A GREAT NEW ZEALAND BUSINESS.

New Zealand Herald, Volume LIX, Issue 18021, 21 February 1922, Page 9

A GREAT NEW ZEALAND BUSINESS.

TWO MILLION TINS OUTPUT

PER ANNUM.

WONDERFUL RECORD OF EDMONDS'

BAKING POWDER.

Knowing that Messrs. T. J. Edmonds, Ltd., the proprietors of Edmonds' Baking Powder, had reoently erected what is probably the most modern baking powder factory in the world, a special representative of various New Zealand newspapers journeyed out to the new factory.

The story of the growth and development of Edmonds' Baking Powder reads like a romance, and it is safe to say that no business in New Zealand has built up such an extraordinary output in its own territory. The first year's output, in 1879, was about 1000 tins; ten years ago, in 1911, 878,000 tins were being sold per annum; last year the output reached over one and three-quarter million tins; while this year it is confidently expected that the sales in this Dominion will reach over two million tins. When one remembers that this represents an average consumption of over seven and a-half tins per annum for every family in the Dominion, it must be recognised that no higher tribute can be given to the extraordinarily high ouality and remarkable value of the product.

The newspaner man had a Ion? chat with the managing director of the firm, Mr. A. L, Croppj and was interested to hear that the new factory ha 6 an output capacity of over six million tins per annum. The reporter asked Mr. Cropp why such, a big output capacity had been provided for, and was interested to hear that one of the biggest English firms se'ling to grocers and storekeepers had been making careful tests of Edmonds' Baking Powder for a very considerable period, and had come to the conclusion that there was nothing on the English market which could even compare with it. As a result they had decided to take the lino up and place it throughout England, as they were confident that huge sales could be expected in the Motherland. The firm will ship supplies from the Dominion to its English selling organisation. Mr. Cropp has just recently returned from a trip round the world, and purchased samples of every brand of baking powder which he could procure in Canada, the United States, England, and elsewhere. These were tested by expert chemists in competition with Edmonds' with the result that the New Zealand product proved supcrioi in every instance. Indeed, Mr. Cropp has come back fully convinced that Edmonds' "Sure to Rise" is the finest baking powder in the world. The very greatest care is taken to maintain this high quality. During the war regular supp'ies of cream of tartar were difficult to obtain, and Messrs. Edmondß were urged to use cream of tartar substitutes by various manufacturers. Knowing bow unsuitable were these substitutes for a high-grade produot like "Sure to Rise," they abso- 1 lutely refused to use them, and rather than do so decided that they would close the factory down when they were nhort of the highest grade genuine cream of tartar. This course had to be pursued several times until regular supplies arrived, and these suspensions naturally gavo the directors considerable anxiety. After-events, however, have definitely proved the wisdom of doing so, and have established the fact that the maintenance of quality must be the first consideration in building permanent business.

The Effect of the Now Tariff.

As an instance showing how legislation may affect the health of the people, it is interesting to note that the revised Tariff which was introduced in December last places a duty of 20 per cent, on cream of tartar which is not made within the Empire. This duty had evidently been imposed without due inquiry into the facts. Cream of tartar is not a British product, and there is no manufacturer in the British Empire able to supply sufficient raw material of high quality to even keep Edmonds' Baking Powder Factory going at normal pressure. After due consideration, the Minister of Customs removed the duty for a period of twelve months. If it is again imposed after this period, it will certainly have the effect of nullifying of this splendid New Zealand business to extend its operations; and supply the overseas market.

Not only would T. J. Edmonds, Ltd., be unable to secure sufficient supplies of British-made cream .of tartar, -but the additional cost of the product would make it absolutely impossible for them to place "Sure to Rise" on the English market. It is certainly to be hoped that nothing will be done to prevent New Zealand building up trade for this high, quality line in Great Britain. A Trip Through the Factory. Accompanied by Mr. Cropp, the visitor then went, through the great factory. First of all he was conducted through the offioe block, which is a separate section in a separate building.

Every modern appliance for labour-sav-ing has been installed, and the greatest care has been takem by the architects to see that the greatest amount of natural light is secured. Separate offices are provided for the main executives, and Mr. A. L. Cropp's room contains some exceptionally fine pieces of New Zealand-made furniture. The board room is impressive, with its large dimensions and its huge board-room table.

The new factory itself is some three storeys high built on the latest principles for securing the largest possible amount of natural light. The most modern machines for weighing and handling are installed, and everything has been done to reduce duplication of effort. Spotlessly clean,' the building is a credit to the manuger and members of the factory staff.

An interesting feature is the laboratory, where all materials are most carefully tested and analysed, the greatest care being taken that every ingredient is of the highest quality.

Both the office block and the factory building are a credit to the architects, Messrs, J. S. and M. J. Guthrie. The exteriors in every instance are of toned brick, giving a most attractive appearance. Ample space has been left for lawns and gardens. These are now in the course of preparation, and when completed will be amongst the most attractive in New Zealand.

As some indication of the magnitude of the firm's operations is the fact that every year 24,300 cases are made on the premises. Timber is. cut at the mill to specifications and turned into cases in the factory with up-to-date case-making machines. Over two million labels are printed in the Dominion, while this year two million tins will be made in the factory. Over 680 tons of baking powder are sold every year, which means that 14,000 tons of carting and handling has to be done by shipping companies and

railways from one end of the Dominion to the other. To give an idea of what this means, Mr. Cropp mentioned that if one-ton motor trucks were loaded up with raw material brought into the factory, and also with the manufactured baking |K>wdcr, they would form a procession live miles long, and would require approximately 1060 motor-lorries; while the tins used would cover an area approximately one million square yards.

