Coin Machine Review (& Pacific ...)

State Cig Taxes Show
How Sales Trends Go
NEW YORK-State cigarette revenue
offers one clue to trends in cigarette sales,
and especially as to regional variations.
Some states report as follows:
In Arizona, cigarette revenue made a
slight gain in February, as compared with
the previous month.
Florida's 4-cent tax turned in revenue for
January just slightly below that for Decem-
ber-a normal trend.
Cigarette revenue in Massachusetts for
January started off with a gain over- the cor-
responding month in 1948.
New York state revenue for January was
up sharply from the Jan. 1948 total.
In Nevada, cigarette revenue dropped in
February below that of January, and the
first month was also well above revenue in
December.
Cigarette revenue .seems to be gaining in
Nebraska, as the February collections were
well above the Feb. 1948 total and also a
gain over January collections.
February collections in New Hampshire
were above Feb. 1948 but revealed a small
decline from January of this year.
Rhode Island collections started making
gains in January, compared with the same
month in 1948.
Cigarette revenue in March showed a real
decline from the February total for West
Virginia. What do cigarette operators have
to report in this state?
New Bar S trictly lor
Candy Ven d Machin es
ELIZABETH, N. J. - Highland Candy
Co., a new company 90 per cent owned by
Life Savers Corp., is distributing Scoop, a
5c candy bar, ' solely through vending ma-
chines. The name Life Savers will not be
identified with the bar, it is stated.
Major Cigarette Makers Give
Best Data DB Year's Outlook
NEW YORK-Reports of the major cig-
smaller this year. If any readers are inter-
arette makers furnished the most telling
ested in the internal affairs of ATC, there
information on cigarette sales for the first
are still some rough places to be ironed
three months of 1949. To generalize, the
out, apparently, but in general the firm
reports of the majors show the cigarette
seems to be getting over the changes in
hijl;her ups last year.
business still making gains. Although two
firms revealed declines in unit sales in the
Herbert A. Kent, president of P. Loril-
first quarter, the higher price still meant
lard, made the report for his firm, saying
gains in dollar sales.
that Old Gold sales increases during the
A major event in the cigarette trade dur-
first two months were substantially ahead of
ing April also was the annual convention of . the same months last year; March sales
were understood to have continued the
the National Assn. of Tobacco Distributors,
gains.
held at the Statler Hotel, New York, during
the week of April 24 and hence too late to
Regarded as a special friend of cigarette
get reports on the convention for this issue. . vending, Kent said the new Embassy cigar-
In keeping with its long custom, vending
ettes were showing gains but that cost of
machines were given a definite place on the
testing markets and promoting the new
program. At the 1949 convention some trade
brand had proved high. Old Golds last year
leaders estimated that 50 per cent or more
had made sales gains of about 10 per cent
of the tobacco jobbers in the country also
and a similar ratio is expected this year.
operated cigarette vendors. Some estimates
Kent said the firm. had tobacco stocks to
have been as low as 30 per cent.
last for two years, equal t,o the previous
year in quality and volume.
Alphabetically, American Tobacco comes
first in a review of cigarette sales. ATC
Kent also commented on the probability
reported that its dollar sales in the first
of price changes, saying that the firm's sup-
quarter made good gains over the same
ply of leaf tobacco put it in a favorable
period in 1948, and also to stockholders its
position to take advantage of any lower
report said that earnings were higher.
prices, should the indicated downward price
trend in various commodities also affect
Oper~tors will be interested in the state-
tobacco. Lorillard will make quarterly re-
ment of the firm's president that unit sales
ports from now on, thus giving quicker
of cigarettes "were only slightly behind the
information on sales.
1948 quarter, which is quite satisfactory in
view of present conditions." Here is the
Liggett & Myers Tobacco Co. reported
head of one 'o f the major cigarette firms
gains in dollar sales for the first two months
suggesting that general conditions may be
of the year, but unit sales were about 2 per
showing up in effects on cigarette sales.
cent lower than for the same period of
Many cigarette operators have made the
1948. Firm officials said the sales drop was
same report, that general conditions de-
due to adjustments in customer inventories.
layed the spring pickup and that gains are
This would imply that wholesalers and re-
tailers have been adjusting inventories
downward, in keeping with general inven-
tory trends. The firm reported an increase
in unit sales for 1948 of 6.2 per cent.
BJlBGJlIN SJlI.E
USED CICARETTE MACHINES
All machines have been thoroughly overhauled by trained Rowe servicemen, are
in top mechanical condition and excellent appearance_
Ready for Locatio n
8 Col. Rowe Imperials
$60.00
8 Col.- Rowe Royals -
85.00
10 Col/ Rowe Royals -
85_00
F.O.B. los Angeles
ROWE SERVICE CO.
2620 So. Hill St.
Phone PRospect 3228
Los Ange le s 7, Calif.
46
----------------------- ---~--~------
On the price question, the report said
there would probably be no price decline on
tobacco in the near future. The future price
of tobacco is unpredictable, officials said.
Philip Morris raised its quarterly divi-
dend to stockholders, in keeping with the
spectacular sales increases last year. Last
year's dollar gain showed a 27 per cent
increase, the largest gain of any major cig-
arette firm. The firm's fiscal year begins
April 1, so it will soon be making one of its
yearly fiscal reports. The current year
started off with Philip Morris brand till
holding to its high level.
R. J. Reynolds Tobacco Co. reported
that sales of Camels were down in January,
but that sales during the next two months
were above the same months in 1948. Camels
COIN M ACHINE REVIEW