VACUUM-PACKED PRODUCE, LTD.

Otago Daily Times, Issue 22833, 18 March 1936, Page 11

VACUUM-PACKED PRODUCE, LTD.

-•> jFRESH CAPITAL SOUGHT 14s BUTTER PREMIUM PROVED. (From Odb Own Correspondent) (By Air Mail) LONDON, February 15. It is understood that the New Zealand Dairy Board has been permitted to make an examination of the books of the Vacuum-packed Produce, Ltd. hide pendent auditors examined the company s figures for eight months ended December 31 last, and reported to the board. They found that the premium on vacuumpacked butter over best New Zealand bulk butter averaged nearly 14s per cwt., and that the London company deducted no more than the prescribed Jd per lb for advertising. In view of the fact that some doubt had been cast on the premium claim the result of the examination is interesting. With regard to vacuum-packed cheese, the company are waiting for as much as they can get, and are able to handle finest white cheese at a premium of 20s. A director of a West of England multiple shop organisation expressed the opinion that the vacuum cheese “ was a winner without much work." He added: “You have only got to convert us shopkeepers, and not the public.” CAPITAL POSITION. Shareholders of Vacuum-packed Produce are being invited to take up further shares. A circular issued to shareholders gives the position of the company. The directors state: Your directors have pleasure in informing you that the affaire of the company have consistently improved since the statutory meeting of March 4, 1935. The company’s financial year closed on January 31, and it is proposed to hold the annual meeting in May to allow the directors to give shareholders the maximum information possible at the annual meeting concerning the progress of the company. ' The company’s solicitors advised your directors that although there had been default by Estates and Industrial Trust, Ltd., in respect of instalments payable under their contract for the sale of the company’s shares, it would not be safe to undertake any other negotiations for raising capital until there could be no question that the company was entirely free of this contract; and this position did not arise until a considerable time after the statutory meeting. The capital, as stated in the original offer of sale, was required to purchase shares in the New Zealand company to enable the latter to erect a factory or factories, and to obtain the necessary equipment to forward larger quantities and a wider range of vacuum-packed produce to this _ company in England for sale on a commission basis. In addition, this company was required, and it was very necessary, to create consumer demand by advertising the superior merits of this type of produce to the British public. Negotiations with several companies occupied about six months, and it was only just before the end of the year that arrangements were able to he made. ANOTHER FACTORY. Mr A. W. Gibson, the managing director of the New Zealand Investment Trust. Ltd., of Wellington, New Zealand (herein referrred to as “ Investment Trust ’’), has been in London, and during November and December conferences proceeded between the company, the managing director of the New Zealand company (Mr Thomas Reynolds), and the Investment Trust. It was finally decided that the New Zealand company would take shares in your company, while the Investment Trust would provide the funds for the_ New Zealand company to erect 'and equip another factory at Palmerston North, New Zealand. The Investment Trust has since such arrangement paid to the New Zealand company the cash required for such erection and equipment. This enabled your company to complete its obligations to the New Zealand company and the New Zealand company to proceed. You will be pleased to know that the Investment Trust of its own volition applied its remuneration in taking up at par shares in the British company and is taking, and will continue to take, the keenest interest in the progress of vacuum-packed produce, both here and in the Dominion, In addition, the Investment _ Trust agreed to attend to any offer which might be made of your ecmipany’s shares in the Dominion of New Zealand. OFFER OF SHARES. Further results of the November-De-cember conferences were the decision to offer shares primarily to existing shareholders, also, if thought fit, to shareholders in the New Zealand company and to Dominion investors generally. This

would enable your directors to provide the capital for the New Zealand company to build and equip further factories to supply us with cheese, tongues, and dried fruits irom Australia, etc., as well as to advertise our butter. Your directors have entire confidence in the future of the company. Despite the capital position not having hitherto allowed advertising, the inability of New Zealand to forward vacuum-packed cheese in any quantities (due largely to the fact that the managing director of the New Zealand company, who has now returned to New Zealand, was retained in this country until final settlement with the Investment Trust), and the consequent inability of your management to concentrate upon sales, turnover for the year is over £60,000 and should increase at a much greater rate for the current year, so that the costs of establishing the business should be less than £15,000, and in any case should be wiped off in the third year. By the time of the annual meeting, cheese from the New Zealand company should be arriving in larger quantities and your directors hope to be able to announce that sales have greatly increased, for all supplies of vacuum-packed cheese which have arrived here have readily sold at a minimum premium of 20s above the market price. Moreover, every shipment of butter has realised a minimum premium of 12s per cwt, more than best bulk New Zealand butter otherwise packed, and this without advertising. MARKET INVESTIGATION AND RESEARCH. Very encouraging results have been obtained by the supply of butter as ship stores to British ships. This is a new avenue of trade to New Zealand and only the fringe of the market has yet been touched, but mutually satisfactory businei9s is developing. Further trial shipments have also been made to overseas markets, and reports on shipments to India and the West Coast of Africa and Peru have been entirely satisfactory. It should also be possible to ship dried fruits from Australia and South Africa, eliminating the sulphur process which has now to be used, when capital funds are available. This would be a most important development. Shares allotted to date are 237,266, and your directors invite you to take up further shares. Applications must be received by February 23, 1936, after which date the company, with the assistance of the Investment Trust, reserves the right to make an offer to other persons, including the public in New Zealand.