Friday, August 23, 2013

Domtar & PrintEco’s Partnership-Lessons Learned

Domtar Corporation is one of the largest and most innovative paper companies in the world. Our company, PrintEco, is a two-year-old software startup with a mission to help save paper and ink and protect the environment. So when we announced our partnership with Domtar at SB ’13 in June, a lot of our friends were like, “Congratulations! Wait ... a paper company?” Admittedly, we’re a bit of an odd couple — but working with Domtar has taught us a lot about branding and about sustainable business in general. Here’s what we’ve learned:  Domtar brands itself “The sustainable paper company.” Sounds nice, but isn’t that an oxymoron? Turns out,  not in Domtar’s case. The company commits more resources to sustainability initiatives than you can imagine, including: Forest Stewardship Council™ (FSC®) certification at 100% of its facilities, over a decade of collaboration with the Rainforest Alliance, Contribution of over $1 million to World Wildlife Fund’s global conservation work over the past three years, donation of a year’s supply of Domtar EarthChoice® Office Paper to Recyclebank’s Green Schools Program. These programs provide a solid operational backbone for Domtar’s sustainability messaging and give the brand team plenty of specific achievements to share with its audience. Between environmental issues and advances in paperless technology, the future of the pulp and paper industry is fraught with uncertainty. If people stop printing they won’t need PrintEco software, so the future of paper is important to us, and a topic that we were glad to borrow Domtar’s expertise in considering. Such a dynamic industry environment creates an opportunity for brands such as Domtar to be proactive in guiding the evolution of their industry, rather than being reactive. Domtar launched its Paper Because campaign to educate people about the responsible use of paper. The campaign website tells you, “Paper has value. It’s sustainable, personal and purposeful — and the more we know about it, the more we can understand how to make smart choices about when and how to use it.” Sound like some cheesy marketing fluff? That’s what I thought, until I read some of the articles and actually learned a lot about paper — while taking intermittent breaks to laugh at some of their hilarious paper videos. ‘Ok,’ I thought, ‘responsible paper use. I’m onboard.’ But I’m willing to say that the decision by Domtar leadership to partner with PrintEco is a game-changer. People who use PrintEco software will buy less paper, and that’s the bottom line. To me, the partnership is Domtar’s way of saying, ‘We’re committed to sustainability, and we’re willing to stake today’s profits on it for the sake of tomorrow’s customers and our brand.’

Sartell Mill Demolition Is Approved

The process to erase a mainstay from the Central Minnesota skyline could start as soon as next week. The Sartell City Council unanimously approved Thursday an interim use permit to demolish the former Verso Paper mill, which is now owned by AIM Development. Council member Steve Hennes was not at the meeting. The work is expected to start this month and take 15 months to complete. A portion of the mill was destroyed in an explosion and fire last year. Its former owner decided to cease operations and sold the property. The company will demolish buildings, vertical concrete structures and metal. The company says that more than 530,000 square feet of buildings and 104,000 of tanks and other items will be removed. Up to 95 percent of the materials will be recycled, according to the company. The only buildings that will remain are the office building, hydroelectric operations and a warehouse. On Thursday the council also approved a development agreement and structurally substandard buildings resolution. Those have to be put in place in case a tax-increment financing district is created for the site.


Winstone Pulp Price Increase

New Zealand’s Winstone Pulp International  has announced a US$20/ton price increase for Asia, effective Sept. 1, 2013 in softwood bleached chemi-thermomechanical pulp (BCTMP). Winstone produces more than 160,000 tons/year of BCTMP.


Rodale Partners On New Waldorf Astoria Magazine

Created for the luxury traveler, Waldorf Astoria Hotels & Resorts and Conrad Hotels & Resorts announced the launch of individual magazines available both in-room and online, each with a distinct voice and point of view offering inspiring design, arts, culinary, style and travel content from preeminent lifestyle writers. “These exciting new magazines not only extend our voice in the luxury space, but also allow us to provide relevant lifestyle content through the unique lens of our Waldorf Astoria and Conrad brands,” says John T.A. Vanderslice, global head, luxury and lifestyle brands, Hilton Worldwide. “The debut of these beautifully curated magazines reinforces the exceptional experiences awaiting each guest when they arrive at one of our nearly 50 luxury properties around the world.”  Published biannually in partnership with publishing house, Rodale, print copies of the magazines are available in-room at all Waldorf Astoria and Conrad hotels and resorts globally. Digital versions, featuring videos and exclusive bonus content, are available free for download via Flipboard and iTunes (for iPad) or the Google Play Store (for Android), and at www.waldorfastoria.com/magazine or www.conradhotels.com/magazine.

