American, US Airways announce merger

CEOs Doug Parker and Tom Horton speak to the "CBS This Morning" co-hosts about the merger of American Airlines and US Airways in their first network morning interview.

AMR Corp., parent of American Airlines, and US Airways Group will merge, the companies said Thursday.

If the $11 billion merger is approved by regulators and a bankruptcy judge, it will create the world's largest airline, unseating Chicago-based United Continental Airlines. The combination is expected to be completed in the third quarter of this year.

Chicago, where the two companies have little overlap, would remain a major hub for the airline.

American Airlines is the No. 2 carrier in the region, with about 27 percent of the market, 500 flights per day and 9,300 Chicago-based employees. O'Hare is American's second-largest hub, after Dallas-Fort Worth, which will be the headquarters for the merged airline.

By contrast, US Airways flights account for just 2 percent of the airline seats flying out of Chicago's airports, and the carrier has 170 employees in Chicago.
 
The combined airline will keep the American Airlines name but will be run by US Airways CEO Doug Parker, while American's CEO, Tom Horton, becomes nonexecutive chairman. The terms of the merger wwere unanimously approved Wednesday by the boards of directors of both companies.

American said the combined airline would have a strong financial foundation and robust global network, with more than 6,700 daily flights to 336 destinations in 56 countries. It also pointed to an enhanced Oneworld Alliance, of which American Airlines is a founding member.

"Our combined network will provide a significantly more attractive offering to customers, ensuring that we are always able to take them where they want to travel, when they want to go," Parker said in a statement.

However, consumer groups have been critical of the rumored merger.

"From a consumer standpoint -- individual traveler or corporate travel department -- there are few benefits to offset the negative impacts of this proposed merger that include reduced competition, higher fares and fees and diminished service to small and mid-size communities," said Business Travel Coalition Chairman Kevin Mitchell.

Charlie Leocha, director of the Consumer Travel Alliance, said the merger offered "no discernible consumer benefits."

"Antitrust regulations were created to protect consumers, not to facilitate industry consolidation," he said. "The claim that this merger will provide more destinations is hollow. Whatever new cities are added by a future [American Airlines-US Airways] network are subtracted from the current airline alliance network that US Airways enjoys with United. The net effect is that, overall, consumers are left with nothing new and no improvement to the status quo."

In Chicago, travelers would be largely shielded from those downsides, experts have said. The region's plethora of flights from O'Hare International Airport and Midway, as well as the presence of many discount airlines, should be enough to hold fares largely in check on most routes after the merger.

Customers can continue to book travel and track and manage flights and frequent flyer activity through AA.com or USAirways.com, and will continue to as usual in the AAdvantage and Dividend Miles frequent flyer programs. At first, there are no changes to the frequent flyer programs of either airline as a result of the merger agreement.

The merger is supported by American Airlines' unions.

"The new American Airlines will return to a position of industry preeminence," said Dennis Tajer, spokesman for the Allied Pilots Association, the American Airlines pilot union.

Horton will be board chairman through the first annual meeting of shareholders. After that, Parker will take over as chairman. The board will initially be made up of 12 members, three American Airlines representatives, including Tom Horton, four US Airways representatives, including Doug Parker, and five AMR creditor representatives.

Under the terms of the merger agreement, US Airways stockholders will receive one share of common stock of the combined airline for each share of US Airways common stock then held. American Airlines stakeholders, including labor unions, would own 72 percent of the merged airline, while US Airways stakeholders would own the rest.

gkarp@tribune.com

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Obama challenges GOP to do more than just cut deficit

WASHINGTON -- President Barack Obama used his State of the Union address on Tuesday night to try to push past the fiscal battles that plagued his first term - and still threaten his second - as he laid out an agenda he hopes will shape his legacy.

Obama's overarching message was that other things matter beside the Republicans' seemingly all-consuming drive for deficit cutting, embodied in a looming showdown just three weeks away over automatic across-the-board spending cuts.

Those other things, he told Congress, include some traditionally liberal causes, like raising the federal minimum wage and pursuing climate initiatives, and some that have gained bipartisan support, such as immigration reform and curbing gun violence.

