Massachusetts Plans Stricter Control of Compounding Pharmacies





BOSTON — New laws to strengthen state control of compounding pharmacies were proposed on Friday by Gov. Deval Patrick, in hopes of preventing another public health disaster like the current outbreak of meningitis caused by a contaminated drug made in Massachusetts.




The laws will be among the strongest in the country, said Kevin Outterson, a law professor at Boston University and a member of the expert panel that advised the state on how to curb abuses by companies like the New England Compounding Center, the Framingham pharmacy that made the tainted drug responsible for the nationwide meningitis outbreak.


The legislation would establish strict licensing requirements for compounding sterile drugs; let the state assess fines against pharmacies that break its rules; protect whistle-blowers who work in compounding pharmacies; and reorganize the state pharmacy board to include more members who are independent of the industry and fewer who are part of it.


Alec Loftus, a spokesman for the state’s Office of Health and Human Services, said that Mr. Patrick expected the new legislation to be passed quickly.


Daniel Carpenter, a professor of government at Harvard, said the proposed laws seemed sound and comprehensive. But he warned that if other states did not take similar steps, compounding pharmacies engaging in shoddy practices would just move to places with the weakest laws and the least oversight.


“The remaining question is not what Massachusetts is doing or will do, but will there be a minimum level of regulation like this in the rest of the states?” Professor Carpenter said.


The meningitis outbreak, first detected in September, was caused by contaminated batches of a steroid, methylprednisolone acetate, made by the New England Compounding Center. The drug was injected into about 14,000 people’s spinal area to treat back and neck pain.


As of Dec. 28, 656 people in 19 states had become ill with meningitis or other infections, like severe internal abscesses in the area where the drug was injected. Some have had both meningitis and spinal infections. The case count is expected to keep rising. Thirty-nine have died.


The New England Compounding Center was shut down, and inspections found extensive contamination. Investigations uncovered a long history of questionable practices that had drawn warnings from the state and the Food and Drug Administration.


On Dec. 21, the company announced that it had filed for bankruptcy. Numerous lawsuits have been filed against it.


At the heart of the problem have been gaps in regulation that have allowed such companies to avoid both state and federal controls. The company called itself a pharmacy, and pharmacies are generally regulated by states, while large drug companies are regulated federally, by the Food and Drug Administration.


Compounding pharmacies mix their own drug preparations, like skin creams and cough syrups, supposedly for individual patients with special needs. But the New England Compounding Center began to act like a manufacturer, making and shipping large amounts of injectable drugs, for which sterility is essential. No state law required it to obtain a license for this type of large-scale compounding, to follow good manufacturing processes or to let the state know it was shipping all over the country.


Dr. Lauren Smith, interim commissioner of the Massachusetts Department of Public Health, said the company “was a manufacturer in pharmacy clothing.”


Governor Patrick said, “The tragic meningitis outbreak has shown us all that the board’s governing authority has not kept up with an industry that has evolved from corner drugstores to the types of large manufacturers that have been at the center of so much harm.”


Dr. Smith said she thought the most important part of the new legislation was the requirement of a license for sterile compounding. “Now we are going to have the ability to develop specialty licenses that will allow us to track and identify those pharmacies that are engaged in different practices that could potentially put higher numbers of individuals at risk, such as those who engage in sterile compounding,” she said.


Professor Carpenter said a particularly powerful part of the proposal is that it requires licensure for out-of-state pharmacies that ship medication to Massachusetts. The state, he said, is a huge market for injectable drugs.


“Basically, if you think about the large hospitals, the amount of medical care that goes on in the state, it’s in a sense using the purchasing power of the state of Massachusetts to induce changes elsewhere,” he said.


The state has also taken other steps recently to rein in compounding, apart from the new legislation. It began conducting surprise inspections, and has required compounding pharmacies to report how much medication they are shipping and where, so that it can keep tabs on those that begin acting like manufacturers. It also requires the pharmacies to report when they become subjects of regulatory actions by other states or the federal government.


Abby Goodnough reported from Boston, and Denise Grady from New York.



