News

This week, delegations from the U.S. and China are meeting in Washington, D.C. to continue negotiations on the trade dispute between the two countries. The talks come only one month out from the deadline when U.S. tariffs on $200 billion worth of Chinese products are set to increase from 10 percent to 25 percent.

Chinese Vice Premier Liu and 30 Chinese trade officials began negotiations with U.S. Trade Representative (USTR) Robert Lighthizer, Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross and others on Wednesday. The U.S. has identified over 140 items it wants China to change in relation to trade policies and practices. The Chinese Vice Premier has been tasked with conveying China's willingness to reform its economy to meet U.S. demands. Although the Chinese Vice Premier is reportedly prepared to offer significant concessions during this round of negotiations, trade experts have expressed little expectation of a major breakthrough resulting from the talks. So far, neither the USTR office or White House have released updates on how negotiations went on Wednesday.

Negotiations continue today with Liu set to meet with President Trump. The president tweeted this morning, “China’s top trade negotiators are in the U.S. meeting with our representatives. Meetings are going well with good intent and spirit on both sides. China does not want an increase in tariffs and feels they will do much better if they make a deal. They are correct…China’s representatives and I are trying to do a complete deal, leaving nothing unresolved on the table. All of the many problems are being discussed and will be hopefully resolved. Tariffs on China increase to 25% on March 1st, so all working hard to complete by that date!”

Top 40 distributor Brown & Bigelow (asi/148500) has announced the purchase of Washington, D.C.-based Specialties Inc. (asi/331340). Financial terms and valuations of the deal, made public this afternoon, were not disclosed.

“We’re very excited to have an organization the caliber of Specialties, Inc. join the Brown & Bigelow family,” said Bill Smith, president and CEO of B&B, in a statement. “We look forward to continuing their excellent reputation and service to their clients.”

The Dollars4Disasters Step Challenge raised awareness and funds for PPAI’s Promotional Products Disaster Relief Fund (PPDRF) at The PPAI Expo. This was a first-time event organized by Jeff Solomon, MAS, publisher of FreePromoTips.com; Dana Zezzo, vice president of marketing and vendor relations at American Solutions for Business; and Dana Geiger, PPAI regional relations manager. Dollars4Disasters raised close to $2,000 for the cause.

David Hawes, MAS+, Geiger, and Dan Livengood, CAS, of 2020 Brand Solutions challenged each other to help raise money on behalf of UMAPP for PPDRF. Livengood and Hawes raised $500 with their step challenge. Paul Kiewiet, MAS, executive director of the Michigan Promotional Professionals Association (MiPPA) also donated his speaking engagement fee to any regional association that raised $500.

Megan Zezzo, S&S Activewear; Brian Stidham, EMT; and Laura Brewer, Ariel Premium Supply, provided products supporting the event and PromoCorner created the logo.

The Promotional Products Disaster Recovery Foundation has been set up to help promotional products industry members and nonmembers get back to business in the wake of a federally-declared natural disaster. The fund can help replace lost equipment and supplies—computers, cell phones, office supplies, promotional products catalogs and samples—provide a work area or give other assistance as needed to get a business up and running as soon as possible. Learn more about PPDRF here.

HALO Branded Solutions (PPAI 106462) has hired Rick Goddard as the Sterling, Illinois-based distributor’s chief information officer. Goddard will succeed Dale Moir who last year announced his intention to reduce his role at HALO. He will report to Adam Weisman, HALO chief operating officer.

“HALO is committed to driving the growth of the business with the most advanced technology available delivered by the most qualified people possible,” Goddard says. “I am excited to support the vision the company has for continued growth.”

Goddard brings more than 15 years of experience in key technology leadership roles in a variety of high-growth companies to the role. He most recently served as director of technology services for Liberty Technology Advisors where he advised and assisted Fortune 1000 clients.

Weisman adds, “I am very excited to have Rick join us with his strong leadership skills and track record of developing technology teams to bring high value solutions to our clients, customers, employees and investors. We are also thankful for Dale’s 18 years of service leading our IT area, and his willingness to stay on to effect the most successful transition to Rick in this very important area of the company.”

The Magnet Group (PPAI 338534) has named Curtis Grotting, the Washington, Missouri-based suppliers’ vice president of logistics and an 11-year veteran of the company, as the winner of its inaugural Fran Ford Award. The award is named after Francis “Fran” Ford, Jr., CAS, president of supplier Castelli, a division of Magnet, LLC, and 2015 PPAI Hall of Fame inductee, who passed away in 2018.

The Magnet Group describes the Fran Ford Award as the highest honor it bestows on its employees. It is given to the employee who embodies the characteristics that defined Ford. An eligible candidate must possess the qualities of kindness and generosity, offering friendship and mentorship to others, and have participated in a volunteer capacity either inside or outside the industry during the calendar year of their nomination.

In announcing Grotting as the inaugural recipient of the award, the company said in a statement, “Curtis was nominated by his peers and truly epitomizes the characteristics that embody this award. He is kind, generous, a great friend, mentor and a passionate volunteer. In addition to all of these, he has done an amazing job going above and beyond for The Magnet Group and we look forward to his continued successes.”

