Welcome to THE K&BZINE News 5th December 2003

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Russia and Poland: Two new Plants

Merloni Elettrodomestici announced in the UK recently a project to open a new washing machine plant in Russia and a new refrigerator plant in Poland and to double the capacity of the cooker plant already operating in Lodz, in Poland. The project will cost a total 100m over three years.

This development of production capacity meets the need for a more even balance between output levels in Eastern and Western Europe. 86% of the Company's total production is provided by its plants in Western Europe, though this region only delivers 67% of the Company's sales.

Further, while Western European markets are showing growth of slightly over 2%, Eastern European markets are enjoying double-digit growth rates.

This extension of production capacity is geared to the Company's growth objectives, especially in Eastern European markets.


Electrolux Sponsors 2004 TRIC Awards

Electrolux will be the headline sponsor of the star-studded Television and Radio Industries Club (TRIC) Awards 2004. Due to take place on March 9th at the Grosvenor House in Park Lane, London, the ceremony, which honours the nation’s favourite famous faces, will be awash with celebrities from the world of television and radio.

Originally formed to promote goodwill in the television and radio industries, today the TRIC Awards has a reputation as an event not to be missed if you want to keep up with the latest celebrity gossip.

The Awards, to be presented by Charlie Dimmock, include categories such as ‘TV Programme of the Year’, ‘Radio Personality of the Year’ and ‘New Talent’. The list of past winners reads like a who’s who of the entertainment industry and includes Sara Cox and Ant & Dec.

Says Sue Burgess, PR & Marketing Communications Manager for Electrolux Home Products, ‘We are delighted to be the headline sponsors for next year’s Awards – a ceremony that invites people from the electrical retailing world to network and enjoy themselves, and meet a whole host of stars. Previous years suggest that the celebrity antics are as likely to end up in the showbiz gossip columns as in the trade press, so book your seats now!’


ASA Complaint about 'Baby in Fridge' Upheld

Following a complaint, a regional press advertisement on behalf of Kitchens by Franklyn Sheldon of Blackpool, Lancashire was investigated by the Advertising Standards Authority. The complaint was upheld.

A householder objected via a Trading Standards department, to a regional press advertisement for kitchens. The advertisement featured a young boy, in a nappy, who was sitting in the doorway of an open fridge and holding what seemed to be a bread roll; food was on his nose and around his mouth and strewn about the floor by his feet. The complainant, who believed that alcohol and medicines were also sometimes kept in the fridge, objected that the advertisement was irresponsible because it showed a young child in a potentially hazardous situation and could encourage emulation.

Adjudication:
Complaint upheld
The advertisers said the picture was taken from a brochure belonging to one of their home improvement suppliers; they said the suppliers, who shared the same creative agency, had given them permission to use the image in their advertising campaign. The advertisers said they used the image of the little boy to attract the attention of prospective customers; they argued that they had not intended to endanger the lives of children or lead them astray. The Authority noted the advertisers' comments. It nevertheless concluded that, because it showed a child in a hazardous situation, the advertisement was irresponsible and breached the Code. The Authority asked the advertisers to withdraw the advertisement and use a different approach in future.


The Plain English Campaign Awards - Smeg gets a Golden Bull

Each year, The Plain English Campaign presents awards for clear - and baffling - use of English. The 2003 awards took place on Tuesday 2nd December (Plain English Day).

The Golden Bull awards
These awards are given for the year's worst examples of gobbledygook.
There are eight winners for 2003.

* Jungle.com
* Lloyd's Pharmacy
* Marks and Spencer
* SMEG
* The Social Fund maternity and funeral expenses (general) regulations
* Standard Life
* Warburtons Bakers
* Yousef El-Deiry (JMC Airlines)

SMEG: for the company's dishwasher instructions
The Plain English Campaign says 'For a top-of-the-range manufacturer of dishwashers to produce an instruction manual like this is a disgrace. It has presumably been poorly translated into English from its original language, and contains such gems as the following.'