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Shares in Jewel parent soar on report of deal









Stock in Jewel-Osco parent Supervalu soared 13.5 percent Friday on speculation that the company is on the brink of a deal with Cerberus Capital Management.

Shares for the Eden Prairie, Minn-based grocery company closed at $2.94.

Supervalu spokesman Mike Siemienas said the company is in talks with several suitors, though a deal is not assured.  A representative for Cerberus Capital Management, a New York-based investment firm, declined to comment for this story.

The Eden Prarie, Minn-based company, which also owns Albertsons, Cub, Acme and Save-A-Lot stores, said it was exploring strategic alternatives, including a sale, in July. Days later, Supervalu dismissed CEO Craig Herkert, and Chairman Wayne Sales stepped in to run the troubled grocer.

Supervalu sales and earnings have lagged those of competitors for years. In 2012, the company's stock price fell 69.6 percent and return on investment declined 68.6 percent, according to Bloomberg. Average stock prices in the broader consumer staples market rose 7.4 percent and returns gained 10.7 percent in the period.

For the fiscal year ended Feb. 25, Supervalu reported a loss of $1.04 billion, which included a $519 million operating loss and $509 million in interest expense. Sales declined 3 percent, to $27.9 billion. The company has carried an onerous debt load since buying Albertsons, which included Chicago's Jewel-Osco chain, in 2006, making Supervalu the subject of bankruptcy  speculation.

Cerberus is rumored to be in the mix to buy parts of the company. The firm has experience in the food retail sector and was an investor in the 2006 Albertsons deal. Cerberus still holds a stake in Albertsons and Strategic Restaurants, a Burger King franchisee with more than 250 restaurants.

eyork@tribune.com | twitter: @emilyyork

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Firm bringing HQ to Chicago









St. Louis-based construction firm Clayco Inc. is moving its headquarters to Chicago, attracted by ease of air travel, proximity to clients, access to young professionals and the potential to land city business as Mayor Rahm Emanuel pushes ahead with public-private partnerships for infrastructure improvements, its top executive said Thursday.

Clayco Chairman and CEO Robert Clark and Emanuel are expected to formally announce the move Friday.

Two-hundred and eighty of the company's 1,000 employees already work in the Chicago area, including 88 who work full time at the Jewelers Building, 35 E. Wacker Drive, which becomes company headquarters.

The company expects to double its Chicago workforce during the next couple of years, in part by increasing its architectural business and expanding its infrastructure business.

Clark said the company is seeking to acquire a municipal engineering company as part of an effort to develop its infrastructure business during the next few years. Now focused on industrial, office and institutional projects, the company would like to add a fourth specialty area that would go after water, sewer, road, bridge and airport work, Clark said.

"In the long run, public-private partnerships are something I'm very intrigued about and interested in pursuing," he said. "I don't think we'll do it overnight. … It may be three years from now, until we have significant traction in the (infrastructure) market."

"We're interested in national projects, not just local," he said. "But hopefully we'll have work in our own backyard."

Clayco donated $50,000 to Emanuel's mayoral campaign in late 2010, and Clark donated an additional $10,000 in September to The Chicago Committee, the mayor's campaign fund, according to the Illinois State Board of Elections. Clark said his contributions to a variety of politicians stem from personal convictions and have no relation to his business endeavors.

Tom Alexander, a spokesman for Emanuel, said: "Clayco is choosing Chicago because Chicago offers them unique access to world-class talent and a location from which they can easily and effectively do business around the world, period. Any type of private-public building project would undergo the city's very strict, competitive procurement process."

Last spring, Emanuel won City Council approval for the formation of the Chicago Infrastructure Trust, which will endeavor to secure private financing for public infrastructure projects.

Clayco's shift into downtown Chicago began in October 2010, when it opened offices in the Jewelers Building. Employees who had been based in Oakbrook Terrace have moved there, as have a handful of executives from St. Louis. Clark relocated to Chicago in September 2010.

The company did not seek or receive any financial incentives for its move, the city said. Clayco will keep its St. Louis office intact, and no layoffs are planned as part of the relocation.