The Incentive Research Foundation (IRF) has released its 2019 IRF Trends Study, which highlights 10 key trends that will affect organizations, their products and services and the workforce in 2019.

“The IRF 2019 Trends Study reports very positive trends for incentive travel, merchandise and gift cards—and also highlights areas of concern,” says IRF President Melissa Van Dyke. “As economic and technological changes continue to accelerate, the IRF is tracking shifts in the industry and providing insights into how to anticipate and respond to these changes to gain a competitive edge.”

The 10 trends identified in the study include:

• A strong economy and robust merger and acquisition in the hospitality and incentive house markets will impact how the incentives industry conducts business and runs programs.
• Both physical and data security remain a top concern not only when planning incentive travel and motivational meetings, but also when administering gift card, merchandise and points programs.
• Executives’ goals are shifting to focus on rewards aimed directly at building relationships, encouraging inclusion and knowledge-sharing, and promoting engagement.
• Artificial Intelligence (AI) is already being used to understand who is drawn to which types of rewards, personalize rewards and encourage greater participation, and it will continue to develop at a rapid pace.
• Expanding budgets, increased participant eligibility and improved internal and public perceptions all point to growth of incentive travel programs.
• Market optimism in the non-cash reward and recognition market continued its climb in 2018, with the IRF’s net optimism score reaching a peak 43 percent—a score only previously seen in 2013.
• Gift cards continue to be a popular option, with high utilization for open loop cards and brand-specific cards. Restricted-use cards, vouchers and e-gift cards continue to gain momentum.
• An increasing need for cost containment, concerns over terrorism, high transportation costs and trade restrictions will impact incentive travel and merchandise programs.
• Transformational travel—incorporating concepts like wellness, community and personal fulfillment—will continue to push and extend the experience economy even further.
• Program designers will need to adopt the test-often, fail-fast, customer-centric nature of design thinking to keep pace with ever-changing technology and content expectations.

When it comes to giving back and paying-it-forward, some companies talk a good line. Top 40 supplier Sweda (asi/90305) is walking it.

The California-based firm announced this week that it recently donated $100,000 to help fund double-amputee-wounded Iraq War veteran Dan Nevins’ Warrior Spirit Retreat, a place where veterans learn to heal from the physical and mental wounds of military service.

Sweda was able to donate the six-figure sum by setting aside a portion of the proceeds from sales of Basecamp, the supplier’s outdoor adventure line featuring products like backpacks, bear-tested coolers, drinkware, multi-tools, tents, weatherproof Bluetooth speakers and more. A veterans’ advocate, motivational speaker and nationally recognized yoga master, Nevins is the official brand ambassador for Basecamp. “Since 2017…Sweda has donated over $250,000 in monies and product to support the Warrior Spirit Retreat,” the supplier said in a statement.

Sweda CEO Jim Hagan, SVP of Sales & Marketing Kellie Claudio and VP of Finance Ginalin Tan presented Nevins with the donation at the recent PPAI Expo. News of the altruistic outreach continues recent positive momentum for Sweda, which announced in December that it will now sell apparel in the promo space. The apparel initiative for 2019 includes Made-in-America basics, an exclusive partnership with fashion-forward surf/skate-inspired brand Mill42, and clothing from retail brands like Adidas, Oakley, Champion and more.

With reported 2017 North American promotional product revenue of $91.6 million, Sweda ranked 19^th on Counselor’s latest list of the largest distributors in the promotional producs industry.

North American promotional products distributors increased annual revenue in 2018 to $24.7 billion, a 4.9% rise over the prior year, according to exclusive new data from ASI. Marking the ninth consecutive year that a record industry tally was set, 2018’s sales surge considerably outpaced 2017’s growth, which was 3.2%.
 
In all, nearly half of distributors (48%) increased revenue last year, while 30% held steady on sales. The market’s largest firms performed best: 70% of distributors with revenue of more than $1 million reported a 2018 year-over-year sales rise. Many smaller distributors held their own in 2018, as well. About 4-in-10 firms with revenue of $250,000 or less recorded an annual increase, while 48% of distributors with sales between $250,001 and $1 million also made gains, ASI data shows.
 
Click here to see complete coverage of the 2018 distributor sales report and follow www.asicentral.com/news for additional details.

After months of preparation by exhibitors, PPAI staff and the Mandalay Bay Convention Center, the PPAI Expo 2019 officially got under way on Tuesday morning and wraps up its third full day of exhibits today.

For some attendees, it was their first time at the show. Among those was Thea Kelly, who recently purchased Alchemy Promotional Products in Dorset, Vermont, and who came to the Expo with a set game plan. “I hit all of the education workshops right away. I planned ahead what I wanted to attend so I already have the resources and tools for productivity that will set me up for the year.” She applied the same game plan to the show. “I planned to see the exhibitors I already do business with first and had clients and programs in mind. I’m going to hit this show every year; in terms of what PPAI provides, I’ve got my total ROI already.”

