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Newsline
By: Sonya Castex, PPAI
Issue: 2004apr
Industry News
Executive Greetings, Inc. Files Bankruptcy
Distributor Executive Greetings, Inc. (EGI) (UPIC: EGI0001) and its affiliates filed voluntary bankruptcy petitions under Chapter 11 of the United States Bankruptcy Code on December 29, 2003. After carefully reviewing strategic alternatives, EGI has concluded that a sale of its business through the Chapter 11 process offers the best method of maintaining the business as a going concern and maximizing return to EGI’s creditors. Prior to filing the petition, EGI entered into a contract to sell all of its assets to Taylor Corporation and, once it filed Chapter 11, simultaneously filed a motion with the Bankruptcy Court for the authority to sell all of its assets to the company. EGI expects the sales process to be completed this month.
The Chapter 11 filing is designed to allow EGI to continue its normal business operations as it takes the time to sell its assets in an orderly manner. To ensure that EGI has adequate funds to continue operating in a business-as-usual manner throughout the bankruptcy process, the company has negotiated an agreement with its lenders, led by Fleet National Bank, which will allow EGI to use its cash to pay all ordinary course and bankruptcy-related expenses.
In a letter to suppliers issued by President George Ittner, business is described to be continuing as usual. “All of our facilities are open for business and serving our customers,” he says. EGI doesn’t expect any reduction of its orders with suppliers and believes it is in the best interests of both of its companies to continue to do business on the same terms and conditions as in the past. “Although we cannot predict at this time exactly how long this process will take,” says Ittner, “we are determined to work through the process as quickly as possible.”
Senator Wins Action Against Pen Copycats
The January 2004 edition of the PROMOTA® Bulletin reports that supplier Senator Pens (UPIC: SENATOR) has just won a legal case against Chinese firm Ningbo Chenglu Stationery and Sports Travel Products, which had been mimicking a number of Senator’s pens and selling them on the German market. Senator complained the manufacturer was infringing its registered patents and brands.
As a result of the court proceedings held in Munich, the defendant is prohibited from bringing 14 types of pirated writing instruments on to the German market and from using the S-Logo and Senator brands. Ningbo Chenglu was also ordered to pay compensation and reimburse costs.
Andrew Hill, speaking on behalf of Senator in the UK and the U.S., says "These verdicts show that it is worthwhile for European manufacturers to undertake legal proceedings. Product piracy is becoming more and more prevalent and whilst the initial price points may seem attractive to the recipient, the overall quality ultimately has a damaging effect on the brands represented on these pens. Senator invests heavily in R&D so that our customers can consistently buy with confidence. These verdicts prove that we no longer have to accept the theft of intellectual property.”
Krasovec Named To Polyconcept Board
AUSTIN, TEXAS—Former Chairman and CEO of supplier Norwood Promotional Products (UPIC: NORWOOD) Frank P. Krasovec has been named to the Polyconcept board of management effective January 5, 2004. The Paris-based Polyconcept is a leading European supplier of promotional products and is involved in the creation and distribution of creative gifts and lifestyle products in Europe and the U.S. Krasovec left Norwood in 2001 to oversee his personal portfolio and manage Norwood Investments, a private equity partnership. He is the first independent member of Polyconcept’s board.
“Polyconcept is a high-quality company with a superb management team and strong values—traits that are particularly important to me,” Krasovec says. “I’m delighted to be involved with them.”
Prime Acquires Logotec
BRIDGEPORT, CONNECTICUT—Supplier Prime Resources Corporation (UPIC: PRIME) has acquired supplier Logotec USA (UPIC: logotec). “Prime is thrilled that Logotec USA is now part of its family,” says Vice President of Product Development Jeff Lederer. “The opportunity of this acquisition presented itself at the right time.” Logotec continues to operate in Irvine, California, but Prime’s nationwide group of managers now represents both Prime Line and Logotec.
