SOLUBLE COFFEE SUPPLY CUT

Press, Volume XCVII, Issue 28552, 3 April 1958, Page 19

SOLUBLE COFFEE SUPPLY CUT

Fifty Per Cent. Of 1957 Orders Because of restricted imports, the Auckland distributors of a major brand of instant coffee have decided to cut their supply to all retailers by 50 per cent, on last year’s orders. The price will remain unchanged. The cut took effect from the beginning of this month.

Christchurch retailers said yesterday that they did not expect new stocks of other imported makes of soluble coffee, but raw coffee supplies should be maintained.

It is unlikely that the supply of chocolate goods will be greatly affected yet by import cuts. Christchurch representatives of New Zealand manufacturers said yesterday that their firms had always kept up a good stock of cocoa beans and cocoa butter, and except for a few lines which required special ingredients from abroad, the normal range would continue to appear. Some said that stocks were not good, and a Christchurch manufacturer reported that because of cut imports, chocolate production by his firm was being reduced.

The cost of raw materials has doubled since 1956 and this has already reflected in recent retail price increases earlier this year. No further increase is expected, and, because imported confectionery is now excluded from the market, New Zealand manufacturers are looking to an increase in demand for their lines. The import cuts have reduced raw material supplies to about 60 per cent, of normal quantities.