Coin Machine Review (& Pacific ...)

Issue: 1950 January

The New
"BUNTER"
Nets up to 75c of Every
Dollar You Take in!
.. A real money~maker from the moment
you install it!" That's what operators
say about the new "Hunter". 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 81 the "Hunter" takes in.
Can you beat that for a "Gold Mine"?
Order now through your jobber or write
(or illustrated literature.
And Here's Anofher Winner!
Only $45.00
F.O.B. AURORA
The New "CHARM KING"
Ball Gum + Charms = $ $ $
The Kids Really 90 for THIS one because
DISPENSES BOTH GUM AND CHARMS
*Only $13.95 F.O.B. Aur ora. III.
All kid. go for Gum Balls. And they all go for Ch.arm.. ~o h.r.
is a dispenser tbat give. them both for a single COlD •• Th!8 com·
bination double. barreled machine keeps the money pounng 10 when
run.of-m'ine dispensers no longer attract attention. It'. a winner
any time. anywhere. Big demand predicted. 80 order now for 1m.
~O~~:~: 1~~i::r~io.5S in quantities. UHot Nut". Nut and Ball Cum
Vendors lc-5c-2 for Ie. U. S. and Foreign Coin ••
SILVER KING CORP.
622 Diversey Parkway
Chicago 14.
major syrup makers like Coca·Cola, Pepsi-
Cola, Dr. Pepper, etc.
Evidence from many sources show that
interest in vendors is still growing at a
rapid rate among bottlers. Some still resist
the vendor idea but the big syrup makers
still push vendors with all vigor in order
to secure as many outlets as possible. For
example, at about the time of the bottlers'
convention, Coca-Cola and Pepsi-Cola were
also displaying vendors at a national hotel
convention in New York.
The bottlers' convention management had
banned the display of cup type vendors at
the 1949 convention and the subject of cup
vendors was also omitted from the special
conference on vending machines. Omitting
cup vendors was explained as a logical
tep in a bottlers' convention. As reported
in the last issue of THE REVIEW, however,
a bottling trade paper had reported that a
big issue in the industry was now bottle
vs. cup vendors as to value in selling soft
drinks. Pepsi-Cola displayed a cup vendor
at the hotel convention in New York as
well as bottle vendors.
Robert W. Wagstaff, Vendo Co.; Wm.
A. Kelley, Ideal Dispenser; and E. Ao
Terhune, General Vending Machine Corp.,
constituted a special panel of experts for
the vending machine conference session, to
answer questions from the floor and also
to express views on a list of questions about
vendors which bottlers had sent in. As
would be expected, one question asked
about single-flavor as compared with multi-
flavor machines.
Terhune said there is a place for both
types. He suggested that single-flavor ma-
chinei are suited to the larger stops where
more than one machine will be placed. On
the question of the value of coin changers
with drink machines, Wagstaff said that in
most locations a changer increase business,
22
in many cases by as much as 20 per cent.
Wagstaff reported that Vendo Co. survey
indicated there are about 460,000 soft
drink vendors in use now, and that possible
locations exist for as many as 2,000,000
machines. He said that expansion in placing
of vendors will come in the small outlets,
places employing fewer than 20 persons.
This is a big reason for the increase in small
size machines, he said.
Bottlers were also challenged by pre-
dictions of the e experts that vending ma-
chines would eventually sell 40 to 50 per
cent of the volume of oft drinks consumed.
MERCHANDISE
( Continue cl lrorn Page 1 7 )
Matic promises to put new activity into
the apple and fruit vending field in 1950.
The apple crop ha been bountiful and
profit margins are said to be alluring.
Candy Bars-Buying of ma terials in the
big markets by candy makers slowed as
usual in December. Even the cocoanut
market reported that candy makers were
not so evident. Corn products and cocoa-
nut markets reported the candy trade as
buying actively during November, however.
More details on candy will be found in
the department on Candy Vending.
Ch ewing Gum - Final year's reports
from major chewing gum manufacturers
were not available for this review. The best
news is that chewing gum manufacturers
as a group showed more interest in the
vending machine trade, by their exhibits
at the NAMA convention, than ever before.
One firm announced lower prices on ball
gum.
Chocolate-In market circles there is
talk that high coffee prices might increase
the use of hot chocolate and th~ question
arises as to whether operators of the hot
drink vendors will notice such a trend.
Price of cocoa beans, of course, has changed
up and down often for many weeks. Europe
is still taking a lot of the bean supply and
that may hold prices up.
Cigars - The government loeport shows
that cigars selling up to 15 cents began
making big gains in sales in October,
nickel cigars showing a gain of about
18 per cent over Oct. 1948; more expensive
cigars show declines as compared with
1948. Sales of all types of cigars were
about 2 per cent below the 1948 annual
record.
Cigarettes-Much interest centered in
reports of the major manufacturers for the
first nine months of the year, showing P.
Lorillard, Philip Morris and American To-
bacco Co. having made decided gains in
earnings in the order named. R. J. Reynolds
had not issued its report. The final annual
reports of these majors should be available
by February.
T he tax revenue report for the first ten
months of 1949 showed cigarettes making
slightly more than one per cent gain over
the same period in 1948, that is, on small
cigarettes. King size cigarettes gained 11
per cent over the first 10 months of 1948
and are said to have increased the profi ts
of some manufacturers considerably. For
October both sizes of cigarettes showed a
decrease as compared with Oct. 1949. Thus,
cigarette revenues were off for the months
of April, July and October as compared
with the previous year.
Coffee-The showing made by coffee
vendors at the 1949 convention of NAMA
suggests that this type of machine will
make great progress in 1950; interest· in
the machines has been quickened consider-
ably. All the noise about coffee prices may
soon subside and should not affect the
••••••••••••••••••••••••••••••••••••••••••••••••••••••