"Most of us agree that a plan to reduce the deficit must be part of our agenda," Obama said. "But let's be clear: deficit reduction alone is not an economic plan."

But with Washington so deeply divided, Obama's speech appeared unlikely to go far in helping the Democratic president and his Republican opponents find common ground to ease the ideological gridlock. He offered no tangible new concessions of his own.

Still, Obama's sense of urgency and frustration was almost palpable. He alternately scolded and cajoled lawmakers while expanding on his vision for a more activist government so loathed by conservatives, the same theme he struck in his second inauguration address on January 21.

"The American people don't expect government to solve every problem. They don't expect those of us in this chamber to agree on every issue. But they do expect us to put the nation's interests before party," he said, pressing Republicans to resolve budget and fiscal differences without drama.

Obama - whose first-term promise to become a transformational, post-partisan president failed to materialize in part because of struggles over the deficit - knows the clock is ticking.

The consensus among Washington insiders is that he has a limited window, possibly as little as a year and a half, to take advantage of the Republicans' post-election disarray and push through his congressional priorities before being reduced to lame-duck status.

SETTING PRIORITIES

Just three weeks after staking out a decidedly liberal philosophy at his inauguration, Obama used his State of the Union address to start fleshing out and prioritizing his goals for the rest of his presidency.

He made clear that job creation and bolstering the middle class would top the list, but he also gave due attention to immigration reform and gun control, which have moved to the forefront at the start of his second term.

Obama's renewed emphasis on pocketbook issues that dominated the 2012 campaign appears to reflect the view that advancing other legacy-shaping initiatives could hinge on how he fares with unfinished economic business from his first four years.

Many of the economic plans he presented in his State of the Union address were familiar to listeners as proposals that Republicans have blocked before, including new investment in modernizing infrastructure, boosting manufacturing, creating construction jobs and helping to ease homeowners' mortgage woes.

There is ample reason to doubt that these ideas - even in repackaged form - will gain much traction in a still-divided Congress where Republicans control the House of Representatives and will oppose almost any new spending Obama proposes.

But the biggest red flags for Republicans may be Obama's call for a hike in the federal minimum wage to $9 an hour, a traditional liberal idea, and his demand that Congress pursue a "market-based solution" to climate change - with a warning that if lawmakers do not act soon, "I will."

Obama's call for a nationwide program to expand pre-school education for the low-income families - another progressive cause - is also expected to run into Republican opposition.

There is little doubt the president is aware that many of these proposals, especially those with spending attached, may be dead-on-arrival in Congress.

But he may be counting on being able to accuse Republicans of obstructionism in the 2014 midterm elections - as he did with some success in the 2012 campaign - as his Democrats seek to win back the House.

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Lady Gaga suffering from joint inflammation, postpones shows

LOS ANGELES (Reuters) – Pop star Lady Gaga said on Tuesday she was suffering from a severe inflammation of the joints that left her temporarily unable to walk, forcing her to postpone a handful of upcoming shows on the North American leg of her world tour.

“I am completely devastated and heartsick. I’ve been hiding this injury and pain from my staff for a month, praying it would heal, but after last night’s performance, I could not walk,” the singer said in a statement.

Her condition is called synovitis, an inflammation that sometimes follows a sprain, strain or injury.

Gaga posted a similar message in a series of tweets to her 34 million Twitter followers.

“I will hopefully heal as soon as possible and be at 500 percent again, which is what you deserve,” she said.

“The Edge of Glory” singer postponed shows in Chicago on Wednesday and Thursday, in Detroit on Saturday and in Hamilton, Ontario, on Sunday.

Lady Gaga, 26, has been on the road for two years on her “Born This Way Ball” world tour. Her website showed tour dates through March 20.

The 200-plus date tour has taken the singer across six continents and was ranked as the sixth top-grossing tour of 2012 by Billboard magazine.

(Reporting By Piya Sinha-Roy, editing by Jill Serjeant and Cynthia Osterman)

Music News Headlines – Yahoo! News

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Phys Ed: Getting the Right Dose of Exercise

Phys Ed

Gretchen Reynolds on the science of fitness.

