Coin Machine Review (& Pacific ...)

Issue: 1949 October

CANDY NOTES ...

Th e Roper percentage of women than men ea t ra ndy
may ro me as a surprise to orne. This r e-
fers to th e hom e market though , 1:nci can-
not be of mu ch he lp to operators. , ,1 omen
do make up a good percentage of workers
in many typ es of fa ctori es but th e total
number is sa id to be dec linin g.

a ttll·day, Oct. 15 is Sweetest Da y for
th e ca ndy trade, mea nt to boost th e sa les
of box ca ndi es. Operators may not lik e th e
special day sin ce box sales to th e home are
sa id to dull th e appetite for ca ndy for a
few days. Th e re is a strong public ed uca-
tional ca mpaign back of Sweetest Day,
howeve r, whi ch hould help to build up
co nsum e r demand for all ca ndi es.

All employees of th e Curti ss Candy Co.
have bee n given polio insura nce policies,
up to 5,000 cove rage, whi ch protects th e
employee and every member of hi s fa mily
to that extent. The poli cy is part of th e
firm' s insura nce program , without ex tra
cost.

Salesmen who cover th e ca ndy trade
over th e country report th ere i a ge neral
feeling that ca ndy prices are lik ely to be
stabilized for so me month s.

Th e progr ess iv e National Can dy
Whol e alers Assn., many of its jobber
members also operating ca ndy vendors, has
pi cked New York for its nex t annual co n-
vention, and th e date te ntatively se t for
May 31-June 3.

Ca ndy manufa cturers have had reports
that union employees may a k for a wa ge
in crease soon. AFL has pointed out th e
ca ndy trade as one tha t has mad e profi ts
large enou gh in th e last year or so to in·
crease wages without raising pri ces.

