Coin Machine Review (& Pacific ...)

Issue: 1949 October

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-
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ber 27th. Issue will be mailed
October 27th.


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27
A One Man Hand
Operated Loader




50 % SAVINGS IN LABOR
LOAD CAPACITY 600 LBS.
FITS ANY PICK·UP TRUCK
EASILY INSTALLED
De:uxe Model Shown Abov e
$119 75
(F. O . B. Los Angeles}
~VENCORP.
2828 Newell St., Los Ang eles 26, Calif.
The New
tion·· while other fields of expans ion can·
tinue to be somewhat stable.
The WSJ repo rted that many of the large
soft drink firm s are trying to expand into
new mark ets, and thi s would include wider
use of vendor for most of th e firm s. Most
of th em are in creasing the number of
their fran chi sed bottlers-and thi s ha s
meant emp hasis on non -selective vendors.
Hires reported th at root beer sales were
running about 20 per cent above th e sum-
mer months of last year, the main period
for root beer being from May to September.
Expansion in th e soft drink trad e is in -
dicated by a total of about 6,907 bottling
plants now a compared with 6,803 last
year. Wh en it i recalled that predictions
of bankruptcy were bei ng made for th e
bottling indust ry six month s ago, this is
n;a] recove ry.
In the co mpetit ive struggl e among soft
drink firms, bottlers turned to vendors
during th e previous two years in great
numbers and " took over" th e field so me-
wh at from private or ind ependen t operators.
Bottlers co ntinu e to dominate in the use
of soft drink vendors but a definite trend
set in last year tow a rd the private operator
who uses the cup type of machine and
this trend has gained some during th e
cu rrent year.
But bottlers th emselves have also turned
more and more to cup vendors, although
th e bottle machine is still the favorite,
naturally for bott lers. The issue has been
divisive in the soft drink industry to th e
ex tent that only bottle types of machines
will be pe rmitted to display at th e 1949
co nvention of th e bottling trade.
Th e American Carbonator and Bottler,
trade paper, recen tly sa id, however, that
" to vend by cups or not to vend by cups
is a que tion which i becoming increas-
ingly important to bottlers everywhere."
"BUNTER"
Nets up to 75c of Every
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" A real money-maker (rom the moment
you install i 1" . That's wh ... ~ operators
say about the new UHunter". But
that's not all. Look at these two fea-
tures. 1. No coin return. 2. No gum
dispensed unless the player wants it .
That's why many report a net of 75c
out of every SI the "Hunter" takes in.
Can you heat that [or a "Gold Mine"?
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*Othel's low as $10.55 in quantities. "Hot NuC', Nut and Ball Gum
Vendors )('-5c-2 for Ie. U. S. and Foreign Coins.
SILVER KING CORP.
622 Diversey Parkway
28
Chicago 14. Illinois
Thus, it would appear that up vendors
vs. bottle vendors may become a leading
topi c in the trade this year, displacing the
highly co ntroversial question that arose la t
year about selective vs. non-selec tive bottle
vendors. The soft drink trad e paper repo rts
that so me bottlers have found that cup
vendors boost bottle sales, and that th e
multi-flavor cup vendors are a mean s to
beat th e competition of th e one-flavor bottle
machine being placed by th e big com-
panies.
Co t of materials have shown a tend ency
to decline this year and that has been of
co nsiderabl e encourageme nt to the so ft
drink industry. Flavors we re a mong th e
first items to show price declines when
prices in genera l started downward ea rly
in 1948 and th ey co ntinue to remain well
off from th e inflation peak. Bottles crown s
and equipment remain high , but ca rton s,
cases, truck s, etc., are lower. Sugar is a
real problem since it has tended to in-
crease in price thi s year ; freight rates on
sugar were also recently hiked.
Soft drink prices to retailers are re-
ported as remaining the same as la st year,
or abo ut 80 cents per case of 24 eight-oun ce
bottle. Cost of pJ·oducing th e case is sa id
to be abo ut 37 to 45 cents and bottlers also
must deliver, a th e bottler's margin is said
to be small.
Soft drink sales vary considerably ac-
cording to terr itory and th e U. . Census
report on soft drink manufactures for
1947 wa s made available in deta il late in
August. The full report gives regional
breakdowns and comparisons on so ft drink
production and sales for 1947. The Census
Bureau issued a summary of this repo rt
last March 'and th e complete report is
now available.
The big ' rev ival in th e soft drink trade
has given ne.w encou rage men t to th e firms
th at manufacture soft drink vendor and
also to those ind epend ent operators that
have entered the field. Vending machines
have made headway in distributing oft
drinks during th e postwar years lIS in no
other type of merchandise and thi s trend
is likely to continue for another year.
National Peanut
Week In February
WASHI GTO -The
ational Peanut
Council has designated next February 5-11
as ational Peanut Week and has asked
all who sell or market peanut, or peanut
products to give the week a boost.
As in past promotions of the peanut
week, the industry will put stress on ales
in retail tares and also in various produ cts,
uch as candy and peanut butter. Th e
peanut vending trade ought to proffer its
cooperation and also ask for recognition.
Still Fighting Pa. Tax
HARRISBURG, Pa.- The
oft drink
trade wages an in cessant battle again t th e
state tax of one cen t on eac h 12 ounces of
bottled drinks sold. A test of the con ti-
tutionality of the law is pending in the
Dauphin County Court which is expected
to go throu gh the appeal courts.
Lead ers in the soft drink trade say that
th e unu sually hot su mmer actually saved
th eir business this year, or many bottlers
would have been forced out of business,
Th e real injury done by th e tax is in
forcing the trade to raise soft drink prices
so that retail level will go above five cents.
Th e public will not pay more than a nickel
for soft drinks, leaders say.
Alco-Deree Appoints Blake
CHICAGO - Alco-Deree, Inc., has ap-
pointed Cliff A. Blake of Blake Sales, In c ..
a distributor in the 11 weste rn states.
COIN MACHINE REVIEW

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