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Johnson & Johnson (JNJ) recalls infant cough products

Check your medicine cabinet for the following medicines for infants included in today's voluntary recall from Johnson & Johnson's (NYSE: JNJ) McNeil-PPC:
  • Concentrated Infants' Tylenol Drops plus Cold
  • Concentrated Infants' Tylenol Drops plus Cold & Cough
  • Pediacare Infant Drops Decongestant
  • Pediacare Infant Drops Decongestant & Cough
  • Pediacare Infant Dropper Decongestant
  • Pediacare Infant Dropper Long-acting Cough
  • Pediacare Infant Dropper Decongestant & Cough
According to its press release, the company has found "rare instances of misuse leading to overdose, particularly in infants under two years of age."

The recall does not include similar medicines for children two or older, or single-ingredient pain relievers and fever reducers for infants. The company has not yet divulged the scope or dollar value of this recall.

The company is cooperating with the Consumer Healthcare Products Association in a recommendation to the FDA to prominently label all such products in the future with the warning 'Do not use in children under two years of age."

The two brands included in the recall came to Johnson & Johnson in its purchase of Pfizer's (NYSE: PFE) Consumer Healthcare business late last year.

NFL takes big bite out of Michael Vick's signing bonus

In 2004, Atlanta Falcons' quarterback Michael Vick signed a 10-year, $130 million contract that assured fans his unique combination of running-back elusiveness and speed and rocket passing arm would lead the team for years to come.

Then came the dog-fighting scandal. Now, with Vick's career in ruins and facing a stretch in the slammer, the Falcon's are applying the coup de grace, suing to recover almost $20 million in bonus money paid to him at the time the contract was signed.

The measure was approved by the NFL's Special Master Stephan Burbank, who is charged with resolving league/union disputes. It sets a new and dangerous precedent for the players. While almost no one (thankfully) is speaking up in defense of Vick, the league is rife with players that have transgressed in other ways; drug use, drunken driving, and sexual peccadilloes, for example. The notion that the players could not only lose future employment, but also be forced to repay money already received, will be sobering. The league hopes.

The NFL Player's Union is appealing the decision, as one might expect. Either way, I'd guess in the future player's agents will demand signing bonuses be constructed to safeguard their clients from such reversals.

This week in Advertising Age -- Jesus wine, TV ad prices

Jesus, this is a good wine. There is a new line of wines from Israel targeted for American Christian wine drinkers, The Grapes of Galilee. Grown by the Sea of Galilee and irrigated with water from the Jordon River, the $14 bottles of chardonnay, cab, and merlot are imported by Pini Haroz, who hopes the wines will find a home on Christmas tables.

Lenore Skenazy wrote about a new use for Google (NASDAQ:GOOG) ads. A publisher trying to choose between two titles for a new book bought two blocks of Google ads, each with a candidate name, and totaled the hits each received. Almost instant results, without focus groups, surveys, and interminable meetings.

This week's issue included AA's annual report on the leading media companies. Among the findings:

U.S. Media revenue ($285 billion) by sector --
  1. Cable systems & satellite: 29.4%
  2. Cable networks: 12.7%
  3. Broadcast TV: 11.9%
  4. Newspapers: 11.6%
  5. Magazines: 6.9%
  6. Internet: 6.8%
  7. Yellow pages: 4.7%
  8. Radio: 4%
The yellow pages took me by surprise. I don't even know where mine are.

Want to buy an ad on a television show? AA has a breakdown of cost per 30 seconds for each network show. For a spot during The Walt Disney Company (NYSE: DIS)'s ABC show Grey's Anatomy, you'll drop $419,000. Desperate Housewives will set you back $270,000, CBS Corporation (NYSE: CBS)'s CSI $248,000. Bottom feeders can find bargains at General Electric Company (NYSE: GE)'s NBC show Dateline ($28,000), CBS's Crimetime Saturday ($49,000) and ABC's Cavemen ($78,000).

The most expensive hotel room in NYC

Now that AOL's mother ship has departed for New York, perhaps I should make some preparations in case I should be summoned for an audience. I wonder if they'd consider putting me up in the Ty Warner Penthouse at the Four Seasons Hotel, for a mere 30 grand per night?

