TREND WATCH
A roundup of business developments spotted by other publications.Items were compiled and edited by Grassroots Research, a unit of the San Francisco money management firm of RCM Capital Management.
Modest Rebound: A look at the Gulf states suggests an upswing in the oil industry. The rig count in Louisiana rose again last week by four units to 143, an increase over the 12 rigs in the same week a year ago. Industry observers see this rebound from January’s slip from 179 rigs to 139 as an indication of a better year ahead. At the same time, another source reports that the utilization rate of offshore mobile units in the Gulf rose to 69.8% from 45.8% a year ago. One company stepping up its exploration is Freeport-McMoRan Partners of New Orleans. The firm will increase its exploration and capital expenditures budget by 42% to $188 million, with $56 million slated for exploration alone. Times-Picayune, Morning Advocate
New Discount Strategy: It seems that last year’s retail rage--everyday low prices--is this year’s has-been strategy. Target discount stores tested the concept at 50 of its outlets and found that it failed to stimulate enough sales. In its place Target will try a system of “great buys,” products at low prices that never go on sale, and weekly sales promotions. The company says this is a blend of what customers liked about both strategies. Detroit Free Press , Newsday
Approval Nears: Industry observers say two artificial sweeteners discovered in the early 1970s, Johnson & Johnson’s sucralose and Pfizer’s alitame, may soon win approval of the Food and Drug Administration. Both sucralose and alitame are sweeter than Monsanto’s aspartame (known commercially as NutraSweet), and both are heat stable, which aspartame is not. At the same time, Abbott Labs’ cyclamate is under consideration by the FDA for reinstatement; the original data linking it to cancer apparently was flawed. The artificial sweetener market is also being pursued by Coca-Cola and Biospherics, both of which have products in the pipeline. The Atlanta Journal
Hot Competition: Two innovative antiperspirants, created by Helene Curtis and Revlon, will hit store shelves at the same time and both will be backed by big promotions. Helene Curtis’ Degree, formulated to become effective when body heat rises, will receive a $50-million kick-off promotion, coupon and ad campaign. The company expects sales of the unisex product to reach $50 million in two years. At the same time, Revlon is introducing No Sweat, which works on the same principle as Degree but is triggered by moisture. This product will receive a $10-million ad boost. Crain’s Chicago Business
