Sponsor (Jan-June 1950)

Forecasts of things to come, as seen by SPONSOR'S editors Outlook Labor FMers picking up sponsors In addition to transit radio, storecasting and functional broadcasting, another category of FM is making its way commercially, the union-owned station. Vim Stores and WFDR-FM, New York (owned by the International Ladies Garment Workers Union), have combined to merchandise two evening newscasts. WFDR-FM and Vim will promote the Zenith FM set as the best buy. This in answer to requests from 250.000 New York union members who wanted to know which FM set to purchase. Zenith will keep Vim supplied with four different FM receivers with each union member getting a purchasing priority. Sunkist-Minute Maid tie-in may lead to more air ads Minute Maid, one of the largest producers of frozen orange juice, has made a deal with the California Fruit Growers Exchange (Sunkist) because prices on the current Florida crop are too high. Minute Maid president John M. Fox predicts that within two years the frozen concentrate industry will be buying one-third of the California crop. With Minute Maid heavy user of radio, it's likely that Sunkist, largely a printed media user, will be drawn into the broadcast advertising orbit. The slack in the Florida citrus market may mean more broadcast advertising from the Florida citrus fruit growers. At present 18 percent of all citrus sales are made by frozen orange juice concentrate manufacturers. TV will not compete with radio for out-of-home audience this summer TV will not be able to compete with radio for the outof-home audience this summer. A check of six of the country's largest TV set manufacturers i RCA, Emerson. Sentinel. Admiral. General Electric and Westinghouse) revealed that none will produce portable TV sets this summer. Ibason is the growing demand for large-size picture lubes (12 inches or morel which can't be easil) built into a portable set. American Dairy Association plans promotional campaign for 1951 I he American l)air\ Association is readying an advertising campaign to stimulate consumption of 7.000,-000,000 pounds of milk thai would otherwise create a surplus on the market. When the promotional drive starts I January, it's likel) thai not onlj the Dairy Association but numerous individual dairies will use the air. Used-car dealers hit unexpected sales flurry Used-car dealers, some of whom expected to close their doors earlv this spring, have had an unexpected business surge. Prices are up 10 to 20 percent from midwinter sales figures with demand for used cars heavy. An important factor is the Chrysler Corporation strike which cut off new car production. Chrysler Corporation output for 1949 was 1,035,272 cars, or 21.40 percent of the entire automotive industry. With production lines idle, some Chrysler dealers are supplying new car customers with used car models. Veterans, too, are purchasing used cars with G.I. insurance dividend checks. Many dealers are accenting their radio advertising to hypo the unexpected sales boom. Cigar industry getting highly competitive With cigar manufacturers losing money, drastic economy measures are in effect. General Cigar Company has reduced its shade-grown tobacco acreage from 1,300 to 400 acres. General Cigar Company president, Julius Strauss, says competition among cigar firms amounts to a dogeat-dog fight. Extensive use of broadcast advertising tied in with sports events and other popular men's programs w ill help sagging cigar sales. Anti-cigarette campaigns may force change in advertising approach Cigarette makers are being besieged on all sides. There is the current crop of rumors claiming cigarettes are bad for your health. The FTC is acting on fraudulent and misleading claims. Tobacco men may change their ad copy to refute the anti-health reports and at the same time attempt to circumvent FTC objections. Class vs. paper container battle increasing in tempo Ex-Cello and American Can Company ( which also makes paper containers) are readying their forces for a paper vs. glass container ad battle. Anchor-Hocking (glass containers! starts a one-hour variety show on NBC-TV 16 May plugging one-way glass bottles. Paper container costs are down to just over one cent. Glass containers, while far more durable, have to be handled, washed and. most important, returned by the user. Campaigns for and against glass and paper containers should be heav\ especialU with the summer spurt in beer and soft drink sales. Soda fountain sales in drug stores to get added promotion Drug stores with soda fountains average annual sales of $78,500 ($18,500 at the soda fountain). Drug stores without soda fountains had average sales volume of $47,700. The) also sold less merchandise in other departments. \s a result, drug stores are making plans to promote soda fountain sales in their air and printed media advertising. The average drug store shows an annual prescription \olume of onl\ !?!!.( Hit I or less. sa\s C. W. Esmond, merchandising consultant. 12 SPONSOR