Life Savers squeezed

Press, 29 November 1976, Page 22

Life Savers squeezed

NZPA Sydney The local confectionary market was depressed, and Life Savers (Australasia) Limited, was being “squeezed” by imports and inflated cocoa prices, the chairman (Mr H. V. Quinton) said at the annual meeting. “Sales and profits have shown a satisfactory increase in the first three months of this year (to October 31) but there is still no evidence on a lift in consumer spending on confectionery,” Mr Quinton said.

The price of cocoa has more than doubled from sAustllOO to sAust3ooo a tonne, in the past year. “If the world price for cocoa stays where it is, or increases, there will be a marked decline in the consumption of chocolate in the next few months,” Mr Quinton said.

Despite the high exchange rate, and reduced tariffs, Life Saver brand products have recovered some of the market share losses, to the imported “mini mints.” The general manager (Mr D. S. George) said that the costs of last year’s production rationalisation was now behind the company, and it was hoped that sales would improve in the coming 12 months. Life Savers (Australasia) increased net profit 1.2 per cent to $784,000 in the year to July 31. Sales revenue remained virtually steady at $24.5M.