Ma nufacture rs of ca ndy bars are taking
(Co ntin ued O n Page 33)
Competition In Cllndy Bllrs
Will Emphllsize Vendor Use
CHI CAG O- Early fall reports on th e
na tion al candy industry show a defi nite
sw ing into action for th e fall and winter
months. ManufactULers began th e usual
production prog ram in th e secon d half of
August and a complete repo rt would show
that every firm in the business has initiated
its own specia l activities towa rd bigger
sa les.
Competition is more apparent and eve ry
manufacturer and whol esaler recognizes
that the sellin g job will be bigger than
th e production end for th e next several
months. Th e industry in its organized
capacity is also laun chin g a new program
to in crease co nsum er use of ca ndy, marked
espec ially by a movie short to be shown
in th ea ters all over the co untry .
New packaging, new sp urs to sales staffs,
new bars and even lower pri ces are to be
see n in th e various reports that have come
from the ca ndy production areas of the
co untry. Th e unusually hot summ er se rved
to cut still more a na tional ca ndy pro-
duction and sa les rate that had already
been falling for several month s. But ca ndy
manufacturers here have ex pressed th e
finn co nvi ction that th e hot summ er is all
ove r now and th ey expect ·andy· co nsump-
ti on to show a decided rebound .
Bunte Bros. was one of th e ea rly firm s
to an noun ce a powerful promotion program
on a new bar, call ed On-D eck, and all
other manufacturer in this area also have
new promotional programs. J n other areas,
Me rckens Choco late Co., of Buffalo, was
one of th e first firms to repo rt a beavy new
production schedul e of three shifts in
beginning its f~ 1 program. Lamont, Co rli ss
& Co. announced so me new packaging
and a lso pr ice adjustments downward in
its program to boost reta il sa les. And many
other reports co uld be 1 isted.
Repo rts on candy bar sales a nd produc-
tion for the first ha lf of the year were
not enco uragi ng and th e manufacturin g in-
dustryis now making a grand effort to
recover and even su rpass th e 1948 sa les
reco rd. In thi s co mpetitive situation, vend-
in g machines are likely to receive more
co nsidera tion th a n ever, for sa les outlets
mea n mu ch to manufac turers at th e pre-
sent tim e.
Offi cial repo rts on ca nd y manufacture rs'
sales for the first six months of th e year,
recently issued, show a declining trend
in poundage that reached even th e bar
goo ds fi eld. P ercenta ge decline in bars for
th e first half, as co mpared with th e first
half of 1948, is put at 9 per cent, while
ale of all kinds of ca ndy declined about
8 per cent (poundage) in th e sa me period.
This is a real decl i ne that comes at a
time wh en some gains should be made in
can dy sales, based on pop ulation figures.
The situ ation will ca ll for carefu l ana lysis
of other sugar product ales, as th e year
passes, to determin e if oth er co mpetitive
produ cts are stea lin g the ca ndy market.
oft drinks had a heavy upsurge during
the summer, due to heat wave, and ice
cream also ga in ed. But th ese gains would
'0;' 8Dyl OLD NICK /s 4 WONDERFUL Candy 8arr
One of the f e w Nationally Adv e rt ised Cand y
••• Un i q ue flAVOR • •• marvelo u s N AME •••
Bars. You can offe r and sell it to retail-
fine st QUAlITY . .. NATIONAl Adve rt isi ng .. . make
ers everywhere in the U. S. A.
BIT-O-HONEY America 's fastest-grow ing Ba r.
SCHU,TTER CANDY DIVISION, St. Louis
32
COIN MACHINE REVIEW
not acco unt for the stea dy decline in
candy ales this ' year.
Bar goods sa les in Jun e did mak e a
sli!(ht gain over Jun e 1948, for the national
indu try, but the unu ually ho t summ er
checked thi s rate of gain in July and
Aligust, according to reports.
Operators of ca ndy vendors have shared
in the general decl in e in bar sales, and
have also had an added jolt from vacation
closings of plants and al so increases in
un employment in some areas. Estimates of
the increased drop in vendor sales thi s
summ er range from 10 to 30 per ce nt.
But recent repo rts indicate that fa ctory
employm en t will hold at a hi gh leve l,
hence operator are optimistic about fall
sales throu gh ve ndors.
The official reports on ca ndy sales co n·
tinue to emph asize regional differe nces,
and operators no doubt share in th ese
territorial variations. Survey reports on
candy vendors previously published in Til E
R EVIEW have pointed out some of these
Here the y are-exact ly wha t every can dy
variations, and how th ey may co rrespo nd
operator needs for sma II locations. They
t:le NG "
with general ca ndy sa les, but information
give you larger capacity at ha lf the p ri ce !
ava ilabl e i still in conclusive.
Durin g th e curren t year, ca ndy manu·
100 Bar " Candy·King"
facturers in th e Indi a na and Ohio area
50 Bar "Candy·King "
Larger " Package-King"
have actually reported a genera l increase in
candy sales over th e first six month s of
N ow you can vend candy ba rs, Klee nex and all othe r types of package
goods from all-aluminum, rust-pr oof. C onv eyor t ype " C a ndy-Kin g " and
last year. Manufacturers in th e Minnesota-
" Package-King ". All a re dou b le Locked, Natio na l Sl ug Protected.
orth Dakota-South Dakota-Nebraska area
You ' ll find many other money makers in fam o us " Silver-King" Big 6 Line
(West orth Ce ntral) also reported a gain
which include the following:
of about 17 per cent in the first six month s
" Hunter" BalJgum Vendor
over the same period last year. This, in a
"Target" Ballgum Vendo r
"Charm· Kin g" BalJgum Vendor
period wh en can dy sales over th e rest of
"Silver·King " 1c and 5c Bulk Vendors
th e nation has been declining at a rate of
"Hot·Nut" 1 c and 5c Bulk Vendors.
about 8 to 10 per cent.
A ll are made to receive Ic and 5c U. S o· fcreiqn coins. See your
Two other areas show only small de-
dealer or write for iIIu5tra~ed literatu re and full in formati on to
clines; ,24 California manufacturers report
an average regional decline of about 1 per
cent, while th e Michigan-Wisconsin area
repo rts an average decline of about 2 per
b22 Diversey Parkway
C hic a go 14. III.
cent.
The big Illinois manufacturing center
reported a general decl ine of about 21
sales on bars mean that bars find th eir way
one brand nam e in chew in g; gum; only
per cent for the first half of this year as
into lun ch pails and hence ve ndors in the
about 20 per ce nt of th e students sa id they
compared with 1948 ; Jun e sales were about
plants lose sa les. More rece ntly, operators
co nfine purchases chi efly to one brand of
7 per cent below Jun e 1948, but June
say plant cafeter ias, lun ch pail, etc., do
ca ndy bar.
marked up a ga in of 9 per cent over th e
not reduce vendor sa les.

