WINN-DIXIE PHARMACIES TO INSTALL WATER COOLERS WITH ADS

AMY SUNG

JACKSONVILLE, Fla. - Winn-Dixie Stores here has found a new way to communicate advertising to its pharmacy customers.

The chain has signed an agreement with AquaCell Media, a subsidiary of AquaCell Technologies, Rancho Cucamonga, Calif., for the installation of self-filling water coolers featuring advertising space in 434 of its pharmacy stores.

Winn-Dixie is the first supermarket chain into which AquaCell coolers will be installed.

Each store will have one water cooler available in the pharmacy area for customers.

"Basically, this is a no-cost thing for us and a very small revenue-maker, which is not really what it's for. It's really a customer service, that's what it's all about," Bill Fisher, vice president of pharmacy at Winn-Dixie, told SN. "It's just a convenience to help set us apart from other pharmacies."

A partial revenue share will come from AquaCell's "Coolertising" program, where advertisers can purchase ad space on the water coolers.

The high level of foot traffic in supermarkets is especially appealing to these advertisers where they can reach their targeted audience through a different medium, said Kathy Lausten, president of AquaCell Technologies.

"We are looking to expand the program into other supermarkets as well," Lausten said. She would not disclose which supermarkets are in consideration.

AquaCell has not yet confirmed a rollout plan for Winn-Dixie, Fisher said. Last year, Winn-Dixie had five locations where test coolers were installed, including the headquarters here.

"We had a few good comments from our pharmacists about it, which were then filtered back to us. Certainly no negatives; there was really no downside to it," Fisher said.

Fisher said that the program is currently specific to pharmacy, and while expansion is a possibility, he doesn't expect it to go into Winn-Dixie's non-pharmacy stores.

"It's a nice thing to do for our customers - to have cool, fresh and filtered water for them when maybe they want to take their first dose of medication right there," Fisher said.

AquaCell has 1,300 locations in Rite Aid and Duane Reade drug stores, and is running test programs in CVS and Kmart stores. The company expects to add several thousand locations over the next year.

TOP 10 SUPERMARKET DVD SELL-THROUGH TITLES AS OF JANUARY 29, 2006

RANK: Title (# of Weeks Out),Studio, Retail Price Last Week

1) N; Corpse Bride; Warner $28.98

2) N; The Legend of Zorro; Sony $28.95

3) N; In Her Shoes; Fox $29.99

4) 1; Flightplan (1); Buena Vista $29.99

5) 3; Wedding Crashers (4); New Line $28.98

6) 4; The 40-Year-Old Virgin (7); Universal $29.98

7) 2; The Fog (1); Sony $28.95

8) 5; Red Eye (3); DreamWorks $29.99

9) 6; Underclassman (2); Buena Vista $29.99

10) 9; The Brothers Grimm (6); Buena Vista $29.99

N=New

This chart, tailored for the supermarket video market, is based on information taken from more than 1,000 supermarket rental locations serviced by Ingram entertainment, La Vergne, Tenn.