Sunday, January 30, 2000
TIPSHEET
Are competitors' coupons fueling Febreze rumors?
Since its introduction last year, Procter & Gamble's Febreze fabric freshener has been the focus of rumors that it not only gets rid of pet odors — it can get rid of your pet.
Could the makers of competing brands Resolve and Clorox FreshCare be trying to cultivate those rumors with in-store promotions touting their products as safe for pets?
Reckitt & Colman, maker of Resolve, is offering Febreze customers coupons at checkout counters for free bottles of Resolve. The coupons declare the product is “safe for use in homes with dogs and cats.”
Clorox also is offering coupons for free samples of its product to Febreze customers. The coupons read, “safe to use in households with pets.”
Damon Jones, a P&G spokesman for Febreze, said: “Febreze has always been a safe product. After the rumors began circulating last year, we made that clear on the package. But we will never try to guess what their (competitors') intentions are.” — Randy Tucker
Federated picked to stay
Federated Department Stores was recognized for a feature even more attractive than the Internet at the National Retail Federation's Convention & Expo in New York this month: longevity.
During the session, “A Wall Street Review of Retail,” leading industry analysts took a break from Internet talk to suggest investment picks. The question, posed by consultant Walter Loeb, was: In five years, who will be the winners in retail?
Several discounters, including Wal-Mart, Costco and Kohl's, were picked — as was Federated. George Strachan, vice president at Goldman, Sachs & Co., gave the nod to Federated, parent of Lazarus, and to Nordstrom.
Those two were the only department store retailers named. And as far as Mr. Strachan is concerned, they are in a narrowing field.
“No one should be surprised to see a major mall anchor disappear in the next 10 years,” he said. — Lisa Biank Fasig
Buyback caution urged
Delta Air Lines pilots have found a reason to be leery of the stock repurchase programs that Wall Street investors so love.
Union officials have sent an 1,800-word letter to rank-and-file fly-boys and -girls warning them of a possible downside to Delta's $500 million buyback plan, should the U.S. economy hit another recession.
The letter says Delta used up its available cash on buying regional carriers (Atlantic Southeast Airlines and Erlanger-based Comair) and on improvements to airport terminals. Delta recently issued $2 billion in bonds, the biggest airline debt issuance ever, to help cover some of the costs.
“In effect, $500 million of that $2 billion borrowing is being immediately transferred to stockholders,” the letter says. “... What should concern us, however, is the situation where earnings begin a serious decline ... and Delta is forced to make more debt repayments than would be necessary absent significant, common stock repurchases.”
Recession and recalled debt 10 years ago forced Delta to ask pilots and other employee groups to take pay cuts, the letter states. — Amy Higgins
Carlisle buys out partner
Wayne Carlisle has bought out partner David Hosea in DW Productions, the company the pair formed to buy properties for the proposed Millennium Monument and World Peace Bell in Newport.
The buyout closed during the second half of 1999, meaning that Mr. Hosea is no longer officially involved with the downtown Newport development effort. He said he is concentrating now on running his moving company, Hosea Worldwide Inc.
“My business just couldn't afford it,” he said.
The Millennium Monument Co., started by Mr. Carlisle and Mr. Hosea, managed the unveiling of the World Peace Bell on New Year's Eve.
Mr. Hosea's proposal four years ago for a 650-foot tower near the mouth of the Licking River started the development. Newport officials are working on a new feasibility study for the tower project.
Carlisle spokesman Joe Bride said Mr. Carlisle has personally spent about $10 million to make the Newport project a reality. — Cliff Peale
Items for Tipsheet are gathered by Enquirer business reporters and compiled by Lisa Biank Fasig of the business staff.
Seminar feels richly rewarding
Gold Star hitches up with two new partners
Digital camera records fun at theme park
Going the distance for job-poor Ohioans
Enquirer reporter in Japan with Taft
Are competitors' coupons fueling Febreze rumors?
Classes show how to start from scratch
Old-fashioned barber; newfangled shop
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