After much speculation, CEO Kilar to leave Hulu

(Reuters) – Hulu Chief Executive Jason Kilar will leave the streaming TV company this quarter, he wrote in a blog post on the company’s website on Friday, raising more questions about its future path under multiple owners.

Kilar has long been rumored to be exiting the company as it faces stiff competition from Netflix Inc, Amazon.com Inc as well as Google Inc and Apple Inc.

Hulu chief technology officer Rich Tom is also leaving, according to the post.

Kilar gave no reason for his departure or indicate his future plans. Hulu did not name a replacement for the executives.

Kilar, Hulu CEO since July 2007, last year steered the company to $ 700 million in revenue and grew subscribers to 3 million. More than 200,000 new subscribers have signed up with the service in the last seven days, he noted.

“My decision to depart has been one of the toughest I’ve ever made,” Kilar wrote. “The things that have clearly brought the most joy to my heart (and what I believe to be the most important inputs in our business) have been this team and the values and principles we hold dear.”

Still, the popular service, which started primarily as a free site for people to catch up on television shows they might have missed, has had a rocky path over the last five years.

Part of the problem stems from its complicated ownership structure involving media conglomerates Walt Disney Co, News Corp and Comcast NBC Universal, and how much content each should make available to Hulu.

The owners face a dilemma: The success of Hulu could potentially eat away at the lucrative business of getting cable companies to pay for programming. Furthermore, it is now building out its own stable of original content exclusive to Hulu.

Disney CEO Bob Iger said in a statement that Kilar had been “an integral part of the Hulu story, transforming it from an interesting idea into an innovative business model that continues to evolve… We appreciate what he’s built, and we share his confidence in his team’s ability to drive Hulu forward from here.”

A statement from News Corp CEO Rupert Murdoch said Kilar had helped build Hulu into one of the leading online video services and called the company “incredibly well positioned for the road ahead.”

BTIG analyst Richard Greenfield expects News Corp’s Fox to buy out its partners in the venture this year.

“With full ownership of Hulu, FOX accelerates Hulu‘s push into original programming and explores adding cable network content to create a virtual MVPD (multichannel video programmer distributor) service,” Greenfield said in a January 3 research note.

Comcast, the third partner in the venture declined to comment on Kilar’s departure. Unlike Disney and News Corp, Comcast does not have any management control of Hulu, which was a regulatory condition related to its acquisition of NBC Universal in 2011.

Hulu put itself on the block in 2011 with suitors including Google, Amazon, DirecTV Group and Dish Network Corp, Reuters reported at the time. Talks collapsed over the price of the deal.

Private equity firm Providence Equity Partners said in October last year that it had sold its 10 percent stake in Hulu to the remaining owners.

Kilar’s name surfaced as a potential candidate for the top job at Yahoo Inc after Scott Thompson resigned last year but Kilar removed himself from consideration.

(Reporting By Jennifer Saba and Liana Baker in New York; Editing by Gunna Dickson and Tim Dobbyn)

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'McDreamy' says he beat Starbucks for coffee chain

SEATTLE (AP) — "Grey's Anatomy" star Patrick Dempsey may be the real "McSteamy."

The actor, who was dubbed "McDreamy" as a star of the hospital drama while his co-star was called "McSteamy," may soon be serving hot, steaming cups of Joe.

Dempsey won a bankruptcy auction to buy Tully's Coffee, a small coffee chain based in Seattle. Among those he beat out is Tully's much bigger Seattle neighbor, Starbucks Corp., which is known for its ubiquitous white cups with a circular green mermaid logo.

Dempsey, whose company Global Baristas LLC plans to keep the Tully's name, declared victory on the social media site Twitter: "We met the green monster, looked her in the eye, and...SHE BLINKED! We got it! Thank you Seattle!

The win for Dempsey deals a rare setback for Starbucks on its home turf. Starbucks has long been both praised for bringing "coffeehouse culture" to the U.S. and criticized for crushing smaller chains. The coffee giant, which had planned to convert the Tully's cafes to its own brand, last month announced plans to expand its global footprint to 20,000 cafes over the next two years, up from the current 18,000.

