BREWERY PROFITS

Ellesmere Guardian, Volume LIII, Issue 12, 12 February 1932, Page 5

BREWERY PROFITS

IMPROVED BY PUBLICITY.

Advertising history as made when in 1928, Arthur Guinness, Son and Co., decided to launch a big advertising campaign. The results of ,that decision proved beyond any shadow^ of doubt, the wisdom of the board in abandoning a policy which had been followed for years. In the year 1928----29 this famous Irish firm of brewers began to falling revenues. English sales, in fact, had been declining ever since the coal strike of 1926. In the last quarter of the financial year ended June 30, 1929, the directors decided to extend their advertising field to that country, and the returns for "that quarter immediately took an upward course.

In 1928-29 net profits were £2,209,----388. During the following year the advertising campaign, which had so far proved highly satisfactory, was intensified, and continued over the full 12 months. The result was that, instead of showing for the fourth successive year another shrinkage in profits, there was an increase to £2,522,079 for 1929-30. The annual report showed a decline in profits for 1930-31, and while this is, of course attributable to unemployment and trade depression, the previous year's experience suggests that the fall might have been really serious if the board had decided in' 1928 not to spend anything further on publicity.