News

Lakewood, New Jersey-based supplier GMG Works (PPAI 313899, Standard-Base) has announced that Howard Cubberly has joined the company as CEO.

• GMG Works was founded 20 years ago as GMG Pen & Ultrapens and has since been rebranded.
• Its product line includes pens, highlighters, drinkware and other promotional products.

“I’m excited to join GMG Works,” Cubberly says. “The super dedicated team here that has built a five-star and A+ reputation of personalized customer service for our distributor partners. The future is bright as we work to build on this foundation and align our value promise of continued great service with new creative product and decoration expansion to be the ‘Distributor’s Supplier.’”

Cubberly’s Background

A 33-year promo veteran, Cubberly most recently served as global general manager at Goldstar – the No. 16 supplier in the PPAI 100.

• Under his leadership, Goldstar developed new product categories, expanded throughout North America and Europe and received multiple awards.
• Cubberly previously worked for supplier Astor Chocolate and spent 14 years in sales management at Koozie Group – the No. 9 supplier in the PPAI 100.

“With Howard as our leader, we’re extremely excited about the future and for new opportunities,” says Jack Kahan, director of operations at GMG Works. “We’ve invested heavily in the latest printing technology, best software for order and customer experience efficiency, an entire line of patented designed pens, sustainable products and deep inventory for our programs department.”

Storm Creek (PPAI 438091, Gold) – the No. 43 supplier in the PPAI 100 – has announced a partnership with bluesign (PPAI 825888, Standard-Base), a Swiss business services provider specializing in sustainable textile production.

• The Eagan, Minnesota-based supplier is the first U.S.-based promotional products company to join the bluesign System.

Founded in 2000, bluesign employs more than 100 environmental experts, many of them Ph.D. chemical scientists who work closely with manufacturers and suppliers to ensure production meets bluesign’s rigorous environmental, worker and consumer safety requirements in pursuit of textile materials certifications. If the manufacturing and chemistry assessments don’t meet the criteria, bluesign creates a roadmap for improvement.

• Cybergroup International – a German-based company and the No. 34 distributor in the PPAI 100 – is bluesign’s first partner in the promo industry.

“This partnership takes our already strong commitment to sustainability to the next level,” says Doug Jackson, founder and president of Storm Creek. “Our aim is to inspire and educate promotional products distributors to sell sustainably and increase the impact their end buyers can have. Storm Creek is proud to set the standard for the promo industry.”

Storm Creek’s Pledge

As part of this commitment, Storm Creek has pledged to use only bluesign-approved fabrics by 2025.

• Its upcoming 2025 product catalog already features a range of products made with bluesign-certified fabrics.

Storm Creek’s partnership with bluesign aligns with its mission to deliver high-performance, sustainable apparel while minimizing environmental impact.

Last year, the woman-owned, eco-friendly lifestyle apparel brand surpassed 32 million upcycled bottles used in its garment manufacturing, and it also accelerated the overall percentage of recycled content in its garments to more than 90%.

“We’re thrilled to welcome Storm Creek as a promotional products brand to join the bluesign System,” says Daniel Rüfenacht, CEO of bluesign. “Their commitment to using 100% bluesign- approved fabrics by 2025 is a bold and commendable step towards a more sustainable future. Storm Creek’s leadership in this area sets an inspiring example for the entire promotional products industry.”

Drinkware supplier Tervis (PPAI 110960, Standard-Plus), known for its insulated tumblers, has filed for Chapter 11 bankruptcy.

• In the promotional products industry, Tervis’ product line is carried by Koozie Group – the No. 9 supplier in the PPAI 100.

The filing states that the North Venice, Florida-based company, which doesn’t disclose annual revenue figures, has total assets and liabilities ranging from $10 to $50 million, Business Observer reported.

“This difficult business decision was one that we made in order to preserve the company’s legacy and better the company for the future to ensure its continued existence and operational success in the decades to come,” said Tervis Chairman Rogan Donelly.

Koozie Group CEO Pierre Montaubin tells PPAI Media that, despite the bankruptcy filing, “it’s business as usual with Tervis.”

“We’ve been in close contact with them and will support them through this next phase,” Montaubin says. “Tervis is a fantastic brand with a great legacy, and we expect its products to continue to perform well in the promo market. ”

What Caused Tervis’ Bankruptcy?

