1951
IT HAPPENED IN…1951
Although Chinese Communist troops had entered the
Korean War and American troop casualties passed the 100,000 mark, a
third world war was averted when the U.S. decided to abide by the
United Nations decision not to attack Chinese bases.
In April President Truman relieved General Douglas MacArthur
of his Far East commands.
The employment of women in American industry
reached a record high.
Employment, wages, and prices were all up.
The 22nd Amendment to the U.S.
Constitution was ratified, implementing a two term limit for
Presidents. This change
was a reaction to President Franklin D. Roosevelt’s four terms in
office.
The costliest flood in U.S. history occurred in
July when the Mississippi River and its tributaries flooded over one
million acres in Kansas, Oklahoma, Missouri, and Illinois.
A race riot occurred in Cicero, Illinois when
4,000 whites attacked an apartment building housing a single black
family.
The world’s largest natural gas pipeline opened
between Brownsville, Texas and New York City.
Transcontinental direct dial telephone service
was introduced.
Hank Ketcham’s “Dennis the Menace” comic strip
made a syndicated debut in newspapers.
Network television show premieres included “I
Love Lucy,” “The Roy Rogers Show,” “Superman,” “Mr. Wizard,” and the
“Search For Tomorrow” soap opera.
A television version of the “Amos ‘N’ Andy” radio show also
premiered, the first network series with an all Black cast.
Mickey Mantle hit his first major league homerun
for the New York Yankees.
Topps Chewing Gum Company introduced packets of
baseball cards containing gum.
Newly introduced products and inventions included
commercial transistors, Univac computers, random access memory, and
Liquid Paper typing correction fluid.
The federal wage-price freeze created serious
challenges for the soft drink industry.
West Virginia enacted a 1¢ tax on 16 ounce or
smaller soft drinks, plus 1¢ in sales tax.
6,383 U.S. soft drink bottling plants were in
operation. Per capita
consumption was 162.7 bottles.
Hires continued the push to attract and appoint additional franchise bottlers by placing advertisements in industry trade magazines. Hires had licensed sixty new bottlers during calendar year 1950.
(Figure
1951-01, The
American Bottler, January 1951)
With soft drink sales slow during the winter months, the skater on the
cover of Hires to You! Volume
5, Number 1, February, 1951 was designed to ensure bottlers “Don’t
Overlook Winter Sports Arenas.”
(Figure
1951-02, Hires
to You! Volume 5, Number 1, February 1951, front
cover)
Following North Korea’s invasion of South Korea in June, 1950, U. S. involvement evolved from a “police action” to the “Korean War.” U.S. mobilization for war prompted a Hires to You! Volume 5, Number 1 article authored by E. W. David. In addition to his thoughts on preparation for the Korean War, he provided some interesting into the challenges Hires and the soft drink industry faced during World War II.
MOBILIZATION and the SOFT DRINK INDUSTRY
by E. W. David, President, The Charles E. Hires Co.
The experience of the last war – a look at today’s
situation – enable us to face the future with confidence.
Serious times are ahead.
Our Government predicts austerity.
I have no crystal ball with which to forecast future events or
the impact they may have on the carbonated beverage industry.
We are already faced with restrictions of scarce raw materials,
particularly aluminum, nickel, steel, copper, tin, zinc, cobalt, rubber
and rayon yarns. We have
limitations on credit, designed to decrease consumer purchasing and aid
in checking inflationary tendencies.
We have substantially increased taxes on normal profits, as well
as still higher excess profits taxes intended to syphon off the profits
of war and aid in balancing the budget on a pay-as-you-go basis.
It will not be an easy road to travel
Perhaps, however, the experience of the last war may
throw some light on the problems to be faced in this partial
mobilization, and the part that the soft drink industry may play in it.
Bear in mind that soft drinks are food, so defined by the
Department of Agriculture.
During the last war the Army considered them so important to the war
effort that soft drinks were included in a small group of half a dozen
articles for which the Army insisted on preferential treatment over
civilian supply requirements under the following ruling: “Domestic
exchanges will not be entitled to any preferential treatment over
civilian enterprises except for
those items deemed essential to soldier morale.”
Soft drinks are already in demand in the various
camps and Navy stores.
Bottlers who have such installations within the trade territory have an
opportunity to share in this additional business by contacting the
Procurement Officer.
Business with armed forces is worth going after.
During the last war these orders were accompanied by the
necessary priorities to insure the manufacturer’s being able to get
scarce materials for the order.