Lee Wayne Purchases JII Promotions
CHICAGO, ILLINOIS—Distributor Lee Wayne Corporation (UPIC: LEEWAYNE), a subsidiary of HALO Holdings, has purchased selected assets of distributor JII Promotions (UPIC: JIISPAI) in an all-cash transaction. All non-manufacturing responsibilities will eventually be transitioned to Lee Wayne Corporation headquarters, and the company is maintaining JII Promotions’ current sales management team.
Marc Simon, HALO’s CEO, says, “Our goal is to make the superior quality Lee Wayne/HALO order management and service platforms available to more promotional products salespeople.”
And Lee Wayne President Jack Mewhirter adds, “JII Promotions aligns perfectly with our core values. Its sales representatives will have a positive impact on our unique sales community.”
Direct Marketing Association Pushes For Postal Service Overhaul
According to an article in Potentials magazine, the Direct Marketing Association has thrown its support behind a series of upcoming congressional hearings aimed at overhauling the U.S. Postal Service in the wake of growing challenges to the independent government entity’s finances.
The Postal Service has not received any government subsidies since 1970 and is facing long-term financial difficulties. The expanding population has added millions of delivery addresses at the same time as the rapid growth in e-mail and competition from private delivery companies like Federal Express and UPS cut into revenues. The Postal Service lost $2.3 billion during the past three years, according to the House Government Reform Committee, which is considering a variety of administration proposals to cut costs and improve flexibility and accountability at the Postal Service.
The Direct Marketing Association (DMA) is concerned that these losses, combined with a new law requiring the Postal Service to begin placing a sizable sum into an escrow account each year, will force postal rates up dramatically. The Government Reform Committee predicted that without an overhaul, the Postal Service would have to raise rates by 5.4 percent before the end of the year. To put that percentage in perspective, the DMA says American companies spent more than $46 billion on direct mail advertising in 2002—the most recent year for which statistics are available.
“The Postal Service is being hard hit by the increasing impact of the Web and private-sector competitors,” says H. Robert Wientzen, president and CEO of the DMA. “This will only accelerate over the next decade.”
The specter of increased snail mail costs comes as the direct marketing industry is struggling with governmental crackdown on e-mail spam that is threatening legitimate direct marketers’ ability to reach consumers. In a related item, the DMA noted a report by Jupiter Research predicting that the cost to online marketers of permission e-mail messages blocked by anti-spam filters will balloon from $230 million in 2003 to $419 million in 2008.
—Cherri Gann
New Networking Group Formed
At the January 13, 2004, meeting of the MAS/CAS Alumni Association, the two-thirds majority vote favored dissolving and merging their organization with Promotional Products Networking Association (PPNA) to form a new networking, education and mentoring group. The name of the new organization has not yet been chosen. (PPNA members had approved the dissolution and merger of PPNA in December.) “This merger means more opportunities and resources plus a greater awareness for both groups,” says Pete Gleason, MAS, president of Gleason Promotional Marketing (UPIC: GLEASON) and chair of the new mentoring group.
The idea for merging the two groups grew from observing the changing needs of members in both groups. PPNA attracts new industry professionals and others in the early years of their careers. Members of MAS/CAS Alumni Association have the experience to mentor these new professionals and to strengthen the certification program by demonstrating tangible benefits that result from continuing education.
