• Feds Warn J&J Unit Over Marketing Hip, Knee Devices
    The Food and Drug Administration has issued a warning letter to Johnson & Johnson's DePuy Orthopaedics unit for selling hip and other joint products without without "market clearance" and in violation of the Federal Food, Drug, and Cosmetic Act, Parija Kavilanz reports. The FDA says will only evaluate whether the Corail Hip System and the TruMatch Personalized Solutions System, which makes artificial knee products, can be legally marketed to consumers after DePuy submits information for approval. DePuy says it is "reviewing the letter to understand the FDA's concerns and will respond to their request for information."
  • Credit Cards No Longer The Big Man On Campus
    The landmark federal legislation that overhauled the credit card industry bans issuers from providing cards to people younger than 21 unless another adult co-signs for it or the student can show an independent source of income. It also prohibits freebies such as T-shirts or pizza in exchange for signing up for a card, Ylan Q. Mui reports, and college groups are required to make public any partnerships they have with card issuers. Consumer advocates say the industry was wooing young people into a vicious cycle of debt. "If you were a student and you could fog a mirror, …
  • Lexmark Makes More By Encouraging Less Use Of Products
    Arik Hesseldahl reports that Lexmark is taking a somewhat novel approach to sales. It intends to make more money by helping its customers use its products less frequently. CEO Paul Curlander wants to sell fewer printers with higher profit margins and then manage the printers for the companies that buy them. Lexmark claims it can cut printing costs by 30% or more when it takes over installing, repairing and restocking printers. Indeed, Coca-Cola Enterprises says it saved $11 million over five years with the help of Lexmark, which swapped out 6,000 printers and faxes from 16 different vendors for …
  • Apple Likely To Show Off New iPods Sept. 1
  • FDA Seeks Comments On Menu Labeling
  • Discover Card Signs Four-Year Pact To Sponsor Orange Bowl
    Hoping to raise its profile among its pigskin-leaning consumers, Discover Financial Services will be the title sponsor of the Orange Bowl, one of college football's most prestigious bowl games, Becky Yerak reports. Conveniently, the company already has orange in its logo. "Our cardmembers are passionate about college football and hockey," says Harit Talwar, president of U.S. cards for Discover, who says that they are 20 to 30% more likely to watch college football than the average consumer. "Our overwhelming goal is to increase wallet share with our customers." FedEx has been the Orange Bowl title sponsor …
  • Kellogg's Pop-Tarts Gains Facebook Traction
    Popeyes isn't the only brand taking its message to the crossroads of the world. Pop-Tarts World, which joined storefront brands such as M&M and Hershey when it opened Aug. 11 on 42nd Street in New York, is enjoying significant buzz on the Web, Elaine Wong reports, in addition to the 1,500 to 2,000 visitors who cross the portal each day. Pop-Tarts' Facebook page grew from 1.8 million to 2 million fans within two weeks after the store opened, according to Kellogg. And positive mentions rose to 88% from 74% before the opening, according to Zeta …
  • Popeyes CMO Richard Lynch Talks Turkey About Chicken
    Hundreds of Popeyes' fans emblazoned in orange took to Times Square yesterday and a none-too-subtle microsite -- http://www.popeyesbeatkfc.com/ -- went live, both trumpeting the fact that its Spicy and Mild Bonafide bone-in fried chicken beat out KFC Original Recipe in a national taste-test. Among other things, Jennifer Rooney talks with Popeyes CMO Richard Lynch about the riskiness of conducting taste tests. "We believed we would win the taste test," he says. "When you're a brand that's about the food and you believe you have a superiority claim, you can't not do it." But if they lost, they would …
  • Young Consumers Drive Demand For Made-to-Order Goods
    Sarah E. Needleman reports on the growth of companies that create customized goods -- from mattresses to pet foods to toilet paper --for customers who are not only discerning but also tight-fisted. The made-to-order goods may cost more than mass-produced products but they are generally cheaper than luxury goods because of the efficiencies of the Internet and low start-up costs. Lack of inventory is another advantage. "We don't have to make anything in advance," points out Nick LaCava, co-founder of a design-your-own-chocolate-bar business called Chocomize.com. Young people, accustomed to customized ring tones and the like, are the main …
  • Trader Joe's: A Mystery Wrapped In Mom-And-Pop Mystique
    Trader Joe's is an "offbeat, fun discovery zone that elevates food shopping from a chore to a cultural experience," writes Fortune's Beth Kowitt in a long look at the operations of one of the hottest retailers in the U.S. There are now 344 stores in 25 states and Washington, D.C., and a long list of wannabe locations. The story is replete with phrases such as "yuppie-friendly," "goofy trademark Hawaiian shirts" and "cheerfully refund" but Kowitt is definitely on the outside looking in. Management is "obsessively secret," she reports, and has never participated in a major story about its business …
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