A common concern about exercise is that if you don’t do it almost every day, you won’t achieve much health benefit. But a commendable new study suggests otherwise, showing that a fairly leisurely approach to scheduling workouts may actually be more beneficial than working out almost daily.

For the new study, published this month in Exercise & Science in Sports & Medicine, researchers at the University of Alabama at Birmingham gathered 72 older, sedentary women and randomly assigned them to one of three exercise groups.

One group began lifting weights once a week and performing an endurance-style workout, like jogging or bike riding, on another day.

Another group lifted weights twice a week and jogged or rode an exercise bike twice a week.

The final group, as you may have guessed, completed three weight-lifting and three endurance sessions, or six weekly workouts.

The exercise, which was supervised by researchers, was easy at first and meant to elicit changes in both muscles and endurance. Over the course of four months, the intensity and duration gradually increased, until the women were jogging moderately for 40 minutes and lifting weights for about the same amount of time.

The researchers were hoping to find out which number of weekly workouts would be, Goldilocks-like, just right for increasing the women’s fitness and overall weekly energy expenditure.

Some previous studies had suggested that working out only once or twice a week produced few gains in fitness, while exercising vigorously almost every day sometimes led people to become less physically active, over all, than those formally exercising less. Researchers theorized that the more grueling workout schedule caused the central nervous system to respond as if people were overdoing things, sending out physiological signals that, in an unconscious internal reaction, prompted them to feel tired or lethargic and stop moving so much.

To determine if either of these possibilities held true among their volunteers, the researchers in the current study tracked the women’s blood levels of cytokines, a substance related to stress that is thought to be one of the signals the nervous system uses to determine if someone is overdoing things physically. They also measured the women’s changing aerobic capacities, muscle strength, body fat, moods and, using sophisticated calorimetry techniques, energy expenditure over the course of each week.

By the end of the four-month experiment, all of the women had gained endurance and strength and shed body fat, although weight loss was not the point of the study. The scientists had not asked the women to change their eating habits.

There were, remarkably, almost no differences in fitness gains among the groups. The women working out twice a week had become as powerful and aerobically fit as those who had worked out six times a week. There were no discernible differences in cytokine levels among the groups, either.

However, the women exercising four times per week were now expending far more energy, over all, than the women in either of the other two groups. They were burning about 225 additional calories each day, beyond what they expended while exercising, compared to their calorie burning at the start of the experiment.

The twice-a-week exercisers also were using more energy each day than they had been at first, burning almost 100 calories more daily, in addition to the calories used during workouts.

But the women who had been assigned to exercise six times per week were now expending considerably less daily energy than they had been at the experiment’s start, the equivalent of almost 200 fewer calories each day, even though they were exercising so assiduously.

“We think that the women in the twice-a-week and four-times-a-week groups felt more energized and physically capable” after several months of training than they had at the start of the study, says Gary Hunter, a U.A.B. professor who led the experiment. Based on conversations with the women, he says he thinks they began opting for stairs over escalators and walking for pleasure.

The women working out six times a week, though, reacted very differently. “They complained to us that working out six times a week took too much time,” Dr. Hunter says. They did not report feeling fatigued or physically droopy. Their bodies were not producing excessive levels of cytokines, sending invisible messages to the body to slow down.

Rather, they felt pressed for time and reacted, it seems, by making choices like driving instead of walking and impatiently avoiding the stairs.

Despite the cautionary note, those who insist on working out six times per week need not feel discouraged. As long as you consciously monitor your activity level, the findings suggest, you won’t necessarily and unconsciously wind up moving less over all.

But the more fundamental finding of this study, Dr. Hunter says, is that “less may be more,” a message that most likely resonates with far more of us. The women exercising four times a week “had the greatest overall increase in energy expenditure,” he says. But those working out only twice a week “weren’t far behind.”

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Downtown condo market seeing rebound

Downtown Chicago's condo market is on the rebound after many moribund years, as sales volume and pricing improve in a market constrained by a lack of inventory.

It's a rare piece of good news for downtown condo owners as well as for developers pondering projects and trying to line up financing.