The annual repo rt of th e National
month of May, showing that a pi ckup had
Confectioners Assn. , mail ed early in Sept.,

Nestle's chocolate bars will ge t a bi g
started-o nly to be interrupted by a very
national advertising plug during th e co m-
ha s a graph chart to show price fluctu a-
hot summer.
ing month s, the plan being schedul ed to
tion s in peanuts, eggs, cocoa, milk and
These percentage r eports are based on
reach more th an 120 million readers of
sugar, chi ef ingredients used in making
dollar volume and may be mislea ding to
candi es. Some price brea ks in in gredients
some extent because of lower prices durin g . magazin es and n ewspapers. Th e drive will
be aimed chi efly at th e yo uth market.
began to appear about mid-1948.
the current year. Th ese regional r eports
will raise many questions as to market

Total ca ndy production in th e U. S., on

The best guess is th a t th e heavy drive
and ale. For example, why the heavy
of commercial users of suga r will ca use a
pounda ge basis, wa s boosted by th e war,
decline in Illinois while Indiana and Ohio
halt in risin g pri ces of this ingredi ent,
reach ed a high peak in 1946, continu ed to
show remarkabl e gains.
in crease in dollar volume during 1947 and
although some market men still say that
As to rea ons why for ca ndy sales, th e
sugar will go hi ghe r. Promise of a bumper
1948 but tend ed to level off on poundage
cocoa bean crop in th e African Gold Coast
basis. Reports thUR far in 1949 indi cate
official govern men t report on 1948 points
region also seems likely to top th e recent
that a levelin g o/T in poundage is still
out that in the regions where the general
under wa y.
trade was showing heavy declines some
advan ces in chocola te prices. All this prom-
ises to prevent th e setting in of a move to
firms were makin g excellent gains in sales.
Candy manufacturers in th e BORton
Th e report points out that lower pri ce on
hik e ca ndy prices nex t winter. Cheaper
area were sa id to be very optim isti c about
sugar and chocolate will he lp to adjust
bar acco unted for th e chief ga ins. The
th e fall outlook for increase d hu siness.
ave ra ge bar price per pound this year was
so me candy prices to a lowe r level.
Firms used th e dull summ er months to
34 cent , while in May 1948 th e average

Financial papers r eported that Hershey
make sales plans for big action after Labor
price per lb. was 44 cents.
Chocolate showed an in crease in profit on
Day.
its business durin g the first half of th e
Much interest will center on reports for
ational Co nfectioners Assn . has a n-
yea r. Th e governm ent repo rt on chocolate
September and October. In Sept. 1948 bar
nounced th at its annllal co nvention in 1950
product sa les, in cluding choco late bars,
sales dro pped slightly below Sept. 1947,
will be held a t the Waldorf·Astoria, ew
for th e first six month of th e year showed
but the first nin e months of 1948 had hown
York City, whil e exhibits will be at the
a general gain of 5 per cent in bar sa les
a general decl in e of 21 per ce nt.
Grand Central Palace.
over 1947. October normally show a ga in

A survey cove rin g stude nts in high
Express Confidence In Candy
school s and coll eges in 29 states co mes up
of about 15 to 20 per cent over September.
with the informa tion that 78 per cent of
In October 1948 bar sa les dropp ed heav ily
WASHINGTON-At a time when ca ndy
from Oct. 1947. Th e declining trend had
th em rely on brand na mes in buying ca ndy
sal(8, in poundage and dollar volum e, are
apparently set in.
bars; about 20 per cent of th e Hudents
showing declines, Th e National Food Bro-
said convenien ce of th e store or out let wa s
kers Ass n. is approaching manufa cturers
the deciding point in buying ba rs; about
to tell th em that brokers ca n sell more
CANDY NOTES
80 per cent said th ey bou ght chewing gum
ca ndy.
( Co" ti" ued/rom. Page 32 )
on basis of brand nam e. A goo d majority
The organization ex presses full co nfi-
a hint from th e soft drink trade and put-
of the students said th ey liked more than
dence in ' candy and th e co ntinuan ce of
one bran.d and did not co nfin e th eir pur-
high co nsumer demand , " beca use th e fig-
tin g out more tak e-hom e packages of six
or 12 bars. Some operators in past years
chases to one particular brand of ca ndy
ures on ca ndy vo lum e show it is a pri-
bar. Th ey are inclin ed to sti ck more to
have sa id th at th e e promotions for hom e
mary commodity and one of th e lea ders."
3 New Ri9i1Speed
Money Makers!
Now Being Delivered by
·· SILVER-KING~~
"CAT~~~s
It
S ILVER-KING CORP.
'e
e
OCTOBER, J 949
33

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