Coin Machine Review (& Pacific ...)

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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