FTC On Quantity Discounts
WASHINGTON - The Federal Trade
Commission is making increasing provisions
for preventing quantity discounts to large
buyers in all kinds of business. The candy
trade will be especially interested in this
step, since charges have been made by
candy wholesalers for a year or more that
special discounts were given to large buy·
ers of candy bars.
Official reports say that the new plan
announced by FTC is the first time the
commission has attempted to use its power
to tell sellers that there is a point beyond
which they cannot increase their discounts
merely because of an increase in the quan·
tity ordered.
It seems the FTC is now taking steps
to notify all sellers of goods that there
are specific rules which they must follow
in selling to large buyers.
Army Asks Bids On Candy
CHICAGO - The Army recently asked
for bids on certain kinds of candy bars by
manufacturers· here, to be supplied for the
Army's individual assault ration. Bids
were asked on one·ounce sweet chocolate
bars, starch jelly candy bars, tablet chew-
ing gum, etc.
Production capacity of the candy trade
is so high at the present time that needs
for the entire military forces are not ex-
pected to cause any shortages of the par-
ticular bars needed by the government.
Bigger Bllr~ Lower Price~
New. Trend In ClIlIdy Mllrkel
CHICAGO-In one of its own special
surveys, the Wall Street J oumal recently
summarized the resuts of its investigations
in a front page story that said: More for
a Nickel. Two trends are at work in the
candy bar trade and both of them form a
pleasing story to operators of vending ma-
chines.
1. Candy bar manufacturers are already
cutting prices, and will probably reduce
them still more during the year.
2. Candy bars are beginning to show an
increased size.
Three reasons are given for the present
candy bar situation: consumer resistance
to higher prices, increased competition and
a 50 per cent drop in cocoa bean prices.
Operators have heard about consumer
resistance to higher prices in the discus-
sions during the last two years about dillle
bars. Even a year ago operators were be-
ginning to observe the increased competi.
tion among manufacturers. It was more
than brand competition, and extended to
the point of salesmen becoming more cour-
teous, as many operators phrased it.
Western Candy Meet Date Set
The decline in cocoa bean prices is said
to have been a surprise to the trade. It
SAN FRANCISCO - The third annual
happened mostly during December and
convention of Western Confectionery In-
dustries will again be held here, the tenta- - January and was especially noticeable in
the market reports during the first month
tive date having been set for March 24
and 25. A. C. Carrington, Alameda, has
of the year. However, authorities predicted
fluctuations in price and by Feb. 1 th e
been named as chairman of the convention.
. ea ,
markets started doing just that. It was also
reported there are no signs that controls
over African and Brazilian supplies have
been relinquished.
But a decided price drop had already
taken place, seemingly more than enough
to offset scares about sugar prices. Furthe·r-
more, many other ingredients used in candy
had been a part of the · general price de-
clines of recent months.
To help along, copra took a price dive
of about 25 per ceUt and cocoanut bars will
in time feel the aid of such a price. ad-
vantage.
Although operators said they had not
been confronted with much criticism about
the small bars, according to THE REVIEW
survey publish ed in our February issue,
page 42, yet it is known that consumers
did not like the small .bars. The WSJ says,
however, that consumers took the reduced
bars in preference to a price increase.
Thus, consumers will welcome th e news
that manufacturers are already beginning
to in crease the size of bars. Mars, Inc., is
reported to have started increasing size of
its bars late in December, with about 13
per cent covering the average increase;
one of its bars has about 20 per cent more
chocolate, and another has 22 per cent
more almonds and chocohite; another bar
has had its cocoanut make up the increase.
Saying that peanuts have not yet come
down in price, Williamson Candy Co. add·
of A meff s
~ t powerfully
mosdvertised bars
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