Analysts more concerned in the last months about who might buy Hershey Foods than its lackluster performance are putting the spotlight back on President-CEO Rick Lenny as questions arise about how the company moves forward after last week's plans to sell were cancelled by its controlling Trust. "They need to get more aggressive with new products and generate strong internal growth," said Prudential Securities analyst John McMillin. Hershey's Chief Marketing Officer Wynn Willard recently laid out plans for improved advertising creative and new products [AA, Sept. 16]. Industry observers expect the company's Oct. 17 earnings call will have to outline even stronger plans to jumpstart flat sales. Despite a $12.5 billion offer from Wm. Wrigley Jr. Co. and a $10.5 billion joint offer from Nestle and Cadbury Schweppes, the Hershey Trust Co. rejected those and will look for other ways to diversify its portfolio. AdAge.com QwikFIND aan99f
`EW' shuffles management team
Time inc.'s Entertainment Weekly last week named a new managing editor and president. Rick Tetzeli, 41, deputy managing editor of Fortune, replaces longtime Managing Editor Jim Seymore, 59, who moves up as a Time Inc. editor at large. Mr. Seymore, managing editor since just after the title's 1990 launch, will work in a consulting role with the company's Time4Media portfolio. Peter Bonventre, EW's executive editor, was moved into the newly created position of editorial director, and will report to Mr. Tetzeli. On the business side, Andy Sareyan was named president, replacing John Squires, who in July was named exec VP for Time Inc. Mr. Sareyan, 42, who was a VP at EW from 1993 to 1997, comes over from the company's Parenting Group, where he was president. He was also the first publisher of Real Simple. AdAge.com QwikFIND aan98r
Weight-loss ads under scrutiny
It's no shock that a slew of weight-loss ads promising miracles often come up short. But now the Federal Trade Commission weighs in. An FTC study found that nearly 40% of ads for weight-loss products the agency looked at "made at least one representation that is almost certainly false and 55% of the ads made at least one representation that is very likely to be false." And the deception has increased over the last decade. Some of the techniques employed include deceptive consumer testimonials and before-and-after photos. The study looked at 300 promotions in major media forms that ran from February through May 2001. In November, the FTC will hold a workshop exploring how to halt the growth of misleading weight-loss ads. "Reputable marketers continue to take care to avoid false and misleading claims, but it appears that too many unscrupulous marketers are making false claims promising dramatic and effortless weight loss to sell their products..."said FTC Chairman Timothy J. Muris in a statement.
Are you ready for New York Life?
New york life Insurance Co. breaks a $43 million ad campaign today on ABC's "Monday Night Football," its first creative effort since 2000. The ads, from WPP Group's Red Cell network's Berlin Cameron, New York, continue the insurer's longtime tagline, "The Company You Keep." The campaign will include national TV spots and print breaking in October issues of Gruner & Jahr USA's Inc., Time Inc.'s Money, Hearst Magazines' and Dow Jones & Co.'s SmartMoney and Kiplinger's Personal Finance.
McD's recalls bobble-heads
M cdonald's Corp. recalled 100,000 bobble-head figurines in the likeness of two National Football League players after discovering excessive levels of lead in the paint on the models. McDonald's alerted the Consumer Product Safety Commission after test results indicated the high lead levels, which is a poison hazard if ingested over time by children.The figures were based on the Chicago Bears' Brian Urlacher and Anthony Thomas. AdAge.com QwikFIND aan98u
JWT, Chicago, loses president, staff
A day after its agency president resigned, J. Walter Thompson, Chicago, cut 14, or 6.5%, of its 216 staffers. A spokesman wouldn't specify the executives involved, but said cuts ranged across account, creative and production departments. He dismissed speculation that the agency would close. After four years at the helm and 17 years as a new-business guru in the network, President Brian Heffernan last week resigned after missteps with clients SABMiller's Miller Genuine Draft and Kraft Foods. Mr. Heffernan, 47, conceded he might have been too much of a fair-weather manager for the current recession. JWT North America President Bob Jeffrey will lead until a successor is named. AdAge.com QwikFIND aan99a
Ad achievement honorees named
The american Advertising Federation named this year's seven advertising and media executives to be inducted Nov. 19 into its Advertising Hall of Achievement. The y are: Alex Bogusky, creative director-partner, Crispin Porter & Bogusky Advertising; Jeannine Shao Collins, VP-group publisher, Meredith Corp.'s Ladies' Home Journal and More; Linda De Jes£s, president, The Bravo Group; Scott Donaton, editor, Crain Communications' Advertising Age; Earl G. Graves Jr., president and chief operating officer, Black Enterprise; Richard Stoddart, marketing communications manager, Ford Motor Co.; and William Wrigley Jr., president-CEO, Wm. Wrigley Jr. Co. In addition, Earl G. Graves Jr. will be presented with the 2002 Jack Avrett Volunteer Spirit Award.