The NFRN says: “At the same time, Menzies Distribution will undertake its annual review of retailers’ average news sheet value (based on the most recent 13 weeks). This means that the carriage charge review may have a lesser impact on those retailers whose news sheet values have fallen since the last review, if this puts them in the next lower carriage charge band.
In addition to the carriage charge review, Menzies Distribution has also reviewed its Minimum Financial Target – the minimum weekly payment for newspapers required from new retail entrants (currently £195) - and this is to be increased by 5% from 1st October.
To his credit, David Cooke, Menzies’ Commercial and Marketing Director, visited the NFRN’s Head Office to convey the news in person to Paul Baxter, Chief Executive and David Daniel, Trade Relations Manager. However, he was left in no doubt about how the Federation felt about this move which was yet another squeeze on retail margins which would anger members who were already under extreme pressure from publisher margin cuts and the loss of the News of the World.
Chief Executive Paul Baxter said: “Whilst it is important that we maintain a professional relationship with Menzies Distribution to promote positive initiatives that benefit NFRN members, I have left David Cooke in no doubt that the Federation will exert every ounce of its might to have this abhorrent carriage charge mechanism abolished.” He added: “No right minded person would believe that a Competition Authority would sustain such malpractice as exists in the new industry, where publishers can generate monopoly distribution arrangements and then exploit that to give themselves a cheap route to market at the expense of retailers.” He concluded: “The NFRN’s Press for Reform Campaign aims to have the newspaper and magazine industry referred to the Competition Commission for a full (and in my opinion, long overdue) market investigation, to expose and eradicate these unethical practices that blight our industry.”