Clark and Emanuel first met when Emanuel worked in the Clinton White House. Clark, who was active with the Young Presidents' Organization, worked with Emanuel on some events at the White House. Their paths have crossed a number of times since then, including during President Barack Obama's campaign in 2008.

A meeting with Emanuel played a role in the decision to relocate company headquarters, Clark said. It occupies the 13th and 27th floors of the Jewelers Building, or 30,000 square feet.

"He asked me to target our national clients and bring them here," Clark recalls. "Quite frankly, I was blown away by that. Most mayors are not that aggressive; they leave that up to their economic development folks."

Clayco has done work for a number of large institutions and corporations, including Dow Chemical, Amazon.com, Caterpillar, and locally, Kraft Foods, Anixter, the University of Illinois, the University of Chicago and Blue Cross Blue Shield.

Started 28 years ago by Clark, the privately held company has annual revenue of $820 million. Subsidiaries include architecture and design firm Forum Studios and Concrete Strategies Inc.

kbergen@tribune.com

Twitter @kathy_bergen



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Nielsen And Twitter Team To Track TV









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Scant Proof Is Found to Back Up Claims by Energy Drinks





Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.




Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.


The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.


“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.


Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.


Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.


As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.


Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.


“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”


A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.


In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.


Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.


Consider the case of taurine, an additive used in most energy products.


On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.


But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.


Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.


Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.



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Brunswick to sell Hatteras, Cabo, lays off 105













Brunswick yachts


The GT63 is the latest model of motor yacht from Hatteras, a unit of Brunswick Corp.
(Hatteras Yachts / January 3, 2013)



























































Recreational boat maker Brunswick Corp. said Thursday that it is seeking buyers for its sportfishing convertible yacht brands Hatteras and Cabo, and that it laid off about 105 workers at its New Bern facility in North Carolina.

The facility had about 545 employees as of November.

Brunswick bought Hatteras for $80 million in 2001 and Cabo for $60 million in 2006.

"The current plan assumes that the eventual purchaser will retain both the physical plant and the workforce of Hatteras/Cabo," Chief Executive Dustan McCoy said.

Hatteras builds luxury motoryachts and sportfishing convertible yachts.

The boat maker suffered a slide in earnings as consumers turned away from splashing money on luxurious items like boats after the recession, and was forced to restructure its operations.

The lay off will affect 75 full-time and about 30 temporary workers, and help Brunswick "better adjust to market conditions," spokesperson Dan Kuberan told Reuters.

The New Bern plant makes Hatteras and Cabo Yachts.

The company said it expects to record charges of between $70 million and $80 million in relation to the changes announced today, a major part of which will be recorded in the fourth quarter ended December.

Brunswick shares were marginally down at $31.37 in trading after the bell. They closed at $31.51 on the New York Stock Exchange on Thursday.


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2013′s first hot Kickstarter project: An Android-based gaming ‘console-on-a-stick’






We didn’t have to wait very long to discover what 2013′s first big Kickstarter project would be. Via Ars Technica, we give you the GameStick, an Android-based two-inch long stick that plugs directly into a controller and acts as a highly portable gaming console. The GameStick team says that their goal with the new mini-console was to create “a big screen games console that was so small you could pop it in your pocket… so you can take all your games with you to any TV you like.” As far as titles go, GameStick developers so far have “identified 200 [Android] titles that will be great to play on GameStick” and are also “working with our network of over 250 developers including great studios such as Madfinger, Hutch, Disney and others to bring you the best line-up.” The project is seeking $ 100,000 by February 1st and has already raised over $ 31,500 on its first day; in other words, gamers who invest in the GameStick should see a lot of exciting stretch goals announced over the next month. If fully funded, GameStick is slated to launch to the public by this April.


[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]






This article was originally published by BGR


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‘Tennessee Waltz’ singer Patti Page dies at 85






NASHVILLE, Tenn. (AP) — Unforgettable songs like “Tennessee Waltz” and “(How Much Is That) Doggie in the Window?” made Patti Page the best-selling female singer of the 1950s and a star who would spend much of the rest of her life traveling the world.


