A GREAT NEW ZEALAND BUSINESS.

Hokitika Guardian, 21 February 1922, Page 2

A GREAT NEW ZEALAND BUSINESS.

TWO MILLION TINS OUTPUT PER ANNUM. WONDERFUL RECORD OF EDMONDS BAKING POWDER.

(By Our Special Representative)

Knowing that Messrs T. J. Edmonds, Ltd., the proprietors of Edmonds’s Baking Powder, had recently erected what is probably the most modern baking powder factory in the world, a special representative of various New Zealand newspapers journeyed out to the new factory.

The story of the growth and development of Edmonds’s Baking Powder reads like a romance, and it is safe to say that no business in New Zealand has built up such an extraordinary output in its own territory. The first year’s out put, in 1879, was about 1000 tins; ten years ago, in 1911, 878,000 tins were being sold per annum; last year the output reached over one and threequarter million tins; while this year it is confidently expected that the sales in this Dominion will reach over two million tins. When one remembers that this represents an average consumption of over seven and a half tins per annum for every family in the Dominion, it must be recognised that no higher tribute can be given to the extraordinarily high quality and remarkable value of the product.

The newspaper man had a long chat with the managing director of the firm, Mr A. L. Cropp, and was interested to i ear that the new factory has an output capacity of over six million tins per annum. The reporter asked Mr Cropp why such a big output capacity had been provided for, and was interested to hear that one of the biggest English firms sellinr to grocers and storekeepers had been making careful tests of Edmonds’s Baking Powder for a very considerable period, and had come to the conclusion that there was nothing on the English market which could even compare with it. As a result they had decided to take the line up and place it throughout England, as they were confident that huge sales could be expected in the Motherland. The firm will ship supplies from the Dominion to its English selling organisation.

Mr Cropp has just recently returned from a trip round the world, and purchased samples of every brand of baking powder which he could procure in Canada, the United States, England, and elsewhere. These were tested by expert chemists in competition with Edmonds’s, with the result that the New Zealand product proved superior in every instance. Indeed, Mr Cropp has conic back fully convinced that Edmonds’s “Sure to Rise” is the finest baking ponder in the world. The very greatest care is taken to maintain this high quality. During the war regular supplies of cream of tartar were difficult to obtain, and Messrs Edmonds were urged to use cream of tartar substitutes bv various manufacturers. Knowing how unsuitable wore these substitutes for a highgrade product like “Sure to Rise,” they absolutely refused to use them, and rather than do so decided that they would close the factory down when they were short of the highest grade genuine cream of tartar. This course had to he pursued several times until regular supplies arrived, and these suspensions naturally gave the directors considerable anxiety. After-events, however, have definitely proved the wisdom of doing so, and have established the fact that the maintenance of quality must be the first consideration in building permanent business.

THE EFFECT OF THE NEW TARIFF.

As an instance showing bow legislation may affect the health of tue people, it is interesting to note that the revised Tariff which was introduced in December last places a duty ol 20 per cent on cream of tartar which is not made within the Empire. This duty bad evidently been imposed witliouV’due inquiry into the facts, (.'ream of tartar is not a British product, and there is no manufacturer in the British Empire able to supply sufficient raw material of high qutlity to even keep Edmonds’s Baking Powder Factory going at normal pressure. After due consideration, the Minister of Customs removed the duty for a period ot twelve months. If it is again imposed after this period, it will certainly have the effect of nullifying the efforts of this splendid New Zealand business to extend its operations and supply the overseas market. Not only would T. J. Edmonds, Ltd., he unable to secure sufficient supplies of British-made cream of tartar, but the additional cost of the product would make it absolutely impossible for them to place ‘‘Sure to Rise” on the English market. It is certainly to be hoped that nothing will he done to prevent New Zealand building up trade for this high-quality line in Great Britain. A TRIP THROUGH THE FACTORY. Accompanied hv Mr Cropp, out representative then went through the great factory. First of all he was conducted through the office block, which is a separate section in a separate building.

Every modern appliance for laboursaving lias been installed, and the greatest care has been taken by the architects to see that the greatest amounts of .natural light is secured. Separate offices are provided for the main executives, and Mr A. L. Cropp’s room contains some exceptionally fine pieces of New Zealand furniture. The hoard room is impressive, with its large dimensions and its huge hoard-room table.

The new factory itself is some three stories high, built on the latest principles for securing the largest possible amount of natural light. The most modern machines for weighing and handling are installed, and everythig has been done to reduce duplication of effort. Spotlessly clean, the building is is credit to the manager and members of t!ie factory staff.

An interesting feature is the laboratory, where all materials are most caiefully tested and analysed, the greatest care being taken that every ingredient is of the highest quality. Both the office block and the factory building are a credit to the architects, Messrs J. S. and M. J. Guthrie. The exteriors in every instance are of toned brick, giving a most attractive appearance. Ample space lias been left

for lawns and grtrdens. These are now in the course of preparation, and when completed will be amotlgst the most attractive in New Zealand.

As some indication of the magnitude of the firm’s operations, our representative was interested to hear that every year 24,300 cases are made oil the premises. Timber is cut at the mill to specifications and turned into cases in the factory with up-to-date casemaking machines. Over two million labels are printed in the Dominion, while this year two million tins will be made in the factory. Over 080 tons of baking powder are sold every year, which means that 14,000 tons of carting and handling lias to be done by shipping companies and railways from one end of the Dominion to the other To give an idea of what this means, Mr Cropp mentioned that if one-ton motor trucks were loaded up with raw material brought into the factory, and also with the manufactured baking powder, they would form a procession five miles long; and would require approximately 1360 motor-lorries; while the tins used would cover an area approximately one million square miles.