i • WALT DISN EY
i
:
:



ACTUAL
~
I
SIZES
DONALD
Avai l ab l e in 16
Walt Disney Char.
acters . • • Cop·

::'d' cs~ ::~rp , :f~~


flnis hes •.• New!
Differentl
:
©W.d.p.
i •
Make More Money! ~ : •
: •
• •
Character Charms
o.~o~
0'.: i
PLUTO
MICKEY
Get More uF AC E" Va lue for Your Charm Dollar.
Operators. contact your distrib utor I
Distributors. contact us!
CHARACTER CHARMS. INC.
1607 E. 16th St.
Los Angeles 21 , Calif.
Vends perfectly
with all Gum and
bu lk merChandise
. . . Disney char·
acter decals avail-
able in full color!
:
• •






:
••••••••••••••••••••••••••••••••••••••••••••••••••••••
COIN MACHINE REVIEW
Tiley Come . .. They Sow
They Bougllt
ACORNS
By Ihe Thousands!
Never in the hi sto ry of Automatic Vendin g. has a bulk merchandtser been accorded such a rousing, reception as
that given the ACORN at the NAl.fA Show in Atlantic City. Operators from aU parts of the na~on-seasoned
veterans of the game who ca n tell a fly -by- ni ght and a sales- promo,tion fakie a. mile off. doffed theu hats to the
ACORN, pulled out their bankrolls and laid it on the line for Quantity delh'eries.
MIGHTY OAKS FROM LITTLE ACORNS GROW
:\.tighty Oak ' from Little Acorns Grow and mighty vending fortunes will be built on . ACORN oI)erations the
country over~ Operators were dra\\n to the ACORN by its snappy. streamlined bea.uty which they wi sely ~nter­
preted would do the same to customers in any location. Th e sanitary as~ects of the macl,dne \\-1 th all mside
delivery mechanism and covered delh'ery chute is another feature they knew customers \\ouJd applaud. B~t.
a.bove all. th e separate service head won hands down I No~ operators can do a. faster. more t~orOUgh cl earun g
job on the merchundise compartment. cut down time reQUlred for each stOll ' . . reduce opel aUng costs ~nd
swell proflts, That's important today for now you ca n service twice as many ACOItNS a s any other machme.
Think of this saring!
If you haven't bad the full ACORN story we invite your inquiry today, \Ve'U gladly
pl'o\'ide you with full information llnd a color brochure showing the ACOHN in all its
glorious colors \\ithout any obligation,
OAK MFG. (0., Inc.

11411 Knightsbridge Ave.
concentrates used in vendors. An official
of Brazil has announced that coffee supply
should be ample for 1950 and that specu-
lation on prices should not occur. A Senate
committee has investigated the subject and
has turned th e light of publicity on some
of the causes of the big price boost. A
DePt. of Commerce report says next year's
coffee crop should be normal or .bett~r
than normal, but that long term VIew IS
for high prices because coffee trees are
decreasing.
Cookies-The best news is that at least
three suppliers of cookies were exhibitors
at the NAMA convention, thus showing
decided interest in vending machine outlets.
Hosiery-Retail sales of nylons showed
the usual holiday spurt. Allocation of nylon
yarns may limit supply of hosiery for three
months or more.
Ice Cream- Retail sales held up better
than seasonally during the fall and the
first 10 months dropped only 3 per cent
below the same period in 1948. All thi s
gives encouragement that consumption may
start upward. Manufacturers of ice cream
vendors made an excellent showing at the
NA 'fA convention and the new year should
bring a big expansion in the use of ice
cream vendors.
Juices-Financial papers have featured
reports on the big advances being made w!th
frozen juice concentrates and the vendtng
trade is awaiting the project of Vendex
Corp. in vending juices using frozen orange
concentrate base, to start early in 1950. Re-
ports say frozen juices have greatly boosted
the frozen food business and given it a new
outlook. At the end of the year the citrus
juice market was described as "unsettled."
Whatever else may result from all the
frozen juice promotion and publicity, it
will increa e consumer interest in juices
considerably and should help the vending
cause.
Milk-Selling milk by machine received
increased recognition at the NAMA con-
vention and considerable increase in this
field is expected in the new year. The of-
ficial view is that prices on dairy products
will decline during the year. Trade leaders
say total consumption of fluid milk may
decline, that u e of milk in manufactured
products will take a greater supply.
Nuts-Holiday trade dominated the mar-
ket for the last two months; almonds re-
mained steady in price and import duty
JANUARY, 1950

