PRIVATE NETWORK TO DELIVER FLYERS
By Adnews Staff
Several of the distributors who had been under exclusive contract to deliver Canada Post's Economy Admail flyers will form a private network to continue the business when Canada Post ceases delivering flyers Jan. 1. Mark McHugh, who works with First Avenue Clearing Corporation of Toronto, told Adnews his company will provide database information to the new group. The network, which does not yet have a legal name, contains six key distributors from Economy Admail. McHugh said the distributors have no formal names as they were previously known by their Canada Post contract numbers. The group has already signed up several key pieces of business including IGA and United Grocers. McHugh said the group had three billion pieces of mail committed for next year. He estimates this represents about 60% of the former Canada Post business. The network will deliver nationwide to urban households. It will not be able to deliver to apartment buildings because Canada Post has exclusive access to them. They will also not cover rural routes because they are unprofitable. McHugh said delivery rates for the new network will remain the same, averaging about $40 per 1,000 pieces. Canada Post will continue to offer premium flyer service.