Page 21 Advertisements Column 1

Press, Volume CXIII, Issue 33370, 31 October 1973, Page 21

“ This Is Not My Company’ ’ ‘‘ It BelcongsToThose People Who Have PutTheirTrust In Us’’ (Sir James I Vattie, Chairman ofDirectors Wat tie Industries Ltd) ! Whfil S ' r Ja , me o , V * attie reared to Wattie Industries • - Booming manufacturing plants also tend to increase demand those people who have put their trust R R K My |Mflßj| ■ x , i,a ' nc w.,s speak.ng, m one sense, of the 26.686 y flflK L ’* V' K~ flfl MfXMHIk < ~t:,e Ia 2: i /■Hrn' ; FS ' 0 V fl| R R IR flfl v’LSfli fIRM and distribution. And a vv.denmg of (he la.we ot referring to the many thousands of New Zealanders who draw > 1 AB JBfll H flfl a natural and logical step. 7Miand SCS ai u saaneb fr° m Wattie Industries and all New LWBflflfJ - j ~iy „ And if one is in the canning business in an island nation, it is w .?• Y ° f I , nd I ,reCtly ? rely °P * sou " d A M3jlflwK onlv natural that fish canning should sooner ot later become part profitable Wattie Group to help maintain the standard ot • RV JR#® IMF Mg Wl* Wlk ' ' * and parcel of expanded development. affluence to which we have become accustomed. F ■ .flO V lM 'JJflb W< ' We have a reputation for prolific fishing grounds , a g-cut •j t?. m l m o bt le B cndar Y aS a ® nc * man business in : fe *• '/ i' es .® a y cottage in 1934, Watties has grown with New •, Kgv | jt recognised for years by numerous foreign fishing fleets which Zealand Our island nation, remote in many ways from the old R/ < , , IW* ' JRRR JF RIT today trawl almost throughout the vear just outside our 12 mile established patterns ot international development, was a primary ’ jR* Zr4&fl HMb/nP*«rr fl BRy * territorial limit. producer relying lor finished products on imports. For a y oung - LZf Jj ** /JMr «flfl flr i r fl 'll Fortunately —if perhaps belatedly — this tact has also been j anon, trxing to stand on its own two feet, a highly undesirable ' rL A Wfl recognised by many New Zealanders. situation to be in. .. fl" lb VMmmBL flfejgflr / MM *£fl. .In 1956 Wattie Industries decided to move into the fish ■° '? ,en J ames 'ante began his canning business in a ■ ffllk/LwOF iM ML flEMlKif: 1 •/' processing field as an off-shoot of' its food cannery business. a §^' be vvas m just the right place at just the right time: r 4flr Rw' ” ; ffld Buying 40 tons of whole fish from local wholesalers, it brought ew Zealand was starting to stir. The image of a lar-flung LJV JBBB'%s& 4* A »4l fl into play all the expertise gained over a quarter of a scnturv m Luropcan market garden and sheep farm was changing. |RRJr : : jlfl jly yMMfe *c«BS» - 'iftSr i the food business. Today Wattie Industries is a far cry from that cottage —or HRF x J* RMM flrflfl slOfll r--W Five years later the first company trawler came into service. cvlii itom the cans ot peas with which most people tend to BT* Maaofl BK * F Today there arc seven ships using some of the most nioden *? S °^ lat n 1 • om P an -.’ Wattie Industries grows food, processes ft^^MI^E : .':fIMMI^^^MMBMML>.JN^MMBIMBBBBBb* , ‘: '■/■■■< fT l- ’Brab:.Ml>*‘ «Rr , equipment in the world to harvest thousands of tons offish every a " ds f*‘^ lt ;/: utthat^ onl y oneas P ect ®‘ atotal| y^ ewZealand ’’ And at a time when increasing concern is being voiced over To the housewife working with a budget in tens of dollars or the > car - mainly from the Hawkes Bay. Poverty Bay and Bay of Ihinofromnl « P r ( oduc ' a g e very- , the industrial boomin our few major urban centres atthe expense boutique owner calculating in hundreds or thousands, one Plenty areas. “ e AnH m ,v;rt oc^? dSdnd^ a .i e cfnn Odl i S r ribUting > eXp IV ifi S ’ K ot . other< re g’ons, Wattie Industries has already established a million dollars is a vast sum; one hundred million almost beyond , ls established business sense that with the right formula m At ’ d ' itn'assets around the 5> 100 million mark, a highly -? widely spread regional base for its operations. reasonable comprehension. ! i° r tbe market, and enough expertise to carry it througli, a 4rr^n!r?h^. U flo 1S S r^i -t’o® ou^. acro ® s Pacific Basin, proudly Hastings is the headquarters of the group and although Yet, just as wages are related to hours of work on an indi- business must succeed. Wattie Industries certainly appears to ' ’r 11 ? tv 6 tV - e llat . i ° n standing firmly on its feet. major activities are located in such centres as Auckland and vidual plane, so business profits have to be related to capital have the right formula —and more than enough expertise. ~•, ut 1 f,"' i a an ,s ’, s a s . mali country with a total population ■= Wellington