Dempsey said in an interview on Friday that as the underdog in Seattle, Tully's will need to find its identity.

"It's a much smaller chain that has a lot of potential that hasn't been given the proper care," he said.

But in a statement shortly after the auction on Thursday, Starbucks insinuated that Dempsey shouldn't celebrate just yet.

Starbucks, which wanted to convert the Tully's cafes to its own brand, said that a final determination on the winning bid won't be made until a court hearing on Jan. 11. Starbucks said it's in a "backup" position" to buy 25 of the 47 Tully's cafes, with another undisclosed bidder making an offer for the remainder.

The combined bids of Starbucks and the undisclosed bidder come to $10.6 million, above the $9.2 million Dempsey's company is offering to pay through his company, which was formed in order to purchase Tully's. The other investors in Global Baristas aren't being disclosed.

Tully's Coffee, which is known for serving Joe with a milder taste than Starbucks brand, filed for Chapter 11 bankruptcy protection in October, citing lease obligations and underperforming stores. Tully's wholesale business, which includes Tully's Coffee in bags and single serve K-cup packs that are sold in supermarkets and other stores, is owned separately by Green Mountain Coffee Roasters Inc.

TC Global Inc., the parent company of Tully's, said in a release Friday that it was "encouraged and excited" about Dempsey's commitment to the chain.

Tully's President and CEO Scott Pearson called the deal a "great match" and that the goal is to make sure creditors get paid and to keep as many people employed as possible.

A bankruptcy court document signed late Friday by Pearson and Dempsey said TC Global had determined that Global Baristas submitted the successful bid.

"With this court filing, it's official - our group has been chosen as the successful bidder," Dempsey said in a statement. "We look forward to the court's final approval on Jan. 11."

Earlier in the day, Dempsey said he planned to be very involved in the running of the company, adding that the immediate challenges were to address bookkeeping issues, staff morale and sprucing up the coffee shops. Once the business is stabilized, Dempsey said the long-term goal would be to take the chain national.

"We can pull this off. We just have to take steps that are slow and smart," he said. "I'm going to get behind the counter. I'm going to serve coffee...I'm going to give the company a boost of energy."

Although Dempsey lives in Los Angeles, he plans to spend more time in Seattle, the city where "Grey's Anatomy" is set in. Dempsey said he believed there is room in the city for Tully's and the much larger Starbucks; he noted there might be people who are rooting for the underdog.

"In a society where there are so many big corporations that swallow the little guy, we thought, let's not let this happen to this company," he said.

Dempsey made an appearance Friday morning at a Tully's near Pike Place Market, shaking hands with workers and greeting customers before visiting other stores. Several dozen people, mostly women, came into the store.

Patrease Estelle, 45, works nearby, and came in with a small group from her office.

"I will take whatever I can get. A photo, a hug, a 'hey, how you doing,' a wink," said Estelle, who got a picture and handshake with the actor.

___

Blankinship reported from Seattle and Choi from New York.

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Pregnancy Centers Gain Influence in Anti-Abortion Fight

Brandon Thibodeaux for The New York Times

Amber Jupe, right, attended a session conducted by Margo Shanks at a Care Net facility; the program addressed signs of fetal alcohol syndrome.

WACO, Tex. — With free pregnancy tests and ultrasounds, along with diapers, parenting classes and even temporary housing, pregnancy centers are playing an increasingly influential role in the anti-abortion movement. While most attention has focused on scores of new state laws restricting abortion, the centers have been growing in numbers and gaining state financing and support.

Largely run by conservative Christians, the centers say they offer what Roland Warren, head of Care Net, one of the largest pregnancy center organizations, described as “a compassionate approach to this issue.”

As they expand, they are adding on-call or on-site medical personnel and employing sophisticated strategies to attract women, including Internet search optimization and mobile units near Planned Parenthood clinics.

