DOMINION BREWERIES

Wanganui Chronicle, Volume 75, Issue 178, 30 July 1932, Page 9

DOMINION BREWERIES

ANNUAL MEETING HELD REVIEW BY CHAIRMAN LARGE INCREASE IN TURNOVER A fair number of shareholders were present at the annual general meeting of Dominion Breweries, Ltd., hold al Auckland on July 28. In moving the adoption of the annual report and balance-sheet the chairman of directors, Mr H. Reimers, stressed tho fact that when reviewing tho affairs of any commercial or industrial concern one had to keep in mind the almost unpreccdentcd condition: that prevail throughout the world to-duy. “The tremendous fall in the purchasing power of tho average consumer,” ho said, “has brought about a decline in the demand of most commodities, be they luxuries or the bare necessities of life” which in many instances dealt a fatal blow to long-established local industries. The hotel business, with its associated trades proved, of course, no exception, and for the first time in the history of the New Zealand brewing industry, the consumption of beer for the Dominion showed a decrease of nearly 3,000,00 gallons whew compared with the previous year. “In view of this fact,” continued the speaker, “the progress made by Dominion Drowcries, Limited, is particularly gratifying. Wo have not only maintained our previous output , but. the production of tho brewery for the year under review actually shows an increase of 40 per cent, over that of the previous year. This does not mean, of course, that our business was not affected by the highly adverse conditions which prevailed throughout this period. Indeed had it not been for the general decline in consumption, the Waiteniata Brewery probably would have been called upon to double its previous year’s production. “These satisfactory results are un doubtedly due to the high standard of quality your directors have set themselves in the manufacture of Waitemata products. Waitemata ale and stout have now become firmly established, and enjoy a popularity which is increasing from day to day. The I additions and improvements made in the brewery enable us to place on the market a product of uniformly high quality, guafanteod absolutely pure, and entirely free from any trace of chemical or preservatives. This, in itself, is a great achievement nnd fully justifies the expenditure incurred. Wo may justly claim that, the Waiteniata Brewery, at Otahuhu, is one of the most up-to-date and most scientifically equipped breweries in New Zealand to-day, and the full benefits of the policy pursued by your directors in this direction will be reaped by the company in the future.

“Although the company's turnover was so highly satisfactory,” continued the chairman, “the heavy increase in taxation, necessitated by the falling of revenue experienced by the Government, deprived the company to a great extent of tho benfits which otherwise could have been expected from the in creased business. An increase of uO per cent, in beer duties, etc., can only be considered an unjust and inequitable piece of class taxation, nnd would hardly be tolerated by any other industry or commercial enterprise. As already pointed out in the report, durin the year under review your company was called upon to find over £38.000 for duties alone, tho bulk of which could not be passed ont but had to be met out of tho earnings of the company. “It is almost entirely owing to this fact,” said Mr Reimers, “that the net earnings of tho company for the. past year ar 0 not as satisfactory as they otherwise would have been, and that the directors cannot recommend the payment of a dividend to shareholders. After making full provision for land, income and other taxation, depreciation, bad debts, etc., it is recommended that of tho amount available for distribution. viz., £2436 2s 2d, the sum of £lOOO be transferred to reserve, increasing that amount to £4OOO and that tho balance of £1436 2s 2d be carried forward.

°Considering all things —the heavy expenditure inevitably associated ™ith the launching of a new company, tho difficulties to be met in finding a market and creating a demand for a new product; tho heavy increase in taxation to be found by the company in its initial stages; and the critical e-’o* nomic and financial conditions of the country generally—-tho directorn feel that the company has every reason to be proud of its past achievements and of the strong position it holds to-day.

Moreover, the directors have every confidence in the future, and feel that the most difficult period of the company has been passed and that normal con-

ditions will bring the shareholders the full benefits of a sound foundation. The directors and management fully realise that. tKe success of tho company is entirely dependent on the quality of its products and the popularity of Waitemata beer, wherever it has been introduced, and tho daily increase in demand. are convincing proof that wo have fully succeeded in this direction.” The report and balance-sheet for the year under review were adopted.

The retiring directors, Messrs \V. B. Brittain and W J. P. Hodgkins, were re-ele»cted.