A Mentoring Taskforce, appointed by the PPAI Board of Directors, explored ways to take the best of the MAS/CAS Alumni Association and Promotional Products Networking Association to form a new and even better group. Although no other formal decisions have been made to date, the following members from the combined group have volunteered to serve on the new board chaired by Gleason:
Dino Bartolomei, MAS, Adco Litho Line, Inc., UPIC: ADCO
Dale Denham, CAS, Advertising Specialty Institute, UPIC: ASI
Marijo Dietz Whitcomb, MAS, Deitz Business Promotion, Inc., UPIC: DTZBIZ
Mary Ann Farmer, MAS, Magna-Tel, Inc., UPIC: MAGNATEL
Paul Jenne, Discovery Marketing Associates, Inc., UPIC: DMASHOWS
Michele Jennrich, MAS, Howard Miller, UPIC: clocks
Eric Johnson, MAS, Halls & Company, UPIC: IDLINE
Allison Schaffer, Soundline LLC, UPIC: 1SOUNDLN
Fran Silverman, MAS, Leed’s, UPIC: LEEDS
These board members will meet soon to define the new group’s scope, determine its name and membership and examine opportunities such as:
Providing forums for new professionals to meet peers and colleagues to network, learn about the industry, develop skills and become more informed about professional development, certification and volunteer opportunities within the industry
Developing peer-to-peer networking opportunities for MAS/CAS designees and structure an environment for them to share their knowledge with new professionals
Strengthening and raising awareness of MAS/CAS certification among a broader audience
Tee-Off With PPCEF
The Promotional Products College Education Foundation’s second annual golf marathon is scheduled for May 24. The purpose of the marathon is to support the PPCEF Scholarship Program, which helps students employed in the promotional products industry and/or their children defray expenses associated with the financial burden a college education. The first marathon event hosted last year pulled in more than $33,000.
To participate, please contact the marathon coordinator in one of the following areas:
Saint Louis—Chuck Pecher, Skinner & Kennedy, 314-426-2800
Kansas City—Houston Hale, Houston Hale Marketing, 913-558-7262
Dallas—Larry Krause, MAS, LDK Marketing Services, 972-234-4404
Atlanta—Janelle Nevins, Summit Marketing, 770-303-3950
Chicago—Jay Donlin, Richard Donlin Ltd., 219-934-9050
Tampa—Keith Olivit, CAS, Maple Ridge Farms, Inc., 727-781-4201
Carolinas—Bill Jarman, MAS, Concepts Inc., 919-856-0041
Denver—Bob Davis, CAS, Specialty Incentives, Inc., 303-753-1535
New England—Pat Dugan, CAS, Alcraft, 401-724-3100
Houston—Dave DeGreef, MAS, David C. DeGreeff, 281-361-8999
Seattle—Mark Shinn, Incentives West, 866-601-8958
New Jersey—Brian Rechten, MAS, Omega Promotional Products, 732-671-3111
Ohio—Seandae Caffey, PPAI, 972-258-3097
All donations are tax deductible. For more information, contact PPCEF administrator Seandae Caffey at 972-258-3097 or e-mail SeandaeC@ppa.org. Or contact Margie Price, MAS, at 314-428-4452 or e-mail margiep@sbcglobal.net.
—Cherri Gann
Industry’s MAS/CAS Roster Continues To Grow
Fifty-five more industry pros took advantage of several opportunities to sit for the MAS/CAS certification exam. Passing the MAS/CAS certification exam completes the process for achieving a Master Advertising Specialist (MAS) or Certified Advertising Specialist (CAS).
The MAS certification requires the equivalent of 170 classroom hours from a structured curriculum and five years of experience in the promotional products industry. The CAS certification requires the equivalent of 70 classroom hours from a structured curriculum and three years of experience in the promotional products industry. Both designations also require a passing score on the certification exam.