“They’re really the darlings of the pro-life movement,” said Jeanneane Maxon, vice president for external affairs at Americans United for Life, an anti-abortion group. “That ground level, one-on-one, reaching-the-woman-where-she’s-at approach.”

Pregnancy centers, while not new, now number about 2,500, compared with about 1,800 abortion providers. Ms. Maxon estimated that the centers see about a million clients annually, with another million attending abstinence and other programs. Abortion rights advocates have long called some of their approaches deceptive or manipulative. Medical and other experts say some dispense scientifically flawed information, exaggerating abortion’s risks.

Jean Schroedel, a Claremont Graduate University politics professor, said that “there are some positive aspects” to centers, but that “things pregnant women are told at many of these centers, some of it is really factually suspect.”

The centers defend their practices and information. “Women who come in are constantly telling us, ‘Abortion seems to be my only alternative and I think that’s the best thing to do,’ ” said Peggy Hartshorn, president of Heartbeat International, which she described as a “Christ-centered” organization with 1,100 affiliates. “Centers provide women with the whole choice.”

One pregnant woman, Nasya Dotie, 21, single, worried about finishing college and disappointing her parents, said she was “almost positive I was going to have an abortion.”

A friend at her Christian university suggested visiting Care Net of Central Texas. She met with a counselor, went home and considered her options. She returned for an ultrasound, and though planning not to look at the screen, when a clinician offered, she agreed. Then, “I was like, ‘That’s my baby. I can’t not have him.’ ”

Thirteen states now provide some direct financing; 27 offer “Choose Life” license plates, the proceeds from which aid centers. In 2011, Texas increased financing for the centers while cutting family planning money by two-thirds, and required abortion clinics to provide names of centers at least 24 hours before performing abortions. In South Dakota, a 2011 law being challenged by Planned Parenthood requires pregnancy center visits before abortions.

Cities like Austin, Baltimore and New York have tried regulating centers with ordinances requiring them to post signs stating that they do not provide abortions or contraceptives, and disclosing whether medical professionals are on-site. Except for San Francisco’s, the laws were blocked by courts or softened after centers sued claiming free speech violations. Similar bills in five states floundered. Most legal challenges to “Choose Life” license plates failed, although a North Carolina court said alternate views must be offered.

Some observers say harsh anti-abortion statements from the 2012 elections may also benefit pregnancy centers.

“Do you want some individual politician talking about rape, or some woman who says, ‘I care about you’?” Dr. Schroedel said.

Conservatives like Rick Santorum, during his presidential campaign, and the Texas governor, Rick Perry, have praised pregnancy centers.

Some centers use controversial materials stating that abortion may increase the risk of breast cancer. A brochure issued by Care Net’s national organization, for example, says, “A number of reliable studies have concluded that there is an association between abortion and later development of breast cancer.”

Dr. Otis Brawley, the American Cancer Society’s chief medical officer, who calls himself a “pro-life Catholic,” said studies showing abortion-breast cancer links are “very weak,” while strong studies find no correlation.

Other claims include long-term psychological effects. The Care Net brochure says that “many women experience initial relief,” but that “women should be informed that abortion significantly increases risk for” clinical depression, suicidal thoughts and behavior, post-traumatic stress disorder and other problems. An American Psychological Association report found no increased risk from one abortion.

With largely volunteer staffs and donations from mostly Christian sources, centers usually offer free tests and ultrasounds, services that clinics like Planned Parenthood charge for. They offer advice about baby-rearing or adoption, ask if women are being pressured to abort, and give technical descriptions of abortion and fetal development. Many offer prayer and Bible study.

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Can CEO Meg Whitman save Hewlett-Packard?

SAN FRANCISCO — Had things gone differently, Meg Whitman might today be governor of California, fighting to turn around one of the country's most financially troubled state governments.

Instead, having lost her bid for that office in November 2010, she finds herself head of Hewlett-Packard Co., struggling to fix one of the high-tech industry's most troubled giants.

