Value-centric Shoppers Save $3.7 Billion in 2010 Using Coupons

LIVONIA, Mich., Jan. 20, 2011 /PRNewswire/ -- Valassis (NYSE: VCI), one of the nation's leading media and marketing services companies, announced today that shoppers saved $3.7 billion with coupons in 2010, according to the Annual Topline U.S. CPG Coupon Facts Report for Year-end 2010, released by NCH Marketing Services, Inc., a Valassis company.  An additional $200 million was saved in 2010, representing a 5.7% increase from 2009.

In 2010, marketers distributed more consumer packaged goods (CPG) coupons than the prior year, reaching 332 billion – the largest single-year distribution quantity ever recorded in the United States, exceeding last year's prior record by 6.8% or 21 billion coupons.

"Marketers are distributing more coupons in the marketplace to reach today's value-centric consumer," said Suzie Brown, Valassis Chief Marketing Officer.  "For years, we have heard that the consumer is king and this rings so true today. Shopping and savings go hand in hand."

Overall, 87.7% of all coupons were distributed in 2010 in the free-standing insert (FSI) coupon booklet. The FSI total growth was 19 billion coupons, the largest volume increase of all media, according to the NCH report. The second largest share of coupons distributed was via handout in-store media, amounting to 5.2% of the 2010 total. NCH also reported a 37% increase in the number of digital coupon offers.

In addition, the report indicates marketers continue to modify their offering characteristics. The following offer trends reveal:

• An average $1.46 face value distributed, representing a 6.6% increase from 2009;
• 26% required the purchase of two or more items to obtain the offer discount; and
• 9.1 weeks average expiration, approximately a week and a half shorter than the prior year, a 14.2% decrease.

Redemption volume in the United States grew 3.1% to 3.3 billion CPG coupons in 2010. According to the report, the largest coupon redemption volume growth is in the retail segment, representing 25% growth. The increasing trend in consumer use of coupons was further supported by NCH's Consumer Survey, finding that frugal consumer shopping habits as a result of the recession continued in 2010, maintaining overall high consumer coupon use and an increasing regularity of coupon use. In 2010, the survey reveals that 78.3% regularly use coupons compared to 77% in 2009, 75.8% in 2008 and 63.6% of consumers in the pre-recession survey of 2007.

"Consumer demand for coupons remained high in 2010 as shopping habits created during the most recent recessionary period sustained throughout the sluggish economic recovery that occurred during the year," said Charlie Brown, NCH Vice President of Marketing. "In fact, a third of the respondents in NCH's Annual Consumer Survey said that they used more coupons in 2010 than the prior year."

For more information about NCH's 2010 Coupon Facts Report, visit www.nchresourcecenter.com.

About Valassis

Valassis is one of the nation's leading media and marketing services companies, offering unparalleled reach and scale to more than 15,000 advertisers. Its RedPlum™ media portfolio delivers value on a weekly basis to over 100 million shoppers across a multi-media platform – in-home, in-store and in-motion. Through its digital offerings, including redplum.com and save.com, consumers can find compelling national and local deals. Headquartered in Livonia, Michigan with approximately 7,000 associates in 28 states and eight countries, Valassis is widely recognized for its associate and corporate citizenship programs, including its America's Looking for Its Missing Children® program. Valassis companies include Valassis Direct Mail, Inc., Valassis Canada, Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH Marketing Services, Inc.  For more information, visit http://www.valassis.com, http://www.redplum.com and http://www.save.com. To learn about advertising opportunities with RedPlum, please call 1-800-437-0479.

Cautionary Statements Regarding Forward-looking Statements

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: price competition from our existing competitors; new competitors in any of our businesses; a shift in client preference for different promotional materials, strategies or coupon delivery methods, including, without limitation, as a result of declines in newspaper circulation; an unforeseen increase in paper or postal costs; changes which affect the businesses of our clients and lead to reduced sales promotion spending, including, without limitation, a decrease of marketing budgets which are generally discretionary in nature and easier to reduce in the short-term than other expenses; our substantial indebtedness, and ability to refinance such indebtedness, if necessary, and our ability to incur additional indebtedness, may affect our financial health; the financial condition, including bankruptcies, of our clients, suppliers, senior secured credit facility lenders or other counterparties; our ability to comply with or obtain modifications or waivers of the financial covenants contained in our debt documents; certain covenants in our debt documents could adversely restrict our financial and operating flexibility; ongoing disruptions in the credit markets that make it difficult for companies to secure financing; fluctuations in the amount, timing, pages, weight and kinds of advertising pieces from period to period, due to a change in our clients' promotional needs, inventories and other factors; our failure to attract and retain qualified personnel may affect our business and results of operations; a rise in interest rates could increase our borrowing costs; we may be required to recognize additional impairment charges against goodwill and intangible assets in the future; possible governmental regulation or litigation affecting aspects of our business; the credit and liquidity crisis in the financial markets could continue to affect our results of operations and financial condition; uncertainty in the application and interpretation of applicable state sales tax laws may expose us to additional sales tax liability; and general economic conditions, whether nationally, internationally, or in the market areas in which we conduct our business, including the adverse impact of the ongoing economic downturn on the marketing expenditures and activities of our clients and prospective clients as well as our vendors, with whom we rely on to provide us with quality materials at the right prices and in a timely manner. These and other risks and uncertainties related to our business are described in greater detail in our filings with the United States Securities and Exchange Commission, including our reports on Forms 10-K and 10-Q and the foregoing information should be read in conjunction with these filings.  We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Valassis

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