M-real Selling Reflex to Hahnemühle

http://www.paperage.com/2012news/01_13_2012mreal_hahnemuhle.html

M-real has announced it is divesting its Reflex mill in Germany, which produces premium specialty papers used for brochures, letterhead, books, calendars and envelopes, to Walzmühle AG.  Walzmühle AG is owned by Hahnemühle FineArt GmbH, Hahnemühle management and private shareholders of Hahnemühle.  The deal is expected to close during the first quarter.  The divestment marks the end of M-real’s operations at the Reflex facility; the company discontinued producing carbonless paper converting in late 2011 and sold PM5 and related assets to Metsä Tissue in 2010.

White Birch Closes Stadacona Mill

On Wednesday, the Communications, Energy and Paperworkers union at the White Birch Stadacona, Quebec newsprint mill rejected a labor contract offered by the company with 91% of the members voting no.  Today, White Birch announced, as it warned it would do absent the ability to cut labor costs, that it is closing the facility.

Magazine News Roundup

Changes in ownership and people…

Vibe Holdings and Access Network are going to merge and operate as Vibe Media, which will manage Vibe, Uptown and BlackBook magazines.

Publishers Clearing House has acquired mobile marketing company Liquid Wireless, which specializes in lead generation, media buying and analytics.

New Bay Media is acquiring Guitar World, Revolver and Guitar Aficionado from Future plc for $3 million.

Random House of Canada has become the full owner of McClelland & Stewart, a trade book publishing house.

F+W, which has a line of cookbooks and other publications on antiques, collectibles, crafts, writing and horticulture, acquired World Tea Media, which organizes the World Tea Expo.

J.C. Penney’s has named Thomas J. Engibous as Chairman of the Board, effective January 28.  Mr. Engibous is the retired Chairman of Texas Instruments.

Matthew Petersen, formerly of Hearst, has become president of TMG Custom Media.

And New Techniques to Reach Readers…

Hearst’s House Beautiful is expanding its integrated marketing campaign with Glidden paint using Digimarc’s digital watermark.  This follows a successful program run in October and November.  Scanning the watermark allows the reader to view a splash page spotlighting Glidden Paint’s new color blog portal before accessing a video feature from the magazine. 

Popular Mechanics is making its QuakeTracker iPad feature, which was very popular on the digital version of the magazine, into a standalone app that advertises the paid monthly subscription of the print and digital publication. Like many promotions, the feature was originally to be a one-time feature.

In the March issue of Ladies Home Journal, the content will feature material from the magazines readers; editors are using the readers’ own stories posted on DivineCaroline.com.  

Parents magazine is featuring a new design with its February issue.

Ad Spend Increased 1.5% in First Three Quarters

U.S. Ad Spend Increased 1.5% In the First Nine Months of 2011: Total U.S. advertising expenditures in the first nine months of 2011 increased 1.5% from a year ago and finished the period at $104.7 billion, according to data from Kantar Media. Spending growth slowed during the third quarter and was up 0.4 percent compared to last year.

White Birch Mill Workers Vote No

http://www.canadianbusiness.com/article/65534--white-birch-paper-workers-in-quebec-reject-offer-by-margin-of-91-per-cent

The White Birch Stadacona mill in Quebec, which can produce uncoated mechanical paper and newsprint, has been closed since November.  The company has said that without significantly lower salary, pension and other costs, the facility will be closed permanently.  Mill workers represented by Communications, Energy and Paperworkers Union (CEP) have now voted on an offer presented by the company that included a 21% pay cut, pension adjustments and other concessions; 91% rejected the proposal.

Some Exceptions to Tough Q3 for Magazine Ad Pages

http://www.medialifemagazine.com/artman2/publish/Magazines_22/Among-magazines-haves-are-doing-well.asp
Magazine advertising revenue and ad pages fell in the third quarter, but, as reported by MagazineRadar, some categories had healthy growth (the most recent data for these titles are for Q3; Q4 total magazine ad revenue and pages declined as well).  Hispanic magazines saw the biggest gains in ad pages, up 23.3%; Siempre Mujer jumped by 31.5%.  Ad pages for luxury magazines brands jumped by 6%: Departures was up by 43.3%, Architectural Digest by 9.1%, W by 5.6% and Power & Motoryacht by 24.9%.  In the fourth quarter (data were available for Q4 for this group), at least two titles focusing on mature readers prospered; ad pages for AARP the Magazine grew 84.7% and for Reader's Digest Large Edition rose 117.8%.

2011 Retail Sales at Record Level

http://www.latimes.com/business/la-fi-retail-sales-20120112,0,5483325,print.story

The Commerce Department reported that 2011 retail sales reached $4.7 trillion, up nearly 8% as compared to last year, the largest increase in more than a decade.

Retail sales barely rose in December, but the gain was enough to lift sales to a record level for 2011. It marked the largest annual increase in more than a decade.

Hearst Increases Rate Base for Food Network Magazine for 7th Time

Hearst’s Food Network Magazine Sees 7th Ratebase Increase in 3 Years:

Hearst launched Food Network Magazine in 2009 with a target circulation of 300,000; the number tripled in 2010.  The publisher has now announced it will increase its rate base, for the 7^th time, to 1.45 million beginning this summer.  Hearst projects a 15% increase in single-copy sales for the second half of 2011 as compared to the same period in 2010.