Save HP or California. It's hard to say which is the tougher job.

It sometimes seems as if just about everything that could go wrong at HP has gone wrong in recent years. HP went from being a high-tech juggernaut three years earlier to a company in steep decline, a trajectory that Whitman inherited in September 2011 and so far has been able to slow, but not stop.

"It's a huge company," said Jayson Noland, an analyst at R.W. Baird & Co. "And they are not clicking at all right now."

Just when it seemed every possible shoe had dropped, HP announced in November that it had uncovered what it contended was massive accounting fraud at Autonomy, a British software company it acquired in 2011.

In turning over evidence to U.S. and British regulators, Whitman has triggered a war of words with Autonomy's brash founder and a fresh round of lawsuits from shareholders who have watched their investment continue to hit once unthinkable lows.

Even as the unfolding legal drama threatens to become a distraction, Whitman insists that she has every intention of staying at HP's helm for the next few years, which is what she believes it will take to restore this Silicon Valley icon to greatness.

"I knew this turnaround was not a one- to two-year program," Whitman said. "Even before I took this job, I knew it was a bigger undertaking."

Sitting in a conference room at HP's Palo Alto headquarters during a recent interview, Whitman seemed to wear lightly the burden of representing the hopes that better days lie ahead for the company's 331,800 employees. She managed to laugh and smile at times while also delivering detailed responses displaying a technical grasp of HP's massive product line and a staunch defense of her decisions and vision for the company.

For the moment, Whitman, 56, also seems to be remarkably comfortable sitting in a place she could have never imagined being two years ago, after the state's voters delivered an underwhelming verdict on her quest to become governor.

"It was not part of my plan," she said. "I said many times my last CEO job was going to be EBay."

Despite spending millions of dollars on her failed gubernatorial campaign, Whitman's stint as chief executive of EBay Inc. from 1998 to 2008 had left her wealthy, and there remained plenty of goodwill toward her in Silicon Valley. She seemed headed toward the role of elder stateswoman, becoming a part-time advisor at the prestigious venture firm Kleiner Perkins Caufield & Byers and joining corporate boards such as Procter & Gamble and Zipcar.

In January 2011, Whitman was asked to join the board at HP. Nine months later, the company fired Chief Executive Leo Apotheker. He had been running HP for less than 11 months following the departure of former CEO Mark Hurd, who resigned after a female contract employee accused him of sexual harassment.

Seeking a steadier hand, the board turned to Whitman.

"I thought I could make a difference," Whitman said. "But I thought about it long and hard, because it was a big commitment."

The list of problems she inherited was daunting.

Amid the CEO turmoil, HP, one of the largest makers of personal computers in the world, was forced to abandon its TouchPad tablet — developed in response to Apple Inc.'s iPad — when the device failed to catch on with consumers. HP's hardware sales suffered as customers shifted to cloud-based services. And although it had made some massive acquisitions, such as Palm and EDS, both companies experienced problems that resulted in billions of dollars in write-downs.

Then HP faced a backlash over its announcements in August 2011 that it was considering selling its PC business and that it was buying Autonomy for the steep price of $11 billion, controversies that helped lead to Apotheker's ouster a month later.

What happened after Whitman took charge at HP seemed remarkable to those who followed her gubernatorial campaign. Criticized for being aloof and remote during her run for governor, a narrative she says was untrue, Whitman was suddenly everywhere — talking on CNBC, granting numerous interviews. She appeared relaxed, personable, confident. Here, suddenly, was the real Meg Whitman that her friends and supporters insisted that California voters didn't get a chance to see during the campaign.

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Youngest Holocaust survivors look to next generation

She was an orphan, a 14-year-old Jewish girl, when she went to the Berlin train station on a summer day in 1939, leaving behind all that she had ever known.

She had already experienced loss: her parents claimed by illness, her brother taken by the Nazis. Now Dora Gostynski was about to get on a train that would take her and hundreds of other Jewish children to safety — but they had to go without the comfort of their parents.

