TREND WATCH
A roundup of business developments spotted by other publications. Smoke ‘Em Out: Tobacco use, already becoming less and less socially acceptable in the corporate culture, recently received another blow from a Houston company. Baker Hughes, an oil field service firm, began charging smokers and chewers $10 more a month than non-users for health insurance. In addition, smokers will not be eligible to earn the extra money toward health coverage that is available to those with healthier life styles. Baker Hughes is not the first to charge tobacco users more, but it may be the first to state so baldly that smokers and chewers are being directly penalized. Industry watchers expect this trend to catch on with insurance providers as well as employers. Houston Chronicle
Not-So-Sweet Tooth: Just in time for the February confectionery fair in Cologne, West Germany, and on the heels of a medical report from the U.K. government on the advisability of lowering sugar intake, as many as six candy companies are rumored to be developing sugar-free or reduced sugar confections. The challenge to the new sweetener manufacturers is to provide comparable taste at a reasonable price. One sweetener in the running, isomalt, has captured the attention of several confectioners, including Mars. Marketing
Bellicosity: South Central Bell Telephone has provoked the ire of private answering services, and the resulting fight will be arbitrated by the Louisiana Public Service Commission. This Baby Bell, with the recent approval of the FCC, tested a service that answers calls, takes messages and sends messages to specified groups of people, all on fewer phone lines than existing services use. Private answering services will be allowed to buy the service from Bell and turn around and sell it to customers. The private companies contend that Bell will charge them so much for the use of the lines that they won’t be able to remain competitive with Bell. FCC rules require Bell to provide the service at a rate allowing competition. New Orleans Times-Picayune
Off the Deep End: Oil exploration activity is picking up in the Gulf of Mexico, generating a positive outlook for oil exploration equipment makers. BP Exploration, a British company, plans to build a $250-million platform off the Louisiana coast. McDermott International is among companies mentioned as possible builders of the new platform, which will start taking shape early this year with installation slated for 1991. Industry watchers believe BP’s move, along with Shell Offshore’s commitment to build a $1.1-billion platform in the Gulf, is the beginning of a trend toward oil companies moving into deeper waters. Expect fabrication companies to joyfully ride that wave. New Orleans Times-Picayune
