Trends: On-Product Publishing

Australia-based Modern Media Concepts' publication iLove is a 32-page glossy women’s magazine contained within the label of a water bottle. The magazine is the outcome of founder Joanna Wojtalik's University project where she developed the concept of On Product Publishing.
Launched in Australia in February 2006, iLove is available in more than 1200 petrol and convenience stores around Australia. This mini magazine (size: 10cm by 7.5 cm) is pitched at the 18-to 25-year old female readers and has a circulation of about 100,000 a week( The site I got this ‘back of the envelop’ number from calculated this by defining that the company has 2% of the australian bottled water market, making it about 100,000 bottles a week, hence that many issues).
iLove readers love the magazine because they can read it anywhere--it fits into their purse, can be used as a shopping reference to take advantage of deals on-the-spot at leading boutiques and other retailers.
The iLove team produces six editions a month. The founder is quoted as saying “The good thing about water is that it has a shelf life of about a year. Editions can stay out for a long time and readers can just pick a bottle by the cover.” Angelina Jolie and Danii Minogue sell out quickly. Bananarama, it would appear, were pretty much left on the shelf.

As the business and the concept expands, MMC is hoping to licence the concept and collect royalties. They have already found partners in the US and are talking to publishing and beverage groups in Australia and Europe.
You can read more about this new concept that integrates magazine publishing with fast moving consumer goods (FMCG) at onproductpublishing website
iLove site also has a very nice step-by-step illustration that shows how the magazine works.