When unspecified health problems finally stopped her decades of touring, though, Page wrote a sad-but-resolute letter to her fans late last year about the change.






“Although I feel I still have the voice God gave me, physical impairments are preventing me from using that voice as I had for so many years,” Page wrote. “It is only He who knows what the future holds.”


Page died on New Year’s Day in Encinitas, Calif., according to publicist Schatzi Hageman, ending one of pop music’s most diverse careers. She was 85 and just five weeks away from being honored at the Grammy Awards with a Lifetime Achievement Award from The Recording Academy.


Page achieved several career milestones in American pop culture, but she’ll be remembered for indelible hits that crossed the artificial categorizations of music and remained atop the charts for months to reach a truly national audience.


Tennessee Waltz” scored the rare achievement of reaching No. 1 on the pop, country and R&B charts simultaneously and was officially adopted as one of two official songs by the state of Tennessee. Its reach was so powerful, six other artists reached the charts the following year with covers.


Two other hits, “I Went To Your Wedding” and “Doggie in the Window,” which had a second life for decades as a children’s song, each spent more than two months at No. 1. Other hits included “Mockin’ Bird Hill,” ”Hush, Hush, Sweet Charlotte,” and “Allegheny Moon.” She teamed with George Jones on “You Never Looked That Good When You Were Mine.”


“I just loved singing with Patti and she hit notes I never dreamed of,” Jones said Wednesday in an email to The Associated Press. “We cut some songs together and it was a great time. She’ll be missed by lots of folks and everybody needs to know how great she was. Patti was a wonderful singer with a real special voice.”


So special, Page managed to maintain her career when most singers of her generation and their more innocent songs were shoved aside by the swinging hips of Elvis Presley. Page proved herself something of a match for the nascent rock ‘n’ roll crowd and its obsession with sex, continuing to place songs on the pop charts into the 1960s and the country charts into the ’80s.


Page never kept track, but was told late in life that she’d recorded more than 1,000 songs. That’s not what she had in her mind growing up as young Clara Ann Fowler.


“I was a kid from Oklahoma who never wanted to be a singer, but was told I could sing,” she said in a 1999 interview. “And things snowballed.”


She was popular in pop music and country and became the first singer to have television programs on all three major networks, including “The Patti Page Show” on ABC. In films, Page co-starred with Burt Lancaster in his Oscar-winning characterization of “Elmer Gantry,” and she appeared in “Dondi” with David Janssen and in “Boy’s Night Out” with James Garner and Kim Novak.


She also starred on stage in the musical comedy “Annie Get Your Gun.” Her death came just a few days after the conclusion of the run of “Flipside: The Patti Page Story,” an off-Broadway musical commemorating her life.


In 1999, after 51 years of performing, Page won her first Grammy for traditional pop vocal performance for “Live at Carnegie Hall — The 50th Anniversary Concert.” Page was planning to attend a special ceremony on Feb. 9 in Los Angeles where she was to receive a lifetime achievement award from The Recording Academy.


Neil Portnow, the Academy’s president and CEO, said he spoke with Page and she had been “grateful and excited” to receive the honor. “Our industry has lost a remarkable talent and a true gift, and our sincere condolences go out to her family, friends and fans who were inspired by her work.”


Page was born Nov. 8, 1927, in Claremore, Okla. The family of three boys and eight girls moved a few years later to nearby Tulsa.


She got her stage name working at radio station KTUL, which had a 15-minute program sponsored by Page Milk Co. The regular Patti Page singer left and was replaced by Fowler, who took the name with her on the road to stardom.


Page was discovered by Jack Rael, a band leader who was making a stop in Tulsa in 1946 when he heard Page sing on the radio. Rael called KTUL asking where the broadcast originated. When told Page was a local singer, he quickly arranged an interview and abandoned his career to be Page’s manager.


A year later she signed a contract with Mercury Records and began appearing in nightclubs in the Chicago area.


