Falcon Sold This just in: Falcon Inc. (asi/53530) has been acquired in an asset purchase. The firm’s name will become Falcon Promotional Products. Current President Scott Nussinow, MAS, will retain that position, and all operations will remain in their current location. No other details were available at press time. More as we get it.
Report: Houze Glass To Close A local paper is saying that Houze Glass Corp. (asi/61920) will be closing its Point Marion, PA facilities and moving the supplier’s operations to Texas. The Herald Standard in Uniontown reported that Houze officials informed workers Friday that parent company, Wilson Bros., was closing the facility. Wilson Bros. also owns Numo Manufacturing Inc. (asi/74710) in Kaufman, TX. Houze has had its bank loan called recently and its insurance carrier refused to renew the supplier’s insurance policy for 2005, The Herald Standard reported. Look for more details in Thursday’s PromoGram.
American Capital Invests $46 Million In Hospitality Mints A Maryland equity company has secured about 85% of Hospitality Mints LLC (asi/61820) in a deal that includes investments from the supplier’s managers. American Capital Strategies Ltd., an equity firm with $4.8 billion in capital resources, has poured $46 million into Hospitality Mints. American Capital specializes in management and employee buyouts. Hospitality Mints employs 112 people and has more than 6,000 customers. Including all its divisions, the company makes 9 million pounds of candy a year.
China Agrees To Export Taxes On Exports China has agreed to add export taxes to its wearables product as a way to stem what could be a flood of cheap textile products into the U.S. The announcement earlier this week is the latest move as the textile industries around the world struggle to adjust to a big Jan. 1 change-over. A decade’s worth of quotas are due to expire that day, meaning that China and other developing counties should be able to export as much textile products as they can sell. As the date approaches, lawsuits have been filed and trade measures have proposed to govern how much apparel could come into the U.S. The Bush administration had said it would favor severely limiting additional imports if China hadn’t acted. China could set export taxes higher than the cost of the garment itself, effectively keeping them from being sold in the U.S. Or they could set so low that they don’t really stop exports. Check out January’s Counselor for the background and predictions on what is potentially a big change in textile pricing.
Prediction: Advertising Up 6.4% In 2005, To $280 Billion A prominent advertising prophet Robert J. Cohen, senior vice president of forecasting at Universal McCann, sees companies spending $280 billion on U.S. advertising in 2005 — a 6.4% increase – and worldwide spending up 6.1% to $553 billion next year. This is just part of a batch of good advertising news lately. Online advertising, for example, was up 26% in the first nine months of the year, says The New York Times. And 59% of distributors say their promotional products sales have increased in the third quarter compared to a year ago. Nearly three-quarters of distributors are predicting 2004 will be a better year than 2003. (See the story in December Counselor.)
Liquor Brands Merchandise Gains Ground Despite Concerns The nation’s advertisers are continuing their love-hate relationship with the alcohol industry. On the one hand, the American Medical Association recently asked NASCAR to reconsider its decision to start allowing liquor companies to sponsor racecars and teams starting next season. The doctors' association doesn’t like the symbolism of liquor mixing with fast cars, pointing out that alcohol plays a roll in a third of all car fatalities involving teenagers. NASCAR has said that it expects liquor companies to meet advertising standards and points out that beer companies are already allowed sponsorships.
Meanwhile, the Oregon Liquor Control Commission is mulling a proposal to allowing liquor store agents to put logoed products on their store shelves. Retail stores that sell liquor already have a right to sell what they want in Oregon, but stores that sell only alcohol would need the liquor commission’s permission to sell logoed merchandise from liquor companies.
People On The Move ASI (asi/33020) has named Ericka Chilton events coordinator. She was previously with Comcast and Chelsea House Publishers.
The Promotional Products Education Foundation (PPEF) has named Sara Keller Foundation Manager, effective December 27. She has previously working with several foundations, including serving as director of giving of Stuhr Museum Foundation and foundation director of Howard County Hospital Foundation. She’ll be responsible for managing all operating PPEF areas and will work with the board of trustees to develop strategies and programs to increase donations and build awareness.
OF THE WEEK
New Style Cap from Otto International Inc. (asi/75350)
Piping Design Brushed Cotton Canvas Pro-Style Cap
Combining fashion with a sporty look is what you will find in style #19-496. This brushed-cotton canvas cap features a pro-mesh front and piping design on the visor. This cap comes in 10 color combination with a Velcro closure.
Promotional Products Association Int’l (PPAI)
Info: (972)252-0404; Fax: (972)258-3205 www.ppa.org
Table Top Trade Show
National Specialty Advertising Showcase (NSA)
24/Seattle, WA; 25/Portland, OR; 26/Foster City, CA; 27/Walnut Creek, CA; 28/Sacramento, CA
Info: (361)949-1857; Fax: (361)949-7460 firstname.lastname@example.org www.nsashowcase.com