KODAK INCREASING PHOTOFINISHING BUSINESS
By Adnews Staff
U.S.-based Eastman Kodak is trying to expand its Canadian photofinishing business. The company has agreed to buy Colortron Photo Services of Burlington, Ont. The deal is expected to close at the end of the month, pending government approval. Colortron has nine labs across the country and buys most of its photo paper and supplies from Kodak. In the U.S., Kodak has about 80% of the photofinishing wholesale market. Two years ago a U.S. judge lifted a 1954 consent decree that prevented Kodak from linking sales of film to photofinishing. For example, before the decree was lifted Kodak couldn't offer coupons or new Kodak film as an inducement to use Kodak processing. Kodak's push in the photofinishing industry comes at a time when there is a new type of film and camera on the market called the Advanced Photo System. Many retailers, faced with the need to upgrade equipment, are choosing to farm out photofinishing.