Executives have cited several factors for the bankruptcy:

• A drop in consumer spending and a rise in operating expenses due to inflation.
• A post-COVID spike was followed by a sharp decline in e-commerce sales.
• Retail locations that have failed to recover from the pandemic.
• The closure of its distribution facility in order to sublease the property, “which has proven difficult.”
• A “burdensome” lingering lawsuit filed in 2018 by a previous supplier.

Another major challenge for Tervis has been adapting to the stainless-steel drinkware trend, driven by competitors Yeti, S’well, Hydro Flask and, most notably, Stanley.

RELATED: Stanley Drinkware’s Parent Firm Requests Dismissal Of Class Action

Tervis entered the stainless on-the-go drinkware market in 2016, but, officials say, “struggled to be competitive with larger brands on price at retail locations, and didn’t meet consumer expectations on product quality regarding chipping and peeling until January 2023,” Business Observer reported.

The third-generation family business, which was founded in 1946, won’t seek funding from outside investors to aid the company post-bankruptcy, Donelly said.

However, layoffs are expected in the coming weeks.

• Tervis currently has about 140 employees, down from some 200 last fall and from its peak of 1,000 employees (including seasonal workers) nearly a decade ago, Business Observer reported.

Recovery Plan

Tervis CEO Hosana Fieber says the projected time frame to exit bankruptcy is three to six months.

“We have a thoughtful and executable plan in place to focus the company’s attention and resources back to our legacy product,” Fieber said.

• That plan includes launching a new product category of melamine – a plastic often found in reusable utensils, dishes and cups – to accompany its classic drinkware portfolio, Business Observer reported.

“We didn’t meet consumer standards when we went outside our initial brand position and that’s what we need to get back to,” Fieber said. “We will focus on our classic portfolio while keeping our current high quality, premium stainless product lineup.” 

The Federal Trade Commission’s new rule banning employers from imposing non-compete clauses on their employees has been denied by a federal judge in Texas.

Following up on her decision last month to grant a preliminary injunction preventing the rule from taking effect in September, U.S. District Judge Ada Brown on Tuesday struck down the ban, saying that the FTC didn’t have the power to issue such a sweeping regulation.

“The role of an administrative agency is to do as told by Congress, not to do what the agency thinks it should do,” Brown wrote in a 27-page opinion. “In sum, the court concludes that the FTC lacks statutory authority to promulgate the non-compete rule, and that the rule is arbitrary and capricious. Thus, the FTC’s promulgation of the rule is an unlawful agency action.”

‘Potential Appeal’

U.S. Chamber of Commerce President and CEO Suzanne Clark called the decision a “significant win in the Chamber’s fight against government micromanagement of business decisions.”

Meanwhile, FTC spokesperson Victoria Graham said the agency is “seriously considering a potential appeal.”

“We’re disappointed by Judge Brown’s decision and will keep fighting to stop non-competes that restrict the economic liberty of hardworking Americans, hamper economic growth, limit innovation and depress wages,” Graham said in a statement to ABC News.

Conflicting Decisions

• The motion was requested by tax preparation company Ryan LLC and the U.S. Chamber of Commerce, which filed a lawsuit just one day after the FTC’s 3-2 vote to issue the ban, which was set to take effect on September 4.

However, on July 23, a federal judge in Pennsylvania denied a small business’ request to temporarily block the ban.

• U.S. District Judge Kelley Hodge in Philadelphia said that the “FTC is empowered to make both procedural and substantive rules as is necessary to prevent unfair methods of competition” under Section 5 of the FTC Act.

And then last week, a federal judge in Florida also temporarily blocked the ban.

• U.S. District Judge Timothy Corrigan cited the “major questions doctrine,” which says that federal agencies can only issue rules with broad societal impacts with Congress’ explicit permission, Reuters reported.

Breaking Down The FTC Ruling

• About 30 million people (20% of U.S. workers) have signed non-competes, according to the FTC.

In February, PPAI Media listed non-compete clauses as one of the key employment areas to watch in 2024 after the FTC proposed the legislation that this ban initially stemmed from in January.

• California, Minnesota, Oklahoma and North Dakota have already banned noncompete agreements, and at least a dozen other states have passed laws limiting their use, Reuters reported.

Rachel Zoch, public affairs and research editor at PPAI, says that the U.S. Supreme Court overturned a 40-year precedent of deference to federal agencies in June, “so it’s likely we’ll see more challenges to administrative rules like this.”