Andrea Damian, owner of Swag Promo in Los Angeles, decided to fly out at the last minute to attend the show. “It is good to come and get new ideas and see the people I’ve had relationships with for years,” she says. “I do business with a lot of breweries, and I saw games and dart boards that I can definitely use to market to them.”

Ronan Emrani with NinjaStitch.com, also in Los Angeles, says, “As a decorator I find it fascinating to come to this trade show, because you see all kinds of distributors looking for the next thing to sell to their customers. We deal directly with distributors to do embroidery, screen printing and sublimation in-house so we are looking for new trends as well. The show is better organized this year and the flow is better than in years past so the experience has been good.”

For Zubi Olin, owner of Central Coast Promotions in Simi Valley, California, it’s not a product or company she’ll remember most when she thinks about her first PPAI Expo—but an experience. “The thing I will remember most is when I went to registration to get my badge, the sweetest lady saw that I was from Simi Valley, which is right next to Thousand Oaks, and recently we’ve suffered from two massive wildfires, a shooting and now mudslides. She asked if I was okay, and how I was coping and handling things. As a first-time distributor, that’s going to be what I’ll remember most.”

Expo exhibitors looking to create a fuller experience for distributor attendees went far beyond a simple table and product setup; some exhibitors went all out with their displays to help build their brand image. Among the most eye-catching ones were Travel Chair (booth #1432) with its rustic redwood wall that set the perfect stage for its products.

ETS Express displayed its colorful translucent and opaque drinkware styles against a backlit panel for a stunning effect and HUB Promotional Products (booth #1547) incorporated two engaging, interactive elements at both booth entrances. At one, labeled Hot & Fresh!, distributors could pick up samples. At another, the company’s Jason Lucash conducted a Price Is Right game with contestants guessing the price of products. Both elements drew large crowds of distributors wanting to take part.

QUINN (booth #2341) was running an Expo challenge where participants could win a free 10-by-10-foot canopy tent by taking a photo with their SUPERQUINN character and posting it to social media.

Among some of the interesting products seen at Expo, Branded Logistics introduced the first integrated customizable OtterBox phone case with built-in PopSocket to the promo Industry—the Otter + Pop.

DBest Products, a company featured on Shark Tank that makes smart carts and trolley dollies, introduced a new smart cart that weighs less than two pounds and carries up to 130 pounds.

Beyond the latest products, the Expo’s reputation as a big tent for the promotional products industry saw young professionals come together last night for a SPARK networking reception. SPARK is PPAI’s education and networking opportunity for young professionals working in the promotional products industry. Highlighting the initiative’s growing popularity, this year’s reception drew more than 100 attendees.

In its journey across the U.S. connecting with industry companies ahead of Expo, the PPAI Promomobile hosted a series of pop-up lunches at restaurants along its route. The pop-ups continued inside the Mandalay Bay over the past two days with a series of attractions to surprise and delight attendees on the show floor. These included a caricaturist and an illusionist; various treats such as coffee, ice cream, tiny pizzas and chocolate-covered bacon; and probably most popular, an opportunity to relax with a gaggle of playful puppies.

Top 40 supplier Chocolate Inn/Lanco (asi/44900) has announced a strategic combination of Screen Printers Design (SPD) – its screen print and embroidery decorating business – and Westchester County, NY-based Shoreline Monogramming Inc. The pairing will now be called SPD/Shoreline. Financial terms of the deal were not released.

“We believe the decorating business is a highly fragmented market,” said Lance Stier, chairman and CEO of Nassau Candy Confections, which owns Chocolate Inn/Lanco. “We are excited to combine SPD and Shoreline and to leverage our experience as a Top 40 supplier, servicing promotional products distributors with technology, service and quality to build a scaled platform in the decorating business.”

Founded in 1984, Shoreline specializes in sustainability, using Phthalate-free screen-printing inks, recycled fibers for embroidery backing, and soy-based, non-toxic printing solvents and cleaning solutions. “We are proud of what we have accomplished since Shoreline’s inception, with our stellar team and production expertise, and now look forward to expanding our production capabilities and product/technological offerings with this new venture,” said Andy Moller, CEO of Shoreline.

This is the third soft goods/apparel decorator that Chocolate Inn/Lanco has acquired in the past nine months, joining SPD and Stitches in View. In addition to decorating services, Chocolate Inn/Lanco will offer multi-category kits and gifts, combining edibles, hard goods, apparel, health and beauty and other items.

“We also are excited to continue to strengthen our ability to offer ‘kitting solutions’ to our products,” Stier said. “By working with Chocolate Inn/Lanco, distributors will have the ability to place a single purchase order to deliver multi-category solutions. Imagine, for example, a custom flavored lip balm with custom lotions, custom scented candles and custom sugar scrub, all packed in a beautifully embroidered toiletry bag.”

With reported 2017 North American promotional product revenue of $49 million, Chocolate Inn/Lanco ranks 33^rd on Counselor’s latest list of the largest suppliers in the industry.