* 'At this point you must press contemporary the P1+P2 buttons and then you will see that the first 3 pilot light programs will lid up.'
* 'during this phase the writing 'Time to end' flashes up.'
* 'This allows to make function the dishwasher at the time you want. By pressing one after the oter button DELAY PROGRAM (5), it will be seen on the display the vizualisation of delay hours numbers in which you want to make start the machine from 12 hours onward.'
* 'The display will be turned on with a vizualisation that will depend on the state of the dishwasher.'
* 'By pressing the relative button of desired program (see table) it will lid up the relative pilot light to confirm that the operation did occurred on the DISPLAY (9) will appear a program duration forecasting ('h.mm').

Correspondence manager Pauline Dewhurst sent the following letter:

'I am sorry to learn that one of our dishwasher instruction books has won a Golden Bull Award. SMEG UK is aware that generic multi-lingual instruction books can be confusing and sometime ago commissioned a UK company to investigate a better way to produce informative instruction books which are easier to understand.

'SMEG UK is aware that any instruction book, however well written, is often the last point of reference when getting used to a new machine. For this reason we have produced a set of 'Quick Start Guides' to assist customers who are moving into new properties with several new products to get used to.

'These guides are based on the assumption that the builder has installed and tested the appliances prior to the customer moving into the house. In this way, the guides can be simplistic, with the sole intention of ensuring the user can set the machine up for first use safely and swiftly, and then undertake the simplest programme, i.e. cooking a simple meal. I enclose a copy of a 'Quick Start Guide' for your information and trust this will assure you that SMEG UK is not just aware of the importance of plain English, but is taking steps to improve the instruction books supplied with our products.

'Although we are unable to attend your awards ceremony we trust that you have an enjoyable day, and confirm that in time our instruction books will be as technically advanced as our products.'


Show Solutions - ASFI 2004

Twenty-seven companies, some of whom have already booked for ASFI 2004 recently attended an ASFI Exhibitor Day. The aim was to allow companies the opportunity of seeing the new concept well in advance of the show. All units are of the same format and will be provided free of charge, allowing products to be shown to their maximum potential to visitors during the supplies show on 10-13 October 2004.

Details were also given on the furniture, flooring and electrics to be included within the stand packages. A designer was on hand all day advising companies on how to achieve their maximum potential during the four day show. ASFI’s main aim is to ensure that set-up becomes hassle free, and that exhibitor’s can simply walk into the hall and hang up their products!


Cheryl Lewis, Exhibition Manager was pleased with the number of companies attending the Exhibitor Day, ‘Companies were really enthusiastic and extremely positive about the new-look ASFI 2004.’

Miles Wilson of SM Imports, a new and expanding company supplying hardwood panels, furniture and components who was also present on the day, utilised ASFI’s Designer to help him further develop ideas for his company’s stand. ‘The design of the Display Units really allows the products to do the talking. The new show format also allows us the opportunity of exhibiting side by side with more established companies. Not only have we booked for the show, but we’ve joined the Association which gives us a wide range of benefits as well as preferential rates for exhibiting.’

The next Exhibitor Day will take place on 27th January at ASFI’s head office in Derby. For more information on this and ASFI 2004 contact ASFI direct.

Tel: 01423 530586
Email: mailto:admin@asfi-expo.co.uk
Web: http://www.asfi-expo.co.uk


Chinese Attitude to Life Changing: Poggenpohl opens Kitchen Studio in Beijing

Poggenpohl Möbelwerke GmbH, the East-Westphalian kitchen manufacturer, has set a distinct highlight for its Asia business with the opening of an exclusive kitchen studio on Beijing’s Oriental Plaza, a boulevard in the Chinese capital. Poggenpohl has been active on the Chinese market since 1997; the company’s first showroom in Shanghai opened only a year ago.

