Corvest Agrees To Sell Business
An executive at Counselor Top 40 supplier Corvest SPV has confirmed the signing of a letter of intent to sell the Largo, FL-based business, however no formal closing date has been set. Details of the deal remain confidential, and Corvest has not divulged the name of the pending buyer. “What I can say is that I am confident that Corvest will continue with business as usual and that this deal will be a very positive change for the company,” said Catherine Pilgrim, senior vice president of sales for Corvest, in an exclusive interview today with Counselor.

In a recent filing with the state of Florida, Corvest warned of possible employee layoffs in April, but Counselor has learned that any eventual workforce decisions will be made by the acquiring company. In this case, it is also possible no employees will be laid off in an eventual ownership change. By law, a company is required to notify the state if it intends to lay off a significant number of workers, an action brought on by several factors, including plant closures or change of ownership. 

Corvest, which is the parent company of Adva-Lite (asi/32145), It’s All Greek To Me (asi/62960) and Toppers (asi/91530), is the 19th largest supplier in the market after its most recent reporting of annual ad specialty sales of $71 million. Corvest SPV purchased Corvest Promotional Products out of bankruptcy in 2007, and has spent much of the past couple of years integrating and relocating its three divisions into a single new facility in Largo, FL.

Norwood To Relocate And Consolidate Operations
Counselor Top 40 supplier Norwood Promotional Products has announced it will consolidate some manufacturing operations and move its headquarters to Clearwater, FL. Among the consolidated sites will be Norwood’s San Antonio facility, where 345 people are employed. “Our goal is to create the most customer focused and cost efficient organization in the industry,” said BIC APP CEO Nicolas Paillot. “The decision to close these two sites has not been easy and is not a reflection on the dedication or performance of our employees.”

At the Indianapolis location, 99 employees will be offered a relocation package to help them if they choose to move to Florida, while severance will be offered to those who decide not to move. “In the long term, this is the right decision for the organization,” said Paul Lage, Norwood president.

Norwood, which once was headquartered in Texas, was purchased by BIC Graphic USA (asi/40480) last summer. The consolidation and relocation is expected to be completed by the end of 2010. For more details on this story, see Thursday's Counselor Promogram.

New Credit Card Law Takes Effect
Billed as part of a government effort to increase consumer protection, new and sweeping credit card rules are now being enforced against issuers, including Bank of America, JP Morgan Chase and Citigroup. The rules, outlined in the Credit Card Accountability, Responsibility and Disclosure Act, are designed to limit excessive fees, prevent sudden rate hikes and require issuers to more clearly divulge account activity and transactions. Additionally, the law requires colleges to report any marketing deals they reach with credit card companies, while keeping banks from giving out promotional gifts near campuses or at school-related events.

"For too long, credit card companies have had free rein to employ deceptive, unfair tactics that hit responsible consumers with unreasonable costs," said President Barack Obama. "But today, we are shifting the balance of power back to the consumer and we are holding the credit card companies accountable."

Estimated by researchers to save consumers $10 billion annually, the new law significantly changes prior rules. For example, in the past, credit card companies could raise rates and charges at any time, even if an account holder was never late with a payment. Now, issuers cannot raise rates during the first year of an account unless an introductory offer ends. Issuers must also give 45 days notice before making a rate change. In addition, while rates can be increased if an account is 60 days past due, the original rate must be restored if payments are made on time for six straight months.

The new law also places a premium on age, stopping companies from issuing cards to anyone under 21, unless the applicant either has a co-signer or can prove means to repay any accumulated debt. Surveys show about 84% of undergraduate students report they use at least one credit card, with an average reported balance of around $3,100.

While the law is viewed as a benefit to consumers, the legislation has drawn criticism from some analysts, who point out that the new protections do not apply to business or corporate accounts.

Branders.com Acquires Promopeddler.com
Counselor has confirmed that California-based Branders.com (asi/145021) has purchased Promopeddler.com (formerly asi/300367), the Oregon company whose sales had fallen more than 50% in early 2009. Terms of the deal were not disclosed, but according to sources, the purchase was completed in only 10 days after negotiations with another potential buyer broke down. Multiple executives at Promopeddler have joined Branders, working to improve the company's sales training and Internet search engine optimization.

As reported in Counselor Promogram last spring, Promopeddler's owners Monte Baumgartner and Lewis Amicone actively sought a buyer for their company after enduring a difficult sales stretch, beginning with the fourth quarter in 2008. "The first quarter in 2009 has been bad," Baumgartner told Counselor in an interview last year. "In this economy, suppliers have more demands."

Established a decade ago, Promopeddler.com became one of the fastest growing companies in the industry, at one point boasting a three-year growth rate of 865%. However, revenues at Promopeddler slipped to $9 million in 2008, falling well below estimates. Branders.com declines to report its annual revenues to Counselor, but the company claims that it grew 40% in 2009. Additionally, Branders is forecasting 45% growth in 2010. 

Bay State Acquires Pressalite Line
Massachusetts-based Bay State Specialty Co. (asi/38980) has announced the completion of an asset purchase of the Pressalite Line (asi/79940). Terms of the acquisition were not disclosed, but as part of the deal, the Pressalite operation will be moved to Massachusetts. Pressalite’s contact information, however, will remain unchanged. “Pressalite, similar to Bay State, is a family-owned and operated business with high standards of quality and service, and as a result, we feel this is the perfect fit for us,” said Joel Moore, president of Bay State.