With a steady stream of apartment projects delivering in the next two years, the lack of new condo construction could signal opportunities for companies interested in pursuing smaller projects in key neighborhoods because the demand is there. Until those projects materialize, condo owners looking to sell face a better market than they have in several years.

Sales of existing downtown condos rose 31.2 percent last year, to 4,675 units sold, while the median sales price of $300,000 was a gain of about 2.6 percent from 2011, according to data from Appraisal Research Counselors.

Another piece of good news for current condo owners: Of the 65 downtown buildings studied by the firm, the average sales price per square foot of units sold during the second half of last year rose while the number of distressed condo sales in those buildings saw a substantial drop. Distressed sales, which accounted for  28 percent of sales since 2010, fell to 17 percent of sales during the second half of 2012.

In addition, only 1,104 newly constructed condo units remain unsold downtown.

"When we see more transactions occurring, that's a really good indication of demand," said Gail Lissner, a vice president at the firm. "The look of the condo market has changed in terms of unsold inventory."

Lissner's remarks came Tuesday during a lunchtime briefing on the local housing market.

Most of the unsold inventory, more than 500 units, is in the South Loop and the bulk of it is in the newly named and repositioned 500-unit South Loop Luxury by Related.

The three buildings, once called One Museum Park West, 1600 Museum Park and Museum Park Place 2 were taken over by New York-based Related Cos. in July have been renamed the Grant, Adler Place and Harbor View, respectively.

Since December, 40 units there are under contract, according to Related Midwest, which officially launched sales in the project Tuesday.

Other new projects reporting positive sales trends are Park Monroe Phase II, a 48-unit adaptive reuse project with 16 sales and CA3, a 40-unit building with 18 sales.

"These are all great indicators of strong sales," Lissner said. "Price stabilization has occurred in the market. You don't hear people talking about bottoming out. That was so yesterday."

mepodmolik@tribune.com | Twitter @mepodmolik

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Bears terminate contract of wide receiver Johnny Knox

CAPTIONS

Johnny Knox
Johnny Knox on the sidelines in the second quarter against the Seahawks at Soldier Field. (Jos M. Osorio, Chicago Tribune /December 2, 2012)

Tribune report

9:44 a.m. CST, February 12, 2013

The Chicago Bears have terminated the contract of  wide receiver Johnny Knox, the team said Tuesday.

Knox suffered a severe back injury in a game against the Seattle Seahawks late in the 2011 season and hasn't played since. He underwent spinal fusion surgery and was placed on the physically unable to perform list last July.

In three seasons (2009-11) with the Bears, Knox had 133 receptions for 2,214 yards and 12 touchdowns.

Details to come.

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CNN slots Jake Tapper Show, cuts length of Wolf Blitzer’s “Situation Room”

LOS ANGELES (TheWrap.com) – CNN slotted new anchor Jake Tapper‘s upcoming show for 4 p.m. on weekdays, cutting Wolf Blitzer‘s “The Situation Room” back one hour, a CNN spokeswoman told TheWrap.

Tapper, lured away from ABC News in December, was CNN boss Jeff Zucker‘s first major hire since taking charge of the network. Now, with his own show coming in March, Blitzer’s program will but cut from three hours to two as it moves to the 5 p.m. to 7 p.m. time slot.

A CNN spokeswoman told TheWrap Tapper‘s show has no specific starting date yet because it is still in development.

Last month, Turner Broadcasting posted LinkedIn job openings for a senior producer at a new daily program called “Tapper.”

And on Monday, CNN named Federico Quadrani, MSNBC’s executive producer of “Jansing and Company,” as the show’s new executive producer.

Choosing Quadrani – who served as an Emmy-winning producer for NBC’s “Today” show from 2003 to 2009 – is one of Zucker’s higher profile hires as the former “Today” producer attempts to replicate his morning show success at CNN.

After taking charge of the show in 1992, Zucker led “Today” to its ratings highs before Katie Couric‘s departure for CBS. The subsequent exit of Meredith Vieira, who replaced Couric, made it vulnerable to rival “Good Morning America.”