The joint has what is know as New York's most expensive hotel room. When I read this, I imagined bed chocolates the size of pillows, and pillows the size of Pontiacs. But my imagination was inadequate to the reality of the I. M. Pei-designed digs-
  • 4,300 square feet
  • Private elevator
  • Four glass-walled balconies
  • Four main rooms; library, living room, master bedroom and spa
  • Working fireplace
  • Bosendorfer piano
  • Telescope (how naughty!)
  • Indoor Zen garden with a waterfall
  • Marble bath featuring chromatherapy, heated floors and LCD television
All with a 360-degree view of Manhattan, a round-the-clock personal assistant, a personal trainer, and use of a chauffeured Rolls Royce.

If I could get 300 of you to chip in $100 each, maybe we could rent the place for a day and take turns using it. It could be the best 4 minutes and 48 seconds of your life.

I call dibs on the Rolls. (...and I'll get the bath! Count me in! -- ed)

Hershey (HSY) - Cadbury Schweppes (CSG) deal in the works?

The Hershey Company's (NYSE: HSY) turmoil continues. After a continued decline in net income and stock price, the board, controlled by various Hershey trusts, announced yesterday its intent to take the steps necessary to reverse the trend.

The company has suffered an unfortunate coincidence of declining sales at the same time it is making a heavy investment in a new plant in Monterrey, Mexico. Ironically, the board killed a potential sale of the company several years ago, partly in response to fears that massive job losses in its American manufacturing plants might result.

Since then, the board has become more aggressive, while maintaining its firm intent to remain in control of the company. The Wall Street Journal's Julie Jargon [subscription] today reviewed the oft-speculated possibility that one of the companies that bid on Hershey's in 2002, Cadbury Schweppes PLC (NYSE: CSG), might split off its candy business and merge it with that of Hershey's. For such a deal to work, however, one of two things need to happen. Hershey could buy that portion of Cadbury Schweppes, which would require it to take on a heavy debt load that would be hard to justify given its recent performance, or the Hershey board will have to change its mind about selling off the business.

Given Hershey's new manufacturing capacity, such a merger makes even more sense in terms of production and logistics. Not coincidentally, the company announced last week that CEO Richard Lenny will retire at the end of the year. Look for the board to hire a new CEO who can find a way to structure such a deal.

Galactic currency promoters taking the long view

If you wonder whether anything useful is accomplished inside the ivy-covered walls of academia, I present the following as evidence that the answer is a resounding yes! According to our sister blog Engadget, researchers at the UK's National Space Centre and University of Leicester have developed a universal currency,

The Quasi Universal Intergalactic Denomination (QUID), makes obsolete our earthly dollars, euros and yuan. Now that this huge hurdle has been overcome, the small matters such as the physical impossibility of faster-than-light travel can be attended to.

The team solved two dilemmas posed by the problem of establishing planet-to- planet pocket change; the design of the money, and the rate of exchange. For design, they concluded that the new money should not have magnetically-dependent features, and no sharp edges- we'd hate to anger thin-skinned aliens with weapons who might suffer paper cuts from our folding money. Therefore, the galactic greenbacks they designed are teflon discs of incremental size, stackable and chemically inert. (The Register notes the surprising similarity of these discs to those used in The Adventure Game.)

The wampum comes in six denominations, and like much of our planet's currency, is not backed by specific assets, but is indexed against the British pound at £6.25 to one QUID. I suspect they consulted The Force to set the exchange rate.

Word on the street is that cabbies can get you a better deal, though.

GM plans end to hot pursuit

OnStar logoAccording to an AP story, beginning in 2009, police chasing new General Motors' (NYSE: GM) cars equipped with the OnStar system will be able to remotely take control over the car's accelerator, slowing it to a safe stop, perhaps while broadcasting a warning to the perp over the car radio.

The technology is already established. You've probably seen the Tiger Woods ad for General Motors, where he's locked out of his car only to discover that, through GM's OnStar service, the company can remotely unlock his car for him. The service also offers hands-free calling, GPS directions, vehicle diagnostics, and feedback on your makeup and hair.

The OnStar service is already used to track equipped stolen cars, leading to the recovery of hundreds each month. The fly in the ointment here, though, is that owners of these cars will have to buy into the $200-a-year OnStar package after the initial free first year, and the company has only a 60% conversion rate to date. I wouldn't be surprised, however, to see insurance companies lowering rates for OnStar-equipped cars, which would help offset the cost.

Given this capability, I wonder how receptive parents would be to installing such control devices on their teenager's cars. I can imagine them sitting at home, remotely putting their foot on the brake whenever the child appears to be speeding, all the while passing along "helpful" hints via the car radio. For businesses, perhaps company cars could be controlled to deny the driver the ability to stop near golf courses or girlie bars.

The continued development of this technology seems to keep us on the path toward turning over control of our vehicles to a wireless network. Is that a good or bad thing?

