AZO countdown canceled

Distribution Two months before the planned launch of their own delivery organization for magazines, the publishers postpone the project. They are apparently counting on being able to extract further concessions from Swiss Post.
"Alternative delivery organization" (AZO) should be driven forward to such an extent that
that from the beginning of 2006 it will be able to distribute magazines
could take up - cheaper than the post office and still cover its costs. So
the heads of the four major publishing houses Ringier, Tamedia, NZZ and
Südostschweiz and the consumer goods retailer Valora on December 21, 2004
unanimously. The aim was to achieve long-term price stability in the
press distribution, especially from 2008, when the federal government will cut subsidies for
Presseposttaxen canceled. "This mandate has been fulfilled: AZO is within
ready for launch in ten to twelve weeks," says Walter Lütolf, Head of
Publishing Services at Ringier and spokesman for the AZO project committee.
The plan is for AZO to act as general contractor for existing
logistics companies to gradually build up distribution,
so that from the beginning of 2007 all households in German-speaking Switzerland will receive two
can be served every week - and at a rate that
at least 10 percent below the current postal rates.

Encouraging preliminary clarifications
This is exactly what Lütolf's team informed the client committee on November 4. It also submitted various
delivery organizations - including subsidiaries of the publishing houses, the
Valora and even Swiss Post - the necessary offers for logistics and
distribution. This includes several, albeit only oral
Commitments from potential customers with large-circulation magazines.
Lütolf: "We have more commitments than absolutely necessary for the launch
are." The AZO business plan also envisages an annual profit of
"in the low double-digit millions". Nevertheless, at the request of Tamedia CEO Martin
Kall now unanimously postponed the start to mid-2006.
Business plan, but tactical reasons were the deciding factor,
says Lütolf. Kall, who is in charge of the Swiss Press Association's
Distribution, has the currently particularly intensive contacts
between the association and Swiss Post. In fact, the
Post has recently made several offers and concessions to publishers:
The attempt to sell press titles at post offices will run until the end of November.
(see below). Swiss Post also wants to use the
delivery organizations of the publishing houses in order to strengthen them.
to capacity. And thirdly, Swiss Post has increased the rates for press mailings.
slightly reduced (see below).
But that is hardly enough, the association wants more. "We have,
based on today's tariffs, clearly signaled to Swiss Post that
we want substantially lower prices from 2008 onwards," says Hanspeter
Kellermüller, legal advisor at the Publishers Association, is clear. With others
words: As with AZO, there should be at least 10 percent in it. The
According to reports, Swiss Post has made further concessions to publishers.
signaled. Kellermüller does not want to confirm this, but says,
that the association is negotiating a future tariff system with Swiss Post.
The yellow giant is even more taciturn. "The fact is that the
Post is doing everything in its power to remain competitive," shares
Post spokesman Laurent Widmer with.
Martin Kall is known for the fact that he sometimes
negotiating partner by trying to force him to his knees by
and pushes competing products that he has to sell at the last minute.
withdraws. Does he therefore want to be able to communicate with his fellow publishers through such
tactics to extract further concessions from Swiss Post? Kall will
Tamedia spokeswoman Franziska Hügli declined to comment.
And at the association, Hanspeter Kellermüller emphasizes that the AZO is the
private project of a few publishers. "However, the AZO
showed that there is still potential for savings at Swiss Post, which means that
it plays an important role in our negotiations." And what does Walter think
Lütolf: "The situation is somewhat unsatisfactory for AZO, as we have to
wanted to let go. But we can wait." But he had the
clients that the project work will be suspended for the time being.
would be. Accordingly, he also informed all potential customers and partners
informed.   

Markus Knöpfli

Spontaneous purchases at post offices
Since mid-June and until November 30, 2005, 33
selected post offices a maximum of 25 titles from the daily, general-interest and
Business press, tailored to regional needs. The clientele
has reacted positively and made use of the press sale, it says
at the post office.
Publishers are more differentiated. Weekly titles run relatively
Well, sales of daily newspapers are rather sobering. As "good"
HandelsZeitung, for example, refers to the sale of seven to
ten copies per issue. In contrast, individual daily newspapers sold
only around 30 units during the entire trial period. The sales managers
speak of "spontaneous purchases through an additional sales channel", a
They are not (yet) able to shift retail sales away from kiosks.
make up.
However, Swiss Post has one advantage over the K-Group: thanks to
scanner checkouts, it informs the publishers on a daily basis about the number of
of all copies sold. After the end of November, Swiss Post and publishers
and decide on the next steps. In the event of
a continuation, Swiss Post would be "in 600 to 900 post offices
offer 'bestsellers' in the area of press articles," says Post spokesperson
Laurent Widmer.

Swiss Post offers rate reductions for all
With the approval of the supervisory authority Uvek, Swiss Post has
called the format tariff has been halved. Since July 1, 2005, the
Postal dispatch for periodicals larger than B5 format, depending on
weight one to five centimes cheaper. With an average
daily newspaper, the total postal rate is reduced by a maximum of
2.5 centimes or 4 percent reduction - less for magazines.
This was a clever move by Swiss Post: Its reduction benefits everyone
publishers, whereas AZO primarily serves a few (large) publishers.

Markus Knöpfli