The newest individuals to join the growing roster of MAS/CAS designees include:
MAS:
Michelle Anderson, MAS, PERK International, LLC, UPIC: QUIC8555
Betty Barr, MAS, Four Star Forms, UPIC: 4-STAR
Marylyn Beasley, MAS, ME Promotional Products, Inc., UPIC: MEPROMO
George Boyum, MAS, American PromoPrint, Inc. dba LaLonde’s Shades of Type, UPIC: PROMOPNT
David DeGreeff, MAS, David C. DeGreeff Inc., UPIC: DEGREEFF
Gregory Carlson, MAS, ID America Promotional Products
Eric Ekstrand, MAS, The Mort C. McClennan Co., UPIC: MCMCC
Andrew Goranson, MAS, Timecal International Corp., UPIC: timecal
Judith Greenspan, MAS, Keene Advertising, Inc., UPIC: KEEN0002
Judy LaLonde-Boyum, MAS, American PromoPrint, Inc. dba. LaLonde's Shades of Type, UPIC: PROMOPNT
Christine Marion, MAS, Advertising Specialty Institute, UPIC: ASI
Reginald Marsh, MAS, Graven Image, UPIC: GRAVIMAG
Jennifer Maxon, MAS, Klondike Advertising Inc., UPIC: KLONDIKE
Carol McClean, MAS, JOYCO USA, UPIC: BEECHIES
Steven Meyer, MAS, Molenaar, Inc., UPIC: MILINE
Marvin Mittleman, MAS, Pro Specialties Group Inc., UPIC: prospec1
Charlene Pennino, MAS, Creative Ad Images, Inc., UPIC: CREA0006
Raymond Strakosch, MAS, Reflectix , UPIC: 2reflect
Peggy Turner, MAS, Graphic Designs & Promotions, Inc., UPIC: GRAP0004
Kyle Whitcomb, MAS, Deitz Business Promotion, Inc., UPIC: DTZBIZ
Joseph Woodall, MAS, ID America Promotional Products
CAS:
Michelle Altobelli, CAS, Design Incentives, UPIC: DESI0018
Sherry Armstrong, CAS, The Award & Sign Connection, Ltd., UPIC: AWARD
Joy Auer, CAS, Magna-Tel Inc., UPIC: MAGNATEL
Phyllis Beal, CAS, Magna-Tel Inc., UPIC: MAGNATEL
Ruth Carrell, CAS, Watermark Graphics Inc., UPIC: WATE0004
Ken Carlson, CAS, ID America Promotional Products
Gerald Chmielewski, CAS, Coast 2 Coast Promotions, UPIC: CZCPROMO
Frederic Clark, CAS, Rennie's Advertising Ideas, Inc., UPIC: RENNIES
Stephen Dale, CAS, Morco, Inc., UPIC: MORCO
Harry Fogel, CAS, Fogel Advertising Services, UPIC: FOG LADS
Cathy Hammer, CAS, Q Business Source, Inc., UPIC: QBS
Drake Harrison, CAS, Evans Manufacturing, Inc., UPIC: EVANS
Jerry Hatter, CAS, Lumatec Industries, Inc., UPIC: LUMATEC
Leanne Heuring, CAS, Magna-Tel Inc., UPIC: MAGNATEL
Barry Hoffman, CAS, BC Graphics, Inc., UPIC: BC GRAPHS
Marie Jewell, CAS, Sampson Miller Advertising, Inc., UPIC: SMA1931
Monica Kapinos, CAS, Kapinos Promotional Marketing, UPIC: kapinos
Steven Lazarus, CAS, Vitronic, UPIC: ACHIEVER
Andrea Liebelt, CAS, Trimark Group, UPIC: 3MARK
Stephen Lipic, CAS, Lipic’s, Inc., UPIC: LIPICS
Nancy Mueller, CAS, Business Wears, Inc., UPIC: BUSINESS
John Niemi, CAS, Artistic Promotions, Ltd., UPIC: ARTISTIC
Cassie Omohundro, CAS, SJM Agency, Inc., UPIC: SJM
Sandra Picardi, CAS, Creative Ad Images, Inc., UPIC: CREA0006
Charles Potts, CAS, Klondike Advertising Inc., UPIC: KLONDIKE
Michael Puskas, CAS, DSI Promotions
Allison Schaffer, CAS, Soundline LLC, UPIC: 1SOUNDLN
Keith Slater, CAS, Somethin’ Sweet Candy Plus
Tami Slater, CAS, Somethin’ Sweet Candy Plus
Mary Turner, CAS, Magna-Tel Inc., UPIC: MAGNATEL
Bryan Vaughn, CAS, Phillip J. Sibinski, Inc., UPIC: philreps
Tia Walker, CAS, Brand It Promotions, UPIC: BRANDIT
Stacy Weiss, CAS, Your Choice or Mine, UPIC: YCOM
Richard Wolak, CAS, Arelco Promotional Group, Inc., UPIC: APGPROMO
For more information about MAS/CAS certification or to find out about the next scheduled exam, contact Michael Higgins, manager of certification and education product development, toll free at 888-492-6892 or e-mail Certification@ppa.org.