More than 300 guests – including numerous Chinese architects, project developers and investors as well as 25 international Poggenpohl retailers – attended Poggenpohl’s celebrations at the Oriental Plaza. Embassy attaché Pit Hellmann and General Manager Hendrik Kretzer of Poggenpohl’s partner Gaggenau in Singapore shared the official opening with General Manager Elmar Duffner. 'We are looking forward to great success in this pulsating city and on the rapidly growing Chinese market,' said Duffner in Beijing. 'Our positive experiences in Shanghai encourage us to expect this. The standard of living, the desire for quality and the Chinese people’s brand awareness are all beginning to change.'

The member of the Swedish Nobia group now achieves more than two-thirds of its turnover with exports of the Poggenpohl brand, of which 20% are kitchens for the USA and 14% for Asia. The contract sector has dominated there so far – the installation of luxury kitchens in hotels, multi-storey buildings and large apartment complexes, the latter made more appealing to potential buyers if they come with a Poggenpohl kitchen. The company delivers to more than 60 countries, and world-wide has more than 200 exclusive kitchen studios with the same unmistakable design.

Overall, the development of the 111-year-old traditional company is generally pleasing. Orders received in 2003 were 15% higher than in the previous year; production quantities 9% higher. Elmar Duffner is also looking forward to clearly improved results, and in view of the presently poor state of the total kitchen market in Germany is particularly pleased and relieved – 'Luxury obviously pays.' Although consumer behaviour in general has changed, enjoying life within their own four walls continues to matter to higher income groups. This customer group has very discerning ideas of quality that can only be met by a strong, clear brand.


Latest Trend: Matching Radiators

Bisque says that the latest trend is for pairs of radiators: it started with his-and-hers bathrooms and is now becoming popular for every room in the house.

'We're selling an extra-ordinary number of radiators in pairs', says Bisque artistic director and Chairman, Paul Draper. 'Amongst professional designers there's a definite move towards using identical radiators - either symmetrically or asymmetrically - in a room scheme, however informal the décor. It adds a sense of harmony.'

The Bisque B Squared Towel Radiator works particularly well in a pair, creating a dramatic architectural feature. Combining classic and contemporary style with its geometric cut-out pattern, B Squared is at ease with innovative new designs for kitchen and bathroom accessories, adding the finishing touch to an inviting space. And one or more chrome towel rails are an elegant and effective way to keep towels dry.

Manufactured in Switzerland and available in central heating or electric only versions. 3 sizes. Colours: white, aluminium, over 1000 colours.
Price: from £762.00.

Tel: 01225 478500
Web: http://www.bisque.co.uk


Miele After-Sales Service in Pole Position in 2003

In consumers’ opinion, Miele has the best after-sales service of all domestic appliance manufacturers in Germany. In 2003, Miele service achieved top spot yet again in the German ‘Kundenmonitor’ (consumer survey), a position it has held ever since the poll was launched in 1992. In the 2003 survey, Miele was the best in the industry with a mark of 2.13. The marks are awarded according to the German school marking scheme ranging from 1 (excellent) to 6 (unsatisfactory).

With this result, Miele clearly surpassed the industry average which competitors even failed to achieve. When it comes to consumers wanting to use Miele after-sales service again and recommending after-sales service to friends and acquaintances, Miele also achieved first-class results (1.53 and 1.82 respectively). In the brand loyalty category, Miele was awarded top marks: 96% of Miele customers plan to buy a Miele appliance again.

92% of all Miele customers were satisfied with the after-sales service; over two thirds were 'completely satisfied' or 'very satisfied'. When giving reasons for their satisfaction, consumers were especially full of praise for the prompt execution of service work, accomplished and fast trouble-shooting, dependability and the friendly and courteous manner of service technicians. Miele’s after-sales service was also praised for reliability in keeping appointments.

The German ‘Kundenmonitor’ 2003 survey is based on an opinion poll in which 25,377 consumers were questioned. Around 16% of those questioned had called out after-sales service for an electrical domestic appliance at least once.


Are Spas & Hot Tubs the Biggest Rip Off in British Retail History?

