The Exhibitor (1959)

BEVERAGE SURVEY: LIQUID ASSETS The Nehi Story • This is the first of a series of articles which will appear periodically in EXTRA PROFITS, aimed at keeping the theatre refreshment stand operator up-to-date on beverage merchandising angles and abreast of the display materials, tie-ins, and other advantages offered by the lead¬ ing manufacturers in the soft drink field. An individual manufacturer will be called upon to contribute the data for each story. r HE NEHI CORPORATION, because of a distribution system of more than 450 bottling plants in the United States, is in a position to offer theatres greater and faster service on the local level, an important considera¬ tion in maintaining inventories and equip¬ ment in first class condition. This local service provides numerous benefits and sav¬ ings, such as fresher products, no break¬ age in shipment, no freight costs on ship¬ ments, reduced inventories, and all products available from one supplier. The local Nehi bottling plant will parti¬ cipate, in most areas, in the theatre’s screen advertising to the extent of one dollar for each case of Nehi products (Nehi, Royal Crown Cola, and Party-T-Pak beverages) purchased. Each case contains four gallons. This means that the theatre makes money on the sale of beverages in two methods: to the consumer, and screen advertising. Also, many Nehi bottling plants are participating with theatres in kiddie shows and other pro¬ motions. Nehi products costs less, it is said, than other products of comparable quality be¬ cause no freight rates are included in the price. The Nehi products either are manu¬ factured at the local level or delivered to bottling plants on the company’s own trucks. Profit Margin High Nehi assures the theatre owner or re¬ freshment stand operator of a profit 80 per cent or better on a 10 cent beverage. Soft drinks, as such a high profit item, must be given prime consideration in theatre mer¬ chandising. Also, many Nehi bottling plants are in a position to furnish C02 gas at a reduced cost due to having converters in their plants, or a good source of supply. Many of these plants have trained personnel, as well, to assist in the servicing of equipment. TIE-IN display materials also are available from Nehi to promote the company's beverages. The well-marked waste disposal unit is another plus factor in Nehi merchandising. Four Purchase Methods Nehi offers four methods to theatremen for the purchase of their equipment: 1. Cash — The actual cost of the equipment plus freight, which would be f.o.b. manufacturer. 2. Rental— -In any theatre that will use a minimum of 200 gallons of syrup an¬ nually, Nehi will rent and maintain equipment at the price of 50 cents per gallon plus the regular syrup price. 3. Override — If the theatreman wishes to own the equipment, Nehi charges one dollar per gallon override plus the regular price of the syrup until the equipment is amortized, based on an agreement with the theatre that the unit is amortized in 24 months. 4. Combination Syrup and Dispenser — This is a deal charging list price for the equipment. Nehi will give the theatre enough syrup to ensure that when syrup is sold it will bring in more than enough money to pay for the dispenser. These methods have been developed by the Nehi Corporation to put theatres in the beverage business at a minimum cost. Continued from Page PE-12 it is served ice-cold. And ice in the cup retains the coldness in the drink until it is consumed. Merchandising Proper merchandising of beverages also stands to increase their sale at the refresh¬ ment stand. Many of the larger suppliers furnish, free of charge, elaborate promotional material running from film intermission trailers to display pieces to reminder signs. Attendants add a great deal to the promotion of certain items by suggesting them to cus¬ tomers. And, in many instances, simple place¬ ment of beverage dispensing equipment in close proximity to hot dog grill or popcorn machine increases the sale of both items. Stock and Storage Many operators order and take delivery of beverage syrups in large quantities on the theory that slight savings thus effected make the practice desirable. This is definitely not the case. Beverage syrups should be bought a week’s supply at a time, on the same day every week. Like other food products, syrups should be protected against the natural haz¬ ards of heat and storage. For that reason, and to insure top quality drinks at all times, a week’s purchase at a time is highly desira¬ ble. When delivered to the theatre, beverage syrups should be stored in a clean, dry place away from hot-water pipes, steam lines, etc. It is recommended that syrup bearing the oldest date of manufacture be placed to the front of the storage bins or shelves, so that it will be used first. In this way, fresh¬ ness of the syrup and of the drink dispensed to the customer is guaranteed. The Profit Story Properly stocked, properly stored, properly priced, and properly promoted, “the beverage” plays an important part in the financial life of the exhibitor. His patrons have proven on past performance that they want refreshment with their entertainment. The average thea¬ tre in the United States does more than 500 gallons of business a year at the beverage counter. Figured on the rate of return given him by one leading manufacturer, the profit from beverages alone comes to $2,000 a year for the operator! If he sticks to top-quality products — prod¬ ucts nationally advertised, nationally known, nationally preferred — the job of turning stock into profit becomes a simple one for the theatre man with money on his mind. Rowe Sales Force NEW YORK — As part of its program of providing widest possible sales and service coverage for independent vending operators, Rowe Manufacturing Company has an¬ nounced the addition of six salesmen to its nationwide field force, plus three non¬ exclusive distributors in the west and south¬ west to supply supplementary on-the-spot service to operators. Appointment of the distributors was a “special -situation departure” from Rowes’ basic sales policy “which has been, and re¬ mains, that of direct sales to operators,” according to sales vice-president Charles H. Brinkmann, and was designed to insure that operators in the particular areas would have year-around coverage. Regular Rowe field men will continue to call on operators in these areas, he stated. NEHI'S POINT-OF-PURCHASE display material is eye-catching and effective, as demonstrated by the various materials used at this indoor theatre refreshment stand, at the Royal, Columbus, Ga. PE-14 PHYSICAL THEATRE • EXTRA PROFITS DEPARTMENT of MOTION PICTURE EXHIBITOR February 11, 1959