Key Moment for PGW as Big Client Leaves

by Steven Zeitchik and Jim Milliot, PW NewsLine -- Publishers Weekly, 1/6/2005

Will distribution reshuffling be one of the big stories of 2005? Some early signs point to yes as sources say Ingram is set to announce new clients in the coming weeks, while Taunton Press has confirmed that in June it will moves its sales and distribution to Random House after seven years as one of PGW's top clients.

Taunton president Jim Childs says PGW was right "in the first stage of our program," but the company's growth made Random the ideal choice, especially because of that company's strength in special markets. He says he wasn't worried about getting lost in so large an operation. "I feel like we will be treated like one of their imprints," he says.

One PGW departure that had been rumored for several months won't go down after all. Avalon Publishing Group, the largest PGW client and one which sources had said was in the process of hiring its own sales force for national accounts, will stay with PGW--but with a twist. PGW will hire two reps for Borders and B&N who will sell Avalon titles exclusively (the two PGW people who sell to B&T and Ingram will continue selling for all PGW clients, including Avalon). The new reps will likely be on staff by March.

Avalon publisher Charlie Winton confirmed that the company had explored its own national force but had decided this was the better option, allowing the publisher to continue with the same systems and minimizing its own costs while getting more dedicated attention for Borders and B&N. "It's a little different, but not radically different," he says. Winton says the company would continue to evaluate over the coming year.

Of course it's been a time of change for PGW: the company has just added publisher LearningExpress, which specializes in test-preparation materials, to its client list and will distribute its books to the trade. Still, the departure of Taunton, which had accounted for nearly 10% of PGW's business, the troubles of parent AMS and an environment in which new players like Random and Ingram are looking to beef up clients creates an air of uncertainty for the longtime distribution powerhouse.