In addition to baking powder, Messrs Edmonds do an extensive business in custard powder. The old factory is now used for its production. The sale for custard powder has increased recently beyond all expectations, and can be attributed to the high quality of the line and the fact that it costs less than imported brands. Throughout the big factory all the machinery is run by electric motors, thus eliminating smoke and dust associated with fuel engines. When asked the reasons for the extraordinary growth of the (firm’s product, Mr Cropp said that he attributed this, first, to the fact that they have the highest quality line in the world, but be must also give credit to the part that -the newspapers played in the development of the business. He mentioned that their entire advertising had been handled for many years by J Mott, Ltd., the well-known firm of advertising agents, Wellington, Christchurch, Auckland, and Dunedin, and with perfect satisfaction to themselves. The business was first placed with J. Ilott, Ltd., in 1911, and the output was then 878,000 tins per annum. The firm felt that they had reached the maximum that could be done in New Zealand, but the results of the first campaign increased their output by another 25 per cent. Since then still larger sums have been spent in newspaper advertising each year, but at a progressively lower advertising cost per tin because of the steady increase of output.

BUSINESS HISTORY. Our rep.esentative was interested to meet Mr T. J. Edmonds, the founder of the business and chairman of directors of the company. It is to Mr Edmonds’s ingenuity and acumen that the foundations were laid which made the i ..-,0 of this splendid business possible. Asked for some information regarding the growth of the firm. Mr Edmonds said': On 26tli September, 1879, 1 landed in Lyttelton on the ship Waitangi, after a three months’ voyage from London. Being a married man in my twentieth ..car, and realising uiy responsibilities I at once set about devising means to provide the necessary loaf, and started my business career in a small groier’s s*...j>, with a tumor or of about £2O per Finding this was not a paying concern, 1 had to look about and find means to increase my income. My business in the grocery line brought me in contact with baking powder, and'the idea came to me that if I could manufacture a satisfactory article of this sort there should be a fair sale. .Previous to leaving London 1 had spent some time in one of the largest confectioner's businesses, that of Messrs Allen and S.:ns, and became acquainted .vith the use and mixing of powders rolative to sherbet making. Having decided to tackle the baking powder business, I at once started •per:u ions, and one of the chief difficulties that 1 was confronted with was .•hat name to give it. HOW “SURE TO RISE” ORIGINATED. Recognising that a good name is an asset, not only to man, hut also to an article, long deliberation was indulged

in before deciding. One clay a lady customer, when being persuaded by me to purchase a tin, complained that when using other brands the scones were very Hat. 1 assured her that if she used my brand her scones would be sure to rise. The name “Sure to Rise” hit me very forcibly, and Edmonds’s “Sure to Rise” it lias been from that day forward. Mv first mixing of baking powder consisted of about ‘2OO tins, which found a. ready sale among my own customers, and as time went on the clients would take two or three tins each for friends. Business steadily increased. Encouraged by the testimonials and inquiries for my baking powder, L decided to concentrate my energy exclusively on the scientific blending of the ingredients that go to make my Edmonds’s “Sure to Rise” baking powder. 1 was for three years or more studying the problem, during which time various other brands began to creep in. This gave me an impetus in my investigations and enabled me to produce at the end of the period the powder which has become a Dominion favourite and known by one and all as Edmonds’s “Sure to Rise,” and also resulted in my working out a formula for egg powder, custard powder, and sell-raising flour. On completion of the formula, 1 immediately approached the merchants regarding stocking "Sure to Rise,” and succeeded in inducing several of them to place trial orders on their shelves. By this step 1 considered that good fortunt had turned my way, and that all I would have to do was to manufacture for the demand.

Three months elapsed and no orders arrived from the merchants. Wondering what could he the matter, I at once' went to them, and was informed that they had never been asked for Edmonds’s “Sure to Rise.” Realising that it was not known on the market, it became necessary to create a demand. The method adopted was a personal canvass. It was my custom, if people whom I saw would not buy, to leave the powder with them without payment, on the understanding that if they did not like it I would take it hack next visit.

It is with a certain amount of pride that! look back on these days and remember that never one tin was returned, hut instead they nsW v for more.

Soon after this the business began to .—, grow, and necessitated me putting all my time and energy into the manufacture of Edmonds’s “Sure to Rise.” Inquiries began to come in from all parts of Canterbury, including orders from the merchants, and it was from this point that the business began to assume dimensions which have since grown beyond all expectations. From 1879 to 1889' the output grew per annum steadily from a few hundred tins to 21,000. From 1889 to 1905 the output grew to 370,600, and from 1905 to 1915 1,250,000 for the twelve months.

It was in 1911 that I was first induced by Mr JVM. A. Ilott, of J. Uott Ltd., to authorise a campaign for newspaper advertising. In that year the increase in sales was more than double that attained in any previous year in the history of the business. It was this fact that so strongly illustrated to me the benefits of advertising when executed by capable hands, and turned iuo into an ardent believer in advertising. When the output of “Sure to Rise” was selling 878,268 tins perl annum it was my firm belief that tilt maximum had been reached, but it has gone ahead and thy annual output has grown to just on 2,000,000 tins, and it looks as if regular increases are going to be made every year.” • In these timers of talk of depression and falling business it was very pleasant indeed for our representative to meet the principals of a concern which is still steadily going on increasing its business and output, and which has realised the fact that there is still much business to he got in hard times, but it is not going to be secured by stopping off effort and relinquishing push. It is fine to think that this great business was established in New Zealand, is operated by New Zealanders, and from the original little fatory in Christchurch has come out the product which must eventually become one of the world’s great brands.