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Contents copyright 1998 by Crain Communications Inc. All rights reserved

March 30, 1998

K-C shakes up European leadership: Kimberly-Clark Corp., Irving, Texas, announced a leadership shake-up Monday. The move followed recent subpar results, particularly in Europe, that have led the company to report quarterly earnings below analysts' expectations. Robert P. Van Der Merwe, 45, formerly president-North American feminine care sector, was named president-Europe. Timothy J. Lehman, 40, formerly president-North American child care sector, will succeed Mr. Van Der Merwe as president-North American feminine care. Thomas J. Falk, 39, group president-North American tissue, pulp and paper, will add similar responsibility for Europe. Kathi P. Seifert, 49, group president, North American personal care products, will take over the European business, too. John A. Van Steenberg, 51, formerly president of K-C's European consumer and away-from-home business, will become president-global development, with responsibility for developing countries.

Bacardi snaps up Dewar's, Bombay: Bacardi purchased the Dewar's Scotch whisky and Bombay gin brands for $1.9 billion from Diageo. The purchase is meant to help Bacardi diversify its spirits portfolio beyond its best-selling rum, and increase its clout with wholesalers. Diageo, the company that resulted from the merger of Guinness and Grand Metropolitan, was ordered to sell the brands by regulators, who cited competitive concerns. The move is likely to lead to agency reassignments. Leo Burnett USA, Chicago, handles Dewar's and the Johnnie Walker whiskies, which will be staying with Diageo. Margeotes/Fertitta & Partners, New York, handles Bombay as well as Diageo's Stolichnaya vodka. Ammirati Puris Lintas, New York, handles Bacardi.

New post for Lexus marketing chief: The top marketing post at Toyota Motor Sales USA's Lexus Division, Torrance, Calif., is open following a restructuring. In the changes, Lexus Division Corporate Marketing Manager Steven Sturm was promoted to VP-new era business, a long-range strategy unit in a newly created Toyota Motor Sales USA planning and development group. A sucessor to Mr. Sturm as head of Lexus marketing was not immediately named. Toyota Motor Sales also said Toyota Division Corporate Marketing Manager David Pelliccioni was promoted to VP-marketing, a new title at the auto marketer. Mr. Sturm now reports to Senior VP J. Davis Illingworth. Mr. Pelliccioni reports to Toyota Division Group VP-General Manager Donald Esmond.

New private-label brand at Sam's: Wal-Mart Stores' Sam's Club division, Bentonville, Ark., developed Member's Mark, a new private-label brand name, and said it will be applied to a full range of products, including food, personal care products, pet food, batteries, luggage, tennis shoes and cleaning products. Corporate design shop Master-McMeil, Berkeley, Calif., handled.

Target to market Katia fragrance: Target Stores, Minneapolis, and Olympic gold medalist skater Ekaterina Gordeeva revealed "Katia," a new fragrance named after the skater's nickname. The "Katia" fragrance line, which includes other bath products and gift sets, is part of a multiyear partnership that Target and Ms. Gordeeva announced last fall. In addition to commercials, product endorsements and in-store appearances, Ms. Gordeeva is also spokeswoman for Target's partnership with St. Jude Children's Research Hospital.

Outdoor records gains for fifth year: Outdoor Advertising Association of America, New York, said total spending on outdoor climbed 8.8% to $2.135 billion last year, the medium's fifth consecutive year of growth. Robust spending by Hollywood studios helped propel outdoor's top ad category, entertainment and amusement, to $208.5 million for the year, a 24.6% gain. The business and consumer services category (including computers and software) climbed 17.7% to $160.8 million, making it the medium's new No. 2 category. The tobacco products category slipped to the No. 3 position among outdoor ad categories as spending slipped 1.7% to $155.9 million. The year ended strongly for the medium, OAAA said, with fourth quarter spending 11% higher than the comparable period in 1996.

Account Action

UNYS, Rochester, N.Y., a new holding company for the Finger Lakes, Central New York and Utica-Watertown Blue Cross & Blue Shield plans in New York state, to Eric Mower & Associates, Syracuse, N.Y., to develop combined branding efforts. Spending was not disclosed. Mower, Hutchins/ Y&R, Rochester, and Trainor & Associates, Utica, had been the previous agencies.

People Moving

Jennifer Friedberg to senior VP-business development and marketing at interactive agency Nicholson, New York, from senior partner, OgilvyOne.

Died: Austin Kelley, 67, chairman, Austin Kelley Advertising, Atlanta; March 26 of cancer, in Atlanta. He began his agency career with McCann-Erickson Worldwide, New York, and relocated to Atlanta in 1972 as president of the Burton-Campbell agency. He started his agency in 1975.

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