She remembered the other children's sobs as they embraced their parents, who had made the agonizing decision to give their children a chance at life, even if meant never seeing them again. And she remembered the parents who relented when their child didn't want to leave them. They walked away from the train station, and back into a world of danger.

"There was like an ocean of people and an ocean of tears," she said.

She was escaping Nazi Germany through the rescue mission Kindertransport, which carried about 10,000 youths to Britain and elsewhere for shelter during the Holocaust. Many — more than 60%, according to various estimates — never saw their parents again.

As they grew older, they sought out one another, drawn by a wrenching, shared experience. They founded the Kindertransport Assn., and kinder from around the world have gathered every other year for the last two decades.

The kinder are among the youngest Holocaust survivors, yet even they are now mostly in their 80s, a group thinned by the passing years. With each gathering, there are whispers that it could be the last.

At the most recent gathering, in an Irvine hotel, a much older Dora recalled the train station on that day more than 73 years ago. She recognized one of her classmates, a girl named Fritzy Hacker. Fritzy's mother hugged each of the girls tightly before they boarded the train together. "She said goodbye to the two of us like she was my mother too," she said.

But Dora couldn't stop thinking about her sister, Ida. They had applied for the Kindertransport mission together. But as they waited for word to arrive, her sister had turned 17. She missed being able to qualify by two months.

As the train chugged toward the Dutch border, she and Fritzy told themselves they were going on a field trip. The other passengers wept. She thought of her sister. She didn't know if she would ever see her again.

::

Dora — now Doris Small — is 89, and a mother, grandmother and great-grandmother. She was one of the remaining kinder who had come to share their stories of survival with one another and their children in the hopes that their history isn't forgotten after they are gone.

"My generation is dying off," said Michael Wolff, who at 76 is one of the youngest. He was 2 when his mother handed him over to a teenage girl to carry him to Scotland. When his father visited him months later, he did not recognize him.

The conference in Irvine represented a passing of a torch to the survivors' children and grandchildren to maintain the Kindertransport story. The gathering drew three dozen survivors, and for the first time, the gathering was organized by the second generation — "KT2," as they are called. More than half of those attending were the survivors' children, grandchildren and even great-grandchildren.

The conference reflected the push to connect generations, with sessions on writing memoirs and ethical wills and conversations in which moderators prompted open dialogue after years of silence. It was time for their children — and the world — to know their legacy.

"This is a story of survivors," said Wolff's son, Jeffrey, who was the conference chairman. He said they are "strong characters because they had to adjust, they had to adapt, they had to survive."

They were linked by traumatic experience, but the gathering, in some ways, had the feel of a high school reunion.

They reconnected with people they hadn't seen since they were children. The kinder and their children walked around with scrapbooks, flipping through pages of black and white photos hoping to identify the other children on their ship.

There was also a message board, where the kinder and their descendants left notes in hopes of finding others on the same voyage or track down those they haven't heard from since the war.

Did anyone stay in Cornwall during war and after in orphanage/hostel? Pls contact Linda

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This Is Anderson Cooper with Bird Poop on His Face

We realize there’s only so much time one can spend in a day watching new trailers, viral video clips, and shaky cell phone footage of people arguing on live television. This is why every day The Atlantic Wire highlights the videos that truly earn your five minutes (or less) of attention. Today:  

RELATED: Yes, Someone Turned Their Dead Cat Into a Helicopter

We have some terrible news for you today: Anderson Cooper has imperfections. Weird, right? We always thought Cooper was Elvish or some otherworldly being created for the tears of stars and moonbeams, but, guys, he’s totally human. And he has under-eye bags and he’s totally unafraid to smear bird feces on them to make them go away. This is a bad sign for regular humans with regular, un-Cooper-like people problems:

RELATED: ‘Morgan Freeman’ Reads ’50 Shades’; The Science of Orgasms

RELATED: Stephenie Meyer’s Dreams Are Worth $ 750 Million Per Hour

This video will make you wish adopting parents was a thing:

RELATED: Stop-Motion Guacamole Making; Robots Will Replace Our Caricaturists

RELATED: Your Brain on Love; Whit Stillman Waited 14 Years to Make a Movie About College

This one will make you wish the same thing about grandparents: 

Rule No. 32928 of the world: Fireworks are totally awesome and spectacular and are even more awesome and spectacular in reverse. 

