East Coast earthquakes, company shake-ups, fluctuating stock markets and poisonous products: the past 12 months have seen a lot of major news, both for the promotional products industry and the world at large. This week, Promo Marketing is looking at the stories that helped define 2011. From Monday through Thursday we will recap the year’s major news in four different areas: industry news, politics, product safety and world events. Check PromoMarketing.com each day, and vote in our Friday poll for the most important story of the year.
2011 Year in Review: Industry News
The effects of the mid-2000’s recession are still felt today, and many would argue that it never truly went away. Promotional products suppliers and distributors felt the sting of a wounded economy, with several major companies merging, suffering losses or bowing out of the industry entirely.
Effects of the fragile economy were not limited to companies. Professionals from the sales floor all the way to the corner office experienced shakeups, and many well-known members of the industry made major announcements that affected both individual organizations and the market as a whole. Here are just some of the major moves from within the promotional products industry.
Camsing Global Acquires Corvest, Senator, Avaline
Camsing Global, a promotional products and supply chain management company founded in China in 1996, announced two majors acquisitions on January 6. The company acquired the assets of Corvest Acquisition, parent of Adva-Lite, Toppers and It’s All Greek to Me, as well as Senator Promotional Group, parent of Senator Writing Instruments and Dart Business Accessories. The company would go on to acquire supplier Avaline in July.
Hallmark Quietly Exits Industry
World-famous gift card company Hallmark shut the doors on Hallmark Business Connections, its promotional products branch, on January 31. In a letter mailed one week earlier, the company said “”All communication channels dedicated to promotional products will be inactivated at that time. This includes toll-free number, e-mail, distributor website and fax number.”
Wentworth Leaves Norwood & BIC
Quenten Wentworth, vice president and general manager of North American sales for Norwood & BIC Graphic North America, left the company in late March. His duties were absorbed by Nicolas Paillot, CEO of BIC Advertising and Promotional Products (BIC APP) which oversees both brands, and he continued managing through the integration of the two companies. “I find the increased direct contact with our customers very satisfying,” Paillot told Promo Marketing. “To hear from them first-hand what works and what doesn’t-and develop programs to suit their needs.”
Polyconcept Acquires Trimark
Polyconcept North America, parent company to Bullet, Journalbooks/Timeplanner Calendars and Leed’s, announced the acquisition of Canadian apparel supplier Trimark Sportswear Group in April. The deal marks Polyconcept’s fourth promotional products supplier acquisition, its first step into the apparel market, and makes it the largest supplier in Canada.
Charley Johnson Leaves SnugZ
Charley Johnson, executive vice president of SnugZ USA, decides to leave the company he acquired with Brandon Mackay in 2008 and retire from the promotional products industry. Well known for his blogs and nonprofit work, Johnson would go on to found the Pay It Forward Experience. Mackay would acquire 100 percent of the company in August.
PPAI President and CEO G. Stephen Slagle Announces Retirement
After 15 years of service to the promotional products industry, president and CEO of PPAI, G. Stephen Slagle announced his intention to retire in April. Slagle worked for the promotional products industry’s nonprofit association since 1996, following the retirement of past president H. Ted Olson. Slagle retired after 32 years in the association management profession in January 2012.
PPAI Announces Hosted Buyer Initiative, Suspends Plan One Month Later
Near the end of April, PPAI announced its “Hosted Buyer Initiative” in a press release. The plan would permit distributors to bring their end-buyers, as guests, to a limited number of events at The PPAI Expo, including access to the show floor on the final day. A strong industry backlash immediately followed, with over 70 percent of distributors opposing the decision in a Promo Marketing poll. The association would reverse the decision and suspend the initiative in June.
Chocolate Inn, Taylor & Grant Merge
This June, in the midsts of PROMOTIONS EAST 2011, confectioners Chocolate Inn and Taylor & Grant announced the two companies were merging to form one of the largest food providers in the promotional products industry. “We believe the combination unites two great companies and will provide a best-in-class product offering, imprinting capabilities, and a passion for customer service to our promotional products distributor customers throughout North America,” said the company presidents David Miller and Dundee Staunton in a joint statement.
Paul Bellantone Named President and CEO of PPAI
PPAI announced that Paul Bellantone, CAE, was elected by the board of directors to succeed G. Stephen Slagle, CAE, and president and CEO of the association. Bellantone, who first began working with PPAI in 1998, served in various vice president roles for the association, most recently as executive vice president since 2007. “In general, I think distributors and all members should expect more association outreach, industry presence and inclusiveness in the direction of the decision-making process. The foundation and plan for a forward-facing PPAI is in place, and it is now my role to execute this plan,” he said in an interview with Promo Marketing. Bellantone assumed his new position on July 1.
Suppliers and Distributors Among Fastest Growing Small Businesses
Inc. Magazine, which publishes the Inc. 500|5000 list of fastest growing companies, included more than 25 promotional products suppliers and distributors on their list in August. Aztec Awards was the highest-ranking industry company, and the only one to break the top 500, at number 229. Other well-known inclusions were SnugZ USA, Boundless Network, iPROMOTEu and several Proforma companies.