Mags, News, Brace For Postal Increase

Magazines, newspapers and direct marketers are girding for the possibility that the U.S. Postal Service will pass an exigent rate increase on top of the annual postal rate that is capped by the consumer price index. The increase, made possible by a 2006 law that gives the postal service the option to raise rates in case of extreme circumstances like a terrorist attack, could be as high as 10 percent across the board. It couldn't come at a worse time for the media and marketing industries that depend on mail service. "We're finally getting our footing back since the 2009 recession," said Mary Berner, president and CEO of the MPA, the Association for Magazine Media. Magazines, for example, spend $3 billion annually on postage. A 10 percent increase would add $300 million to an industry that is already challenged. Some magazines could go out of business, Berner warned. Others could cut back on mail delivery and redouble digital efforts. But lobbyists are running out of time to convince the post office not to jack up the rates. The Postal Board of Governors is scheduled to meet behind closed doors on Sept. 5. Given that the U.S. Post Office is bleeding billions of dollars each year, lobbyists fear a rate increase seems almost inevitable. To fight the increase, the mailing industry brought back together the Affordable Mail Alliance, a coalition of more than 50 organizations, including the MPA, the Direct Marketing Association and the National Newspaper Association. Three years ago, the group fought against the first exigent rate increase and won, challenging it in court in a case that now lies dormant. In a letter this week to the Postal Board of Governors, the group argued that a rate increase would be self-defeating and could lessen the pressure on Congress to enact much-needed postal reform. The group also asked the Board of Governors for a personal meeting. "Right now, the [postal service] can't rationalize their business. We're supportive of five-day delivery, consolidation of facilities, and reduction in the cost of benefits," said Berner. "This exigent increase is a distraction and it won't help the postal system. We need to focus on legislation that gives the postal service the tools they need." If the board of governors passes the increase (and all expectations are that they will), the Postal Regulatory Commission will have 90 days to pass it. And if that happens, the mailing industry will be forced to litigate, again. "That diverts time and resources away from coming up with a long-term solution," Berner said.

Exigent Postal Rate Increase Is Feared Near

Exigent rate increase—three words that strike fear into the hearts of direct mailers. It's an increase that comes above and beyond the regular, annual rate adjustment, which is capped by the Consumer Price Index. If passed, it could be a game-changer for marketers who depend on direct mail. Well, start trembling, mailers. The Affordable Mail Alliance claims to have information that the Postal Board of Governors will be considering such an increase in September. The Alliance, formed by concerned associations including the Direct Marketing Association and the American Catalog Mailers Association, sent a letter yesterday to Postal Board Chairman Mickey D. Burnett warning of dire consequences to an exigent increase. “The mailing industry, and its suppliers, responsible for $1.3 trillion in sales annually, and nearly 8 million private sector jobs,” the letter read, “are unanimous in our great concern that, notwithstanding the Postal Service's ongoing financial predicament, an ‘exigent' increase would cause severely adverse, and likely irrevocable, consequences for mail volume and revenue." With Postmaster General Patrick Donahoe insisting that reform be enacted immediately to save the Postal Service from financial disaster, the threat of an exigent rate increase worries direct mailers.


Troy Young Restructures Hearst Digital Division

Hearst is restructuring its digital department. Although specific details remain unclear, the new strategy calls for a “newsier presence” and building “stronger relationships” between Hearst properties. Earlier this week, Hearst let two top editors go and then promptly touted new digital hires. The reorganization comes not long after Troy Young, who came to Hearst from Say Media, was appointed to the newly created position of president of digital media at the company.  “We’re focusing on editorial, design, and media platforms to create stronger relationships between our properties and their communities, and building a stronger, newsier presence, which means making choices and creating new opportunities,” Mr. Young said in an email to The Observer. “We’re continuing to hire for roles that will move our strategy forward, and you’ll see our site experiences evolve quickly.”  “Digital is a huge area of growth and investment for us, and we’re having our most profitable year ever,” Mr. Young said. In an email announcing its digital hires, Hearst touted big traffic gains for both women’s titles. “In July, Cosmopolitan.com reached 12.2 million unique visitors, its best month ever. ELLE.com reached 3.4 million unique visitors, up 26% versus last year,” the email read.

Gap Looks For Up Year

Gap raised its earnings-per-share outlook for the year yesterday after its summer lineup helped boost second-quarter results and advanced its turnaround push. The higher guidance was short of Wall Street expectations, but the company also hiked its annual dividend by 20 cents, or 33 percent, to 80 cents per share. Its shares rose 1 percent to $42.43 in aftermarket trading. Over the past year, the stock is up 21 percent. Gap owns Banana Republic, Old Navy, Piperlime, Athleta and Intermix stores, in addition to its namesake chain. Gap’s more upbeat outlook represents a bright spot in the broader industry. Major retailers including Walmart, Target and Macy’s have lowered their expectations for the rest of the year, citing the uncertain economy.

Koch Industries Not Buying Tribune Newspapers

Koch Industries will not be buying the Tribune Company’s eight newspapers, which include the Chicago Tribune and the LA Times, The Daily Caller has learned. Sources with knowledge of the business proceedings told The Daily Caller that Koch Industries, after conducting its due diligence, has not been interested in buying the newspapers for “a couple months.” The company determined that purchasing the newspapers was “not economically viable” and that both parties walked away from the negotiations, they said.

Zinio App Offers 3 Mags $5/Month

Magazine junkies on a budget, you might just flip over this. The Zinio app – which lets you read more than 5,500 digital magazines on any platform – is now offering a subscription model that costs $5/month for any three of your favorite magazines. Not bad, considering many of the magazines cost $4.99 for a single issue, such as T3, Car and Driver, PC Gamer, Rolling Stone, Esquire and National Geographic. Some magazines cost less -- such as $3.99 per issue for Cosmo, Us Weekly, Wine Access and TV Guide -- but $5 a month for three magazines is still a deal. Called "Z-pass," you can select which three magazines you want and change them up each month, if desired. You don't need to commit for a certain amount of time to get the deal, and the first month is free. You can access your Zinio magazines on virtually all smartphones, tablets and computers (we reviewed the app on an iPad mini). Magazines are downloaded to read offline, so you're fine if there's no Internet connection when you want to read (such as on an airplane).