Candy poised to buy ailing Hoover Europe

BYLN:

Domestic appliances manufacturer Candy Group is to buy the beleagured Hoover Europe operation.

Candy marketing director Colin Darwen said the two companies were likely to run alongside each other and retain their separate marketing operations. The only product conflict between the two companies lies in washing machines. He said decisions had not been made regarding advertising. Leo Burnett is still handling Hoover and J Walter Thompson holds the Candy account in the UK.

The deal was only finalised over the Bank Holiday weekend and Hoover Europe announced new appointments in its European marketing team this week suggesting that it will continue to make its own marketing decisions under European president Gerald Kamman for the time being.

Candy, a privately owned Italian firm which also makes cookers and refrigerators, said it intended to pay $170m (106m) to buy Hoover Europe from Hoover’s US parent Maytag.

This will give it Hoover Europe’s headquarters, three manufacturing sites, and rights to the Hoover trademark in Europe, parts of the Middle East and Northern Africa. Maytag, which bought Hoover in 1989, retains its Hoover business in North America.

The deal will not help Hoover out of the repercussions of its free flights promotion fiasco, which began in 1991 and has cost Hoover 48m to date and looks likely to cost more. Any future payments arising from the promotion have to be met by Maytag.

The ad spends for Hoover and Candy are 1.7m and 1.5m, respectively (Register-MEAL).

DOCB:

SRCE: Marketing Week

PDAT: 020695

WRDS:

SCTN: News

PGNO: 7

HDLN: Littlewoods Pools moots senior rejig

SBHD:

BYLN: By David Benady

TEXT:

Littlewoods Pools is looking at appointing a new marketing director after splitting the existing role of sales and marketing director, held by Brian Hillhouse.

Under the proposal, Hillhouse will become director of sales, leaving a vacancy for a marketing director. The company would not comment on whether the position would be filled internally, but says a decision on the new structure will be taken within two weeks.

The move is a response to the increased workload in Littlewoods Pools sales and marketing departments as the company hits back at the competitive threat posed by the National Lottery.

The company is placing greater emphasis on the retail sector, with plans to increase the number of shops selling Littlewoods Pools games. Other plans include the launch of Littlewoods Pools playstations in independent newsagents. These would be backed by point-of-sale material (MW April 14)

The company has also launched its first television ad campaign, after changes in Government guidelines.

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