Paperwork Piles Up at G-P

According to agency sources, officials with the household products division of Georgia-Pacific Corp. in Atlanta are reviewing that portion of the company’s advertising business The account review would include work for the client’s Angel Soft (bath tissue), Coronet (bath tissue, paper towels and napkins), MD (bath tissue) and Sparkle (paper towels).
Work for those product brands have been handled by a variety of advertising agencies.
According to Competitive Media Reporting, advertising spending on those brands last year was in excess of $5 million.
That ad expenditure could increase significantly, however. Georgia-Pacific reported last fall that it had begun construction of a new tissue machine that would result in a “substantial enhancement of its bath tissue and paper towel business.”
The $150 million capital investment by the company will expand Georgia-Pacific’s capacity in its household paper products line by about 10 percent to 60,000 tons per year. As a result, the company will need what a source termed “a new brand initiative.”
“Our sales volume for this business has grown significantly faster than the approximately 2 percent annual growth of the overall tissue market,” said A.D. Carroll, chairman and chief executive officer of Georgia-Pacific, in a statement. “The new tissue machine and converting lines are key components of our strategy to continue growing our branded consumer products.”
Georgia-Pacific’s new production machinery will be completed and installed by late 1998, according to reports.
Officials with Georgia-Pacific did not return calls at press time last week.–Teresa Andreoli and Hank Kim