Magazine magnate William F. Reilly is concerned about a so-called triple dip in the economy, but that`s not stopping him from bringing out two more consumer publications.
Hot off the presses is Soap Opera Illustrated, which follows on the heels of Reilly`s firm`s Soap Opera Digest and Soap Opera Weekly. But Reilly, chairman-chief executive officer of K-III Communications Corp., a firm with anticipated 1992 revenues of $800 million, is more down to earth with his plans than the typical TV sudser.
Poised for an Oct. 6 launch is another publication, with the zany title True News. It will be published monthly for the rest of this year and twice-monthly in 1993, with startup circulation of more than 200,000.
True News is not a True Story- or True Detective-type publication;
rather, it is what K-III executives say will be an entertaining look at news, perhaps a publication for junkies of ”soft news,” but it will be factual and sourced from other publications.
”Let`s say that True News will be a lighter treatment of news,” said Harry McQuillen, president of K-III Magazines. True News will be the same standard size as K-III`s New York magazine, which, incidentally, in 1993 will celebrate its 25th anniversary, which Reilly says ”will be promoted with a big splash.”
Both K-III executives said they think True News can eventually build its circulation to 600,000 to 800,000.
Reilly, who is on the board of directors of Chicago-based FMC Corp., isn`t keen on the economy, saying he`s not sure what direction it`s taking. But that doesn`t mean he will hold back expansion of K-III, which last year for $650 million bought out a bunch of Murdoch publications, including Seventeen, New Woman, Premiere and the Daily Racing Form.
One of the acquired magazines, European Travel & Life, was scrapped early this year because it wasn`t making money.
K-III, which is also a big factor in direct-response and information services, is majority-owned by Kohlberg Kravis Roberts.
Reilly and McQuillen, both graduates of the University of Notre Dame, say they are looking at aggressively pursuing more acquisitions, although there don`t appear to be many bargains available right now in a down economy.
The upside, Reilly says, is that in a stagnant economy, publishers might be willing to unload marginal publications at the right price.
P&G dumps Citrus Hill
Procter & Gamble again is undergoing an ”orange crush.” For the second time in less than four years, Procter is unloading an orange beverage, this time dropping its Citrus Hill brand, which it has sold since the early 1980s, after the acquisition of the Ben Hill Griffin Inc. operation in Florida. While announcing Thursday that it is giving up on Citrus Hill, a brand that has not been profitable, Procter said it will make available for sale two of the production facilities. Additionally, Procter said it will sell its Speas Farm and Lincoln apple juice and Texsun juices businesses because the firm decided to focus on its juice drinks under the Hawaiian Punch and Sunny Delight brands. The cutback will result in a $200 million after-tax write-off in the third quarter. Three years ago Procter got out of the soft-drink business, selling its Hires root beer and Orange Crush brands. The decision to unload Citrus Hill did not surprise observers because the brand had about an 8 percent share of the $3 billion refrigerated and frozen orange juice market. Citrus Hill has lagged behind Seagram`s Tropicana brand, which has an estimated 24 percent share, and Coca-Cola`s Minute Maid, which has an estimated 23 percent share. Procter still will sell orange juice under different labels in the European market. A year ago, Procter was embarrassed when the Food and Drug Administration censured the firm for using the word
”fresh” on its Citrus Hill juice, seizing 2,000 cases of the brand in a Minnesota warehouse. Procter`s decision has some advertising consequences; the brand at Ayer-New York was backed by $19 million in media advertising in 1990 but less than $4 million in 1991. Procter`s food-and-beverage business, which includes Folgers coffee, has been a problem child for the Cincinnati giant. And while the company denies that further divestments are planned, some people think it will get out of food and beverages.
Whitman Corp.`s Midas International unit retained Manhattan-based Horizon Media, a media-buying service, for work in selected markets including New York and San Francisco, effective in 1993. Midas` national ad agency is Wells Rich Greene/BDDP-Chicago.
On the move: Mike Kalasunas, director of planning at J. Walter Thompson USA Chicago, also named management director on the agency`s Miller Brewing Co. account. . . . Barbara Paulger promoted to manager, marketing services, for Liquid Carbonic Industries Corp. . . . Susan D`Aiutolo named computer graphics development manager at Communications Dynamics Corp. in Glen Ellyn.
Strictly Personal: Birthday greetings to Joe Levy, Herb Kraus, Andrew Chura, Alan Lieberman, Krista Kelley, and Joe Brar.