In addition to baking powder. Messrs. Edmonds do an extensive business in custard powder. 'Die old factory is now used for its production. The sale for custard powder has increased recently beyond all expectations, and can be attributed to the high quality of the line and the fact that it. costs less than imported brands. Throughout the big factory all the machinery is run by electric motors, thus eliminating smoke and dust associated with fuel engines.

When asked the reasons for the extraordinary growth of the firm's product, Mr. Cropp said that he attributed this, first, to the fact that they have the highest quality line in the world, but ho must also give credit to the part that the newspapers played in the deveiopment of the business. He mentioned that their entire advertising had been handled for many years by J. llott, Ltd-, the wellknown firm of advertising agents, Wellington, Christchurch, Auckland, and Dunedin, and with perfect satisfaction to themselves.

• The business was first placed with J. Dott, Ltd., in 1911, and the output was then 878,000 tins per annum. The firm felt that they had reached the maximum that could bo done in New Zealand, but the results of the first campaign increased their output by another 25 per cent. Since then still larger sums have been spent in newspaper advertising each year, but at a procressively lower advertising cost per tin because of the steady increase of output. Business History. The visitor was interested to meet Mr. T. J. Edmonds, the founder of the business and chairman of directors of the company. It is to Mr. Edmonds' ingenuity and acumen that the foundations were laid which made the rise of this splendid business possible. Asked for some information regarding the growth of the firm, Mr. Edmonds said : On 26th September, 1879, I landed in i/yttelton on the shi« Waitangi, after a three months' voyage from London. Being a married man in my twentieth year, and realising my responsibilities, I at once set about devising means to provide the necessary loaf, and started my business career in a small grocer's Bhop, with a; turnover of about £20 per week.

Finding this was not a paying concern, I had to look about and find means to increase my income. My business in the grocery line brought me in contact with baking powder, and the idea came to me that if I could manufacture a satisfactory article of this sort there should be a fair sale.

Previous to leaving London I had spent some time in one of the largest confectionor's hushiesses, that of Messrs. Allen and Sons, and became acquainted with the use and mixing of powders relative to sherbet making.

Having decided to tackle the baking powder business, I at once started operations, and one of the chief difficulties that I was confronted with was what name to give it. How "Sure to Rise" Originated.

Recognising that a good name is an asset, not only to man, but also : to an article, long deliberation was indulged in Before deciding. One day. a lady customer, when being persuaded by ;me to purchase a tin, complained that when using other brands the scones were* very flat. I assured her that if she used niy brand her scones would be sure to rise. The name "Sure to Rise" hit me very forcibly, and Edmonds' "Sure to Rise" it has been from that day forward. My first mixing of baking powder consisted of about 200 tins, ivhich found a ready sale among my own_ customers, and as .time went on the clients would take two or three tins each for friends. Business steadily increased. Encouraged by the testimonials and inquiries for my baking pqwder, I decided to concentrate my energy exclusively on the scientific blending of the ingredients that go to make my Edmonds* "Sure to Rise" baking powder. I was for three years or more studying the problem, during which time various other brands began to creep in. This gave me an impetus in my investigations and enabled me to produce at the end of the period the powder which has become a' Dominion favourite and known by one and all as Edmonds' "Sure to Rise," and also resulted in my working out a .formula for egg powder, custard powder, and self-raising flour. On completion of the formula, I immediately approached the merchants ro-' gardine stocking "Sure to Rise," and succeeded in inducing several _ of , them to place trial orders on their shelves. By this step I considered that good fortune had'turned my way, and that all I would have to do was to manufacture for the demand.

Three months elapsed and no orders arrived from the merchants. Wondering what could be the matter, I at once went to them, and was informed that they had never been asked for Edmonds' "Sure to Rise." Realising that it was not known on the market, it be- '■ came necessary to create a demand. The method adopted was a personal canvass. It was my custom, if people whom I saw would not buy, to lear« the powder with them without payment, on the understanding that if they did nqjt like it I would take it back next visit. It is with a certain amount of pride that I look back on these days and remember that never one tin was returned, but instead tliev asked for more. Soon after this the business began to grow, and necessitated me putting all. my lime and energy into the manufacture of Edmonds' "Sure to Rise. ' inquiries began to come in from all parts of Canterbury, including orders from the merchants, and it was from "tin's point that the business began to assume dtmeiv sions which have since grown buyond all expectations. From 1879 to 1889 the output grew per annum steadily from a few hundred tins to 21,000. From 1889 to 1900 the output grew to 370,600, and from 1905 to 1915 1,250,000 for the 12 months. It was in 1911 that I was first induced by Mr. J M. A. Ilott, of J. Ilott, Ltd., Ito authorise a campaign for newspaper advertising. In that year the increase in sales was more than double that attained in any previous year in the history of the business. It was this fact that so strongly illustrated to me the benefits of advertising when executed by capable hands, and turned me into an ardent believer in advertising. When the output of "Sure to Rise was sellintr 878,268 tins per annum it was my firm belief that the maximum had been reached, but it has gone ahead, and the annual output has grown to just on 2.000 000 tins, and it lopks as if regular increases are going W be made every