If you have a view on this Aegean Spas and Hot Tubs wants to know. Aegean says it has always committed to an honest policy of offering the best possible prices all year round, and not deliberately inflating prices to then offer 'sale' prices.

'We never use people's ignorance of what spas and hot tubs actually cost in North America to charge outrageous prices in Britain. However there seems to be a growing number of companies who all charge between £4000 and £6000 more than the same spas are sold for in stores in the USA or Canada and then routinely offer £3000 off 'sales' or for ex display models. Many importers have a monopoly for a brand but still claim to offer the best possible price for a branded package, when they are in fact only competing against themselves with prices they have made up in the first place. Some of the sales techniques being used show a complete contempt for the intelligence of spa buyers and we are now seeing companies looking to work together to 'grow the industry' no doubt to their best interest and at the expense of competition.

'Amazingly even the new MD of a vacuum former in Britain who puts together spas mostly from US components, has recently been quoted as wanting to 'work in partnership with our competitors' and is only interested in people who 'want a decent profit' Recently there have even been threats and complaints from importers who do not want price differences to be published and available to the public. We feel certain activity in the UK spa market is not in the public interest and are currently compiling an expost for the press and a presentation for the Office of Fair Trading, so any comments you have on price quotes or claims can be added.'

Tel: 020 8959 1529
Web: http://www.aegeanspa.co.uk


Wolseley Enters the Swiss Market with the Acquisition of Tobler for CHF118m (£52m)

Wolseley plc, the specialist trade distributor of plumbing,heating and building material products, announced on 1st December that one of its wholly owned subsidiaries had acquired Tobler Management Holding AG ('Tobler') from CapVis, a financial investor. The acquisition of Tobler is in line with Wolseley's strategy of wider expansion of its operations into new geographies, and Wolseley now has a presence in 13 countries. The cash consideration of CHF118 million (£52 million), including net debt acquired, was financed from Wolseley's existing resources. The acquisition completed on 28th November 2003.

The Tobler business
With a market share of around 22%, Tobler is the leading wholesaler for heating, ventilation, air-conditioning and 'behind the wall' sanitation products in Switzerland and is also one of the leading providers of technical maintenance services. For the year ended 31st December 2002, Tobler reported sales of CHF 236 million (£105 million) and operating profit, before goodwill amortisation, of CHF15.8 million (£7.0 million). Net assets, excluding debt, at that date were
CHF 76 million (£34 million). Tobler employs approximately 600 people in its network of 21 branches which are supported by six 'super branches'.

The key operational management of Tobler will remain with the business and join the Wolseley group reporting to Gerard Legtmann, Wolseley's Chief Executive Officer Europe.

Financial effects of acquisition
The Tobler acquisition will be earnings enhancing from the outset and the return on capital in the first full year of trading is expected to be in excess of Wolseley's current weighted average cost of capital.

This is Wolseley's fourth acquisition since the beginning of the financial year on 1st August 2003, taking total acquisition spend to £66 million. These acquisitions are expected to add an additional £142 million to group sales in a full year.


Charlie Banks, Group Chief Executive, said:
'We are delighted to announce this acquisition which is in line with our strategy to expand our operations in continental Europe. Tobler is an excellent company and, as the leader in the Swiss market, it provides Wolseley with a platform for further organic growth. We look forward to welcoming the Tobler management and employees into the Wolseley group and to driving the business forward together.'


Whirlpool Home Appliances Announces Winner of Second Annual Acuubake System Unique Cake Contest

Sandi Klingler of Auburn, Alabama turned her everyday life experiences into $5,000 and a new Whirlpool range when her Big Fat Bumpy Life Cake won first-place at the second annual Whirlpool® Home Appliances Accubake® System Unique Cake contest.  Mrs. Klingler - with husband Bill and daughters McLaurine, 11, and Mary Ashton, 8, by her side - edged nine other finalists that competed for the grand prize last week at Whirlpool Corporation's new Insperience Studio™ in Atlanta.

