ENGLISH-MADE MARGARINE

Otago Witness, Issue 3619, 24 July 1923, Page 27

ENGLISH-MADE MARGARINE

EFFECT OF PRICE-CUTTING. (From Our Own Correspondent, j LONDON, June 1. Presiding at the fourth annual meeting of English Margarine Works (1919), Ltd., at Liverpool, Mr William G. Lovell, 0.8. E. (Messrs Lcvell and Christmas), expressed, regret that, contrary to his anticipations a year previously, the company had not made sufficient profit to permit of the payment of dividends. Then it looked as if, and so it had, the period of constant decline in prices of raw materials had come to an end, but what he did not foresee was that a price-cutting campaign was to be started among multiple-shop companies, which rendered it necessary fc.r this company to reduce its price in order to assist its customers to meet the competition; nor could he foresee that when this had at last been settled a similar campaign w ould be started among the manufacturers. Unfortunately, this campaign still continued, in spite of an advance of from 20 to 25 per cent., in the cost of raw materials. Since ihe last meeting they wore compelled to sell their cheap margarine at a reduced price. The loss thus sustained on a portion of their output was a serious matter, but there was a much more serious aspect to this campaign in the harm which was being done to the industry, for undoubtedly this exaggerated cheapness was apt to create an unwarranted prejudice in the mind of a layman. In view of the wrecking policy which had held sw'av for some time, the position of the company was not unsatisfactory. At tho close of the financial year in December their capital remained intact and they had made a net profit of £6025. The company’s position towards the trade had never been better. Their turnover was constantly increasing, especially in ihe better grades. Brands like “Brito.” “Silver Star,” and “Silver Line” were becoming more popular every day, and the consistency of tbsir qualities was being greatly appreciated by their customers.

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