Condé Nast to Shutter Gourmet, Cookie, Modern Bride and Elegant Bride

The decision to fold titles a result of financial analysis by McKinsey & Co.

By Chandra Johnson-Greene
Monday, October 5, 2009

Condé Nast announced today that it will fold Cookie, Gourmet, Elegant Bride and Modern Bride magazines, a decision that comes on the heels of the three-month analysis of the company's financial situation by McKinsey & Co.

According to a memo sent out to staffers by CEO Chuck Townsend, Brides will increase its frequency to monthly as a result of Elegant Bride and Modern Bride's shuttering "to solidify its position as the most important brand in the bridal category."

Townsend added that while Gourmet magazine will cease monthly publication, the company will "remain committed to the brand, retaining Gourmet’s book publishing and television programming, and Gourmet recipes on Epicurious.com."

Townsend points out that workforce reductions "across the company" as well as initiatives to launch digital versions of Condé Nast brands are underway.

Ad pages for Cookie declined by 20 percent between January and June 2009 compared to the same period last year, according to PIB, while Gourmet declined by 46 percent, Modern Bride by 22 percent, Elegant Bride by 33 percent and Brides 18 percent.

Update: There's been some head-scratching over the decision to shut down Gourmet rather than Bon Appetit. Gourmet is a much older and storied brand, and Bon Appetit had a similarily dramatic first-half ad page drop of -35 percent, per PIB. But a look at subscription and single copy sales might shed some light on Bon Appetit's survival. Its paid subs are 1.2 million versus Gourmet's 865,000, per June 2009 ABC Publishers Statements. And while both titles have declining single-copy sales, June '09 numbers show Bon Appetit topping out at 99,000 versus Gourmet's 66,000, with a similar average $4.50 cover price. Bon Appetit also uses much less verified circ than Gourmet.

Update 2: It came down to profits. "We won't have businesses that don't make a contribtion," CEO Charles Townsend told Stephanie Clifford at The New York Times. In that interview, Townsend also said Bon Appetit's larger circ and much higher circ margins made it the keeper of the two food titles.

Below is the official memo regarding the closures sent out by Condé Nast CEO Chuck Townsend:

From: “Townsend, Chuck”
Date: Mon, 5 Oct 2009 10:16:52 -0400
To: Conde Nast Publications-All <_273fee@condenast.com>
Conversation: Announcing Changes within Condé Nast
Subject: Announcing Changes within Condé Nast

We have now completed an extensive review of our business – an important undertaking given the dramatic changes in the U.S. economy. The review has led us to a number of decisions designed to navigate the company through the economic downturn and to position us to take advantage of coming opportunities.

Condé Nast’s success comes from the ability of our publications to attract readers with a wide range of interests, as well as advertisers who value them. But in this economic climate it is important to narrow our focus to titles with the greatest prospects for long-term growth.

As a result of our review, Brides will increase its frequency to monthly to solidify its position as the most important brand in the bridal category, and Modern Bride and Elegant Bride will close.

Gourmet magazine will cease monthly publication, but we will remain committed to the brand, retaining Gourmet’s book publishing and television programming, and Gourmet recipes on Epicurious.com. We will concentrate our publishing activities in the epicurean category on Bon Appétit.

Finally, Cookie magazine will be discontinued, and resources that had been dedicated to its publishing will be invested elsewhere.

The editorial and business staffs of Modern Bride, Elegant Bride, Gourmet, and Cookie all have earned their magazines large and devoted followings. We have been proud to publish these titles, and we are grateful to the staffs for their hard work and dedication.

These changes, combined with cost and workforce reductions now underway throughout the company, will speed the recovery of our current businesses and enable us to pursue new ventures. In the coming weeks, we hope to announce initiatives to develop digital versions of our brands that will make use of new devices and distribution channels.

Condé Nast is now in its 100th year of creating the most respected and iconic brands in the publishing world. These changes will ensure that our unique publishing company will continue in its preeminent position for many years to come.