John Menzies plc notes the announcement by the Office of Fair Trading (OFT) of its provisional conclusions on newspaper and magazine distribution.  The statement supports the existing territory distribution arrangements for newspapers whilst introducing the potential for some fragmentation in magazine distribution.

 

Menzies Distribution is one of the country's most efficient magazine distribution businesses and its focus on the customer has enabled it to introduce industry-leading solutions for the benefit of both the publisher and the retailer, such as its Sales Based Replenishment system recently implemented nationally with the major retailers.  Menzies therefore considers that it is well placed in this market.

 

Commenting on the OFT statement, Patrick Macdonald, Chief Executive, said;

 

"We note the OFT's provisional conclusions and welcome the commitment to territorial distribution.  We believe it important to recognise that newspapers and magazines share the same economic route to market.  We look forward to receiving the OFT's draft advisory opinion and to playing our part in the ensuing consultation process."

 

 

Alastair Couper, Investor Relations, John Menzies plc                           0131 459 8060

 

Anthony Kennaway, Citigate Dewe Rogerson                                       020 7282 1076