News Corp.'s Heritage bid
News Corp.'s acquisition of Heritage Media Corp. is being challenged by the Justice Department's antitrust division. The primary asset of Heritage is ActMedia, an in-store couponing business in 40,000 retailer stores. News Corp. owns a competitor, FSI In-Store, which is in about 2,100 stores, and is also the nation's largest free-standing insert producer.
POP, outdoor testify
on cigarette ad deal
The chairman of Point of Purchase Advertising Institute last week told the Senate Judiciary Committee that the global tobacco settlement would have significant impacts on the ad industry. Also, David Schultz, VP-marketing for MCA, testified the agreement would cost most outdoor companies 10% of their revenues nationally and some far more. Instead of restricting advertising, he urged increasing ads aimed at halting underage consumption.
ABC Shoppers Group
Direct marketing giant Harte-Hanks signed an agreement with ABC Inc., a subsidiary of Walt Disney Co., to acquire ABC Shoppers Group for about $104 million. The group publishes free-circulation publications, including Pennysaver, Bargain Bulletin and El Informador, reaching almost 2.5 million households.
Taco Bell grocery
line moves to Y&R
Kraft Foods said it has moved its Taco Bell grocery product account to Y&R Advertising, Chicago, from Bozell, Costa Mesa, Calif. The move on the estimated $5 million business was long expected as Kraft rarely works with agencies outside its core roster. Bozell was hired because at the time Kraft bought the line the agency handled the Taco Bell fast-food account, which has subsequently moved to TBWA Chiat/Day, Venice, Calif.
extends Hearst support
In an unprecedented show of corporate support, Hearst Magazines' Good Housekeeping will begin running its first consumer campaign to use all 16 Hearst titles, 10 daily Hearst newspapers, and corporate-owned TV stations, including several ABC affiliates and Lifetime cable network. The consumer campaign will focus on the redesign of the Good Housekeeping Seal, as well as the extension of the product warranty to two years. "In the past we may have not pushed the seal . . . But what we realized is the [Good Housekeeping] Institute, by testing these products, limits our exposure," said Publisher Pat Haegele. Good Housekeeping is searching for an agency for a consumer campaign for '98. Incumbent is New York-based Jordan, McGrath, Case & Taylor. Separately, Hearst's quarterly spin-off from Country Living, Country Living's Healthy Living, will go every-other-monthly starting with the April/May issue.
Diba addition puts Sun
in home device race
Sun Microsystems said it will buy Diba, putting Sun in the race with Microsoft Corp.'s Windows CE and Oracle Corp.'s Network Computer to develop a standard for computer-based consumer electronics and household devices. Sun will mesh its Java software with Diba to create Internet TV set-top boxes, telephones and other products.
sweeten restaurant deal
McDonald's Corp. and Walt Disney Co. added a new facet to their global alliance. McDonald's will open two restaurants in Walt Disney World-one late this year, and the other early next year-and one in Disneyland Paris. In addition, McDonald's will be exclusive sponsor for the Dinoland USA section of Disney's Animal Kingdom theme park, scheduled to open next spring.
Elzy boosted in wake
of McQuillen death
Steven R. Elzy was promoted to president-CEO of PJS Publications, one of K-III Communication Corp.'s two consumer special-interest magazine divisions, from VP-operations for K-III Media. His promotion is the result of a reorganization after the June 30 death of K-III Chief Operating Officer-President Harry McQuillen.
`Louie' series sparks
fast-food, Huffy promos
Saban Entertainment has inked Jack in the Box, Hardee's and Huffy Co. to promotional deals for its kids' animated TV series, "Life With Louie." Each of the promotions centers on a bicycle safety motif. The fast-food companies will put a "Louie"-themed safety message on packaging and offer toy premiums. Huffy has a sweepstakes promotion with Huffy bike prizes.
to Aussie model
Australian-born newcomer model Sara O'Hare is the new spokeswoman for Wonderbra, part of Sara Lee Corp. Ms. O'Hare will begin appearing in ads next year. The company is beginning a new campaign called "Bodytalk" this month. TBWA Chiat/Day, New York, handles.