Pressalite, based in West Chicago, has manufactured promotional items, including specialty flashlights, for the last 30 years. In addition, the Pressalite line currently features a newly-introduced LED squeeze lite. “The Pressalite squeeze lite is a staple of the promotional products industry, and we are very excited to have it as part of our line,” said Moore.

Bay State, founded in 1955, manufactures a variety of plastic products, including health and kitchen items.

Tuesday Morning Radio Show Live On The Air
Every Tuesday morning from 10:30 a.m. eastern time to 11:00 a.m., a team of ASI editors debate the most important topics facing the industry. We also, of course, offer our own off-beat look at the market. This morning, we provided a new look at apparel trends, revealed the worst mistakes salespeople make during presentations, and discussed the Olympics' strangest sponsors. Plus, we even took calls from audience members looking for ways to increase their apparel sales this year.

If you missed the show, don't worry. A recording is now available at www.asicentral.com/radio. And, don't forget to join us next Tuesday, March 2, for our next broadcast. Log on to www.asicentral.com/radio at 10:30 a.m. eastern time and give us a call at 215-953-4979. We want to hear from you!

Innovations Abound At MAGIC Apparel Show
Optimism ran high at The MAGIC Marketplace show in Las Vegas last week. But while things were looking up, apparel innovators were setting their sights lower. Specifically, we're referring to the hips and backside, with three companies offering new innovations in comfort and shape for the most neglected of areas:

• M'Chic is on a mission to eliminate the dreaded "muffin top" forever. The company has created designer jeans with a built-in cotton/spandex panel to create a slimmer silhouette for women across their midsection. "A lot of women wear girdles and Spanx, so this is an all-in-one solution for them," says Tracey Kerr, the company's director of sales. The spandex is breathable and comes in either black or nude colors.
• One product that certainly is "behind" the times is the Booty Pop, a padded pair of cotton/spandex underwear designed to give women the backside they always wanted. "Women like to have a nice shape," says Shelia Showalter, national sales manager. "For a lot of women, that's where they're lacking. And there are already several padded products for bras out there." The product, which comes in black and nude colors, will be making its way into select retail outlets starting in April.
• The guys weren't left out of the underwear innovations. A company called (B)RIEF underneath is touting a 2-in-1 solution for men – 100% cotton briefs sewn into boxers, lounge pants and thermals. "Underwear for the consumer today is changing," says company President Eddie Betesh. "You can't go to bed in your tightie-whities anymore."

Another major trend that emerged from MAGIC was the use of the shoe as a promotional vehicle. One company, RacerTreadz, is capitalizing on the green trend by making flip-flops out of used racing tires. The company has a license with Goodyear (which supplies the tires for NASCAR) and can customize the sandals with the names, numbers and cars of individual NASCAR drivers, making the footwear out of their very own tires. The manufacturer also is making shirts, hats and other items from the material; one tire helps create 500 hats.

The Joe Show: 2010 New Products
In this episode of The Joe Show, Counselor Managing Editor Joe Haley takes a look at some of the hottest new products that suppliers have released into the market in 2010. Want to show your clients some of the latest industry offerings? Check out this episode of The Joe Show.

Click here to see this 2010 hot-products edition of The Joe Show.

Want more videos? Subscribe now to our YouTube videos.

Take The State Of The Industry Survey
Counselor is currently polling professionals in the industry – both distributors and suppliers – to see how the market did in 2009 and to get impressions on where the industry is headed in 2010. We need your input. Please take some time to click the appropriate link below and complete the annual State of the Industry survey. Your responses will remain anonymous and you'll be helping to create Counselor's annual State of the Industry report.

Distributors click here to take the distributor State of the Industry survey.

ASICentral: What's Your Favorite Promotional Product?
On our Facebook page , we are currently asking fans to upload an image of their favorite promotional product. We'll eventually ask all the fans to vote on the best product and will announce the winner in an upcoming newsletter.

If you're not already a fan, it's OK – become one by clicking the "Become A Fan" icon at the top of this page . And may the best product win!

Also, follow ASICentral at: .

New Course Available On ASI Education's OnlineLearning Center 
Be sure to register at http://www.asicentral.com/asionlinelearning for some exciting new courses available exclusively to ASI members. Brought to you by ASI Education, Online Learning is the newest and most convenient way for distributors to get educated.

NEW: Social Networking Tactics That Get Results
Social networking for business? Lots of businesses are using social networking sites such as Twitter, Facebook and LinkedIn; creating videos and podcasts; and using blogs to connect with prospects and clients. We'll cover all of these cool, social media tools in this course, so when you're done, you'll have an overview of which ones might be right for promoting your business. Register now! {http://www.asicentral.com/asionlinelearning}

Coming Soon:
* Business Management for Distributors: Customer Service Tactics to Increase Sales and Increase Market Share

In The News
Crystal D (asi/47759) honored 29 employees at its recent WOW Day meeting, which recognizes the company's annual achievements.

HDS Marketing Inc. (asi/216807) has announced that Kelly Chiccitt, vice president of sales, was ranked fifth on the Facilis Group's list of top achievers for 2009, generating yearly sales of $753,000.

PBS Ad Specialties Inc. (asi/299811) has announced that Kathy Jorgensen, president, is running for a seat on School Board District 5 in Florida.

People On The Move
EnduraPack (asi/52484) has hired Larry Gold as a senior account executive.

HDS Marketing Inc. (asi/216807) has named Sal Genilla as regional sales director for the following areas: Pittsburgh, PA, eastern PA, MD, NJ, DE, VA and Washington, DC.