Philip morris cos.' retail merchandising program does not violate antitrust laws or hinder fair competition in the tobacco industry, according to a ruling from a North Carolina federal court judge. On May 1, the court dismissed a case, consolidated from separate filings in 1999 by rivals Brown & Williamson Tobacco Corp., R.J. Reynolds Tobacco Co. and Lorillard Tobacco Co. The suit alleged Philip Morris' Retail Leaders program-which gives retailers promotional incentives in return for display space-unlawfully prohibits them from competing in stores (AA, Jan. 14). The judgment states that the program "is not anti-competitive and does not harm consumers."
National Magazine Award winners
The big news at this year's National Magazine Awards: The Atlantic Monthly, under new editor Michael Kelly, matched Conde Nast Publications' New Yorker's three "Ellies." New judges' darling: the three-year-old National Geographic Adventure, which took home two Ellies this year-including one for General Excellence-thus doubling its haul from `01. Upset of the year: Miller Publishing Group's Vibe besting The New Yorker for General Excellence. Went home hungry: Conde Nast's Gourmet, GQ, and Hearst Magazines' Esquire, each of which netted three nominations but won no awards. Other General Excellence winners: Print, Time Inc.'s Entertainment Weekly, and Washington Post Co.'s Newsweek. Additionally, Susan L. Taylor, Essence's senior VP-editorial director, was named to the American Society of Magazine Editors' Hall of Fame. AdAge.com QwikFIND aan44g
Newspaper circ. figures delayed
Egg is on the face of the Audit Bureau of Circulations. Just after the company sent out its biannual reports on newspaper circulation in late April, a sheepish e-mail appeared in recipients' in boxes urging them to "discard" the copies. A glitch led the agency to count third party, or "bulk" sales of newspapers twice for a number of dailies. Though fewer than 100 dailies were affected, ABC informed e-mail recipients that they'd get corrected reports within a few days.
Older = less loyal?
Older Americans have less brand loyalty than previously believed and therefore are more receptive to advertising than their younger counterparts, according to a study to be released May 7 by AARP Publications and Roper- ASW. The survey of 1,200 adults says Americans 45 and older actively are looking at new brands, and that brand loyalty tends to vary more by product category than by age. Insurance, banking services and bath soap have some of the highest loyalty rates among all Americans-maturing and young alike-while clothing and travel have some of the lowest.
Heyer elevation at Coca-Cola Co.
Coca-cola co. last week tapped marketing chief Steven Heyer to run its Latin American business, a move that could leave him poised to run the company, analysts believe. Mr. Heyer, an advertising and broadcast veteran with one year at Coke, will work with Chief Operating Officer Brian Dyson, the company's No. 2 who retires in 2003. Latin America encompasses the company's second largest market, Mexico. The region had been run by Jeff Dunn, president-chief operating officer of North America. Mr. Heyer, president of Coca-Cola Ventures, will continue to oversee marketing and report to Chairman-CEO Douglas Daft.
Supreme Court knocks ad curbs
Overturning a law that barred pharmacists from advertising drug compounding (a practice in which pharmacists mix medications, essentially creating a new drug) the U.S. Supreme Court appeared to give commercial speech its strongest backing yet, raising further questions on government efforts to use ad curbs as a club to change social policy. "If the First Amendment means anything, it means that regulating speech must be a last-not first-resort," wrote Justice Sandra Day O'Connor, delivering the five-justice majority opinion upholding a lower court decision striking down the law. Ad groups were jubilant. "This is a great day for advertising and a great day for the First Amendment," said Adonis Hoffman, senior VP-counsel for the American Association of Advertising Agencies. "The court has clearly affirmed the First Amendment rights for commercial speech." AdAge.com QwikFIND aan43m
Ogilvy & mather, Toronto, laid off about 10 of 300 staff across the ad agency, OgilvyOne Worldwide and Ogilvy Interactive Worldwide....Havas Advertising split Euro RSCG Worldwide into two separate networks in North America. Messner Vetere Berger McNamee Schmetterer Euro RSCG becomes Euro RSCG MVBMS Partners, headed by CEO Ron Berger, and will include eight Euro RSCG marketing services companies. Euro RSCG McConnaughy Tatham becomes Euro RSCG Tatham Partners, headed by CEO Gary Epstein, and will include the remaining Euro RSCG marketing services companies. Bob Schmetterer remains chairman-CEO of Euro RSCG Worldwide. Outside the U.S., the marketing services agencies will continue to be part of Euro RSCG Marketing Services.