Two Sides Launches U.S. Website

Two Sides Launches U.S. Website Promoting the Sustainability of Print and Paper: Two Sides, the fast-growing non-profit organization established to promote the responsible production, use and sustainability of print and paper, has launched its U.S. website. http://www.twosides.us 

Public Still Trusts Print

Printed word still more trustworthy than email, survey says: Printed correspondence still has a place because the general public still doesn't trust emails, according to research carried out by Pitney Bowes.

Third Pulp Producer Announces Price Cut

In North America, Fibrek followed Canfor and Resolute Forest Products in reporting a $20 per metric tonne decrease for NBSK pulp, effective with January shipments.  In Europe, however, five producers, Fibrek, Stora Enso, Botnia, Canfor and West Fraser, have announced pulp price increases.

comScore Reports Digital Audiences Exceed Print for 15 Titles

http://www.pubexec.com/article/magazines-reaching-print-digital-audience-tipping-point-25027100/1

As reported by comScore’s Media Metrix, there are now 15 magazines read more in their digital formats than their printed versions: Barron’s, ESPN the Magazine, Fast Company, Food Network Magazine, Forbes, Fortune, Harvard Business Review, MacWorld, Money, New York Magazine, Sporting News, The Atlantic, The Economist, WebMD the Magazine and Wired.

Hearst Sells Two Titles

http://www.guardian.co.uk/media/2012/jan/11/immediate-media-buys-hearst-magazines-titles?INTCMP=SRCH

Immediate Media has purchased You & Your Weeding and Prima Baby & Pregnancy magazines from Hearst Magazines UK.  Immediate Media is the publishing company that was formed after the private equity takeover of BBC magazines.

RR Donnelley Awarded Contract by Chrysler

RR Donnelley Awarded Print Management Agreement by Chrysler: 

Chrysler Group has awarded RR Donnelley a multi-million and multi-year print management contract.  RRD will provide services that include on-site premedia resources and sourcing support, commercial printing, direct mail, logistics, labels and forms.

Publishers Clearing House Buys Liquid Wireless

Publishers Clearing House Buys Mobile Lead-Gen Provider Liquid Wireless: Publishers Clearing House, known for its big sweepstakes-driven direct marketing tactics, has acquired Liquid Wireless, a Portland, Maine-based mobile marketing company. Terms of the deal were not released, but it gives PCH an instant, turnkey mobile strategy, from campaign generation to activity tracking through post-conversion.

Increase in M&A Expected for 2012

Bullish M&A forecast for new year: Almost 60% of senior executives in the media and marketing industries said they expect to seek an acquisition this year, according to the “2012 Mergers and Acquisitions Prospects for Media, Marketing Services and Related Technology Firms” survey conducted in November by AdMedia Partners. That figure is up from 40% in last year's survey.

PIB Reports 2011 Ad Revenue & Pages

http://www.magazine.org/advertising/revenue/by_ad_category/pib-4q-2011.aspx

The Publishers Information Bureau released 2011 results today, reporting that advertising revenue for the year increased slightly by $8 million to $20,086,199,882 as compared to 2010.  Ad pages fell -3.1% to 164,225.  While in the first quarter revenue was up 6% and pages 2.5%, as compared to the same period last year, and in the second quarter revenue rose 2.4% and pages 0.3%, the rest of the year saw a decline; in Q3, revenue fell -1.5% and pages -5.6% and in Q4, revenue decreased -5% and pages -8%.  Nine of twelve categories tracked by the PIB had losses for the year.  Three areas did better; Financial, Insurance and Real Estate grew by double digits, with ad revenue up 19.4% and ad pages rising 12.7%.  For the Toiletries & Cosmetics category, revenue was up 9.5% and pages 3.8%.  Apparel & Accessories had a revenue gain of 9.7% and an increase in pages of 5.5%.

Resolute Forest Products Reaffirms Offer

http://www.paperage.com/2012news/01_10_2012resolute_fibrek.html

Resolute Forest Products (AbitibiBowater) has announced that is would issue a notice of variation to the offer circular and other ancillary documentation in connection with its outstanding offer to acquire Fibrek Inc.  The company said the documents would describe certain changes with the sole purpose of addressing comments from the SEC.  CEO Richard Garneau said the action “does not change our firm belief that the offer we announced on November 28^th presents Fibrek’s shareholders with a compelling opportunity.  The fact that three of their largest individual shareholders, representing approximately 46% of the outstanding shares, have agreed to tender their shares to our offer supports that belief.”

Second NBSK Producer Lowers Price

Resolute Forest Products announced a $20 per metric tonne decrease in its price for NBSK pulp in North America, effective with January shipments.  Canfor reported it was lowering their price yesterday.

No Help from Nova Scotia for Port Hawkesbury Pension

Ron Stern of Stern Partners, the final bidder in the sale of the NewPage Port Hawkesbury Supercalendered paper mill, has indicated that the firm cannot assume the costs of the pension plan for the union workers and run the facility profitably.  The successful sale of the property is contingent on coming to an agreement with the workers on this matter, among other stipulations.  Now, the Premier of Nova Scotia, Darrell Dexter, has said that the province, which has spent ~C$15 million so far to keep the condition of the mill such that it can be restarted quickly, cannot cover the pension plan liabilities.