Coin Machine Review (& Pacific ...)

To/Jacco Jo/J/Jers See Good
Displays Of Cigarette Vendors
by WALTER HURD
NEW YORK-The 1949 annual conven-
tion of the National Assn. of Tobacco Dis-
tributors ( April 24-28) kept to the high
record of this, one of the most progressive
trade associations in the country. It had
displays of cigarette vendors and also a
special session devoted to vendors, but some
of the main business problems considered
by wholesalers (many of them operating
vendors) - also concern operators as busi-
ness men.
NATD is waging a national fight under
the leadership of Joseph Kolodny, secre-
tary and a cigarette operator, to maintain
codes of fair competition for wholesalers
as they compete with chains and super mar-
kets, and also to compel distributors them-
selves and retailers to maintain fair profit
margin levels. The group fights aggressively
for fair trade laws and unfair cigarette sales
acts in the various states.
At the 1948 convention, it was said au-
thoritatively that about 50 per cent of the
tobacco wholesalers in the country also
have vending machines. So, the vending
trade is 4nofficially in all the doings of the
organization.
NATD has also concerned itself with
candy sales and prices, with Kolodny say-
ing at the recent convention: "The han-
dling of candy and confectionery products
(open market items) should be stabilized
at the wholesale level of a minimum mark-
up of 12 per cent. .. • . As to these prod-
ucts, that industry seems to be in a state
of utter confusion."
Judging from the import of the conven-
tion program, there is no prospect of any
supply problem in cigars and cigarettes,
nor any likely price changes in prospect on
cigarettes. The main price issue seems to
be that of preventing price cutting and loss-
leaders. The group approves a 4 per cent
markup for distributors and 10 per cent for
retailers on cigarettes.
As a starter, the program had Leon H.
Keyserling, economist, to give his vi ews on
the economic outlook for America. His
views are published regularly in the news-
papers, but in general he does not foresee
a depression but rather an orderly adjust-
ment. His speech set the business pattern
for the convention and also contained ideas
on how to adjust to new conditions.
The convention also heard marketing ex-
perts and a representative of the Census
Bureau tell about the present business cen-
sus. Full reports were made on federal and
state legislation relating to cigarettes. The
convention heard there is little hope in
this session of Congress for repeal of the
war-time excise rates on tobacco products.
Of the 110 or more tax relief bills in Con-
gress, several of th em would remove the
war-time increases on cigarettes and cigars.
Although the organization opposes the
low-price competition of chains and super
markets on candy and cigarettes, a promi-
nent leader in the super market field was
a scheduled speaker on the program.
Statistically, it is reported that cigarettes
form about 70 per cent of a tobacco whole-
saler's business, candy about 12 per cent
and cost of sales is estimated at 6 per cent.
Transportation is mentioned as a higher
item in costs of doing business, having in-
creased about 43 per cent in ten years.
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44
Vending Conference
Among th e round table conferences on
Tuesday, of th e convention, one raised the
qu estion , "Is It Feasible for all Wholesale
Tobacco Distributors to Encourage and al so
to Engage in the Vending Machine Busi-
ness?" R. T. Axton, Axton Candy & To-
bacco Co., Louisville, was chairman for the
conference. The use of vendors had a good
boost throughout the discussions, and one
speaker especially emphasized the better
profit margin to be had with cigarette ma-
chines than by wholesaling the item. As he
put it, he made more by selling one pack
through a vendor than in wholesaling a
ca rton.
The general conclusion of the confer-
ence agreed with the summary of previous
conferences at the NATD show, that op-
erating vendors is a specialized business
and should be a separate department of a
wholesaler's business; that jobbers should
vend only products that they carry in stock;
that considerable capital is required to set
up in the vending business ; that candy,
cigarettes and cigars are probably the items
that jobbers can vend most successfully,
and so on. A suggestion was made that
probably cup vendors were too much of a
specialized busi ness for tobacco men. A sug-
gestion made last year was also repeated
again-that jobbers may place cigarette
vendors with retail accoun ts and apply com-
missions on purchase of other goods, or to
pay off past du e accounts.
The mu ch discussed situation in Bo5ton
was considered also and tobacco men dis-
approved any plan for selling vendors di-
rect to locations. Boston operators have
been disturbed in recent month s by a firm
that is selling cigarette machines direct to
the location.
Th e display of cigarette vending ma-
chines was a credit to th e vending trade
and also to the manufacturers. Eigh t firms
displayed cigarette machines and operators
will recognize that thi s in cludes nearly all
the firms making such machines now. Two
firms displayed cigar machines and Lymo
Industri es, In c., had on display its well-
known cup drink vendor. Stoner Corp. dis-
played its line of candy vendors at the
co nvention also, thus helping to round out
a pretty complete vending machine show.
Cigarette machines were displayed by the
following firms:
Automatic Products Corp., Minneapolis,
showing its Smoke Shop and also the cup
drink machine reported to our readers pre-
viously. Sam Kresberg, a pioneer in the
trade, is sales manager.
Arthur H. DuGrenier, In c., Haverhill,
Mass., had its line of cigarette machines
and also a candy vendor, and reported that
its new electri c cigarette machine was now
•
being shipped.
Eastern Electri c Vending Machine Corp.,
New York, also had its display of the
Electro cigarette machines.
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