Reed Expo, Krause End Joint Venture
By Michael Hart -- Tradeshow Week, 9/5/2005
Reed Exhibitions has bought out its share of a partnership with E.J. Krause & Associates in Brazil and Argentina, and will work to develop its business in that area on its own.
Earlier this summer, the two companies dissolved a joint venture they had that involved five shows in Argentina, including EXPO COMM ARGENTINA, and two shows in Brazil. The two companies will continue to work together on EXPO COMM ARGENTINA and two other shows in Mexico (among them, EXPO COMM MEXICO).
Ned Krause, president and CEO of E.J. Krause, said the deteriorating state of the Argentine economy provoked the mutual decision that there was simply not enough business available for all the parties involved.
"There was no argument between us," he said. "There just wasn't enough bread on the table. So we ended up making the agreement that E.J. Krause would sell its interest back to Reed."
At the same time, in what it says is an effort to focus more resources on the Latin American tradeshow market, Reed Exhibitions has shifted management responsibilities in the area. Chet Burchett, formerly president of Reed Exhibitions North America, is now president of Reed Exhibitions Americas with responsibility for all Reed activities throughout the Western Hemisphere. Along with the portfolio of some 68 events in Canada and the United States, Burchett will now be responsible for the 11 shows listed on Reed Exhibitions' Web site in Mexico, Argentina, Brazil and Uruguay.
Marco Giberti, president of Reed Exhibitions Latin America, will now report to Burchett.
Reed Exhibitions Commercial Director Nick Forster agreed that the breakup was amicable, saying, "We had a successful joint venture with E.J. Krause."
He did, however, characterize the Latin America economy differently.
"With the pickup in the regional economy, we wanted to grow the business faster," Forster said. "Reed Exhibitions felt it was easier to do this with our own resources and fewer partners."
Burchett said the moves should be taken as a sign that Latin America is an emerging market that Reed is taking seriously, that there will be "an increasing focus on the level of resources" in the area, and that there are "significant opportunities to benefit our customers in both regions."
Along with the two versions of EXPO COMM, Reed Exhibitions lists on its Web site four shows that it has in Argentina, two in Brazil, and one each in Mexico and Uruguay.
Burchett said he anticipates significant growth in Argentina and Brazil over the next several years.
Krause also said he sees potential in Brazil, "but we will probably enter that market on our own."
