product released by Facebook last week that increases the number of fans that see a given post. Facebook charges a fee for Promoted Posts based on the number of fans the company distributing the Promoted Post has. When fans interact with these Promoted Posts, it creates Sponsored Stories, which are viewable by friends of those fans.
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06.06.2012
Deluxe Corporation today announced it has acquired OrangeSoda, Inc., a leading internet marketing services company specializing in search, mobile, and social media campaign strategies for small businesses. OrangeSoda provides services directly to small businesses as well as through a growing number of strategic partners in media, telecommunications, home services, and other industries. The company employs approximately 175 people and will continue to be headquartered in American Fork, Utah.
“Deluxe will accelerate revenue growth in marketing solutions and other services by combining our organic capabilities with OrangeSoda’s innovative solutions, scalable provisioning platform and tools, and established market presence,” said Malcolm McRoberts, senior vice president small business services at Deluxe. “Orange Soda has built compelling services offers and channels targeted at key small business marketing pain points. As a result of this acquisition, Deluxe adds differentiated solutions and capability that help support growth for our small business customers.”
Deluxe purchased OrangeSoda for $27.7 million in cash. The acquisition is expected to generate approximately $15 million in incremental revenue and be slightly dilutive to EPS for the remainder of 2012, after including transaction costs and acquisition-related amortization expense.
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06.06.2012
Saddleback Publishing, the leader in high-interest, low-reading ability (known as hi-lo) curriculum solutions and quality fiction, is proud to become the first educational publisher to partner with On Demand Books to provide instant access to their extensive catalog of young adult literature, workbooks and guides dedicated to helping struggling and at-risk learners in grades 5-12. This partnership will for the first time allow parents, teachers and students the ability to print materials specific to a child or classroom’s particular needs in just minutes at their local book retailer or library using On Demand Books Espresso Book Machine®.
“We are so excited to be partnering with On Demand Books for their entry into the educational publishing market,” says Arianne McHugh , President of Saddleback Publishing. “This innovative technology allows our consumers access to an incredible resource of literature and tools that can be used to fit the needs of each specific student.”
“Offering parents and teachers the ability to print Saddleback Publishing’s fiction and workbooks instead of having to wait for them to be printed and shipped is a wonderful use of our technology and something bookstores and universities can now offer their communities. We are thrilled that our partnership with Saddleback Educational will allow all this, “ says Dane Neller , CEO of On Demand Books.
The Espresso Book Machine, the only digital-to-print at-retail solution on the market today, will carry over 500 titles available from Saddleback Publishing, including frontlist books (titles that are active and have been released recently within the last 12 months) such as their award-winning urban fiction titles for struggling readers, as well as the latest teacher guides and workbooks, active backlist books (older than 12 months but are still actively selling and being stocked and printed by the publisher) and non-active backlist titles, which will only be available via the Espresso Book Machine.
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06.06.2012
Oil rose for a third day in New York on shrinking stockpiles and signs of economic improvement in the U.S., the world’s largest consumer of crude.
West Texas Intermediate futures gained as much as 1.3 percent. Crude inventories fell 1.8 million barrels last week to 384.1 million barrels, the industry-funded American Petroleum Institute said yesterday. An Energy Department report today may show supplies slid by 500,000 barrels, according to a Bloomberg News survey. U.S. service-industry growth unexpectedly increased, and Australia’s economic expansion beat estimates.
“The U.S. recovery is a bright star in a dim firmament,” said Christopher Bellew, senior broker at Jefferies Bache Ltd. in London. “But there is no reason for prices to hold here, and the market may well turn lower again.”
Oil for July delivery climbed as much as $1.10 to $85.39 a barrel in electronic trading on the New York Mercantile Exchange and was at $85.17 at 10:50 a.m. London time. The contract yesterday rose 0.4 percent to $84.29, the highest close since May 31.
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06.06.2012
The American Forest & Paper Association (AF&PA) filed today a request for U.S. Supreme Court review or summary reversal of the Ninth Circuit court decision to require National Pollutant Discharge Elimination System (NPDES) permits for logging activity on forest roads.
The Ninth Circuit court’s decision overturned EPA’s 35-year approach to managing runoff from forest roads. The U.S. Solicitor General admitted that the Ninth Circuit’s decision was wrong. However, he also concluded that Supreme Court review is not necessary, because EPA intends to issue regulations to provide flexible approaches to managing forest road runoff.
“The fact that EPA may finalize regulations in the future is no reason to allow the Ninth Circuit’s decision to stand. In fact, leaving the decision in place will require EPA to develop a rule around what the U.S. agrees is wrongly-decided law,” said AF&PA President and CEO Donna Harman. “Forest landowners and others in the supply chain still are faced with the reality that any administrative action by EPA will take months if not years to be put in place and will be open to court challenge."
“We believe that the best means of providing much-needed certainty to the situation is a favorable U.S. Supreme Court ruling. Without Supreme Court intervention, there will be considerable confusion as states and EPA attempt to sort out how to comply. This only perpetuates an atmosphere of uncertainty, which is harmful to our industry and its 900,000 employees that depend on a steady supply of fiber to make products essential for everyday life,” Harman concluded.
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06.06.2012
As many of you know, on Monday May 28th, there was a significant explosion and fire at the Sartell mill. As previously reported, a Verso employee was fatally injured in this tragic incident. Our thoughts and prayers continue to go out to the family and all those impacted by this event.
For most of the past week, significant portions of the mill remained inaccessible to Verso officials as emergency response operations continued at the facility. In the last couple of days, assessment by Verso officials and external authorities has begun. We are hopeful that the preliminary analysis of this assessment will be concluded within the next week.
In the interim, our sales, customer service, planning, and logistics organization have been working to minimize potential disruption to your operations for the orders that we have in hand. With the utilization of our full system, all June Coated Groundwood orders originally planned for S3 paper machine have been accommodated with only modest impacts to delivery dates. Status of your orders will be communicated to you promptly as updates are available. We thank all of you who have provided flexibility with regards to your orders.
As more information is learned, we will keep you informed.
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06.06.2012
At Midland we know it’s important for your preferred papers to deliver top value and maximum performance, both on press and when drawing readers’ attention. So we are pleased to introduce Norbrite® 92, a new uncoated mechanical paper that offers higher yield, greater opacity, and a remarkable brightness for publications that stand out.
Get more for your money with Norbrite® 92. This high-brightness innovation from NORPAC offers all the printing and environmental performance you need with greater opacity and uniformity than alternatives. Norbrite® 92 delivers a yield advantage of 5-25 percent over uncoated free sheet (UCFS) products, offering superior opacity and equivalent caliper in a lower basis weight and price. That advantage ensures you — and your customers — enjoy greater value.
Contact your Midland Paper Sales professional for more information about this exciting new product from NORPAC.
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06.05.2012
Faced with volatility in the global supply chain and increases in the costs of certain raw materials, such as distillates, solvents and resins, Sun Chemical will raise prices in the United States and Canada on all heatset products and certain pressroom consumables on July 1, 2012.
The price increases will vary as different products have a different chemical composition, but the average cost increase will be approximately 10 percent for most products.
All heatset products will be affected by the price increase, inclusive of directory inks. Certain Rycoline® solvent-based washes will also be impacted.
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