Late last month, CNN announced that it had bought “20/20″ anchor and former “GMA” host Chris Cuomo to lead a new morning show with Erin Burnett.

TV News Headlines – Yahoo! News

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Well: Straining to Hear and Fend Off Dementia

At a party the other night, a fund-raiser for a literary magazine, I found myself in conversation with a well-known author whose work I greatly admire. I use the term “conversation” loosely. I couldn’t hear a word he said. But worse, the effort I was making to hear was using up so much brain power that I completely forgot the titles of his books.

A senior moment? Maybe. (I’m 65.) But for me, it’s complicated by the fact that I have severe hearing loss, only somewhat eased by a hearing aid and cochlear implant.

Dr. Frank Lin, an otolaryngologist and epidemiologist at Johns Hopkins School of Medicine, describes this phenomenon as “cognitive load.” Cognitive overload is the way it feels. Essentially, the brain is so preoccupied with translating the sounds into words that it seems to have no processing power left to search through the storerooms of memory for a response.

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Katherine Boutin speaks about her own experience with hearing loss.

A transcript of this interview can be found here.

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Over the past few years, Dr. Lin has delivered unwelcome news to those of us with hearing loss. His work looks “at the interface of hearing loss, gerontology and public health,” as he writes on his Web site. The most significant issue is the relation between hearing loss and dementia.

In a 2011 paper in The Archives of Neurology, Dr. Lin and colleagues found a strong association between the two. The researchers looked at 639 subjects, ranging in age at the beginning of the study from 36 to 90 (with the majority between 60 and 80). The subjects were part of the Baltimore Longitudinal Study of Aging. None had cognitive impairment at the beginning of the study, which followed subjects for 18 years; some had hearing loss.

“Compared to individuals with normal hearing, those individuals with a mild, moderate, and severe hearing loss, respectively, had a 2-, 3- and 5-fold increased risk of developing dementia over the course of the study,” Dr. Lin wrote in an e-mail summarizing the results. The worse the hearing loss, the greater the risk of developing dementia. The correlation remained true even when age, diabetes and hypertension — other conditions associated with dementia — were ruled out.

In an interview, Dr. Lin discussed some possible explanations for the association. The first is social isolation, which may come with hearing loss, a known risk factor for dementia. Another possibility is cognitive load, and a third is some pathological process that causes both hearing loss and dementia.

In a study last month, Dr. Lin and colleagues looked at 1,984 older adults beginning in 1997-8, again using a well-established database. Their findings reinforced those of the 2011 study, but also found that those with hearing loss had a “30 to 40 percent faster rate of loss of thinking and memory abilities” over a six-year period compared with people with normal hearing. Again, the worse the hearing loss, the worse the rate of cognitive decline.

Both studies also found, somewhat surprisingly, that hearing aids were “not significantly associated with lower risk” for cognitive impairment. But self-reporting of hearing-aid use is unreliable, and Dr. Lin’s next study will focus specifically on the way hearing aids are used: for how long, how frequently, how well they have been fitted, what kind of counseling the user received, what other technologies they used to supplement hearing-aid use.

What about the notion of a common pathological process? In a recent paper in the journal Neurology, John Gallacher and colleagues at Cardiff University suggested the possibility of a genetic or environmental factor that could be causing both hearing loss and dementia — and perhaps not in that order. In a phenomenon called reverse causation, a degenerative pathology that leads to early dementia might prove to be a cause of hearing loss.

The work of John T. Cacioppo, director of the Social Neuroscience Laboratory at the University of Chicago, also offers a clue to a pathological link. His multidisciplinary studies on isolation have shown that perceived isolation, or loneliness, is “a more important predictor of a variety of adverse health outcomes than is objective social isolation.” Those with hearing loss, who may sit through a dinner party and not hear a word, frequently experience perceived isolation.

Other research, including the Framingham Heart Study, has found an association between hearing loss and another unexpected condition: cardiovascular disease. Again, the evidence suggests a common pathological cause. Dr. David R. Friedland, a professor of otolaryngology at the Medical College of Wisconsin in Milwaukee, hypothesized in a 2009 paper delivered at a conference that low-frequency loss could be an early indication that a patient has vascular problems: the inner ear is “so sensitive to blood flow” that any vascular abnormalities “could be noted earlier here than in other parts of the body.”