there are Wattie manufacturing units dotted through- invested and to turnover. Looked at in this perspective, returns Watties success even extends to reversing in part what many t' 1IC |? XV ° U d a m ( Ost | e m stin ? n ’ oneo ' thewor Id s greatcifies. t| out the country: Gisborne, Christchurch, Invercargill, Wanganui, on Wattie investment are solid and growing, but certainly not see as a major international trend — the taking over of local f tie bigger industrial nations, haying access to huge populations, j Gore,Timaru, Dunedin, Mt Maunganui, Nelson, New Plymouth, spectacular. operations by huge international corporations with their headhave had a guaranteed local market which warranted production J Napier. In the 1973 financial year, for example, the “surplus” quarters in countries like the United States and Britain, onamammotliscafe. • v Wattie Industries feels this reflects a highly balanced form (profit) left over after essential expenditure, but allowing for no When Unilever decided to retire from food canning in Ana, as everyone .knows, the greater the volume ot goods jof development on a national scale; aform of development which re-investment in the business, amounted to only 5.5 per cent of New Zealand Wattie Industries by arrangement picked up the produced the cheaper individual items eventually become. New ? might not have been possible had the group not expanded its the total turnover. ' former Unilever “Crest” label and "comfortably coped” with "™ r rZrnm J " St ’ m interests in the wa y k has ’ But in order ex P and “ particularly on the export front - additional tonnages. e e sought in order to make local industry more efficient and t Much of the success of this expansion has been achieved by ' and to increase efficiency and productivity, it is necessary to And this sort of continued success has spelled continued competitive on the international scene. j using the best methods and machinery available anywhere —*■ plough back profits into the business. Naturally, as activities success for growers, wholesalers and retailers — and the Tnd„ n V Br° u P hke a tue J without relinquishing any control beyond our shores. ‘ expand and become more efficient, the percentage profit general public. Industries. For ifwe in New Zealand, could not hold up our end J Even Betty Crocker, for example, is 100 per cent Kiwi. The should increase. * na me may be "borrowed”, but the product, which also falls under Wattie Industries, however, by its sheer size, gives an Overall, from 1934 to the present day, the story of Wattie Thf> inhc wr»nH ctiii m c k t t - 14 * *h e Wattie umbrella, is as Kiwi as pavlova or the All Blacks. impression, of incredible affluence. The reason for this is obvious. Industries is an incredible saga of success — written directed and VI,» JaT would still be available in such a situation, as would ■ ln many ways , the Betty Crocker cake-mix story symbolises While the annual cash turnover in the average New Zealand home performed by andfor New Zealanders. the products. but ultimate control xvould lie beyond our shores. , much of the expansion of the Wattie group. Fifteen years ago is under 54.000, the turnover within the Wattie Group is well over ? And although the country as a whole would oeneht from taxes, # Auckland baker Alan Stormont, together with a chemist friend Sl4omillion — a staggering sum! all profits could leave the country r Bert McCartney, started experimenting with the idea of providing But Wattie Industries made the grade, h oung mothers m ' dry cake-mix ingredients. —i Nevy Zealand who had, for years, put their trust in such items as It took a year of trial and error before they finally came up Wh6F6 CIO6S dll that ITIOnSV CIO? Wattie Baby Foods, were joined by young mothers in other with the answer — and went into business. Self confessed “babes countries From ice cream to chickens, flour and canned goods, j n arms ” j n tbe big-business world, they liked the name Betty Breakdown of turnover based on latest information and shown as parts of $1 00 units. Watties developed a reputation tor quality — and could compete, ICrocker, and used it. ' ' • | in terms of price, with all comers. - * But like many businessmen starting out with a very good, i 1 < Suppliers. $55.60 1 2 3 456 7 Although Wattie Industries, like Topsy, seems to many to , fnew product, they faced problems of shortage of capital and of 2. Salaries and wages. $16.00 F ’ 1"| TP - have growed the growth ultimately made tor greater ~ .distribution and marketing in the relatively small and scattered 3. Sales and distribution COStS. $12.50 efficiency; better products, better