And finally, here are some facts that will blow your mind … or, more likely, elicit weird looks at that cocktail party you were invited to:

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Missing dog mystery is on Mass. author's mind

BROOKLINE, Mass. (AP) — There's a new mystery on Dennis Lehane's mind, but the story isn't something the best-selling author can control from behind a keyboard.

The plot kicked off Christmas Eve, when the crime novelist's rescue beagle Tessa escaped from his yard after an outdoor gate latch didn't lock all the way.

Since then, Lehane's family has launched an all-out search. They've posted fliers, organized foot searches and used social media to try to bring Tessa back to their home in Brookline, Mass., near Boston.

The 47-year-old author of books including "Mystic River" and "Gone, Baby, Gone" is offering a monetary reward and has said he'll name a character in his next book after whoever finds Tessa.

Lehane said Thursday outside his home that he's surprised by the media attention the story has attracted, and thinks it has something to do with the character offer.

But he said as word of the missing dog spread, his family has heard from people across the country on a "Finding Tessa" Facebook page. They even got an offer of help from a dog psychic in San Francisco.

"No dog since Lassie ever got this attention ... the flip side of the comedy is, who wouldn't do this for their dog?" he said.

The doggie dilemma comes as Lehane faces a Friday deadline for finishing a movie script based on his short story "Animal Rescue," timing he said may be "sadistic irony." The movie is scheduled to begin shooting in March in New York City.

The author said he's been spending about four hours a day searching for the tri-colored female beagle after he finishes writing, and his wife has dedicated about 10 hours a day to the effort.

They adopted the 4-year-old beagle not long ago from a Florida rescue agency. Before that, Tessa was a stray in Georgia.

With the help of Twitter and Facebook accounts, Lehane and his wife organized two search efforts Thursday in sections of Brookline and Boston, where they suspect Tessa could be. In the beginning, there were three sightings within about two miles of their home not long after a house sitter reported that the dog was loose.

But the trail went cold for days after a sighting near a McDonald's restaurant. Tessa wasn't wearing tags, but does have a microchip.

"Every dog expert we talk to is strongly suggesting that she's in somebody's house," Lehane said. "That's why we keep saturating the area with pictures. Because somebody could have her and just not know."

Missing dog posters dotted the family's Coolidge Corner neighborhood Thursday, including in the front windows at Durty Harry's dog grooming shop where Tessa is a client. Shop owner Michelle Fournier said interest in the search took off even before people knew Tessa had a famous owner.

"This is about a dog and her family. This is about a community who loves dogs," she said.

Lehane said Thursday that Tessa is so sweet that she'd taken to spooning the family's puppy before her disappearance. He said if someone knows where Tessa is, he only cares about a happy ending, not about solving the mystery of where she's been.

"It's a no-questions-asked issue," the author said. "... Bring the dog to a shelter or call me and I will pick up the dog."

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Scant Proof Is Found to Back Up Claims by Energy Drinks

Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.

Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.

The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.

“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.

Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.

Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.

As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.

Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.

“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”

A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.

In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.

Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.

Consider the case of taurine, an additive used in most energy products.

On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.

But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.

Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.

Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.

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Retail sales rise 4.5% in December; merchants say discounts hurt

Wary holiday shoppers forced retailers to heavily discount items during December, ultimately handing merchants decent sales but raising worries about consumer spending in the new year.

After wooing bargain hunters in December by cutting prices, major retailers such as Macy's Inc., Target Corp. and J.C. Penney Co. lowered their profit expectations for the fourth quarter, warning that steep markdowns may eat into year-end results.

Along Colorado Boulevard in Old Town Pasadena, shoppers said they controlled their budgets during the holidays and planned to take a break from spending in the new year.