In the case of sugar which was rationed, additional quotas were
provided.
You will recall some of the other materials that were
difficult to obtain – lumber and fibreboard for boxes, glass for bottles
because of the shortage of soda ash, CO2 gas which was needed by the
Navy for fire prevention, caramel and other flavoring ingredients.
No tin was available for block tin pipes for dispensers.
Plastic had to be substituted for carbonated water lines.
Cork was scarce because it had to be imported from Spain,
Portugal, and North Africa, and shipping space was difficult to obtain.
Steel was in such short supply that the crown manufacturers were only allowed to use reject steel plates for bottle caps, and no tin was available to plate the steel. Bottle caps were so scarce that plants were set up to recondition used crowns by immersing them in a hot caustic bath which sterilized them and removed all the cork and lacquer decoration. Then they were reformed by a press, dipped in a lacquer bath to prevent rusting, and finally a new cork disk was inserted. Needless to say, these crowns cost much more than new ones, nor did they comply with labeling regulations requiring the name and address of the manufacturer. The food and drug authorities in the various states understood the situation, however, and waived the labeling requirements. Gasoline and rubber shortages made it necessary to restrict mileage and deliveries.
The Office of Price Administration, O.P.A., handled
rationing and price controls. The
War Production Board, W.P.B., and War Food Administration, W.F.A., were
responsible for allocations.
Transportation was regulated by the Office of Defense
Transportation, O.D.T. Even
labor was allocated by the War Manpower Commission.
All of these regulations and controls of industry were made
necessary by the exigencies of World War II.
Let us hope that the present beginnings of mobilization will not
lead to the necessity for such all-out war measures again.
Looking at the situation today, the soft drink
industry is in a much better position than it was at the beginning of
the last emergency. Its
productive capacity has been greatly increased since the war.
In fact, it has expanded to such an extent that keen competition
has resulted in a tendency to postpone increases in selling prices
commensurate with rising costs of materials and labor.
This price-profit problem, however, is being rapidly corrected.
It must be in the industry is to have the resources necessary to
take care of the demands of the armed forces and civilian requirements
as well.
Suppliers of the soft drink industry too, have
stepped up their productive capacities, which means that needed
materials should be more plentiful than before.
Many of the shortages during the last war were caused by the
submarine menace and inability to import.
At one time, that affected even the importation of sugar from
Cuba. Perhaps the main
cause for the sugar shortage, however, was the diversion of more than
nine hundred thousand tons of sugar for the production of alcohol to be
used in the synthetic rubber program.
It is to be hoped that this will not occur again.
Sugar supplies today appear to be sufficient for all food
requirements.
No one can predict future events, but the record of
the soft drink industry in the last war was one to be proud of, and I am
sure it will give a good account of itself in this new national
emergency. For that reason,
we here at the HIRES Company face the future, and problems that may
arise, with confidence that all segments of the industry will work
together for the common good.
Hires' frequent participation in industry trade shows was reported to Hires to You! readers via text and images such as this eye-catching example. No doubt "Miss Hires Keg" attracted numerous attendees to the Hires booth at the Parks, Pools and Beaches Show in Chicago!
(Figure
1951-02, Hires
to You! Volume 5, Number 1, February 1951, page 11)
This issue of
Hires to You! also included an article by C. M. Lamason, Hires’
Sales Manager, Franchise Division and Territories, emphasizing the
importance of franchise operations: “Franchise bottlers of name brands
find a ready-made market, requiring only good service, effective
distribution and intelligent cost handling to show a quick and
continuing return.”
(Figure
1951-02, Hires
to You! Volume 5, Number 1, February 1951, page 12)
This article about department store sales provided
insight concerning the Christmas season.
(Figure
1951-02, Hires
to You! Volume 5, Number 1, February 1951, page 13)
Sadly, this issue of Hires to You! also carried an announcement
of the death of J. Edgar Hires on January 23, 1951.
(Figure
1951-02, Hires
to You! Volume 5, Number 1, February 1951, inside
back cover)
Hires’ heavy emphasis on increasing their base of
franchise bottlers continued with full page trade magazine
advertisements.
(Figure
1951-03, The
American Bottler, March 1951)
(Figure
1951-04, The
American Bottler, April 1951)
Hires reminded their bottlers about the company's
national advertising push with this full page advertisement in the June, 1951 edition of
The American Bottler.