produced. , jiNew’ Zealand market. They had made the breakthrough: what , 4 Administration and finance PXDPn t- P r $4 10 And as the company grew and expanded more resources 'tf hey needed to boost them into the big league was the expertise c' T P ° co -rn became available for the acquisition ot the most sophisticated and organisation of an efficient national group. And so Bettv * 5" l, aX methods and machinery. Crocker joined the Wattie family. ’ , 6. Depreciation. $2.60 ~~ ~ The enterprise was completely home grown — down to the 7. Profit (split as follows) The Main Resource — People. “.Betty Crocker” picture which appeared on company products A) Dividends to Shareholders $2.10 2 ■ for the first decade in operation. The picture was posed by an . gj Investment in the Group $3.40 There are plentiful incidents of“good Kiwi ingenuity” in the Auckland woman. $5 50 rise of Wattie Industries; ingenuity which comes from individuals lz .. Bu . c the New Zealand Betty Crocker is 100 per cent - ■ within the company, from the factory floors to the boardrooms. company s products enjoy an international reputation. UU.UU 1,1 Perhans because the humble beginnings of Wattie Industries Aller joining the group the General Mills Corporation of the , t are still, in terms of time, so close to us, the impersonal isolation LvS.A. was approached tegardmg the legitimate use of the trade- . common to many big corporations is still completely unknown imirkand.dinerencesbeingsettled.afriendlyandformalrelation- j us t -where does all that money gpl How is it spent and who “More markets are opening UP for US, both locallv and here. ~ ship was established which included the exchange oi product gets what! In this time of growing community interest in all the markpfc wp tic Npw Zpalnndprc odnnnt Although Wattie Industries has long spread beyond the mi ormation. r . , affairs of the nation, these questions are of direct concern to many ’ bordersofHawkesßavandtheinitialhandfulofcannervworkers , Not all companies within the group have as exciting a AewZeaZo/wtew. aHOfOto'ignore. has become a mighty countrywide workforce, there'is still a background, but all strive for the same three goals: quality, J y et although balance sheets have always been available, “Over this year, the group, in line with market trends, greater degree of personal involvement across the board than in efficiency and profitability. | along with annual reports and ail the documentation in the has launched a programme for increasing the promanv other companies of the same size. Perhaps this is only 1 companies office, many people have neither the time, the back- duction and facilities for canned and frozen vegetables, because of the youth of the group —and the fact that members ground knowledge, nor the inclination to seek out these facts. pet f oo ds, stock feeds, starch and the breeding, of the Wattie lamfly have always show n themselves unafraid to • Besides balance sheets detailing holdings and transactions growing and processing of poultry. Prepared foods and bend their backs in the fields or lend a hand m the factories. In I < H /Th in millions of dollars from a multiple of sources, tend to have a J** ' time, this atmosphere may disappear. Hopefully it will not, for '4 - -\ \ • \ \ / daunting effect; high finance, by its size, retains and reinforces its beverages are also included in the programme which M attie Industries is aware that it would lose much if it lost its l V \ J / mystique. will, in turn, require large expansion of such facilities personal touch. 1“ ■■ j f Yet despite the aura of complexity—a sort of super world as storage and transport. Part of that personal touch has aho been the insistence by ;> >. . . ; y policed by sombre suited accountants and stockbrokers — the “This is far and away the biggest single step in any one Sir James Wattie that the company which bears his name and ’-X / (, - . ' facts are, essentially-, simple. year in the companv’s history and will call for nearl v which is tied up so completely with him in the public eye, does not t 4 One million dollars is, alter all. just a multiple of SlOO, a ci ♦« belong to him. Infact, the shareholding of the entire Watiiefamily 2 ’ / I / /' \ ' figure everyone seems to find quite understandable. $3 million from existing deben Ut O O uppkis less than one per cent. /) , w/ - / ’’ Using the figures from the latest available complete break- ment substantial finance from existing resources and And this view extends much iurthcr than the 26,686 New ■!