Canadian Magazine Industry News
26 January 2009,     VANCOUVER
The News Group says no to surcharges

Glen Clark, president of Canadian wholesale giant The News Group, says his company will not add 7-cent-per-copy surchage for distribution to retailers, according to a story in the New York Post. This development follows announcements from two of The News Group's U.S.-based rivals, Source Interlink and Anderson News, who will both impose increased fees on publishers beginning Feb. 1.

On the issue of whether or not wholesalers are entitled to more money, Clark appears to have sided with his rivals. "The wholesalers need help, there is a serious issue," Clark said. "Charlie Anderson [CEO of Anderson News] is basically right, but we feel we'd like a negotiated solution." Clark did not rule out the possibility of increasing fees in the future.

At an event hosted by the Circulation Management Association of Canada (CMC) last fall, Kevin Brannigan of The News Group suggested the possibility of adding a fuel surcharge for returned copies.

The Post also reports that  Anderson, "after meeting with national distributors, said he would delay the price hikes for the issues that ship on Feb. 3 and go on sale Feb. 5 or Feb. 6."

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