Jim Pattison Group buys Condé Nast/Hearst magazine distributor
In a major shake-up of the newsstand business, The Jim Pattison Group (JPG), a B.C.-based conglomerate which owns The News Group, a large wholesale magazine distributor in the U.S. and Canada, has purchased Comag Marketing Group, formerly a property of U.S. competitors and magazine giants Hearst Magazines and Condé Nast.
Jay Felts will continue as president of CMG and the firm's headquarters will remain in Princeton, New Jersey. Felts noted in a release, "JPG's purchase of CMG represents a watershed moment to enhance the current supply chain model by properly aligning the economic models, which will better serve the needs of publishers, wholesalers and retailers."
Michael Korenberg, deputy chairman of JPG and a member of its board of directors, said, "This transaction will strengthen the newsstand channel and, at the same time, enable Hearst and Condé Nast, as publishers, to focus on their core competencies — editorial development, retail marketing and consumer promotion. We believe that with the strength of its management team and systems, CMG can consolidate and improve publisher services as well as add stability for all stakeholders in the single-copy marketplace."
The News Group's Canadian partners include distributors MediaLogix, Acculogix, ProLogix and RS2. Pattison also has a personal stake in Canadian distributor Coast to Coast Newsstand Services.
The News Group operates in 42 states in the continental U.S., and in Canada its retail clients include Loblaw Group Of Companies Inc, Shoppers Drug Mart, HDS Retail, Safeway, London Drugs, 7-11, Indigo/Chapters, B.C. Ferries, Overwaitea and Metro.
Stay tuned for more on this story and what it might mean for Canada.