NEWS ROUNDUP 1995-01-23

P&G Settles Infringement Suit

amble here has settled a lawsuit it filed against Cumberland-Swan last July alleging package design infringements on P&G's Head & Shoulders, Sure, Secret and Noxema brands.

Cumberland-Swan, a subsidiary of Perrigo, Allegan, Mich., agreed to change the labels of its private-label products in question and to pay P&G $85,000. The products, which were sold by F&M Distributors, Warren, Mich., were removed from the drug chain's shelves soon after P&G filed suit, the manufacturer said.

P&G filed a separate infringement suit against F&M. That suit is pending.

"We're pleased with this outcome," said Durk I. Jager, executive vice president of P&G, in a release. "We'll continue to take strong action to protect our package designs."

Thomas Ross, a spokesman for Cumberland-Swan, said his company still "expressly denies" it infringed on P&G's package designs, but settled the suit "to avoid further litigation."

F&M Files For Chapter 11

WARREN, Mich. -- F&M Distributors, a deep-discount drug retailer here, announced last month it had filed for federal court protection under Chapter 11 of the U.S. Bankruptcy Code.

F&M, which operates 119 F&M drug stores in 11 states, owes its creditors $191.5 million, according to press reports. "The decision to file under Chapter 11 was a difficult one," said Dale Ward, president and chief executive officer of F&M. "We were forced to take this action as a result of the severe financial restrictions placed on us by our highly leveraged balance sheet." He said the company concluded the best way to protect itself would be to file under Chapter 11.

The company has a current cash position of approximately $11 million and "expects to shortly complete arrangements for $50 million of debtor-in-possession financing," said Ward. In addition to its drug stores, F&M also operates six PartiGiant deep-discount party supply superstores in Michigan and Illinois.

Rite Aid to Acquire Perry Drug

CAMP HILL, Pa. -- Rite Aid here announced it has entered into an agreement to acquire Perry Drug Stores, Pontiac, Mich., for $132 million.

The acquisition would add 224 stores to Rite Aid's 2,617 stores in 23 states. A spokeswoman said plans for a reorganization of the stores had not yet been completed. The merger is expected to be completed early this year.

Max Factor Sets Mascara Line

HUNT VALLEY, Md. -- Max Factor International here, a division of Procter & Gamble, Cincinnati, is introducing Stretch mascara this month.

From February until May, Max Factor's wall unit will feature a Stretch mascara center brand panel and a peg talker with product information. In addition, a ship-to-trade mascara display will feature a $4 mail-in rebate. Max Factor's new product will have an average retail price of $5.15.

Ciba-Geigy Plans Acquisition

BASEL, Switzerland -- Ciba-Geigy here has agreed to purchase the North American over-the-counter product line of Rhone-Poulenc Rorer, Collegeville, Pa., for $407 million.

Approximately two-thirds of Rhone-Poulenc's $154 million in North American sales comes from its Maalox product line. With the acquisition, Ciba would be competing against other antacid products like SmithKline Beecham's Tums and Warner-Lambert's Rolaids and Mylanta.

Love's Soft Kiss to Return

NORTHVALE, N.J. -- MEM Co. here announced it will reintroduce Love's Soft Kiss Tinted Lip Balm in time for Valentine's Day.

The balms, available in three colors -- coral, pink and red -- contain vitamin E and SPF 8, according to the company. Available in stores January, 1995, Love's Soft Kiss Tinted Lip Balm carries a suggested retail of $2.95.