“It’s possible that Congress will take up the issue, but not before the election,” Zoch says.

On July 3, Brown partially blocked the rule, saying that the FTC “lacks the substantive rulemaking authority with respect to unfair methods of competition.”

Non-compete clauses are a contractual term between an employer and a worker that blocks the worker from working for a competing employer or starting a competing business, typically within a certain geographic area and period of time after the worker’s employment ends.

Last year, Joshua White – then the head of strategy and general counsel at BAMKO and a member of the PPAI Board of Directors – wrote a column for PPAI Media arguing against non-compete contracts as a practice in promo and predicting the FTC’s decision.

“The point here is not to challenge your opinion on non-competes,” White wrote. “I expect the FTC will take that issue out of your hands soon enough. My point is to challenge the way you think about people, culture and the role you play in shaping both.”

Written by: John Corrigan

Published with Permission from PPAI

The promotional products industry is about to experience yet another supply chain disruption as Canada’s two major freight railroads have halted operations.

Canadian National (CN) and Canadian Pacific Kansas City Southern (CPKC) both locked out their employees on Thursday morning due to a contract dispute with the Teamsters union, The Associated Press reported.

The shutdown, which is impacting more than 9,000 unionized workers, could wreak havoc on both the Canadian and United States economies, as nearly a third of the freight handled by the two railroads crosses the U.S.-Canadian border, CNN reported.  

• For example, a three-day strike would cause $300 million ($407 million CAD) in economic damage, while a seven-day strike would bring losses to more than $1 billion ($1.4 billion CAD), according to the Anderson Economic Group, a research firm that specializes in estimating the economic impact of work stoppages.  

“We fully understand and appreciate what this work stoppage means for Canadians and our economy,” CPKC said in a press release. “CPKC is acting to protect Canada’s supply chains, and all stakeholders, from further uncertainty and the more widespread disruption that would be created should this dispute drag out further resulting in a potential work stoppage occurring during the fall peak shipping period. Delaying resolution to this labour dispute will only make things worse.”

• After Canada introduced new duty and rest period rules in 2023, CN wanted to increase shift durations from up to 10 hours a day to up to 12 hours a day, Reuters reported.

• Not surprisingly, the Teamsters rebuffed.

Without an agreement or binding arbitration, CN says it had no choice but to finalize a safe and orderly shutdown and proceed with a lockout.

• However, Canada doesn’t have the same law as the U.S. does that would allow Trudeau to prevent a lockout or strike while a panel weighs the demands of the union and the companies.

A similar situation occurred in the U.S. in 2022, but President Joe Biden and Congress intervened, forcing unions to accept a deal.

What Led To The Lockout?

All parties involved were aware that a shutdown was likely to happen: CPKC has been negotiating with the Teamsters for nearly a year and CN has been trying to reach an agreement for nine months, The Associated Press reported. 

The labor dispute is largely over wage increases, scheduling and demands for better work-life balance, according to the union and companies.

“Over the last nine months, CN has negotiated in good faith,” CN said in a press release. “The company consistently proposed serious offers, with better pay, improved rest and more predictable schedules. The Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy. We urge the Teamsters to engage in these negotiations with the urgency and importance that this situation requires.”

Despite the lockout, the union says it remains at the bargaining table with both companies. 

“Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck,” says Paul Boucher, president of the Teamsters Canada Rail Conference. “The railroads don’t care about farmers, small businesses, supply chains or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy.”

Less than 48 hours before the shutdown, the U.S. Chamber of Commerce and Canadian Chamber of Commerce issued a joint statement calling on Canada’s government to “immediately intervene.”

“A stoppage of rail service will be devastating to Canadian businesses and families and impose significant impacts on the U.S. economy. Significant two-way trade and deeply integrated supply chains between Canada and the United States mean that any significant rail disruption will jeopardize the livelihoods of workers across multiple industries on both sides of the border. The Government of Canada must take action to ensure goods continue to move reliably between our two countries,” the chambers said. 

Both railroad companies have also called on the government to intervene and refer the dispute to binding arbitration, but Prime Minister Justin Trudeau has declined thus far.

Written by: John Corrigan

Published with Permission from PPAI

Vantage Apparel (PPAI 113235, Platinum) – the No. 12 supplier in the PPAI 100 – has announced a strategic partnership with Starline (PPAI 112719, Gold) – the No. 15 supplier in the PPAI 100 – to significantly expand the product offering available through Vantage’s webstores.