—Cherri Gann
In Memoriam
WILDWOOD, MISSOURI—Charles B. Wright, co-founder of supplier Vitronic (UPIC: ACHIEVER) died on January 9, 2004, of natural causes at the age of 85. Born in Atlanta, Wright was just a few weeks old when his family moved to St. Louis. He grew up in his father’s business, Wright Leather Specialty Co., a manufacturing company that made leather products for the auto industry and advertising specialty business. And when his father became ill, Wright took over at the age of 27. He and his brothers went on to found Vitronic in 1951, and Wright was inducted into the PPAI Hall of Fame in 1998. He is survived by his wife Margaret, daughters Sharon and Anna, son Charles, 12 grandchildren and four great-grandchildren.
PALM DESERT, CALIFORNIA—Arnie Kronenberger passed away on January 6, 2004, at his home. His death followed a series of illnesses that had plagued him for several months. Early in his career, Kronenberger was a professional square dance caller with national fame, having cut several albums for Warner Bros. records. At the urging of R.R. Perry in the 1950s, however, Kronenberger started as a salesman in the promotional products industry. He worked with R.R. Perry Co. and Idea Man, Inc. as a sales manager and when Halo acquired Idea Man, he stayed on until it closed the L.A. office. He then joined Jack Nadel, Inc. (UPIC: NADELINC) and was still semi-active until he passed away at age 79. Kronenberger was a former board member and president of Specialty Advertising Association of California (SAAC) and was honored by the association as Honorary Life Member—the highest award SAAC bestows.
Regional News
RMR/PPA Delivers Some Christmas Joy To Needy Families
Rocky Mountain Region Promotional Products Association (RMR/PPA) participated in a holiday fundraiser program in December 2003 through the Aurora Mental Health Center. The RMR/PPA Board of Directors decided to adopt three disadvantaged families in the Denver Metro Area—two small, single parent families and one family of six. Through donations of holiday gifts, grocery store gift certificates, food items and money, the association donated more than $500 in money and goods. Executive Director Heather Palace says, “This is the first time the organization as a whole has participated in such a large fundraising event during the holidays. It was absolutely wonderful to witness our members coming together for such a worthwhile cause.”
For more information on RMR/PPA, contact Palace at 303-750-9764.
PPAW Has Holiday Spirit
Promotional Products Association of Wisconsin (PPAW) held its Holiday Party and Year-End/General Membership and Business Meeting (and Elections Validation on December 2, 2004, at the Country Inn Hotel. The event drew more than 90 PPAW members to a party that was truly an exceptional and memorable event. The association chose to adopt a charitable organization for the first time, which resulted in the collection of at least seven large containers of non-perishable food and $605 in cash and checks for the Task Force on Family Violence of Milwaukee, Inc. The Task Force is a non-profit community organization devoted to serving victims of family violence and their children, providing a broad range of services, including restraining orders, temporary shelter, food, clothing and much more.
In other news, the association has announced its 2004 Board of Directors as follows:
President
Carl Deutsch, Triad Marketing Resources, UPIC: triad
Vice President
Tom Jamieson, Jamieson Marketing
Secretary-Treasurer
Lew Heckman, Custom Apparel Sales, UPIC: Custo364
For more information on PPAW, contact Joel Kriofske, executive director, at 414-332-8002.
Santa’s Band Strikes A Chord
As 2003 drew to a close, Specialty Advertising Association of Greater New York (SAAGNY along with Santa—AKA Past President Joel Schaffer, MAS, with supplier Soundline (UPIC: 1SOUNDLN) —and his elves once again visited a senior citizen home, rehab center and school for blind and impaired children. At each of these locations, in addition to handing out stuffed animals and T-shirts, Santa enlisted the seniors and children to join his band, handing out imprinted kazoos to everyone. Children who couldn’t hold or blow the instrument were given tambourines so that no one was left out. The music was a special gift and even this small promotional product brought a smile to these children’s faces.
