News

Realigned Rodale Plans For Rapid Growth
Jim Milliot -- 10/9/00

Steve Murphy, president and chief operating officer of Rodale Inc., told PW that the restructuring of the publishing company announced earlier this month (News, Oct. 2) "marks the next chapter in Rodale's history." The company has been organized into a support group that includes human resources, finance and other administrative functions; a marketing group that consolidates all of Rodale's marketing efforts into one unit and that includes the company's 25-million-name database; and the central or content group that is comprised of five different divisions each built around one particular brand and that will be responsible for creating content across a variety of formats including books, magazines and electronic media.

Murphy explained that the book division, headed by Neil Wertheimer, will focus on publishing books that are not attached to the four other divisions in the group. The unit will publish titles in such areas as spirituality and cooking, and Murphy estimated that the division will generate about 30% of Rodale's book output. The balance of its books will be published by the appropriate divisions. Gardening books, for example, will be published by the organic living division.

Murphy said that, at least for the moment, no imprints have been eliminated, although he noted that he d sn't want to confuse consumers with too many imprints. In addition, Murphy is eager to build the Rodale name into a recognizable brand. The reorganization will also facilitate Rodale's plans to increase its effort in the trade book market. "We will expand our trade distribution and publishing program," Murphy said, noting that he plans to add more editors and to expand the list. Niche acquisitions are also being considered to broaden the company's trade offerings. Rodale, which in the past focused on books for the direct mail market that could work in the trade, will now develop trade books that may work in the direct mail business. Murphy expects to add personnel not only in the company's Emmaus, Pa., headquarters but in the New York, Paris and London offices as well.

Rodale's book sales have been around $230 million in the last few years, but Murphy said that if the company is to grow at the forecasted rate, growth in books and magazines "will be essential."