"We budgeted $600 for all our family and friends, and we stuck with that," said Wendy Estrada, 33, of Pasadena. "It wasn't the right time to go over the top."

However, Estrada, an admissions officer for a culinary school, had just picked up a $65 pair of tan heels for herself, part of a post-Christmas splurge using gift cards she'd received. But after those are used up, "I'm done until Valentine's Day," she said.

In December, many shoppers were weary of spending during Black Friday sales after Thanksgiving and were focused instead on the "fiscal cliff" debate and the school shooting tragedy in Newtown, Conn., analysts said. As a result, many merchants slashed prices in a last-ditch effort to entice people through their doors.

"The surge in sales we saw was driven by a spike in promotions by retailers, which really helped salvage sales at the back end from the Saturday before Christmas up through New Year's," Ken Perkins of Retail Metrics Inc. said. "A lot of consumers were looking for value."

Major chain stores posted an overall 4.5% sales increase in December compared with the same month a year earlier, beating analysts' expectations of a 3.3% rise. according to Thomson Reuters' tally of 17 retailers.

Top performers were a mixture of high- and low-end stores. Costco Wholesale Corp. led the way with a 9% bump, while upscale department store chain Nordstrom Inc. reported an 8.6% jump. Off-price retailers Ross Stores Inc. and TJX Cos. both said sales rose 6%.

Other retailers did not fare as well. Struggling teen clothier Wet Seal Inc. said sales fell 9.7%, while action-sports retailer Zumiez Inc. reported a 1% slump. Target said sales were flat.

Results were based on sales at stores open at least a year, known as same-store sales and considered an important measure of a retailer's health because it excludes the effect of store openings and closings.

Analysts noted that some retailers sacrificed profit by aggressively marking down merchandise to draw people into stores. Strong sales did not always translate into a blockbuster holiday season.

Macy's, which reported a 4.1% jump in sales, lowered its fourth-quarter earnings guidance and separately announced that it planned to close six underperforming stores nationwide, including one on Paseo Colorado in Pasadena.

Macy's Chief Executive Terry J. Lundgren said December growth "was somewhat less than we had expected."

"It came amid significant head winds from uncertain economic news and the lingering effects of Hurricane Sandy," he said in a statement Thursday.

Kevin Mansell, chief executive of Kohl's Corp., described sales in December as "lower than planned." The chain saw a 3.4% jump.

"Sales came in late in the holiday shopping season and, as a result, were at deeper discounts than planned," he said, adding that more markdowns were planned to clear out inventory before spring.

The mixed showing during the crucial holiday season indicates that shoppers have not completely shaken off worries about the economy, industry watchers say. The last-minute maneuvering over the looming "fiscal cliff" convinced some consumers that they should hold on to their dollars.

"If even Target can't get positive sales, that shows you it's a pretty tough environment," said Britt Beemer, a retail expert at America's Research Group. "When it's all said and done, it was a pretty lackluster holiday and it was a nail-biter."

Merchants are now settling into the usual post-holiday lull, with many lowering prices even further to clear inventory and prepare for the next spike in consumer spending, typically before Easter.

Going forward, industry watchers predict that 2013 will be much like last year — a time of slow growth as the economy gradually mends and shoppers find a more stable footing with their personal finances.

For retailers, the fight will continue for more discerning and picky shoppers, said Michael Brown, a partner in the retail practice at consulting firm A.T. Kearney.

"We are not seeing a period of aggressive growth where that tide is lifting all retailers," he said. "It's going to be a highly competitive environment where retailers have got to work hard to get consumers into stores."

Browsing in Old Town Pasadena, shopper Teresa Overing, 50, was feeling confident that the economy was back on track. Overing, a Pasadena human resources manager, said there was nothing in particular brightening her outlook, just a general feeling that things are finally turning around.