Molson Coors (TAP), SABMiller (SBMRY) to combine forces in U.S.

Beer giants SABMiller (OTC: SBMRY) and Molson Coors (NYSE: TAP) took a huge step toward grabbing market share in North America by announcing today their intention to combine U.S. operations into a new company, MillerCoors. The new entity will start with combined U.S. sales of of 69 million barrels of suds, net revenues around $6.6 billion and combined EBITDA of $842 million. The companies expect combined production and distribution to lop off around $500 million from the annual expense side within three years. SAB and TAP also expect the move to boost both companies' EPS within the second year after integration is complete.

Voting interest in MillerCoors will be split 50/50, and the new company will be chaired by Peter Coors of Molson Coors. SABMiller, the larger of the two, will have a 58% financial interest.

Continue reading Molson Coors (TAP), SABMiller (SBMRY) to combine forces in U.S.

Funny Bidness -- Delta forces conjoined infants to buy separate tickets

According to The Arizona Republic, Delta Air Lines (NYSE:DAL) required an Arizona woman traveling with her one-year-old twin daughters Emma and Taylor, who are conjoined at the chest, to buy a separate ticket for each of the infants. When asked to rationalize its merciless decision, a Delta representative said that each twin needed her own oxygen mask. This is, in fact, not necessarily true, since the twins share a single heart .

That's one more than the Delta representatives showed.
via Gadling

In another insult to we hoi polloi, Delta has set up a 3,500 square foot display in New York to allow visitors to check out the sumptuous layout of its new international BusinessElite class seat. Also on display are its new all-leather coach seats and upscale menu items. Free Coke and coffee are also available.

Continue reading Funny Bidness -- Delta forces conjoined infants to buy separate tickets

CNBC (GE) vs Fox Business Network (NWS): Round One on Oct. 15

On October 15, the latest challenge to General Electric (NYSE: GE)'s CNBC network dominance of business programming via cable television, the Fox Business Network, will sign on for the first time. And while CNBC President Mark Hoffman is taking the public stance that it is business as usual, he's not fooling anyone. As demonstrated by News Corp (NYSE: NWS)'s Fox News Network whomping of CNN, the newcomer can be a market changer. News Corp's recent acquisition of Dow Jones, including The Wall Street Journal, gives it yet more ammunition for its assault.

At stake is a juicy demographic, viewers well above average in income and in their prime consumption years (25-54), according to Nielsen Media Research. TVWeek estimates CNBC's current take from advertising at $250 million per year.

Heading the assault on CNBC is Roger Ailes, the guiding force behind Fox News. In an interview with the Journal (subscription) today, Ailes dodged one of the most interesting questions: Can Fox find a way around the WSJ's current agreement to share content with CNBC, which won't expire until 2012? Integrating the WSJ content and brand into the new network could allow Fox to quickly leapfrog CNBC.

One message that seems clear from the Ailes interview: he doesn't intend FBN to bottom feed, but compete for the same demographic as CNBC. At the same time, when I look at some of CNBC's schlocky prime-time offerings, I have the impression that network has already undergone some Foxification.

FBN will launch with only one-third of CNBC's viewership, but its leverage should allow it to quickly bully its way into more cable packages. As the internet continues to steal away investors interested in timely business news, the race between the two may be decided on entertainment value, a coin both sides know how to employ. Check out the pretty people already on-board for Fox. Not a Paul Kangas (one of my favorites) among them.

Ryder System (R) puts earnings forecast in reverse

Ryder System (NYSE: R) today announced it is dropping its forecast for third-quarter earnings per share from $1.20-$1.23 to $1.12-$1.14. The company also revealed that third-quarter results will be impacted by a $10 million sale of property, more than offset by a $12 million charge for restructuring, the benefits of which won't be realized until 2008. Its end-of-year projections are now for EPS of $4.10-$4.15, down from previous expectations of $4.30-$4.35, but still above 2006 figures.

Ryder blames general softening of demand beyond the housing sector for declining revenue in its Fleet Management Solutions segment, which accounts for about 60% of its revenue. The company has a fleet of more than 140,000 vehicles and employs almost 30,000 people.

One area to keep an eye on with Ryder is its Supply Chain Solutions sector, which accounts for 32% of revenue. This sector is closely tied to the automobile industry -- in fact, GM (NYSE: GM) accounted for 40% of Ryder's SCS revenue in 2006. Slack times at GM could show up on Ryder's bottom line.

