Coin Machine Review (& Pacific ...)

Issue: 1948 May

INGRED IENTS
• • •
The big question in merchandise supply
circles concerns actual price trends since
the commodity price declines in February.
For purposes of the record, the February
decline was the biggest for any comparable
period since shortly after World War I.
But March brought a reversal of down·
ward trends, although at the end of the
month commodity levels were still about
8 per cent below the price level in January.
War agitation at the current time is re-
garded as inflationary and hence the gen-
eral price trend is again upward, or else
holding at high levels.
Spotty breaks in price of some ingredients
are occurring at the present time but price
trends are not yet definite enough to say
that costs of ingredients are on the way
down in sufficient force to bring general
downward trends in merchandise.
The whole price situation is left hang-
ing in the air, awaiting more conclusive
developments in the world situation.
Meanwhile, any promises of price de-
clines in the ingredients field make big
news because the merchandise supply firms
are anxiously watching such developmen ts_
Candy Industry, trade paper for the candy
industry, recently reported having reliable
information that the way is being paved for
cocoa and chocolate prices to start down-
ward. Basis for this expected decline comes
from Congressional circles where it was re-
ported plans were under way to exclude
cocoa from the list of 16 foodstuffs for
which countries getting American aid could
spend American dollars.
U. S. control of export and import trade
of countries getting financial aid is ex-
f
CHICAGO:"-In its report on the candy
manufacturing industry for 1947, the Na-
tional Confectioners Assn. undertakes to
tabulate data so that comparisons can be
made between sales and per capita con-
sumption of candy and also the total retail
sales and per capita income of the various
states.
The actual size of the candy manufactur-
ing industry is left for the data to be
shown by the census of manufacturers now
being taken by the U. S. Census Bureau.
The 1939 census established the total num-
ber of candy manufacturers at 1,252, but
during the days of OPA the number of
firms requesting sugar to make candy stood
at the high figure of 7,500.
In its extensive report on 1946 candy
sales by the Department of Commerce, more
than 400 producers of candy contributed
data. The NCA cooperates each year in
helping to make this survey amon'g its manu- .
facturer members. The month-to-month re-
ports on candy sales issued by the govern-
ment are usually based on reports from
around 280 producers.
.
The official 1946 report gave 101 firms as
making chocolate coated bars and 102 firms
making chocolate bars, and on a poundage
basis bars constituted 53 per cent of total
candy made. These figures will give oper-
ators an idea of how big a part the candy
bar business forms when total industry fig-
ures are given at any time.
In its monthly reports, th,e government
has information from upwards of 30 candy
bar manufacturing firms, including many
of the largest, of course.
.
,
A meflC(J
(See INGR EDIENTS, Page '54)
~
1947 . Candy Production Tops
$930,000,000; 53~o Bars
The current NCA report quotes Dept. of
Labor statistics on number of workers in
candy plants for 1947, putting the figure at
79,500. This was heralded by the industry
as an all-time high and at the same time
there was a shortage of workers in many
plants, particularly skilled workers.
The valuation of the total candy output
for 1947 is put at $930,000,000, apparently
at the wholesale level, and total poundage
reached the high figure of 2,584,000,000
lbs. Per capita consumption of all candies
in the U. S. for 1947 is 18 lbs.
By comparison with other food manufac-
turing industries, tn 1947 the candy manu-
facturers stood fourth largest in number of
people employed and eighth largest in terms
of dollar sales.
Other data in the NCA report is based
on candy sales in 1946. Last year was more
than half gone when the final report on
candy sales for 1946 was issued by the gov-
ernment, in cooperation with NCA, and it is
assumed that the complete report on 1947
sales will come about mid-1948.
NCA has emphasized ingredients used in
candy, in its vast educational program, and
the current report contains some data on
use and percentage cost of the most impor-
tant ingredients in candy. NCA has used
the ingredients picture for a double pur-
pose, to prove the value of candy as a food
and also to show reasons why costs of pro-
duction have advanced so much. NCA has
taken an active part in trying to get a
reduction in price of edible peanuts used
in making candy.
In 1944 sugar constituted 34.4 per cent
S
~ powerfully
m~dvertised b(Jrs
I-
.,
:50
Co.
RAD IO -
Dav id Hard ing
" COUNTERSPY "
ABC NETWORK
Every Sunda y
5:30 P. M. EST.
Billions of
BOOK MATCHES
Distri bu ted Na ti o na lly
Smashing
4-Co lor Ads in
LOOK Maga zi ne
RADIO SPOT
ANNOUNCEMENTS
in Princi pal Markets
Full -color a ds
in po pular
COMIC BOOKS
Millions of
BOOK MARk S
Distributed to
School Children