"In spite of all the news, I'm more optimistic," she said. "Maybe it's the new year and the nice weather."

shan.li@latimes.com

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Bieber urges crackdown on paparazzi after photographer's death

Justin Bieber and his collection of exotic cars have been tantalizing targets for celebrity photographers ever since the young singer got his driver's license.

A video captured the paparazzi chasing Bieber through Westside traffic in November. When Bieber's white Ferrari stops at an intersection, the video shows the singer turning to one of the photographers and asking: "How do your parents feel about what you do?"

A few months earlier, he was at the wheel of his Fisker sports car when a California Highway Patrol officer pulled him over for driving at high speeds while trying to outrun a paparazzo.

This pursuit for the perfect shot took a fatal turn Tuesday when a photographer was hit by an SUV on Sepulveda Boulevard after taking photos of Bieber's Ferrari. And the singer now finds himself at the center of the familiar debate about free speech and the aggressive tactics of the paparazzi.

Since Princess Diana's fatal accident in Paris in 1997 while being pursued by photographers, California politicians have tried crafting laws that curb paparazzi behavior. But some of those laws are rarely used, and attorneys have challenged the constitutionality of others.

On Wednesday, Bieber went on the offensive, calling on lawmakers to crack down.

"Hopefully this tragedy will finally inspire meaningful legislation and whatever other necessary steps to protect the lives and safety of celebrities, police officers, innocent public bystanders and the photographers themselves," he said in a statement.

It remained unclear if any legislators would take up his call. But Bieber did get some support from another paparazzi target, singer Miley Cyrus.

She wrote on Twitter that she hoped the accident "brings on some changes in '13 Paparazzi are dangerous!"

Last year, a Los Angeles County Superior Court judge threw out charges related to a first-of-its-kind anti-paparazzi law in a case involving Bieber being chased on the 101 Freeway by photographer Paul Raef. Passed in 2010, the law created punishments for paparazzi who drove dangerously to obtain images.

But the judge said the law violated 1st Amendment protections by overreaching and potentially affecting such people as wedding photographers or photographers speeding to a location where a celebrity was present.

The L.A. city attorney's office is now appealing that decision.

Raef's attorney, Dmitry Gorin, said new anti-paparazzi laws are unnecessary.

"There are plenty of other laws on the books to deal with these issues. There is always a rush to create a new paparazzi law every time something happens," he said. "Any new law on the paparazzi is going to run smack into the 1st Amendment. Truth is, most conduct is covered by existing laws. A lot of this is done for publicity."

Coroner's officials have not identified the photographer because they have not reached the next of kin. However, his girlfriend, Frances Merto, and another photographer identified him as Chris Guerra.

The incident took place on Sepulveda Boulevard near Getty Center Drive shortly before 6 p.m. Tuesday. A friend of Bieber was driving the sports car when it was pulled over on the 405 Freeway by the California Highway Patrol. The photographer arrived near the scene on Sepulveda, left his car and crossed the street to take photos. Sources familiar with the investigation said the CHP told him to leave the area. As he was returning to his vehicle, he was hit by the SUV.

Law enforcement sources said Wednesday that it was unlikely charges would be filed against the driver of the SUV that hit the photographer.

Veteran paparazzo Frank Griffin took issue with the criticism being directed at the photographer as well as other paparazzi.

"What's the difference between our guy who got killed under those circumstances and the war photographer who steps on a land mine in Afghanistan and blows himself to pieces because he wanted the photograph on the other side of road?" said Griffin, who co-owns the photo agency Griffin-Bauer.

"The only difference is the subject matter. One is a celebrity and the other is a battle. Both young men have left behind mothers and fathers grieving and there's no greater sadness in this world than parents who have to bury their children."

Others, however, said the death focuses attention on the safety issues involving paparazzi

"The paparazzi are increasingly reckless and dangerous. The greater the demand, the greater the incentive to do whatever it takes to get the image," said Blair Berk, a Los Angeles attorney who has represented numerous celebrities. "The issue here isn't vanity and nuisance, it's safety."

richard.winton@latimes.com

andrew.blankstein@latimes.com

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