Further signaling the demise of daily newspaper competition here, the Orange County Register, part of Irvine-based Freedom Communications Inc., and the Los Angeles Times, part Chicago-based Tribune Co., have announced a deal in which the L.A. Times will deliver both papers.
As a result, the Register will become the L.A. Times’ largest commercial delivery client.
The move is expected to save the Orange County Register “seven figures a year” in payroll and warehousing costs, according to the Santa Ana-based paper.
Joint distribution agreements have become increasingly popular with the Register and other newspaper companies as they look for ways to cut additional costs.
About a year ago, the Register worked out a deal with Riverside-based Press-Enterprise Co. to deliver the paper to some of its subscribers in more outlying Inland Empire areas.
The Register’s deal with the L.A. Times will impact 721 independent contractors who currently deliver the Register and force additional layoffs of 55 full-time and 143 part-time workers.
The deal is a blow to the Register’s newspaper carriers who recently won a $36 million settlement from the Register’s parent company after they claimed they were improperly classified as independent contractors.
The Register carriers also delivered newspapers for The New York Times, the Wall Street Journal and other publications. Those deals will end later this year.
“When the changeover occurs we will cancel our contracts with them so these publications will have to find a new delivery services,” said Larry Riley, the Register’s vice president of circulation and distribution.
The change will start in mid-September and should be fully in place before Thanksgiving, according to the Register.
The announcement comes on the heels of a joint weekly advertising supplement agreement between the two daily papers.
The Register’s OC$aver and the L.A. Times’ Local Values previously offered separate four-page ad wraps designed to transport advertising inserts that include restaurant coupons, home improvement ads and other services.
Starting at the end of this month, the papers will combine operations,the wrap will now be called OC$saver/Local Values and be delivered with both newspapers.
The move pools the Register and L.A. Times resources and shrinks the number of pages each has to sell to two each for the wrap. But the papers can individually sell an unlimited amount of inserts, said Keith Gilpin, the Register’s vice president of advertising distribution and sales operations.
The ad wrap and inserts will come on top of the Friday edition of the Register and the L.A. Times delivered to homes. Non-subscribers will get them on top of local community papers or via direct mail on Thursdays and Fridays.
Taco Bell Value Campaign
Irvine’s Taco Bell Corp. has launched an advertising campaign aimed at promoting its 79-89-99 Why Pay More Value Menu, where a dime is the difference between various value menu items.
The Irvine office of Chicago-based DraftFCB is handling the campaign for the fast food Mexican restaurant chain, part of Louisville, Ky.-based Yum Brands Inc.
Most of the chain’s advertising normally focuses on introducing new products or promoting old favorites.
“It’s very rare for us to do a lot of brand work, because the product spots really move the business,” said Teddy Brown, senior vice president and executive creative director at DraftFCB.
The chain premiered a two-minute TV spot during the 2009 Major League Baseball All-Star Game last month. The game saw 14.6 million viewers tune in for the midsummer classic.
A 60-second version of the TV spot debuted in commercials before “Transformers: Revenge of the Fallen” and “Public Enemies.”
The fast food chain is expected to air longer spots during some other high-profile summertime events.
Bits and Pieces
Lake Forest-based Del Taco LLC, part of Nashville-based Sagittarius Brands Inc., and Highland-based San Manuel Indian Bingo & Casino have partnered to run the Bold Challenges sweepstakes. Winners will have the opportunity to challenge hockey player Luc Robitaille, ultimate fighter Tito Ortiz, Nascar racer Matt Kenseth, boxer Sugar Ray Leonard or poker player Annie Duke Irvine-based chipmaker Teridian Semiconductor Corp. has hired Irvine-based Lages & Associates Inc. as its agency of record to handle its public relations Irvine-based Brower, Miller & Cole has been hired by Laguna Niguel-based Raintree Partners LLC to handle the public relations for the private real estate investment company’s first acquisition, a $38 million apartment community in Sunnyvale Costa Mesa-based Idea Hall has been hired by Aliso Viejo-based Most Brand Development + Advertising to handle the ad shop’s public relations Newport Beach-based custom jeweler Lugano Diamonds & Jewelry Inc. has hired Irvine-based Morgan Marketing & Public Relations LLC to handle its public relations Newport Beach-based real estate marketing company InterCommunications Inc. has been hired to launch a new Web site for Calabasas-based ValleyCrest Landscape Cos., a landscape design and development company.