• The partnership will provide distributors with access to a diverse range of single-piece, on-demand branded products, such as apparel, bags, coolers, Bluetooth speakers, flashlights and drinkware, including Stanley products.

Rob Watson, CEO of Vantage Apparel, says the collaboration with Starline marks a significant milestone for the New Jersey-based firm.

• Both Vantage Apparel and Starline earned 2024 PPAI 100 High Marks for Innovation.

‘One-Stop Solution’

• The platform boasts a range of features, including pop-up shops, points programs, budget allocations, powerful reporting and order approvals.

“Vantage is known industry wide for its creative and innovative decoration capabilities, combined with first-class apparel,” says Brian Porter, chief revenue officer at Starline. “This works so well with our award-winning digital Tru Color decorating and best-in-class product quality that the synergy was a natural fit. We’re beyond thrilled to expand our ‘On Demand’ capabilities and combine those in a one-stop solution for both apparel and hard goods.”

“By integrating Starline’s high-quality hard goods into our platform, we’re not only broadening our product range, but also enhancing the value we provide to our distributors and their customers,” Watson says. “This partnership exemplifies our commitment to innovation, integration and excellence in the promotional products industry.”

The partnership comes on the heels of Vantage launching its new webstore platform, which includes PCI and SOC2 compliance measures, ensuring the “highest standards” of data protection and privacy for users.

Vantage’s collaboration with Starline allows distributors to incorporate a curated selection of both apparel and hard goods into their webstore, providing real-time inventory and enhanced ordering capabilities for all products.

“Each product in Starline’s on-demand lineup offers the same single-piece, decorated option that our customers have grown to love and expect from Vantage,” says Chris Alfano, chief digital officer at Vantage Apparel.

Written by: John Corrigan

Published with Permission from PPAI

SnugZ USA (PPAI 112982, Platinum) – the No. 7 supplier in the PPAI 100 – has announced the addition of Alex Barberis as its new chief technology officer.

• The West Jordan, Utah-based firm earned 2024 PPAI 100 High Marks in Innovation.

“I’m thrilled to join the incredible team at SnugZ,” Barberis says. “Their talent and dedication are truly inspiring, and I see immense potential to drive the company’s growth through innovative technology solutions. I look forward to collaborating with everyone to take SnugZ to new heights.”

• Previously, he was the CTO at BEL USA, parent company of BEL Promo – the No. 34 supplier in the PPAI 100.  

• After leading the digital transformation of manufacturing processes and e-commerce capabilities at BEL USA, Barberis joined Amazon, where he worked on new and existing products in the music streaming and automotive spaces.

“Alex’s extensive background in technology and management will be instrumental in driving SnugZ USA’s growth and technological advancements and will propel our organization into the future,” says Brandon Mackay, MAS, president and CEO of SnugZ USA.

Barberis’ Background

Barberis is returning to the promotional products industry after two years away.

Written by: John Corrigan

Published with Permission from PPAI

PPAI has announced the slate of candidates for its incoming Board of Directors class, due to serve the promotional products industry’s leading nonprofit trade association from January of 2025 until 2029. 

The two-person slate includes Kate Alavez, president of PromoShop – ranked the No. 29 distributor on the PPAI 100 – and Mark Gammon, CEO of Cap America, which is PPAI 100’s No. 18 supplier.  

The election to approve the slate begins August 26 and closes August 30. Each PPAI member company’s voting contact is eligible to cast a vote for the slate. Voting will be done electronically, and a new 2024 username and password will be emailed to the voting contacts when voting opens. 

A candidate must receive majority approval among votes cast to be named to the board of directors following The PPAI Expo 2025. 

The two board seats represent replacements for the expiring terms of Karie Cowden, MAS, founder and president of Connect the Dots Promotions and Kevin Walsh, CAS, president of Showdown Displays.  

Alavez and Gammon were nominated to the slate following evaluation by the Leadership Advisory Committee, vetting by the Elected Directors Nominating Committee and ultimately, approval by the sitting PPAI Board of Directors. Each group consists of member volunteers. 

