Increase “Shocks” Manufacturers

Press, Volume CII, Issue 30158, 15 June 1963, Page 12

Increase “Shocks” Manufacturers

(New Zealand Press Association)

AUCKLAND, June 14

Biscuit, ice-cream and confectionary manufacturers tonight described the increase in the price of sugar as “horrifying” and “disastrous.”

They said they had no idea the increase was to be made.

Mr L. A. Heard, managingdirector of Heards. Ltd., manufacturers of sweets and chocolates, said: “This latest increase of £24 a ton in the price of sugar, coming as it does after four increases totalling £2B a ton since the end of January this year, creates the greatest crisis this industry has ever faced. "Manufacturers have little opportunity to carry substantial stocks of sugar to cushion a blow such as this. They are now being expected to complete contracts with sugar at the new price, thus sustaining substantial losses “How manufacturers will adjust their prices from now on will need urgent and full consideration at the earliest possible date, but there is no question that there will be increases in prices." Mr W. A. Smaill. managei of Aulsebrook and Company biscuit and confectionery manufacturers. said companies were not making suffi cient profits to be able to absorb such an increase. “This is terrific." he said.

Mr B. T. O’Connell, man-aging-director of New Zealand Breweries. Ltd., said in Wellington that the increase would not affect the price of beer.

Mr O’Connell said be was “personally horrified” at the increase.

‘This is all the more surprising after the Sugar Company announced a substantial profit in their recent balancesheet” he said.

Mr H W Marchant, a director and New Zealand manager of the Nestle Company (N.Z.), Ltd., said: “It is a tremendous blow and I would

be foolish to forecast its effect in detail.” He said the Government might offer some relief by removing the excise duty of Id per lb on sugar.

Mr F. W. Orr. managingdirector of General Foods Corporation, proprietors of the Tip Top Ice Cream Company, said: "From this industry’s point of view it will be quite impossible to absorb this increase.

“For some time we have been giving serious consideration to what we should do about these increases in the price of sugar and this latest increase comes as the last straw.”

Mr Orr said the increase was bound to affect the price of ice cream, condensed milk and other chocolate products Mr F. Corssley. genera! manager of C. L. Innes and Company, bottlers and aerated waters manufacturers, said his firm would have to give immediate consideration to the adjustment of soft drinks prices.