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Chicago Tribune from Chicago, Illinois • 44

Publication:
Chicago Tribunei
Location:
Chicago, Illinois
Issue Date:
Page:
44
Extracted Article Text (OCR)

sertion 3 Chicago Tribune, Wednesday, August 11, 1932 "In New granola trails may be trial for buyers NOW A complete Apple III, with business software 1 4" -s, hi George JSirK Lazarus 2hu dently from the other Marks Bros, properties. Marks has 17 Whitehall stores here and 14 other stores under that name in other markets, as well as two Lundstrom stores in Florida. Metromedia sells station Metromedia Inc. has sold WXIX, its UHF television station in Cincinnati, for $47 million to an unidentified group of buyers, sources report. The sales paves the $4995 ifcipplG computer Sales and Service TWO PACKAGED goods blue thippers llershey and Carnation are literally blazing a new trail in the granola-cereal bar business.

They might very well be driving supermarket operators (and ccmsumers) daffy because of the similarity of brand names. Carnation last month moved its Trail Mix quickly into national distribution (most Chicago area grocery outlets now carry it), while Hershey has been poking along since last Spring in Kansas City and San Francisco test markets with New Trail. Hershey, a company that got a big boost from the movie "E.T." for its Reese's Pieces, has expansion plans for New Trail. Indications are that New Trail, which comes in three i ft The Apple III Is the professional solution for your business. Data Domain has the Professional Solution package (a $5300 retail value) for $4995.

256K Apple III Monitor III Software Including VlsiCalc, AppleWrlter and QuIckFlle Training disks Coupons worth hundreds of dollars towards additional software and accessories Talk to Data Domain see how the Professional Solution can solve your way for Metromedia impending acquisition of WFLD-TV, als a UHF, as reported in this column Tuesday. Metromedia needs to sell one of its TV stations to stay within the seven-station ownership limit of the Federal Communications Commission. Metromedia's purchase of Channel 32 (which has been in operation since 1966) will top $100 million. Metromedia, a Secaucus, N.J.-based firm, also is seeking to sell WTCN, a Minneapo-lis-St. Paul VHF station.

The asking price: $80 million. Former Chicagoan Gary Horton is returning as the creative boss of D'Arcy-MacManus Masius here. Horton, 42, was named an executive vice president- HI mm ill business problems. Apple Ills are great; they're better at Data Domain. centage increases are foreseeable.

"People have gone bananas over health food, and granola bars have strong appeal," says a supermarket operator. Observes another grocer: "Granola is an 'in' item these days." QUAKER REPORTS outstanding success for its Chewy Granola Bars. These bars were introduced on both coasts last summer, but the Chicago-based firm couldn't meet demand, so the line was withdrawn from the East Coast. The product was reintroduced last week to Eastern markets. Granola bars are certain to be a business around for some time, unlike nature cereals, which nose-dived from a 12 percent share of the cereal business to a few percentage points.

Quaker is the only factor that business. When Quaker, General Mills, Hersne; ruination, etc. all finally make it into the same major markets, there's going to be a shelf problem accommodating all these labels, industry observers say. "Sometimes you can have too many labels in a category, no matter what business is being done," confides another supermarket operator. "Somebody's going to be hurt in this business (granola bars) because thera's simply not enough room." And can you imagine the confusion when New Trail and Trail Mix bump heads on the same grocery shelves? if DATA DOMAIN 1612 E.

Algonquin Road Schaumburg, IL 60195 Ph: 312-397-8700 Hours: Monday throuah Friday, noon-9 p.m Saturday 10-5 p.m.; closed Sundays. juiftviffliriiiiiia Horton Savard Hochberg Hershey's newest entry, a granola bar with flavors that include honey graham, peanut butter, and cinnamon. granola flavors (honey graham, cinnamon and peanut butter) will be introduced to a couple of Eastern markets later this year or in early 1983. BOTH COMPANIES say they've been satisfied with volume, selling into the trade and point-of-purchase at retail (the latter really counts). Ditto for the other firms in the business, including Quaker Oats which marched into the category a year ago, and General Mills, which had been the market leader with its Nature Valley label.

Another factor is Sunmark Sunfield Foods unit in St. Louis, which sells a Crunchola brand. The granola or cereal bar business has been exploding, one source saying that unit volume alone is up 65 percent in the last 12 months. Retail sales are now approaching $200 million a year and double-digit per Marks acquires LeBolt Ricoh, world's largest maker of copiers, has come to Chicago! director of creative services, succeeding Larry Senten, 54, also an agency executive VP, who became director of strategic planning. The latter post involves various advertising and marketing projects.

Horton, a 13-year Leo Burnett Co. employee, recently was senior VP and managing director of Concepts, Young Rubicam's new products, development group in New York. USA's Chicago office elected Joel Hochberg and Bob executive vice presidents. Savard is director ot client services; Hochberg is director of creative services. Marks Bros.

Jewelers parent of Whitehall Jewelers here and the Lundstrom chain in Florida, acquired three stores and the name of LeBolt it was learned. LeBolt, one of Chicago's oldest jewelers (it was founded in 1899), will remain under that name as an affiliate of Marks a Marks officia "(in-firmed. LeBolt, which has locations in the Loop, Water Tower Place and Oakbrook, will be operated indepen- Paint company primed for improved sales Mlt-, will come in new plants in the West and Southwest, not in complicated products or businesses." MEANWHILE, AT E.G. Industries, general administrative expenses have been cut to about 5 percent of total operating costs from 22 percent, and the company posted first profit in June after two months of losses. "These guys really had a ball," says Knapp.

