Coin Machine Review (& Pacific ...)

Issue: 1948 May

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
NOW $89.50
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
it makes a very undesirable tasting ca~dy
and you are buying nine·cent sugar at 20
cents per pound.
When the operator has his machines filled
with a soft-coated candy and the weather
suddenly turns warm and moist, he is really
in trouble and this one loss may wipe out all
he has gained by buying the cheaper candy.
This happens every year and still operators
do not seem to learn.
The facts are that if this weather change
should come just after filling the machines,
it might cause a loss that the operator would
be many months in overcoming.
At this time of year, the operator cannot
be too careful in his choice of quality candy.
He must be sure the coating is hard enough
to withstand weather changes and still have
the proper eating quality. He must also be
watchful of the count per pound so that he
is sure he is not paying 20 cents per pound
for a lot of sugar that is selling for nine
cents or less per pound on the market.
The operator who buys the best quality
candv saves in service calls and enjoys much
bigger sales and profit.
low on per capita consumption of candy,
Kentucky having the lowest per capita rate
of all; Alabama comes next to Kentucky.
Per capita income is low in these states
also, as well as per capita retail sales. But
climate is regarded as the real reason for
low per capita eating of candy. They use
more soft drinks and ice cream and the
competition may reduce per capita candy
sales.
In the report, each state has interesting
data that lead to many comparisons and
questions on reasons why for candy sales.
Candy machine operators raise these ques- '
tions and many more to account for the
variations in candy sales in locations.
NCA collects and tabulates its data in
order to aid manufacturers in planning
their sales programs for the different ter-
ritories, if definite clues to all the markets
can be found.
A Summer Suggestion
By GEORGE F. EBY
Ferrara Candy Co.
Too often the cheaper items prove to be
. very expensive to use in the bulK vending
machine.
There are too many operators who are
price minded when they buy instead of look-
ing for quality items that will sell fast in
their machines.
As an example the difference in profit will
line up something like this. The "A-L" item
costs 25 cents per pound and there are about
1000 pieces to the pound. By giving about
10 pieces for a penny the return will be
about $1.00 per pound. By using this high
quality candy the sales run about $4.00 per
week and the operator has well-satisfied cus-
tomers.
Now let us see what happens when a
cheap item is used in these same machines.
This, item "B," costs about 22 cents per
pound and is much inferior in taste and is
irregular in size, so that, when the machine
is set for the proper portion, the customer
will sometimes get four pieces for a penny
. and sometimes he will get seven pieces.
While the weight of the four pieces may be
the same as the seven, it makes the cus-
tomer wonder. The more they think of it the
less they will buy and, instead of your mao
chines doing $4.00 per week, they drop to
only $2.00 or $2.50 per week.
Novel Birth Announcement
George F. Eby
The operator who is losing sales in that
way had better make a change to a better
grade of candy or nuts because nine chances
out of ten the reason is that. his customers
do not like the kind of candy they are get-
ting.
No manufacturer of candy can operate at
a loss and stay in business . . Everyone must
make a profit, and the fact that he under-
sells the market by five cents per pound
should be a warning that caution should be
the watchword and a very careful examina·
tion of the item should be made before pur·
chase. It is apparent that inferior ingredi-
ents are being used in order to undersell the
market.
The manufacturer of a hard-coated piece
of candy for the vending machine trade has
almost a fixed cost. When this item is offered
too far below the market, you should know
that it either has a soft coating and will not
stand up under varying weather conditions,
or it has such a thicK coating of sugar that
QUALITY
SWEET ' SHELL
CANDIES
FOR BULK VENDORS
approxi mate count
to pound
.
Re~i~~r Pe;i:,ee
Vendors Bake d Bea ns............................................ ........................................ 600
1000
Ra inbow Peanuts .............................................. ............................................ 600
1000
Cinnamon Peanuts .......... .............................................................................. 600
1000
Excel Mix .............. ........................................................................................ 600
1000
Licorice Lozenges ............................ .............................. ................. ............. 550
For 5c Ba r Vendors
5c Boston Baked Beans
In Car tons with Cellophane Window
Fo r samp l es and prices wrlfe fa
:GEORGE F. EBY
FERRARA CANDY CO.~ Inc.
2200· 10 W EST TAYLOR STREET
CHICAGO 12. ILLINOIS
40 Ye ars of Fin e Q ualify Confed lons
52
CHICAGO-Mack Postel, veteran cigar-
ette and candy machine distributor, has
a daughter who is now machine conscious
for when she and her husband announced
the birth of a daughter it read as follows:
Announcing the release of the 1948 model
baby-Cathy Fryer-released March 23rd;
weight, 9 Ibs. ; designer and chief en-
gineer, Martin Fryer; production manager,
Shirley Postel Fryer. SPECIFICATIONS:
Two·lung power, free squealing, water
cooled, latest bawl bearings, economical
feed, changeable seat covers, perfect knee
action, natural airflow. The management
assures the publis: there will be no new
models the coming year.
STONER
UNIVENDOR
CANDY and ASSORTED
MERCHANDISE VENDOR
In The Territory of
OREGON, WASHINGTON
IDAHO, MONT ANA,
BRITISH COLUMBIA and
ALBERT A, CANADA
CONTACT
DISTRICT REPRESENTATIVE
DON H. BURCHAM Co.
917 S.W . Oak Street
Por tland 5, Oregon
ASSOC IATES:
W. E. Ea rl
R. M. Loughrey
917 S.W. Oak St. 2530 Warr en Avenue
Portland 5, Oregon Seattle 9. Washington
COIN M A CHINE REVIEW
d

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