Coin Machine Review (& Pacific ...)

Issue: 1949 October

be better than the big machine. The nation-
MER CHANDISE
ally advertised brand are almost univer-
(Co n tinued fro m page 24)
sally u ed by operators but a Philadelphia
to keep up a fight against higher sugar • survey recently indicated that the candy
prices for some months now.
coated forms are the most popular by a
One thing has been accomplished: a
good margin. Eighty.five per cent of the
general price increase in sugar had been
people interviewed use chewing gum reg-
announced for Sept. 1 but at thi writing
ularly and 62 per cent of this group said
most of big suppliers had returned to
the candy coated gums are their favorite;
previous prices. The big 1949 corn crop
47 per cent of the group preferred stick
promises much aid to commercial users of
gum and 18 per cent chose bubble gum,
weeteners and the candy trade often turns
which apparently represented the children.
to corn sweeteners when sugar price ad·
Many operator of elective candy vendors
vance too much. So operators apparently
offer the candy coated gum packages in
need not worry that sugar prices might
their machines.
start an advance in the prices of candy.
Cigars-A Philadelphia survey, recently
The outlook is still that candy bar prices
available, says about 27 per cent of the men
will show some reductions, although manu-
smoke cigars. National trend in sales of
'facturer plan on stabilizing prices.
cigars is reported to be holding an even
A review of some of the reports on vendor
keel. Official report say that cigar whole-
merchandise follows:
sale prices for popular brands declined
Apples-The apple crop appears to
very slightly in the first half of 1949; the
be about 15 per cent above the annual
trend toward lower priced brands is def.
average, the largest crop since 1939, hence
initely continuing; cigars retailing for
prices may be expected to decline. Con·
eight cents or Ie s made up 45 per cent of
umption does not show igns of increasing.
total sale in the first half of the year,
Almon ds - In keeping with the nut
compared with 42 per cent last year.
market in general, reports are very quiet
at the present time.
.
Cigarettes-Two official reports were
Aspirin-October i usually the time
recently available, one on July and a report
of the first epidemic of colds and aspirin
for the federal fiscal year that ended
sales climb. Vending machines for the
June 30, is ued by the Dept. of Agricul-
sale of aspirin are so few that they do not
ture; the Dept. of Agriculture report on
count in the big aspirin market.
the tobacco situation often digs into basic
Candy B a r s-Interest centers in the
facts underlying the tobacco trade. For the
fall pickup in consumer demand, factory
12 month ending June 30 cigarette produc-
outp~t and possible price reductions. The
tion gained 3 per cent over the previous
first half of the year was marked by a
fiscal year. The report said, "Cigarette pro-
decline in candy sales and the hot summer
duction .. . is beginning to level off." The
months added to this decline, which also
July revenue report hows cigarette peaks
was more marked in vendors than usual.
may be getting shaky, as output dropped 6
Candy manufacturers are putting stress
per cent compared with July 1948, the sec-
on sales and on outlets. Sales in vendors
ond month this year in which a decline oc·
will depend more on employment trends
curred. For the first seven months of the
in factories than on other conditions;
year, cigarette increase over the same
opening of schools will aid many candy
period last year now stands at less than
vendors.
one per cent, when the trade had been
coun ting on 1949 showing a 3 per cent
Ch e wing G um-Reports are meager.
increase. Cigarette manufacturers say that
An increasing number of operators report
the reported declines in April and July
that auxiliary gum machines with candy or
were due to fluctuations in tax payments
cigarette vendors show a mar.(!in that may
rather than howing a decline in cigar·
ette consum ption.
Cooki es-Use of cookie vendors is re-
portedly making good increase . The bak-
ing industry is increasing its variety of
cookie offerings. Store sale of all brands
show a small decline in total sales.
Coffee-The trend in spot market coffee
prices is still upward, and in baCK of this
trend is a possibility that demand may be
bigger than supply; recent world export
supply was estimated at. 28 million bags,
but U. S. importers want 33 million bags.
Brazil's exportable crop this year is re-
ported off by 15 per cent.
Manufacturers of coffee vendors have
energetically continued to improve mach-
ines, provide better coffee, and to seek
to establish operators of these machines.
The next eight or nine months may see
all this effort payoff; the field is open for
a real gain in the placing of coffee
vendors.
Hosiery-In manufacturing circles, Du
Pont was cutting nylon yarn quotas dur-
ing September and this may react on
price. A decided pickup in sales was
expected on ho iery in retail circles for
the fall season.
Ice Cr eam-Official reports on how
mu ch the hot summer helped ice cream
ales are not available. The International
Assn. of Ice Cream Manufacturers holds
it annual convention in Los Angeles,
Oct. 24-30, and then much data on sales
trends will probably be available.
• Juices-In the competitive race between
California and Florida citrus growers, the
weather sometimes seems to play tit for
tat. Florida has had a recent hurricane
which cut juice supply outlook some, but
not seriously; shortly before the storm,
Florida canners had reduced the present
high price on orange juice to meet in·
crea ing competition of the Calif. orange
juice trade.
Mil k-The government seems to be re-
jecting pleas for higher milk prices in
the big ci ty areas, such as in New York
recently. The feed outlook is said to be
favorable for the dairy industry and
sho uld fores tall price increases. There is
a decided increase in manufactured milk
forms, which reduces the total supply of
fluid milk.
Nu ts-The spot nut market has been
unusually quiet in recent week; actiVity
began increasing soon after Labor Day
and the outlook is favorable: crop reports
have been very encouraging on most nuts.
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aI' (AST
26
ARMSTRONG
S1