Her first major hit was “With My Eyes Wide Open I’m Dreaming,” but she got noticed a few years earlier in 1947 with “Confess.”


She created a distinctive sound for the music industry on that song by overdubbing her own voice when she didn’t have enough money to hire backup singers for the single.


“We would have to pay for all those expenses because Mercury felt that I had not as yet received any national recognition that would merit Mercury paying for it,” Page once said.


“Confess” was enough of a hit that Rael persuaded Mercury to let Page try full four-part harmony by overdubbing. The result was “With My Eyes Wide Open I’m Dreaming.” The label read, “Vocals by Patti Page, Patti Page, Patti Page and Patti Page.”


Tennessee Waltz,” her biggest-selling record, was a fluke.


Because Christmas was approaching, Mercury Records wanted Page to record “Boogie Woogie Santa Claus” in 1950.


Page and Rael got hold of “Tennessee Waltz,” convinced that a pop artist could make a smash hit out of it. Mercury agreed to put it on the B-side of the Christmas song.


“Mercury wanted to concentrate on a Christmas song and they didn’t want anything with much merit on the flip side,” Page said. “They didn’t want any disc jockeys to turn the Christmas record over. The title of that great Christmas song was ‘Boogie Woogie Santa Claus,’ and no one ever heard of it.”


Tennessee Waltz” became the first pop tune that crossed over into a big country hit.


The waltz was on the charts for 30 weeks, 12 of them in the top 10, and eventually sold more than 10 million copies, behind only “White Christmas” by Bing Crosby at the time.


She received the Pioneer Award from the Academy of Country Music in 1980. She also is a member of the Oklahoma Jazz Hall of Fame.


In her later career, Page and husband Jerry Filiciotto spent half the year living in Southern California and half in an 1830s farmhouse in New Hampshire. He died in 2009.


Page is survived by her son, Daniel O’Curran, daughter Kathleen Ginn and sister Peggy Layton.


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Advertising: Planet Fitness Sheds Aspirational Approach





COMMERCIALS for gyms tend to feature actors who look like Calvin Klein underwear models, with physiques that most will not achieve no matter how long they spend on an elliptical machine.




Planet Fitness, a national chain of about 600 fitness clubs, is introducing a campaign that mocks fitness fanatics, especially those whose devotion infringes on others.


A new commercial opens with a slight woman who is curling small dumbbells in a drab gym as a brawny man berates her like a drill sergeant.


“If you can’t handle a big girl’s workout, the little girl’s gym is right across the street!” shouts the man, a whistle hanging around his neck and his hands balled into fists, as the woman appears to be on the brink of tears. “If you were committed to this workout the way you committed to that morning doughnut, you’d be puking out your ears right now!”


The spot cuts to a flashing light and siren and the words “Lunk Alarm,” and then to the same woman in street clothes being given a tour of a Planet Fitness facility.


“And that’s why I don’t like gyms,” she says.


“Well,” begins the employee showing her around, “we’re not a gym — we’re Planet Fitness.”


The ad closes with a voice-over, which says: “No gymtimidation. No lunks. Just $10 a month.”


The ad, by Red Tettemer & Partners in Philadelphia, will be introduced widely on Jan. 10. Three other spots in the campaign follow the same structure, opening with overbearing gym rats and closing with assurances that Planet Fitness is more laid back.


Planet Fitness will spend an estimated $10 million to $12 million on the campaign. It spent $15.8 million on advertising in the first nine months of 2012, more than the $14.9 million it spent in all of 2011, according to Kantar Media, a unit of WPP.


Rather than being just a narrative device in the spots, lunk alarms have actually been fixtures at Planet Fitness gyms. Members who exhibit lunk behavior, which the company defines on posters in its facilities as grunting, dropping weights loudly and being judgmental, are subject to a public shaming when a manager at the facility sounds the alarm.


In some cases, Planet Fitness even revokes memberships, as it did at a location in Wappingers Falls, N.Y., in 2006. Albert Argibay, a bodybuilder whose exertions were considered grunting by Planet Fitness, but which Mr. Argibay countered in news accounts as merely heavy breathing, kept lifting after he was told to leave, and was eventually escorted from the premises by police officers.