COIN MACHINE REVIEW
d
by weight and 22 per cent of cost of candy
made. Corn products made up 24.6 per
cent by weight and 10 per cent in cost;
cocoa" products made up 15 per cent by
weight and 26 per cent in cost; milk and
dairy products made up 14 per cent in
weight and 11 per cent in cost; peanuts
and other nuts made up 8.5 per cent in
weight and 24 per cent in cost; fats, oils
and other minor ingredients made up about
4 per cent in weight and about 7 per cent
in cost. Fractional points in the tabula·
tion have been converted to whole num-
bers in this report.
High cost of chocolate and of peanuts
shows up in the tabulation of ingredients
by rank. Use of corn products was increas-
ing at th e time, as a substitute for sugar,
and soybean products are also being sub-
stituted for corn.
To show use of farm products by the
candy industry, the NCA report says beet
sugar used had a value of $16,470,000, re-
quiring the production of over 95,000 acres
of farm land. Corn products used had a
; value of $27,200,000, requiring the produc-
tion from about 950,000 acres. Peanuts
used in candy had a value of $68,682,000,
requiring the yearly production of about
525,000 acres of southern farmland_
The state-by-state breakdown in the
NCA report undertakes to throw more
light on the puzzling question of why candy
sales and consumption per capita vary so
much in different sections. The data will
not solve the question of wide variations
that show up in vending machine locations,
but operators will find interesting facts in
the national picture.
Utah surprised the candy industry by com-
ing up with the highest per capita consump-
tion in the 1946 survey. The NCA report
compares this high candy consumption rate
with the per capita income and the total
retail sales and per capita spending in the
state. This same plan is followed in the
report for all the 48 states.
Taking Utah with the highest per capita
candy consumption (34.2 lbs. per person),
the state ranks 30th in per capita income,
39th in total retail trade, and 29th in per
capita retail trade. So, it would not be its
rank for retail trade nor the earning power
of its citizens that give it first place in per
capita candy consumption.
Climate has a lot to do with candy eat-
ing and also the section, but Arizona ranks
41st in per capita consumption and New
Mexico in 15th place. Nevada, however,
takes 3rd place in per capita use of candy.
These are all states with relatively small
population, and age or working habits may
hold the secret. They are not industrial
areas, where it might be supposed that per
capita use of candy would be highest.
The above figures apply to all kinds of
candy. In the candy bar field the picture
changes considerably. Packaged and other
kinds of. candy sell better in Utah than
candy bar's on basis of total sales for the
state. While in industrial states like New
York and Pennsylvania bar goods sales
rank hig!l above any other type of candy.
Previous reports have shown that con-
centrated candy sales also coincide with the
candy manufacturing states.
In New York, bar goods in 1946 marked
up total sales of $32,123,000, while the
state total for all kinds of candy, including
bars, was $78,974,000, New York ranks
12th on a per capita basis for eating candy,
holds first place for total retail sales and
second place for per capita income.
In territories like New York State the
question will naturally be raised as to what
YENDALL
CANDY
MERCHANDISERS
'}ellful* ilt 9
31 SHELF CAPACITY
COLUMNS
For Fastest Selling Candy
AUTOMATIC ROTATION
OF MERCHANDISE
Close-Out Sale
No Bar Shifting
BRAND NEW 1947 MODEL
ALSO
5c VENDIT
CANDY BAR VENDORS
WITH BASE
l SD-bar <:apa<:;ty . •• Super-sele<:tive
•.. In original crates .
part other products play in cutting the per
capita use of candy. In states like New
York the competition of soft drinks, ice
cream and many other items with candy
is quite evident. Such competition is not
assumed to be so keen.in Utah, because the
big national concerns do not push so much
for business in Utah. -
The present NCA report does not take
into account the bearing of population, age,
employment and other conditions on candy
consumption, a field that government agen-
cies are now exploring. In the NCA report
there does seem to be some relation be-
tween per capita spending for goods in
general and per capita spending for candy_
In Ohio, for example, the rank is 24th
on per capita retail sales and 26th on per
capita candy consumption. Ohio ranks 13th
on per capita income and fifth on total
store sales.
The southern states naturally show up
Model D-5
Prompt Delivery
on the 8 Column
168 Shelf Capacity
YENDALL
$115
F. O.B . Chi<:ago
Base Extra
Shelf Capacity 107
Only 17" Wide
Weighs 85 Pounds
PROVEN MECHANICAL PERFORMANCE·
REGULAR PRICE $169_50
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F_O. B. Los Angeles
C. A. ROBINSON & CO.
2303 West Pi<:o Blvd .
LOS ANGELES 6. CALIF.
FAirfax 5951
Phones : FEderal 1810 -
MAY, 194 8
YENDALL COMPANY
2323 Wolfram
Chicago 18. 111_
Phone Humboldt 6600
51

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