ACME, COLGATE-PALM OLIVE TEAM UP FOR FSI

RICHARD TURCSIK

MALVERN, Pa. -- Acme Markets here used a Sunday newspaper freestanding insert to tout its double-coupon policy and increase the sales of Colgate-Palmolive soaps, detergents and household cleaners.

The FSI ad, which appeared in the Philadelphia Inquirer, also promoted the Starlight Children's Foundation, which is being supported by Acme and Colgate-Palmolive.

"Combine these Acme low prices and double coupons with the Colgate-Palmolive coupons in this newspaper for extra savings! Acme and Colgate-Palmolive will make a donation to the Starlight Foundation for every coupon redeemed," the copy in the FSI stated.

Among the Center Store Colgate items featured were three-packs of Irish Spring soap, which were featured at $1.99, and with a 30% coupon that was doubled had a final cost of $1.39; and a 28-ounce bottle of Palmolive dish-washing liquid, which was featured for $2.39, but could be bought for $1.99 if consumers redeemed their 20-cent coupon at Acme.

Officials at Acme did not return phone calls seeking comment, but Jennifer Marcus Barbara, a spokeswoman for New York-based Colgate-Palmolive, said the joint-effort ad was part of a Price Feature Plus program being run by News America FSI, one of two FSI suppliers used by Colgate.

"We generally get a slightly higher redemption rate in the market with the Price Feature Plus," she said.

Jeff Jensen, vice president of trade marketing at New York-based News America FSI, said his company has offered Price Feature Plus since 1991, and it has been used more frequently by Acme Markets and its parent company, American Stores Co., Salt Lake City.

"Acme has been participating for a number of years. However, American Stores participation in general has come up substantially as of late. We are holding ourselves out as a lightening rod for corporate promotions for American Stores," he said.

Jensen said the FSI ads are actually placed by the manufacturer as a co-branding effort with a strong local retailer. Although Price Feature Plus may not increase overall coupon redemption, Jensen noted that it helps to increase redemption at the featured chain, showing that consumers will go there to redeem coupons.

In exchange for the co-branding of the FSI, Jensen said agreements are worked out with the retailer to incorporate in-store displays, mentions in ads and other such efforts.