While the slogan “No Gymtimidation” is being introduced with the new campaign, the company has for years promised what it calls a “judgment-free zone.” That, in the words of the Planet Fitness Web site, “means members can relax, get in shape, and have fun without being subjected to the hard-core, look-at-me attitude that exists in too many gyms.”


Jamie Medeiros, director of marketing at Planet Fitness, said that only about 15 percent of Americans belonged to gyms, and that the company was focused not on trying to lure consumers from other facilities but on enticing those who had avoided gyms altogether.


“We go after the 85 percent who don’t belong to a gym now or who have never belonged to a gym,” Ms. Medeiros said.


While many chains sell protein powders and a wide range of supplements, Planet Fitness takes the counterintuitive approach of serving the type of food that dieters typically avoid.


Every month members are treated to pizza on the first Monday night and bagels on the second Tuesday morning, while Tootsie Rolls are handed out daily.


“The common person doesn’t have time to work out every day, and they may not aspire to the type of person who has six-pack abs and eats egg whites,” Ms. Medeiros said. “But we want to be the type of facility that people want to go to as opposed to, ‘Oh my god, I have to go to the gym today!’ ”


The company has thrived even during the economic downturn, growing to four million members today from about 3.2 million a year ago, according to Ms. Medeiros. About 60 percent of its members are women, much higher than what Ms. Medeiros said is the national average of 20 percent.


Health clubs, like cellphone carriers, tend to sell one- or two-year contracts, but Planet Fitness instead has a month-to-month plan, at $10 monthly, which the company believes knocks down a barrier to joining.


Among consumers who exercise, 71 percent agreed with the statement that fitness clubs were too expensive, according to a survey by Mintel, a market research firm. As for the atmosphere, only 27 percent said that they enjoyed the social aspects of gyms.


When brands hire celebrity endorsers and attractive models, marketers typically refer to the advertisements as aspirational, meaning that consumers do not see themselves reflected in the ad as much as an ideal to which they aspire. But Steve Red, the chief creative officer of Red Tettemer & Partners, said the aspirational approach can backfire when it comes to promoting health clubs.


“I’m never going to get to be that washboard-stomach, super-cut guy that I see in the Equinox ads,” said Mr. Red, referring to the chain of upscale gyms. “There are a ton of gym brands that are all about being cut and sinewy and having a six-pack, but I would argue that approach is not aspirational — it’s inaccessible.”


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Net worth of world's richest rose by $241B in 2012









The richest people on the planet got richer in 2012, adding $241 billion to their collective net worth, according to the Bloomberg Billionaires Index, a daily ranking of the world's 100 wealthiest individuals.

The aggregate net worth of the world's top moguls stood at $1.9 trillion at the market close on Dec. 31, according to the index. Retail and telecommunications fortunes surged about 20 percent on average during the year. Of the 100 people who appeared on the final ranking of 2012, only 16 registered a net loss for the 12-month period.

"Last year was a great one for the world's billionaires," said John Catsimatidis, the billionaire owner of Red Apple Group, in an e-mail written poolside on his BlackBerry in the Bahamas. "In -- that will give them an advantage."

Amancio Ortega, the Spaniard who founded retailer Inditex SA, was the year's biggest gainer. The 76-year-old tycoon's fortune increased $22.2 billion to $57.5 billion, according to the index, as shares of Inditex, operator of the Zara clothing chain, rose 66.7 percent.

"It's an amazing company that has done great and the gains are quite justified given its performance," said Christodoulos Chaviaras, an analyst at Barclays Plc in London who has had an "equalweight" rating on Inditex for about a year. "Can they repeat that? It will be harder. A lot of the positive news is already reflected in the share price."

Global stocks soared in 2012. The MSCI World Index gained 13.2 percent during the year to close at 1,338.50 on Dec. 31. The Standard and Poor's 500 Index rose 13.4 percent to close at 1,426.19.