About Kate Alavez 

When her employer, Diagnostic Products Corporation, was sold to Siemens in 2006, Alavez took a recommendation from a family friend and applied at PromoShop as a Sales Support Assistant. Eventually spending over a decade in human resources, Alavez was promoted to Chief Operating Officer in 2018 and then President of the Los Angeles-based distributor earlier this year.  

Alavez spoke to PPAI Media about the experiences that have prepared her for a potential seat on the Board.  

About Mark Gammon 

After nearly eight years at distributor The Vernon Company, where Gammon honed his skills in sales management, business development and client relationship-building, the industry veteran joined Cap America in 2018 as Vice President of Sales. He quickly climbed the company ladder, becoming President and COO of the Missouri-based firm less than two years later. 

Gammon spoke with PPAI Media about what he’s hoping to bring to the board. 

Along with those terms set to expire in January, the PPAI Board of Directors currently includes Regional Relations Committee delegate Kara Keister, MAS, of distributor Social Good Promotions, Dan Pantano of supplier alphabroder, Danny Rosin of distributor Brand Fuel, Chris Anderson of supplier HPG, Denise Taschereau of distributor Fairware, Lori Bauer of distributor iPROMOTEu, Erin Reilly of supplier Pop! Promos, Zack Ottenstein of distributor The Image Group and Board Chair Andrew Spellman, CAS, of supplier Therabody. 

Written by: Jonny Auping

Published with Permission from PPAI

We’re one week away from Promotional Products Work Day, an annual event organized by PPAI to raise awareness about the power of promotional products and the impact they can have on brand recognition, customer loyalty and overall business success.

On August 20, the Association – together with its members and other industry professionals – will actively recognize and promote the value and effectiveness of promo products – the most memorable form of advertising.

• Nearly three quarters (73%) of end buyers purchase promo products on either a monthly or quarterly basis, and 83% are satisfied with the quality of the branded merchandise they receive from their primary source, according to PPAI Research’s Understanding End Buyers 2024 study.

Through various activities, events and educational resources, Promotional Products Work Day aims to inspire and inform businesses and consumers why promo products are universally valued and essential to every brand.

• Facebook

• Instagram

• LinkedIn

#SpotThePromo

In honor of Promotional Products Work Day, PPAI is launching #SpotThePromo, a social media campaign designed to showcase the ubiquitousness of promo products.

Industry members are encouraged to post photos of the merch that they encounter throughout the day, along with the hashtags #promotionalproductswork and #SpotThePromo, while tagging PPAI’s social media accounts.

RELATED: The 2024 #Online18 (Part 2): The Best Promo Pros On Social Media

The Association’s leaders will also #SpotThePromo while visiting with members throughout the week. Of course, Promotional Products Work Day is an international holiday, and the Promotional Products Professionals of Canada (PPPC) will also be participating.

“The goal of #SpotThePromo on Promotional Products Work Day is to show off the way promo works its way into our homes, offices, cars, pockets, and more, becoming part of our lives in a way that other advertising simply can’t,” says Lindsey Davis, MAS, director of sales and professional development at PPAI.

Don’t miss anything on Aug. 20 and beyond. Follow PPAI on social media:

Here are nine ways that you can celebrate Promotional Products Work Day.

Written by: John Corrigan

Published with Permission from PPAI

After nearly a century in business, Quick Point (PPAI 114051, Silver) is shutting down.

John Goessling, president of the Missouri-based supplier of drinkware, letter openers and home accessories, has decided to retire from the promotional products industry and he will be closing his company at the end of the month.

“My three successful children have already discovered their talents in other professions and decided the promotional products industry just wasn’t for them,” Goessling tells PPAI Media. “With these things in mind, I decided this was a good time to retire and write my next chapter.”

The firm will still be accepting orders from distributors through the end of August and plans on wrapping up production by the end of September or early October.

Family Business

Goessling’s grandfather founded the company (formerly known as Quick Point Pencil Company) in 1928.

• Goessling’s father, John Sr., took over the firm after serving as an officer in the U.S. Navy.
• Goessling drew his first paycheck from Quick Point in 1969 and has been with the company full-time since 1990.
• The company is most known for their line of Zippy letter openers they introduced in the 1960’s

“It saddens me to say goodbye,” Goessling says. “I want to thank everyone who contributed to keeping Quick Point in business for the last 96 years. The industry has been good to me and my family, but I’m ready to see what’s ahead.”

Written by: John Corrigan

Published with Permission from PPAI