- ./■ r ' down — 7973 —it is possible to calculate exactly who got what money from forecasts of continued profitability. Zealanders who have a direct financial stake in the business or j Js . f ' out of every SlOO of the 5143,950,000 turnover for that year. “I believe that Wattie Industries is vitally associated those who rely on it for their weekly or monthly pay packets. 4 a? : ‘ Topping the list are the suppliers who look 555.60 for -with the well-heino nf the countrv as a whole and feel it Because virtually every New Zealander "places trust” m the providing the raw materials and other components necessary for 'J.® Je maimained company by buying its products. Sir James feels they have a I , / / ■. the group to function. Next comes S 16.00 for salaries and wages, IS essential that a soundly based growtn be maintained, share in the business; Wattie Industries is part of them — and J followed by sales and distribution costs of 512.50. Adminis- * n or( *er to ensure this, we nave to step up our they are part of it. ;i ... . tration and finance expensesfeven Wattie Industries has over- investment almost right across the board and although This is perhaps a highly idealised view. But it is a view firmly «+ a time han inrroaclnn drafts and loans)—took 54.10 while the tax man raked off the Government’s new policies on prices and profits held. And it is one which has permeated throughout the company a Time wnen increasing 53.70 for the national coffers and depreciation accounted for have not yet been fullv formulated, the COmpanv feels A\ attie Industries, alter all, is New Zealand born, bred — andstill CCincern IS being voiced over the in- 52.60. that its ooals will nnt be frustrated New Zealand owned and controlled. dmstriai boom in Our few major urban Tot all that up and it comes to 594.50 which leaves 55.50 out % nitioc evict fnr x»u’7<xihn<l anH N. It is also a fact that almost every New Zealander and many Centres at the expense of Other regions, of every $lOO. This balance was split, the increased dividends to Uipporiuniiies exis IO . Z, aa aa . C New Zealand businesses come into contact with Wattie Wfelttie Industries has already estab- shareholders taking $2.10 and the remaining $3.40 going back Zealanders and the company is taking them. Industries. u into the business to help with expansion. / —-— lloh ed a idely spread regional base Multiply these figures by little over 1.4 million and you have Regional Development And Diversification. or .\ts opera ions. the Wattie industries results for the 1973 year. r Although Wattie Industries is generally regarded as “the -.-sri- 1 tv iiiii. as „ .FrOHl 1934 IO The Present. Wattie food people”, about 40 per cent of the group’s booming turnover Wheße JDOCS Ail 1 fie Aloney Go? —— - comes from sales of non-food products. i ■' Part of the reason for the Wattie Industries expansion — Apart from frozen, canned and dry' foods, ice cream cones “Illis not a crime to make a profit — the only crime is to make providing the many, diverse sources of income for the group — and such burgeoning new jointly-owned enterprises as Kentucky a loss". (This oft-quoted Churchillian homily is certainly asvalid has been natural and logical moves into all aspects of the Fried Chicken, Wattie Industries also provides the New Zealand . today aS it was when it was first made. original business. and overseas market with services such as transport — through Foe abusiness which cannot make a profit in a free enterprise Starting with food canning Sir James Wattie was. in fact. MIBBIfI Refrigerated Freight Lines — and products ranging from plywood economy is inefficient and will inevitably flounder and sink. And starting in the middle of the food chain. On the one hand he had and particle board to tin cans, insecticides and paper. where producers are involved, dents are made in national to rely entirely on groups of individual growers to supply and. on \AM I I ICZ IN IPNI ICTDICC lIA There are. in fact. 15 separate companies under the Wattie productiity and jobs are lost. the other, on distributors to get the finished products to market. V V/\l lIL II nL/vJO I l\lLO LllVll I L_L/ umbrella as well as eight jointly-owned and associated companies the company, the more of a crime in that more While such an arrangement can — and does — often work on the home front, three overseas establishments — two in people am affected. well, it can equally often create, problems through lack of \A / A Sydney, the other in Suva. Fiji — and an overseas associate When the Wattie Group at the end of a financial year co-ordinated effort and it does not provide much room for the \ company, Wattie Pict Ltd of Australia. declares turnover and profits, the figures often appear staggering. manufacturer to manoeuvre. V W—• / VI