Coin Machine Review (& Pacific ...)

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husiness picture says the bottom may fall
from under farm products in the next few
months, bringing a complete price crash for
business as a whole. That would mean
cheaper merchandise for operators but it
would also hurt sales in general until the
country recovered from the crash.
Price·cutting evils will be mentioned
more often during the rest of the year-
may become a big issue in most lines of
merchandise. Price cutting was a big sub·
ject at a recent meeting of the candy trade
in Pennsylvania.
A review of some of the reports on ven·
dor merchandise follows:
Almonds-In a quiet nut market, June
brought some uneasiness to the almond
market; fair stocks were reported in the
big centers but demand early in June was
off. Congress has considered a bill to regu·
late quality and amount of almonds that
may be marketed, if growers agree.
Apples-Last year's short crop-22 per
cen t below the average year-is now show·
ing up in high prices on this product. Not
sold widely in vendors, the market trend is
not serious for the vending industry.
Candy Bars-According to official re-
ports, candy bar sales started off on the
downgrade, the first quarter showing a
poundage drop of 9 per cent as compared
with the same months last year. Later re-
ports have not changed the general outlook,
and the next two months are not likely to
improve candy bar sales. However, manu·
facturers usuallv start action in August, to
get ready for fall trade. Reports on the
ingredients market have suggested quiet
buying by manufacturers since May. Even
with high sugar prices, candy manufac-
turers did not seem to rush to buy dextrose,
corn syrup, etc. Hence, market observers
have considered this as a sure sign of quiet
in manufacturing circles.
Chewing Gum-Official reports give the
information that such firms as Beech·Nut
and American Chicle made less profit for
the first quarter of 1949 than for the same
period last year. Trade observers have re-
ported for several months that sales are
declining for a number of manufacturers,
but that total sales of chewing gum still
seem to be gaining. Financial papers re-
viewed the annual report of Bowman Gum
to say that "last year was an unfavorable
period for the bubble gum makers." The
firm's own report said that bubble gum had
its unfavorable period in the first half
of 1948, and that sales improved in the
last half. Some new novelty items have
sold well this year, the firm reported. Re-
ports on the mint flavor market do not
shed much light, since large firms like
Wrigley get most of their flavors from con-
tract growers.
Cigars-Tobacco trade circles have said
that the first four months of the year in-
dicate increasing sales for the lower priced
cigars, and also the higher priced brands;
the middle bracket seemed to lose. Official
report for April said total cigar output
was about 5 per cent below the same month
in 1948.
Cigarettes- More details will be found
in the section on Cigarette Vending in this
issue. Two _reports have commanded wide-
spread attention: first, the government re-
port that revenue stamp sales on cigarettes
dropped nearly 15 per cent last April as
compared with the same month in 1948;
and, second, reports that retail stores have
reduced their stocks of cigarettes. To-
bacco trade papers say the trade is puzzled
about the big decline in revenue stamp
sales that showed up in April. The carrying
of smaller stocks by retail stores is regarded
as simply in keeping with the times, but
it could have a deeper meaning.
The annual report of Philip Morris
called attention again to the fact that sales
of this brand have been climbing fast;
Philip Morris begins its fiscal year on April
I, so its report is fairly recent. Sales since
April I have been reported as encouraging.
Sales increase last year was reported as a
27 per cent gain. In a check with cigarette
operators on brand sales last year, some
operators were strong in emphasizing gains
being made by this brand.
Cookies-The bakery trade as a whole
continues to report sales as holding fairly
steady, but this during a period when sales
should be making good gains. A Chicago
financial paper recently reported that
"some of the crispness has gone out of the
biscuit market." Sales have "leveled off,"
the haking industry reports.
Coffee-Reports from the big market
centers show the usual fluctuations that
happen in a speculative market; the out-
look in the producing countries is that
prices will remain high.
Frozen Foods - The most important
topic is that of the expansion of warehouse
facilities to handle a bigger distribution of
frozen foods. Financial papers say there
is increased activity in such expansion this
year.
Hosiery-Makers of nylon hose are said
to be watching what price cuts will do for
sales; response in second quarter had not
shown any real gains in sales but the fall
trade is expected to show benefits from
lower prices.
Ice Cream-Reports on sales for a real
summer month are not available. Earlier
reports did not indicate that the ice cream
trade had been able to rally a downward
trend that had started in 1947. The manu-
TOPS In Performance
TOPS In Profit
VICT OR'S NEW
TOPPER
$10.75 Per Machine in Lots of 4, F.O.B. Factory
STAN DARD SPEC IALTY CO.
OAKLAND
34
facturers of ice cream are now opposing
the sale of what may be called substitutes
for ice cream, substitutes that do not use
dairy products. Leaders in the trade con-
tinue to say that lower prices will prove the
biggest factor to boost ice cream sales.
With trade organizations spreading the idea
of better prices to the consumer, the ou t·
look for the balance of the year is for
further price reduction; lower prices on
dairy products will aid in that direction.
J uices-Reports for several weeks have
emphasized that warehouse stocks of or-
ange juice were being reduced fast. For-
tunately for the vending trade, all the
firms that have introduced juice vendors
have also had contract reserves of juices
to supply operators of the machines with-
out being governed so much by the spot
market changes. Demand turned to blend-
ed and grapefruit juices as the price on
orange juice advanced. Operators of juice
vendors can follow the same practice as
retail stores. Congress has a bill to put
citrus juices under the federal price sup-
port program.
Milk-Favorable price trends (lower to
the consumer) continues to be the big news
in the dairy field. Output of milk in 1949
has shown good gains over the same months
last year and price trend is expected to be
lower for the rest of the year. A political
battle over milk prices has prevailed in
the New York-New Jersey area.
A soft drink trade paper reported that
Alameda County (Calif.) schools had de-
cided to remove soft drink vendors from
the schools and replace them with milk dis-
pensers. The California Dairy Interests
Advisory Board installed 40 milk vendors
on a year's trial basis. It is significant that
school authorities still want the service of
vending machines, even though they make
a change in the product.
Nuts - The nut market has continued
quiet, although trade in cashews has show-
ed greater strength. Nuts used in making
candy have been marketed by slow de-
mand.
Peanuts-By the time this issue reaches
our readers, ten months of the current pea-
nut year will be gone, and a new crop year
begins Sept. 1. The most siguificant re-
port to operators in recent trade has been
the big increase in output of salted pea-
nuts-after a period of decline in salting
nuts that extended over several months.
The current year still shows a declining
trend in use of peanuts in candy, and the
explanation still seems to be that candy
manufacturers are resisting prices on pea-
nuts. Whether candy makers are using soy
beans as a substitute or are not making
as much peanut candy is not known at the
present time. Official crop report on pea-
nut planting for new crop was on the un-
favorable side as of June 1; the three
.major peanut sections reported plantings
delayed. All peanut markets in the big
centers, as of June I, reported little de-
mand and slow sales. Chicago, the big-
gest peanut market, got 28 carloads in one
week, however, but sale was reported slow.
Pop Corn -The all-important news at
this time--an official report on new plant·
ing of pop corn-was not available for this
review. It is assumed that crop news has
been generally favorable, however.
Soft Drinks-With the big season now
on for soft drinks, there is more talk about
the competition of soft drinks with other
merchandise for the consumer's coins. Even
the beer trade says that increasing sales
of soft drinks may be one reason for de-
clines in beer sales. Soft drink trade lead·
ers have been warning for some time that
sales of candy bars, ice cream, juices, etc.,
all may reduce to some extent the sale of
soft drinks. A sales manager told a state
COIN MACHINE REVIEW