Nissan (NSANY) unveils rotating car

The plethora of companies around the world now making passenger cars has resulted in a dramatic increase in radical new concept designs. Nissan Motor's (NASDAQ: NSANY) latest, the Pivo 2, is as far out as any I've ever seen.

The lithium-ion-battery-powered three-seater urban commuter car features a cabin that can rotate 360 degrees, and wheels that can turn 90 degrees, meaning the car can move in any direction, including in a circle. It also has a built-in robotic servant in the form of a mechanical head located near the steering wheel that can converse with the driver on route selection, available parking, and car functions.

When I look at this, I can't help but think of bumper cars. If this goes into production, it should turn traffic-jammed L.A. freeways into free-for-alls.

This week in Advertising Age

This week in Advertising Age:

A freebie tool, TrialPay, is a new web tool created to serve the desires of customers to get free stuff, and companies wishing to push its product by giving away freebies. For example, if while browsing a participating retail site you found an MP4 player you'd like, but don't want to pay for, you can select Checkout by TrialPay, which might respond with an offer from an online music sales site offering to buy the MP4 for you if you buy X number of songs from them. You end up paying, for sure, but you might save a few bucks along the way.

Viral marketing, creating web content appealing enough that it inspires peer to peer recommendations, is a hot segment of web marketing. AA lists the 10 most prolific viral marketers, according to Competitrack -- Nike (NYSE: NKE), Anheuser-Busch (NYSE: BUD), Microsoft (NASDAQ: MSFT), Volkswagen, Axe, Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), Adidas, PepsiCo (NYSE: PEP) and McDonald's (NYSE: MCD). Getting ready to move? Be prepared for an onslaught of pitches. AA finds that pre-movers are also big spenders, fixing up their houses, buying new furniture and appliances, and so on.

Continue reading This week in Advertising Age

Funny Bidness -- what does that tattoo really mean?

A down side for hybrid cars -- Apparently, Toyota Motor Corp's (NYSE:TM) Prius and other such gas/electric vehicles are not popular among one segment of Americans, the visually disabled. The National Federation of the Blind has asked that the vehicles be equipped with some sort of warning noise so that the sight-impaired can avoid stepping in front of the almost-silent cars. I wonder what can be done to help the iPod impaired, who often aren't aware of approaching fire engines until the bumper hits them in the ass.

Another interesting transportation story comes to us from the bicycle-crazy Netherlands. The new Bikedispenser is a fully-automated bicycle rental station. Much like the baggage cart rentals in airports, Bikedispenser stores 50 or more all-purpose bikes, ready to pop one out to the customer that scans his/her debit card. The company expects to install the machines at train stations and other public transportation hubs.

In the category of fun --- How much time could I waste on the web site J! Archive? The right answer is tons. The site has compiled all of the Jeopardy! game show questions, player answers, and real answers for the entire run of the show, since 1983, over 110,000 questions in all.

Finally, hairdresser Lee Becks thought he was getting a tattoo of the Mandarin characters for "Love, honor and obey." To his dismay, he found, after the fact, that the lettering on his arm actually translates as "At the end of the day, this is an ugly boy."
via cantonese.sheik.co.uk

Wal-Mart (WMT) magazine distribution tiff

Don't be surprised if you can't find issues of magazines such as Time and Vogue on Wal-Mart (NYSE: WMT) shelves next week. According to Jeremy Greenfield of minonline, Anderson News, a fulfillment company in the magazine sales process, is embroiled in a tiff with magazine publishers over the costs accompanying a change in the way magazine sales are handled.

The controversy starts with scan-based trading (SBT), a technology that Wal-Mart and others have long used to eliminate inventory risk and cost. In SBT, the distributor/vendor retains ownership of its items on the retailer's shelf until the time of sale. At the moment of sale, the retailer buys the item from the wholesaler.

Until recently, the magazine trade had been operating under the old practice, where retailers bought a batch of magazines and returned unsold ones at the end of the month for credit. SBT streamlines the accounting and transfers the inventory costs to the wholesaler.

Anderson News, distributor for some of the country's largest magazine publishers including Time Warner (NYSE: TWX) and the Curtis Circulation Company, has balked at carrying the cost of unsold inventory on its books. Instead, it wants the publishers to retain ownership until the time of sale. It also wants the publishers to chip in to cover the one-time cost of changing over from the traditional model to SBT.

Greenfield reports that Curtis has settled with Anderson, but Time Warner has not. With the dwindling advertising dollars pulled in by Time and other TW mags, it can't afford many weeks when they don't appear on the newsstand.

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Last updated: October 11, 2007: 02:38 PM

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