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Transcontinental announces new operating structure to support its growth strategy

Monday, November 17, 2008

Press release from the issuing company

MONTREAL, Nov. 14 - Transcontinental Inc. today announced it has implemented a new operating structure to support its growth strategy by creating the Marketing Communications Sector. The company's growth strategy is to accelerate the development of new services focused on one-to-one advertising and new communications platforms, while continuing to strengthen and extend its publishing and printing assets through its Media and Printing Sectors.

The new Marketing Communications Sector will be focused on the creation and development of these new services. It will initially consist of Transcontinental's activities in database analytics, premedia, email marketing, one-to-one marketing, custom communications, including custom publishing, and the printing of marketing products. It will be at the forefront of the newest trends in marketing with innovative solutions for reaching consumers. This sector will have revenues of approximately $400M on an annualized basis.

"Our strategy will generate further growth-by strengthening our core businesses and building new sources of revenues," said François Olivier, President and Chief Executive Officer, Transcontinental Inc. "Transcontinental is an outstanding printer and a highly creative publisher, and by delivering marketing solutions to our clients on a range of platforms, we further fulfill our primary mission: to help our customers continue to reach their target consumers."

Mr. Olivier will act as President of the Marketing Communications Sector until a new president is appointed.

The Media Sector creates relevant content and deploys it across multiple platforms. As Canada's fourth-largest print media group, it offers advertisers across the country access to communities of interest as well as local communities, in both official languages. It is Canada's leading publisher of consumer magazines, major brands unto themselves, with 40-odd titles and a monthly readership of over 11 million. Transcontinental Media, under the leadership of its President, Natalie Larivière, is also the country's second-largest publisher of community newspapers and distributor of advertising material, with a presence in the Atlantic provinces, Quebec, eastern Ontario and Saskatchewan. Its 120 websites and portals receive over 4 million unique visitors per month. The revenues of this sector will be close to $650M on an annualized basis.

Manufacturing excellence is the core competency of the Printing Sector. This sector now groups together services to publishers of newspapers, books and magazines, Transcontinental's U.S. direct mail and Mexican operations and its service offering for retailers. The revenues of this sector will be more than $1.5B on an annualized basis.

Brian Reid has been named President, Transcontinental Printing Sector. Mr. Reid has been with Transcontinental since 1992 and has been Senior Vice President of the Catalog and Magazine Group since 2003.

Additionally, Hans Nielsen has been appointed President of Transcontinental Direct U.S.A. Since 2006, Mr. Nielsen has been Senior Vice President for the Commercial Products Group for Québec and the Atlantic Provinces. Mr. Nielsen replaces Rob Young, who has headed Transcontinental's U.S. direct mail operations since 2005. Transcontinental thanks Rob for his services and wishes him every success in his future endeavours.

Guy Manuel, President of the former Marketing Products and Services Sector will be leaving Transcontinental at the end of 2008.

"I would like to thank Guy for his contribution to the growth of our business since 2003," said Mr. Olivier. "Furthermore, I greatly appreciate the fact that he has agreed to stay at my side as a special advisor to ensure a smooth transition."




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