"If you're going to sell anything, you should know what it costs," he adds. "These people didn't know what their products cost them. We went in, identified our costs and restructured our prices so that we were able to raise prices June 1. We're not raising any prices on paint, however." "One montl doesn't make a year, but we think we're on the right track," Knapp says. "The next step is to move the headquarters from Jersey City to here.

The merchandising and marketing are already handled here." Knapp explains. "I answer my own phone. I'll talk to anyone." He adds, "We do have one woman here who can take dictation if we need her." The same austere approach is applied throughout the company. The building of new facilities is spurned in favor of recycling existing structures in urban centers where labor and transportation abound. The company owns no trucks; it requires that customers pick up their orders.

It does do some contract shipping, including sending by air freight batch samples of paint to the Chicago labs. "In the last two years, we've grc.vn dramatically partly because we cleaned! up our act," Knapp says. "We were; getting a little complicated." PART OF THE complication had to do with Sears, Roebuck the nation's largest retailer. In Knapp says, United Coatings was selling Sears, about $6 million a year in paint and related products. "In 1981, they called me in and wanted us to cut prices," he says.

"At the time, the cost of all my raw materials was going up. I told them to go jump. In 1981, we didn't do 5 cents worth of business with them." The loss of the Sears account, which Knapp used to handle personally, allowed the chief executive to devote more time to developing the business and servicing other customers. "We didn't have to waste our time with Sears anymore," he says. "I have much more time for planning, acquisitions and thinking about the company's growth." Knapp says he has no plans to take the company public.

"We can get the capital we need from our banks," he says. "We think we can remain privately held for a while. That's the best way for us. If you go public, it gets complicated." "We're more interested in developing our business," he says. "As long as we keep our product line simple, the growth Continued from page 9 square-foot plant and' "headquarters" at 3050 N.

Rockwell St. on the city's near Northwest Side, an inconspicuous two-story brick building in an older industrial neighborhood. To get to the administrative and executive offices, a visitor climbs steep and narrow metal stairs to the second floor. Here about 10 staff people within the company all employees are called "associates" keep tabs on the operations. Another 15 or so people work in the company's laboratories in the building.

IN THE EXECUTIVE "suite," there are no secretaries, no plush carpeting, no corporate art on the cinderblock walls. In its place are bright-red posters proclaiming: "We've got PEP!" PEP stands for people, enthusiasm and productivity. "I don't believe in secretaries, memo writing or people making calls for me," RICOH'S FT6600 FDS FOR HIGH-SPEED COPYING PLUS MUCH, MUCH MORE: 20 BIN INTEGRATED SORTER (UP TO 60 BINS AVAILABLE! REDUCTIONENLARGEMENT SEMI-AUTOMATIC DOCUMENT FEEDER SELF-DIAGNOSTIC SYSTEM TOUCH SENSOR PANEL RICOH. World's Largest Copier Manufacturer NOW lfty IS ALSO THE COMPUTER KING ca ca us Ba cza tea etj ifipS Office Systems, Inc. kk OnVJ Wrlor fir rhirnnn II ADADA llGOLD.ATSPOTin 200 James Street, Barrington, IL 60010 855-1910 382-6470 (Chicago) (Barrington) nt i WD- VI 5 El I I I I i 7 11 COMPUTER SYSTEMS RESEARCH The Wise Investor Knows When to invest! FEATURES COMPARISONS OLIVETTI EATUflCI HARDWARE SI INSTANT I TRUE IB BIT 171 40 ft 11.000 ItiU COLUMN YES ii Gold has proven to bo Man's Ultimate Hedge AgainsHnflation! How WTfttNAL MEMORV EXPAMOAeiE TO PLOPPV DISK STOflAOC HAKMUH STMAQC SCREEN rURESOlUTKW GRAPHICS COCOR PROGRAMMABLE KEYS SOFTWARE CPM COMPATIBLE CPM-M COMPATIBLI MS 009 COMPATIBLI PC OS COMPATIBLE VirtmliilVtilir'-iltrBai il "ihnili lilllnit 'Il Hr 'I "MHi--Tfitirif Bmuch will $100 in Paper Currency bo worth in 5 years? How much will the same $100 in Gold be worth in yean! Many experts are 11 predicting $1000 to $2000 per ounce! BGold is a more valuable buy now than ever! PRICE In addition, you earn interest on credit balances held in our Investment Plus Account'" pending reinvestment.

And our monthly statement provides you with the total picture every month: all activity, security positions, money balance, portfolio valuation, and estimated yield Compare our discount commission to what you pay now. If you've had even a glimmer of interest about getting a small computer to control your business, come over quickly to check out our computer Departments. We're prepared to get you on-line fast and right. Very special introductory Deals! Satisfaction or your money Backl 0 We've Got the Gold! We Won't Be Undersold! fj Call MOW and LOCK IN Your GOLD AT SPOT PRICE! 0 1-800-527-9006 0 On In ml fruited and rasawtarf prwlom nwtal immn In fk wM. LEASING AVAILABLE PUT ONE IN YOUR OFFICE FOR "fJJT $10 $20 $-10 per share per share per share $25 $25 $25 'f'l $65 $85 $115 $85 $115 $165 AS LITTLE AS SI 40 A MONTH With Printer Tax Deductible COMPUTE AT HOME wh A ATARI 400 or 8001 No sales tax for out of stale residents.

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Years Available:
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