CANADIAN ENTERPRISE

New Zealand Herald, Volume LXIII, Issue 19415, 25 August 1926, Page 14

CANADIAN ENTERPRISE

TRADE IN UNITED STATES, FACTORIES OVER THE BORDER, MANY SUCCESSFUL VENTURES. [FROM Ot'R OWN CORRESPOND!!!?!. ] TORONTO. Juto 10. A thousand United States manufacture ers have inviided Canada to establisli branch factories to produce goods foi' their Canadian. customers. Not so much is heard of Canadian manufacturers who have invaded the United States. Yet there are soma notable examples, and if recent successes are followed, invasion of tho United States by Canadian capital will achieve important proportions. A few years ago two brothers in Hamilton, Ontario, invented a new shoe polisL They had keen salesmanship, good executive capacity and a good shoe polish. Ia a few years they were polishing the shoes of all Canada and looked with envious oyes across the boundary at tho hundred million pairs of feet that there needed a daily shine. But the Customs barrier was prohibitive. Uncle Sam has always seen to that. Then one day came tho inspiration from one of the brothers: "Let's go over to Buffalo and build a new factory." Tho thing had rarely, if over, been dene before, but that is what they did', and it was not long* before tho United States plant was covering its territory as completely as was tho homo plant. Technically tho foreign plant remains a branch of tho Canadian factory, although, it is now many times larger. Another Canadian product got publicity in the recent Earl Carroll case in New York. Some said that the champagno in the bath was really only Canada diy ginger alo. At all events as patrons of the theatre know, Canada dry ginger a!e is served tho audienco during intervals. It is not only served free, but according to evidonco at the Carroll trial tho conpany pays the theatre for tho privilege. Growth of a Great Industry. Tho growth of Canada dry ginger alo sales in the American market has beisn one of the merchandising wonders of tho day. This drink was a strictly Canadian product until a fow years ago. After tho great "drought" hit America, howover, tho makers recognised opportunity and grasped her by tho hand. They wont down to Hudson, New York, and built a factory to duplicate tho " pop " that hud made a reputation ia Canada. Canada dry ginger ale went acrcss with a bang in tho States, but behind that bang there were months of planning, of building up production and distritution systems, and planning tho right kind of advertising. In 1922, tho first "Canada dry " wag sold—a few thousand casus. Last year over 50,000,000 bottled wciro sold and profits were, greater than tho company's entire income in tho first voar it was in business four years ago. This year sales may reach close to 100,000,C00 bottles. Another factory is being built at Chicago. Candy was another industry that got a " boost" from Prohibition. Evon tho younger citizens o! Toronto remember back in 1914, when tho founder had cmo little confectionery shop on Yonge Street, Now his candy shops are numbered by tho dozen in Canada. But there aro about twice as many of these shops in tho United States as in Canada. In 1919 n small, factory and four storey wore opored in Rochester. There are now 100 shops in the United States and plans aro being made to double this number and ovenUially to extend the chain to cover tho entire United States. Across tho line the stores are given .another name, but the candy is tho same, although it il( made in American " studios" at Roc.hestar, Minneapolis, New York and Boston. There aro several other instances of Canadian manufacturers crossing I,he border and establishing factories in tho United States with signal success. " Easy to Break Into." " The American market is easy to broak into," said the head of one b! tho Canadian institutions which has established itself across the line, " When wo decided j to experiment in the United States with manufacturing and selling onr lines over there, wo approached tho attempt with i real fear ana; much trembling. We knew [ Canada arid we knew how to sell; in Canada. But the United States seemed different. It had 15 times as many people, i It had wealthy established companies in ! the same field as our own. It waif a country where success involved leadership in ideas, forecful executive control und 24-hour wakefulness. "We got a "pleasant surprise. It was as easy to do business, wo found, in the United States as in Canada. Distribution systems were better organised. Costa of getting goods to customers werei lower. There were immense concentrated markets to be tapped. All I have to say is that the Canadian manufacturer who could :Rnd a market across the line for his product by establishing a branch plant there, md is afraid to tackle it, is scared of a shadow. It's a cinch to break into that market."