Lively Wilson meeting hears trade views

Press, 26 December 1979, Page 7

Lively Wilson meeting hears trade views

PA Duned.n The Wilson Distillers. Ltd. annual meeting on Friday, the la>t ot the vear ir. Dunedin. proved to be the liveliest for the year, the com-' panj complaining of unfair treatment by both the liquor trade and the Government, and distributors contsructively criticising its product. • nd calling for improved marketing. The chairman, Mr D. D. Baker. said shareholders uouid welcome the return to, profitability, after three difficult years "These three years, nevertheless, have, served to reinforce not only I < ur own confidence in our! whisky products, but the confidence of the buying] public as well,’’ he said. "A growing number ot( consumers have become aware, through our advertis-| iny. and through word-of-l mouth, that they must ask' for our brands, as with few exceptions, outlets prefer to promote the sale of their overseas agency brands in preference to our own.” Mr Baker said. He drew attention to the excise and sales tax burdens per unit of alcohol. New Zealand whisky carries a 100 per cent burden, domes-] tic gin carries 95 per cent,! beer 65 per cent, and wine 30 per cent. "Unlike gin. our whiskies! stand on their own against! imported competition as] they are unprotected by itn-i port control. Again, unlike I gin. they carry the extra' cost of a long maturation, and in addition, they are manufactured by an independent company unrelated, as in the gin industry, to the agents through whom their

products are v. noiesaied and retailed," he said. Mr F. D. Parker, a director, said that recent legislation would give relief irom some of the marketing obstacles, but delays had been very costly. The company took up the question of sales tax with the Government some years ago, but until a week ago importers, mainly hotels and trusts, had been able to import whisky, and pay tax only on the bulk product rather than ion the bottle. ! “If this concession were 'available to this company it would reduce the price per i bottle to the consumer by about 80c," said Mr Parker j Mr D. Neill, a Wilson j shareholder. and deputy chairman of Wilson Neill, Ltd. the liquor wholesaler, (observed that there was a (tendency for the company to i blame some extraneous factor for its failings rather than itself. On the question of the trade favouring its own products, he suggested that if Wilson’s had offered preferential shares to the trade perhaps this would not have been so. "My opinion of the product differs considerably from (yours." Mr Neill said. i “I have always been a scotch whisky drinker, and I (believe that the average I drinker is used to a certain, itype of product. This prod-; (uct is too far away from the (average whisky to be palaj table to the average drinkle'r,” Mr Neill said. He suggested that Wilson’s should consider importing malt whisky and blending it with their own to produce an alternative type. Suntory, the Japanese Company, was doing this.

Mr Baker replied that he was criticising the licensing; system in New Zealand, and not individual traders. As for the product, "it is the second most popular traditional type of whisky ini New Zealand, and close to No. 1 ,n take-home whisky," Mr Baker said. Mr T. S. Cradock, chief! executive of the Johnsonville Licensing Trust, and a director of N.Z. Spirit Merchants Ltd, questioned] wiiether Wilson’s was at dis-] advantage, saying that itsl whiskies got generous space! on the shelves of his trust, ! After the meeting he said! he doubled whether Wilson s] would be able to compete in! the changing market conditions. Mr D. Crombie, chairman or the Oamaru Licensing I ruet. and immediate past • president of the New Zealand Licensing Trusts Association, said whisky was (now comparatively expensive. and the public, and I the trade was looking for I the greatest volume, per dol-] liar. ■ There had been a drop in • unit sales of prestige brands |in favour of secondary and (tertiary brands — those ■ aged for five and three years. • "I would commend the (directors to make bulk whisiky available for blending to (take advantage of that market.” he said. I "I fully realise the sensitivity of thinking by the board about bulk product, but it may be in the interests of the companv to make bulk whisky available,” said Mr Crombie. Mr Baker said that he would be happy to discuss suggestions of improved marketing with trade representatives.