For more information on SAAGY, contact executive director Walter Schatz at 201-505-9550 or visit www.saagny.org.
AzPPA Announces 2003 Scholarship Winners
Arizona Promotional Products Association (AzPPA has announced the 2003 recipients of our annual scholarship program. Jason Kubik and Vicky Snyder were chosen among the many applications that it received for this year's $1,000 gift. The money may be used toward any educational forum in our industry. AzPPA partnered with the Rocky Mountain association to switch applications and ensure a fair selection process.
For more information on AzPPA, contact Michelle LaFlam, executive director, at 480-889-1392 or visit www.azppa.org.
SAAC Announces 2004 Board Of Directors
Specialty Advertising Association of California (SAAC) has announced its 2004 Board of Directors as follows:
President
David Messe, Pinnacle Designs, UPIC: PINNACLE
Vice President
Hank Yuloff, Promotionally Minded Inc.
Secretary/Treasurer/SAACTimes Co-Editor
Michael Bistocchi, The Singleton Company, UPIC: sinco
Publicity/SAACTimes Co-Editor
Bob Levitt, The Beanstalk Group, UPIC: TheBe589
Education, Scholarship And Awards
Darren Cook, CAS, DCRG
Membership
Tom Levin, Magnet, LLC, UPIC: magnet
Membership And Benefits
Dan Madden, Jack Nadel, Inc., UPIC: NADELINC
Publicity And Technology
Reggie Gonzalez, Geiger, UPIC: Geiger
Scholarship
Les Dorfman, American Intercontinental Trade Group, Inc., UPIC: AITG
Immediate Past President
Craig Spencer, TradeNet Publishing, UPIC: TRADENET
RAC Delegate
Dennis Phillips, Jack Nadel, Inc., UPIC: NADELINC
Trade Show Director
Rich Golden, CAS
Executive Director
Jo Ann Macek
For more information on SAAC, contact Macek at 818-346-1796 or visit www.saac.net.
PRASA Has Fun In The Sun
Puerto Rico Advertising Specialty Association (PRASA) 2004 Tropical Showcase is set to happen on April 3-4, 2004, in San Juan, Puerto Rico. A general assembly and welcome reception will be on Thursday, April 3, and the pool party is on Friday, April 4. It’s an opportunity to have some fun in the sun and make some valuable connections.
For more information on PRASA, contact Carmen Arana, executive director, at 787-767-6919.
SACDV Springs Into Action
Specialty Advertising Counselors of Delaware Valley (SACDV) is holding its Spring Tabletop Show on April 7, 2004, at the Philadelphia Airport Ramada Inn in Essington, Pennsylvania. An education event will be in the morning, and a buffet lunch will be in the afternoon. “Our exhibitors must be members of SACDV,” says executive director Jim Harmon, CAS. “But we sell out each year and have a waiting list for tables.”
For more information on SACDV, contact Harmon at 610-873-1156 or visit www.sacdv.org.
NWPMA Is In Paradise
Northwest Promotional Marketing Association (NWPMA) is gearing up for a day of promotional paradise as it prepares for its Spring Showcase (previously called The Portland Show) on April 26-17, 2004, at the DoubleTree Hotel Jantzen Beach in Portland, Oregon. This year’s event will feature the latest in suppliers’ products and catalogs, an Education Day and Casino Night.
For more information on NWPMA, contact Jim Van Fredenberg, executive director, at 800-690-8730.
UMAPP On The Road To Success
Upper Midwest Association Promotional Products (UMAPP) is changing venues for its room and booth show and heading to the Touchstone Energy Place/RiverCentre in St. Paul, Minnesota. The room show on May 5, 2004 is a one-day event, and the theme is “UMAPP Your Own Success.” Several changes have been made to accommodate members’ requests including larger audiences and rooms and a networking party. Door prizes will be given away, and all show attendees must be current UMAPP members to attend.
For more information on UMAPP, contact Sue Selseth, executive director, at 651-734-9767 or visit www.umapp.org.
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