COUPON REDEMPTION RISES

WILLIAM SMYTH

WINSTON-SALEM, N.C. -- Coupon usage was up 4% during the first half of 1999, mostly due to tactical changes in distribution methods and offer structure, according to Carolina Manufacturers Service here.

The company redeems coupons and handles the settlement between retailers and more than 250 manufacturers, and says the first-half redemption showing is better than it was last year during the same period. More than 2.4 billion coupons were redeemed between January and June, it said, delivering $1.6 billion in incentives to shoppers.

Marketers of consumer products distributed 7% fewer coupons in the first half, 130 billion vs. 140 billion in 1998.

While freestanding inserts continued to be the most common method of coupon distribution, accounting for 93% of the total, marketers continued to experiment with electronic methods of incentive distribution such as electronic in-store coupons, internet coupons and shopper programs.