A common pathological cause might help explain why hearing aids do not seem to reduce the risk of dementia. But those of us with hearing loss hope that is not the case; common sense suggests that if you don’t have to work so hard to hear, you have greater cognitive power to listen and understand — and remember. And the sense of perceived isolation, another risk for dementia, is reduced.

A critical factor may be the way hearing aids are used. A user must practice to maximize their effectiveness and they may need reprogramming by an audiologist. Additional assistive technologies like looping and FM systems may also be required. And people with progressive hearing loss may need new aids every few years.

Increasingly, people buy hearing aids online or from big-box stores like Costco, making it hard for the user to follow up. In the first year I had hearing aids, I saw my audiologist initially every two weeks for reprocessing and then every three months.

In one study, Dr. Lin and his colleague Wade Chien found that only one in seven adults who could benefit from hearing aids used them. One deterrent is cost ($2,000 to $6,000 per ear), seldom covered by insurance. Another is the stigma of old age.

Hearing loss is a natural part of aging. But for most people with hearing loss, according to the National Institute on Deafness and Other Communication Disorders, the condition begins long before they get old. Almost two-thirds of men with hearing loss began to lose their hearing before age 44. My hearing loss began when I was 30.

Forty-eight million Americans suffer from some degree of hearing loss. If it can be proved in a clinical trial that hearing aids help delay or offset dementia, the benefits would be immeasurable.

“Could we do something to reduce cognitive decline and delay the onset of dementia?” he asked. “It’s hugely important, because by 2050, 1 in 30 Americans will have dementia.

“If we could delay the onset by even one year, the prevalence of dementia drops by 15 percent down the road. You’re talking about billions of dollars in health care savings.”

Should studies establish definitively that correcting hearing loss decreases the potential for early-onset dementia, we might finally overcome the stigma of hearing loss. Get your hearing tested, get it corrected, and enjoy a longer cognitively active life. Establishing the dangers of uncorrected hearing might even convince private insurers and Medicare that covering the cost of hearing aids is a small price to pay to offset the cost of dementia.

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Katherine Bouton is the author of the new book, “Shouting Won’t Help: Why I — and 50 Million Other Americans — Can’t Hear You,” from which this essay is adapted.

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This post has been revised to reflect the following correction:

Correction: February 12, 2013

An earlier version of this article misstated the location of the Medical College of Wisconsin. It is in Milwaukee, not Madison.

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Maker's Mark lowering proof to meet demand

Makers Mark lowers alcohol proof to meet demand. (WPIX - New York)

Maker's Mark announced it is reducing the amount of alcohol in the spirit to keep pace with rapidly increasing consumer demand.

In an email to its fans, representatives of the brand said the entire bourbon category is "exploding" and demand for Maker's Mark is growing even faster. Some customers have even reported empty shelves in their local stores, it said.

After looking at "all possible solutions," the total alcohol by volume of Maker's Mark is being reduced by 3 percent. Representatives said the change will allow it to maintain the same taste while making sure there's "enough Maker's Mark to go around." It's working to expand its distillery and production capacity, too.

Maker's Mark, made by Deerfield-based Beam Inc., said it's done extensive testing to ensure the same taste. It says bourbon drinkers couldn't tell the difference. It also underscored the fact that nothing else in the production process has changed.

"In other words, we've made sure we didn't screw up your whisky," the note said.

Rob Samuels, chief operating officer and grandson of Maker's Mark Founder Bill Samuels, Sr., said this is a permanent decision that won’t be reversed when demand for bourbon slows down. Samuels said that bourbon has gone from the slowest growing spirits category to the fastest over the last 18 months, driven by growth overseas and demand from younger drinkers. An average bottle of Maker’s Mark takes six and half years to produce from start to finish, and since the company doesn’t buy or trade whiskey, it’s been impossible to keep up. 

The first bottle of Maker's Mark, with its signature red wax closure, was produced in 1958.