Culver City, Calif.
was not changed; there were some reports
of slightly reduced prices on cashews.
Peanuts-Use of peanuts by candy trade
increased during the fall but use for salted
peanuts dropped some. The Virginia ~nd
Texas regions reported new crop sellmg
at above support prices in some cases, but
th e general average pri ce for all regions
was about one cen t below government sup-
port prices. The world peanut crop in 1949
set a new record but the U. S. crop was
about 20 per cent below 1948, dropping
the lowest since 1941. Hence, markets re-
port visible supply of helled peanuts as
low. The Chicago market reported good
demand, market strong and prices much
higher, demand for Spanish increasing.
Pop Corn-No reports of consequence
have been received since the annual pop
corn trade convention.
Soap-Not reported in the Merch.andise
column for a long time, soap vendors got
a slight revival of interest when Alco-
Deree Co., Chicago registered soap vendors
for showing on the NAMA convention list.
Soft Drinks-Showings made by syrup
manufacturers at the
AMA convention
give a big boost to the business of selling
oft drinks by machine. Reports of some
of the major syrup makers recently be-
ca me available for the third quarter. Dr.
Pepper reported a recovery in the third
quarter, after decline in the first six months.
Unit sales were said to be as high as last
year but lower syrup price and higher sugar
reduced earnings.
New Business
NEW YORK-Financial and other
papers have been carrying an advel·tise-
ment of a new type of coin-operated
business, called the Stitch-in-Time Sys-
tems and the idea is that it will be a
new sen ·ice store somewhat like the
coin laundry service stations.
Current ad shows a n attractive store
front and the copy says: "America's
Mos t Sensational Business Opportunity.
Stitch-in-Time Systems, an essential
service. S tores consis ting of coin-oper-
ated sewing machines, fabl'ics, thl'ead,
zippers and paUel·ns. All products of
AAA-I companies. Potential eal'nings
over $25,000 first year, plus continual
annual revenue. No franchise payment
or fees involved. Exclusive state dis-
tributorships available."
Coca-Cola reported a decline in the third
quarter, mo t of the decline occurring in
Sept.; unofficial reports indicate that Coca-
Cola sales also declined for the last three
months, because strikes closed so many
plants where Coke vendors were placed.
Both Coca-Cola and Pepsi high officials
said soft drink sales were off for the entire
yeal', in spite of the hot summer. President
Mack (Pepsi) estimated that total 1949
sales for the industry would fall 8 to 10
per cent below the record sale in 1948.
A Coca-Cola official said it was due to the
recession_
Praise for National Devices
ST. LOUIS-Officials of National Re-
jectors, Inc., are justly proud of a feature
article published in the fall issue of Stee'l
Horizons, house organ of the Allegheny
L.udlum Steel Corp., of Pittsburgh_ The
article bore the title, "Magic with a Nickel,"
and relates some of the human interest
developments in the coin machine trade,
with special emphasis on the part that
·National slug and coin devices have played
in this marvelous growth.
Stress is al 0 placed on the importance
of the coin changing mechanism made by
ational, stating that in some places a vend-
ing machine may lose as much as 80 per
cent of possible sales because people do not
have proper change in their pockets. Na-
tional began making coin devices 14 years
ago, th e article sta tes.
Cig. Prices Up Acct. Tax
SEATTLE-Price changes on cigarettes
were in order throughout th e state, follow-
ing a long process of legislation and court
tests. State authorities had asked all whole-
salers to have the add itional tax stamps on
by Dec. 6. The original tax amounted to two
cents per pack and the new law adds two
cents more. The usual retail price had been
21 cents per pack and dealers added the
increased tax.
The Legislature had passed a bonus for
veterans, bonds for which were to be paid
off by a 4-cent cigarette tax. A superior
court decision earlier in the year declared
the bonus law unconstitutional. Then, to-
bacco wholesalers joined with the VFW in
framing a bonus law that met court tests
3S a result of a friendly suit.
Th e neighboring states do not tax ciga-
rettes, hence state tax officials are glad that
Congress pa sed the Jenkins law.
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