(Figure
1951-04.5, The
American Bottler, June 1951)
(Figure
1951-05,
Saturday Evening Post, April 28, 1951,
Look,
June 5, 1951, also in
Life during the same time frame)
Hires placed this advertisement in The American Bottler in July, 1951:
(Figure
1951-05.5, The
American Bottler, July 1951)
(Figure
1951-06,
Saturday Evening Post, June 30, 1951,
Life,
July 23, 1951, also in
Look during the same period)
In 1951 Hires published Your Guide to Successful Selling, a booklet containing photos and text designed to guide route salesmen thru the process of making dealer sales calls.
(Figure
1951-07, Your
Guide to Successful Selling, 4.0” x 5.0”, front
cover)
Your Guide to Successful Selling included
these tips:
ASSEMBLE EMPTIES
Count the empties and carry them out to a convenient place in the store where the retailer can check the quantity you are taking out.
APPROACH THE DEALER WITH YOUR SALES STORY
Make certain that you do not interrupt the retailer if he is busy with another salesman or customer. Remember, you and HIRES are always competing for the retailer’s attention against not only other beverages, but with all products in his place of business. You must therefore, make a more favorable impression on him than any other company's salesman. You must conduct yourself in a helpful and businesslike manner at all times.
When you get the retailer's attention, tell him how much HIRES he has sold since your last visit and give him reasons for stocking more at this time. Tell him about the increasing demand for HIRES -- that it is a nationally advertising product with over 80 years of consumer acceptance. Tell him of the advantages of giving HIRES more shelf-space and building a floor and window display. When talking to the retailer, always keep in mind that you are helping him to sell more HIRES to his customers and thereby helping him to make more profits. Tell him of the success other retailers have had. Tell him that they sell large quantities of HIRES because they display HIRES. Show him your point-of-purchase advertising designed to increase his sales. Get his permission to put up your advertising at a prominent spot in his store. Tell him that you have an outside metal sign to place on the front of his store. Gain the retailer's confidence by showing him you are working for his interests. Let him know that you are capable of looking after his hIRES stok, displays and advertising for his profit. Ask for the order. Always try to sell him more than you did the last trip. Never trade empties.
PRESENT YOUR BILL
Thank the
dealer and tell him when you’ll be back.
Always leave with “HIRES to You!”
Hires’ Detroit, Michigan plant developed a target marketing campaign for schools.
(Figure 1951-08, special
events card, 3.25” x 5.5”, front)
(Figure 1951-08, special
events card, 3.25” x 5.5”, back)
The
Hires check mark logo was printed on both sides and end panels of this
wooden case produced for use by a Kenton, Ohio bottler.
The case held two dozen 12 ounce bottles.
(Figure 1951-09, wooden case)
(Figure 1951-10, metal sign
and door pusher, 6.0” x 8.0”)
These cloth patches were sewn the backs of shirts and
jackets.
(Figure 1951-11, cloth back
patch, 7.5” diameter)
These signs were designed for drive-in restaurants.
The backs of the signs had large numerals printed on them to help
car hops identify which customer was signaling for service assistance.
(Figure 1951-12, cardboard
drive-in restaurant sign, 5.25” x 6.5”)
This plastic, double-sided syrup dispenser tap handle is 3.0" tall.
(Figure 1951-12.5, syrup
dispenser tap handle, front and side views)
(Figure 1951-13, porcelain
sign, 6.5” x 10.5”)
This cast metal, scale
model railroad train layout refreshment stand was an “Authenticast”
product produced by Comet Metal Products in the Richmond Hill district
of Queens in New York City.
Note the Hires barrel on the counter, and check mark logo signs.
One end reads “ICE COLD SODA ALL FLAVORS,” while the other end
states ‘ROOT BEER ORANGE-ADE ALL SOFT DRINKS.”
(Figure 1951-14, model
railroad refreshment stand, 4.5” x 2.25” x 3.0”)
For the fiscal year ending September 30, 1951, Hires
reported net sales of $8,066,612 and a net profit of $404,004.
The pictured one ton delivery truck was assigned to
Hires��� Los Angeles, California plant.
(Figure
1951-15, The
American Bottler, October 1951)
The company-owned warehouse in Orange, Connecticut
was closed and replaced by a new bottling plant in November, 1951.
At year-end 1951 Hires was still actively seeking additional franchisees, even though this advertisement’s copy indicates only “A few franchises remain to be had.”
(Figure
1951-16, The
American Bottler, December 1951)