Beam is the country's second-largest spirits company by volume. It also makes Jim Beam, Sauza tequila and Pinnacle vodka. It's still dwarfed by industry-leading Diageo, the London-based maker of Smirnoff, Tanqueray, Captain Morgan and Johnnie Walker.

It's a tough time to take a risk with one of its oldest and most popular brands. Beam has promised that 25 percent of sales will come from new products, a difficult goal to attain but a critical one for investor confidence.The move met some backlash on social media sites, where some said they would boycott the bourbon if the company went ahead with its plans.

Many also complained that they'd rather see an increase in its price than a decrease in the alcohol. But observers say that by raising the price, Beam would have hurt itself by positioning Maker's Mark to compete against its own higher end brands like Basil Hayden's.

sbomkamp@tribune.com | Twitter: @SamWillTravel

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Pope Benedict to resign at month's end, cites deteriorating 'strength'

VATICAN CITY -- Pope Benedict shocked the world on Monday by saying he no longer had the mental and physical strength to cope with his ministry, in an announcement that left his aides "incredulous" and will make him the first pontiff to step down since the Middle Ages.

The German-born Pope, 85, admired as a hero by conservative Roman Catholics and viewed with suspicion by liberals, told cardinals in Latin that his strength had deteriorated recently. He will step down on Feb. 28 and the Vatican expects a new Pope to be chosen by the end of March.

Vatican spokesman Father Federico Lombardi said the Pope had not decided to resign because of "difficulties in the papacy" and the move had been a surprise, indicating that even his inner circle was unaware that he was about to quit.

The Pope does not fear schism in the Church after his resignation, the spokesman said.

Cardinal Francis George returned to Chicago from a committee meeting in Rome Sunday, spokeswoman Colleen Dolan said. She said he was just as surprised as she was and would release a statement later today.

The Pope's leadership of 1.2 billion Catholics has been beset by child sexual abuse crises that tarnished the Church, one address in which he upset Muslims and a scandal over the leaking of his private papers by his personal butler.

The pope told the cardinals that in order to govern "...both strength of mind and body are necessary, strength which in the last few months, has deteriorated in me to the extent that I have had to recognise my incapacity to adequately fulfil the ministry entrusted to me.

"For this reason, and well aware of the seriousness of this act, with full freedom I declare that I renounce the ministry of Bishop of Rome, Successor of Saint Peter."

He also referred to "today's world, subject to so many rapid changes and shaken by questions of deep relevance for the life of faith."

The last Pope to resign willingly was Celestine V in 1294 after reigning for only five months, his resignation was known as "the great refusal" and was condemned by the poet Dante in the "Divine Comedy". Gregory XII reluctantly abdicated in 1415 to end a dispute with a rival claimant to the papacy.

'NO OUTSIDE PRESSURE'

Before he was elected Pope, the former Cardinal Joseph Ratzinger was known by such critical epithets as "God's rottweiler" because of his stern stand on theological issues.

But after several years into his new job Benedict showed that he not only did not bite but barely even barked.

In recent months, the pope has looked increasingly frail in public, sometimes being helped to walk by those around him.

Lombardi ruled out depression or uncertainty as being behind the resignation, saying the move was not due to any specific illness, just advancing age.

The Pope had shown "great courage, determination" aware of the "great problems the church faces today", he said, adding the timing may have reflected the Pope's desire to avoid the exhausting rush of Easter engagements.

There was no outside pressure and Benedict took his "personal decision" in the last few months, he added.

Israel's Chief Rabbi praised Benedict's inter-faith outreach and wished him good health. The Archbishop of Canterbury, head of the Anglican Church, said he had learned of the Pope's decision with a heavy heart but complete understanding.

German Chancellor Angela Merkel said the Pope's decision must be respected if he feels he is too weak to carry out his duties. British Prime Minister David Cameron said: "He will be missed as a spiritual leader to millions."

The pontiff would step down from 1900 GMT on Feb. 28, leaving the office vacant until a successor was chosen to Benedict who succeeded John Paul, one of history's most popular pontiffs, the spokesman said.

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