European stocks surged in the second half of the year. The Stoxx Europe 600 is up 19.6 percent since June 4, advancing as the European Central Bank introduced bond-buying programs, S&P upgraded Greece's debt and German business confidence rose more than forecast. The benchmark gauge's 14.4 percent advance for the year was the best annual return since 2009.

Carlos Slim, the telecommunications magnate who controls Mexico's America Movil SAB, remained the richest person on Earth for the year. The 72-year-old's net worth rose $13.4 billion -- or 21.6 percent -- through Dec. 31, making him the second-biggest gainer by dollars.

Gains by Slim's industrial conglomerate, Grupo Carso, and Grupo Financiero Inbursa, his banking and insurance operation, more than offset the decline posted by America Movil, his biggest holding. The largest mobile phone operator in the Americas by subscribers fell 5.8 percent to close at 14.9 pesos at the end of the year.

"America Movil is no longer the growth story that it has been, given the increase in Latin American wireless penetration over the last five years," said Chris King, an analyst at Stifel Nicolaus & Co. in Baltimore, Md. "It continues to generate a very high amount of cash flow and has the best set of telecom assets across Latin America."

According to King, one of Slim's biggest challenges will be dealing with regulation in Mexico and Colombia designed to punish or even-out the market share between America Movil and its competitors. Of the 14 analysts who cover the stock, 71 percent have a buy rating on the company, with an average target price of 19.15 pesos per share, according to data compiled by Bloomberg.

U.S. software mogul Bill Gates, 57, ranks second on the list, trailing Slim by $12.5 billion. The Microsoft co-founder added $7 billion to his net worth as shares of the Redmond, Wash.-based company rose 2.9 percent. Microsoft stock accounts for less than 20 percent of the billionaire's fortune.

Warren Buffett, 82, lost his title as the world's third- richest man to Ortega Aug. 6. The Berkshire Hathaway chairman gained $5.1 billion during the year, even after donating 22.3 million Berkshire Class B shares in July to charity. The billionaire, who has pledged to give away most of his fortune, spent much of the year pressing for higher taxes on the wealthy.

"On incomes of over $1 million, the excess $1 million should have a minimum tax of 30 percent. And then over $10 million, 35 percent," Buffett said in an interview with Charlie Rose in November. "Tax law should be progressive. And I think that when people make $15 million or $20 million or $200 million and pay a 10 percent rate, something should be done about it."

IKEA founder Ingvar Kamprad, 86, is the world's fifth- richest person with a $42.9 billion fortune. The complex ownership structure behind IKEA, the world's largest furniture retailer, became more transparent in August after IKEA's franchisor published its financial performance publicly for the first time. His net worth rose 16.6 percent in 2012.

Brazil's Eike Batista, 56, was the year's biggest loser by dollars, falling $10.1 billion. The commodities maven, who vowed a year ago that he'd become the world's wealthiest man by 2015, sold a 5.63 percent stake in his EBX Group in March to Abu Dhabi's Mubadala Development.

As part of the deal, he pledged an unspecified additional stake in 2019 if he fails to meet a 5 percent annual return on the sovereign wealth fund's $2 billion investment, according to a person with knowledge of the deal. Batista now ranks 75th in the world with a $12.4 billion net worth. On March 27, he was worth $34.5 billion and ranked 8th on the Bloomberg index.

"Next year is going to be a lot of work for Eike," said Lucas Brendler, who helps manage about 6 billion reais at Banco Geracao Futuro de Investimentos in Porto Alegre, Brazil. "It's going to be a year for him to recover investors' confidence, and to leave the realm of theory and start delivering results. The EBX companies have great growth potential."

Batista's former title as the richest Brazilian is now held by 73-year-old banker Jorge Paulo Lemann, who ranks 37th with an $18.8 billion fortune. The country's second-richest person is Dirce Camargo, the matriarch behind Camargo Correa SA, the Sao Paulo-based conglomerate that has interests in cement, electricity and Havaianas flip-flops. Her net worth is $13.4 billion, according to the Bloomberg ranking.

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