Thursday, January 07, 2010

Increasing clout of The News Group in U.S. magazine distribution is noted

Attention is being paid south of the border to the rapid rise to dominance of Canada's largest wholesaler, the News Group, which last year gained 46% of market share by the acquisition of the Georgia-based Anderson News. According to a story in Audience Development the sheer size of the company now gives it greater leverage with retailers. With the acquisition of 65% of Anderson, it also picked up 15 of the company's distribution centres, 4,000 employees and  serves some 10,225 stores. 

Readers of this blog will remember that in February 2009, Anderson quit the distribution business abruptly, saying its margins were unsustainable, leaving a quarter of the magazine supply chain potentially unserved. The News Group stepped in and by spending "in the high seven figures" mended the problem, the report says.  

The News Group is based in Vancouver and is owned by the Jim Pattison Group, Canada's third-largest privately held company, with sales of $6.7 billion in 2009. Based originally on an automotive dealership but has grown to become a big player in many areas from billboards to food sales, packaging and distribution.

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