'The recipe has changed here and there over the years, just like real life, but it all turned out alright in the end,' Mrs. Klingler said. 'I have been making the cake for 12 or 13 years now, but we just came up with the name last year. I think it fits perfectly.'

Whirlpool selected the 10 finalists from the more than 400 cake recipes submitted. Gale Gand of the Food Network show Sweet Dreams served as the lead judge and was assisted by Better Homes & Gardens home economist Lynn Blanchard, Nestle food specialist Holly Strauch, Whirlpool home economist Lyn Cook and Whirlpool cooking brand manager Aida Torres. The cakes were judged on four main criteria: story behind the cake, originality, ease of recipe and taste.

Here's how Mrs. Klingler described the story behind her winning recipe:

'This unique, crazy looking cake is always a show stopper or at least a cake of amusement.  In the beginning, the cake did not have a name. It had been eaten at our annual family reunion for many years. Then just last year, the cake was named.

'Our family meets and greets and eats. We recount the highs and lows of our last year. We laugh and cry, dance, play and sing. Then it is time to feast. Everyone brings a favourite family dish to share. As the sun sets, the family settles down for coffee and dessert. The children eye the desserts, and tiny fingers point at the big funny looking cake sitting next to Grandma Lucy's cake plate. The snickers turn into ooohs and ahhhs as the cake bearing our family's native nut is eagerly devoured. The conversation turns to our pecan production and how the bountiful harvest last year gave way to a failed crop this year, but how things will get better next year. Then my 11 year daughter, overhearing and studying the conversation in all seriousness, proclaims that the cake should be called 'My Big Fat Bumpy Life Cake' because life has its bumps, but is also sweet and good like a cake. The serious conversation stopped abruptly and the family laughed. So from now on, to soothe the bumps in life, our family tradition is the Big Fat Bumpy Life Cake.'


Winning Cake Recipe

Cake:
2 1ž2 cups all purpose flour
1 teaspoon baking soda
1ž2 teaspoon salt
1 teaspoon cinnamon
1 cup butter flavour shortening
1 cup sugar
1 cup firmly packed light brown sugar
4 eggs
1 can 14 oz. sweetened condensed milk - divided
2 teaspoons vanilla
1 cup buttermilk
1ž2 cup cocoa powder
1 cup hot water

Icing:
1ž4 cup butter shortening
Reserved sweetened condensed milk
1 cup powdered sugar

Drizzle:
1/3 cup cocoa powder
3 tablespoons vegetable oil (like Wesson)

Topping:
1ž2 cup miniature marshmallow, halved
1 cup coarsely chopped pecans

Cake:
Heat oven to 350 degrees. Grease a 12 cup bundt pan with a spray such as Baker's Joy. Measure 1/3 cup of the sweetened condensed milk for the cake. Reserve the rest for the icing. Combine flour, soda, salt and cinnamon together in a med. Bowl. Set aside. In a large mixer bowl combine 1 cup butter shortening, sugar, brown sugar, eggs, 1/3 cup sweetened condensed milk and vanilla. Beat at medium speed with an electric mixer until creamy and fluffy. Add buttermilk and 1ž2 cup cocoa powder. Beat until blended. Add flour mixture and beat on low to blend. Beat at medium speed for 5 minutes. Stir in hot water with a spoon until just blended. Batter will be thinner. Pour in prepared Bundt cake pan. Bake for 35 to 50 minutes until a toothpick inserted in centre comes out clean. Cool 5 minutes in pan then remove to a serving plate, fluted side up. Cool 20 minutes.
Combine icing ingredients and beat at medium speed until smooth. Combine drizzle in a small bowl. Ice warm cake with icing, allow hole in middle to fill if you like. Sprinkle with marshmallow and pecans. Decorate with chocolate drizzle. Serve warm or at room temperature.

Please see http://www.whirlpool.com or email mailto:accubake.whirlpool@pr21.com for the other finalist recipes.



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