MORR I S
I lllMOI S
COIN MACHINE REVIEW
Vendors Shore In Big Soles
Goins Mode By So/I Drinks
During a period- when many other trades
were anxiously concerned about the pos-
sibility of a general business recession
that might reach a degree to be called
"depression," the soft drink industry had
an upsurge in its sales that com pletely
changed the morale of the entire trade.
An unusually hot summer changed the
picture and even created spot shortages
of soft drinks at times in some areas.
Early in the year the soft drink trade wa
somewhat in the doldrums, carried over
f rom the last few months of 1948 when
sales had dropped considerably. Costs also
continued to remain high and one of tbe
hottest debates in the trade revolved around
the question of whether retail prices should
be increased. Many bottlers argued for a
price increase although they feared that
the consuming public would not pay more
than a nickel for soft drinks. Some vending
machine operators, in favorable locations,
did raise the price 10 ten cents per cup and
reported good results. But the soft drink
trade in general feared to increase the
price above a nickel, although many firms
in it said it was either increase the price
or go bankru pI.
Confusion and division also entered the
picture a the economic plight of the soft
drink trade increased, and two national
organizations were in the field to uphold
diverse is ues. The situation appeared so
serious as to threaten the expansion in the
use of vending machines this year, after
a record boom in the placing of bottle
type vendors in the previous year.
But before the month of June had passed,
the picture began to change in decided
fa hion and continued hot weather in most
areas over the nation through July and
August helped to well the sales volume.
Dissatisfaction gave way to a new en-
thusiasm and as this report is written, it
is said that the two national organizations
are about to agree on a program of co·
operation. The outlook for the bottlers'
conv~ntion in November i also said to be
very promising.
Official organizations, such as the Ameri-
can Bottlers of Carbonated Beverages,
describe the increased sales as running
"well ahead of la t year," and many firms
in the business, when comparing sales this
summer with the average for last year, put
the increase at about 15 per cent above last
year.
Mis ion Dry Corp., of Los Angeles, re-
ports that its sales are running about 60
per cent above the same period last year.
Operators of vending machines have shared
in the general gains and some of the major
bottling and syrup makers earlier in the
year gave much praise to vendors as a
promised aid in building up business at a
time when the general trend was downward.
As the busy summer upsurge came on, the
publicity given to vendors subsided, due
to the rush in meeting demand. But vendors
have been in the running in greater force
than ever, although the rate of placing
new machines probably has not risen above
the high rate last year. The total number
of vendors in use, however, has been de-
cidedly increased during the year thus far.
The increase in sales of soft drinks by
vendors probably runs about the same
proportion as the increase in other retail
outlets. Three operating firms in one Ohio
city described the increase as "about 10 to
15 per cent" when compared with the same
period last year.
With sales of soft drinks having taken
such a general rise, it is possible that some
of the major firm will let their enthusiasm
for vendors cool for the time being. The
Dr. Pepper Co., an outspoken champion
for selective vendors, has reported that its
total sales for the year thus far running on
a level with the same mon th last year,
and its financial reports shows smaller
earnings for the first half of the year.
Officials explain that the southern states
had slightly cooler weather than last year,
when other sections were having heat
waves.
Official weather reports have shown that
about 35 state hared in the unusually hot
summer. Some states we t of the Rockies
and in the Deep South did not have an
unusual summer; eastern states reported
the hottest summer for many years and in
some cases it began even in May.
The big season for soft drink sales -
usually extend through September and
this review was prepared too soon to get
reports on September sale trends. The
Wall Street Journal, in a survey report on
soft drink sales, reported the Coca-Cola
Co. as giving credit to the. hot weather for
increased sales which zoomed in the sec·
ond quarter. The newspaper reported this
company as "expanding its use of bottle
vending machines as a me{lDS of distribu-
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Coin Machine Review
1115 Venice Boulevard
Los Angeles 15. Calif.
MESSRS. PARINA and COMPANY
Exclusive Distributors in The Eleven Western States
For The Gum Vending Corporation
OCTOBER, 1949
This will be a gala issue reaching
operators from coast-Io-coast BE-
FORE they leave for the NAMA
Show in Atlantic City on Novem-
ber 27th. Issue will be mailed
October 27th.


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27

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