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Markets, Management, and Merger: John Mackintosh & Sons, 1890–1969

Published online by Cambridge University Press:  13 December 2011

Robert Fitzgerald
Robert Fitzgerald
Affiliation:
ROBERT FITZGERALD is a reader in business history at Royal Holloway, University of London.
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Abstract

John Mackintosh, incorporated in 1899, emerged as one of Britain's major confectionery firms, gaining national prominence through the manufacture and marketing of distinct products. A number of interrelated factors marked its growth. Dominated by a single family, the motivations and contributions of its leading members were formative, and its history inevitably engages with debates on Britain's “personal capitalism” and its failings. Considering the importance of marketing to a consumer products manufacturer, capabilities in this critical function are entangled with issues of ownership and management. During the 1930s, the firm ended its reliance on toffee lines, replacing them with innovative, highly advertised brands that mixed toffee with chocolate. These product breakthroughs were fully exploited in the postwar consumer boom. The timing and nature of Mackintosh's achievements can be compared to those of its rival, Rowntree, but there were important differences in their implementation. The story of this firm is an important addition to the history of the British confectionery industry and its development, offering insights into the evolution of marketing techniques. The case of Mackintosh is additionally useful because it clearly reveals an unexplored theme. A long-term perspective on its growth highlights the distinction between “early” and “mature” markets and shows how changes in demand influenced, and then tested, the efficacy of marketing approaches.

Type
Articles
Information
Business History Review , Volume 74 , Issue 4 , Winter 2000 , pp. 555 - 609
Copyright
Copyright © The President and Fellows of Harvard College 2000

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References

1 Fitzgerald, Robert, Rowntree and the Marketing Revolution, 1862–1969 (Cambridge, U.K., 1995)Google Scholar; Briggs, Asa, Social Thought and Social Action: A Study of the Work of Seebohm Rown-tree, 1871–1954 (London, 1961)Google Scholar; Dellheim, Charles, “The Creation of a Corporate Culture: Cadburys, 1861–1914,” American History Review 92 (1987): 13–44CrossRefGoogle Scholar; Gardiner, Alfred G., A Life of George Cadbury (London, 1923)Google Scholar; Wagner, Gillian, The Chocolate Conscience (London, 1987)Google Scholar; Williams, Iolo A., The Firm of Cadbury, 1831–1931 (Birmingham, 1931)Google Scholar; Vemon, Anne, A Quaker Rusiness: The Life of Joseph Rowntree, 1836–1925 (London, 1958)Google Scholar; Diaper, Stephanie, “J. S. Fry & Sons: Growth and Decline in the Chocolate Industry, 1753–1918,” in Harvey, Charles and Press, Jon, eds., Studies in the Business History of Bristol (Bristol, 1989).Google Scholar Fry was founded in 1728 and merged with Cadbury, established in 1832, to form British Cocoa and Chocolate Company Ltd. in 1918. Cadbury was the dominant partner, and, from 1935, Fry was confirmed as a subsidiary, despite retaining its legal identity. Rowntree was established in 1862.

2 Fitzgerald, Rowntree and the Marketing Revolution, 622–5; Stone, Richard and Rowe, Deryek, The Measurement of Consumers' Expenditure in the United Kingdom, 1920–38, vol. 1 (Cambridge, U.K., 1966), 151Google Scholar, 174, and vol. 2, 110. In 1929, tea equaled 1.1 percent of consumers' expenditure; alcoholic drinks and table waters, 8.2; and tobacco, 3.5.

3 Mackintosh Archives, XV, A/2134, newspaper cuttings, 19 Oct. 1967; XIV, A/2130, newspaper cuttings, April 1962.

4 Crutchley, George W., John Mackintosh: A Biography (London, 1921)Google Scholar; Mackintosh of Halifax, By Faith and Work: The Autobiography of the Rt. Hon. Lord Mackintosh of Halifax (London, 1966).Google Scholar

5 Jeremy, David J., “Chapel in a Business Career: The Case of John Mackintosh (1868–1920),” in Jeremy, David J., ed., Business and Religion in Britain (London, 1968), 95–117Google Scholar; Jeremy, David J., Capitalists and Christians: Business Leaders and the Churches in Britain, 1900–1960 (Oxford, 1990), 171CrossRefGoogle Scholar, 327, 331, 333, 337. See also Crutchleyjob Mackintosh, 41.

6 See Chandler, Alfred D. Jr, Scale and Scope: The Dynamics of Industrial Enterprise (Cambridge, Mass., 1990), 235–7, 239–49, 284–6, 289–94.Google Scholar

7 See Fitzgerald, Rowntree and the Marketing Revolution; Corley, T. A. B., “Consumer Marketing in Britain, 1914–1960,” Business History 29 (1988): 65–83CrossRefGoogle Scholar; Fitzgerald, Robert, “Rowntree and Marketing Strategy,” Business and Economic History 18 (1989): 45–63.Google Scholar

8 Rowntree Archives, newspaper cuttings, III, A/3187, July 1978; Mackintosh Archives, XVI, A/2161; Mackintosh, By Faith and Work, 20–1.

9 Mackintosh Archives, VI, A/1895, article by John Mackintosh in Daily News, 1911; Higham's Magazine, May 1915; Crutchley, John Mackintosh, 44–69; Mackintosh, By Faith and Work, 26–7.

10 Confectionery, 12 Oct. 1896.

11 The company was registered on 30 Jan. 1899. See Mackintosh Archives, Borthwick Institute, M/B1/1, board minutes, 11 May 1899. £18,000 was needed to cover £2,500 in ordinary shares, £1,400 in debentures, £3,600 of debts, and £7,000 held as cash. See M/B1/1, board minutes, 2 Dec. 1898, 11 Feb. 1899; M/Sl/1, Prospectus, 4 Feb. 1899.

12 Fitzgerald, Rowntree and the Marketing Revolution, 193–4. See also Knapp, Arthur W., Cocoa and Chocolate: Their History from Plantation to Consumer (London, 1920).Google Scholar

13 Mackintosh Archives, Borthwick Institute, M/B1/1, board meetings, 17 March 1899; M/S1/1, Prospectus, 4 Feb. 1899; Mackintosh, By Faith and Work, 34. John Edson Henderson was also active in Methodist affairs. See Jeremy, Capitalists and Christians, 337.

14 Mackintosh Archives, Borthwick Institute, M/F/l/3, Mackintosh accounts, 1900–14; M/B1/1, board minutes, 30 Oct. 1909; Mackintosh Archives, XVI, A/2161; I, board minutes, 11 Feb. 1899, 20 Oct. 1899, 3 Nov. 1899, 26 July 1901; Mackintosh, By Faith and Work, 28; Crutchley, John Mackintosh, 31–40, 43. The figures provided are based on company information, rather than published accounts.

15 Mackintosh sales actually increased in 1903, in current and real terms, but encountered a downward trend until 1910.

16 Mackintosh Archives, IV, A/1881, “Adventures Abroad”; II, A/-, Memorandum of Association (U.S. company), 22 Feb. 1904; Mackintosh, By Faith and Work, 32–4; Crutchley, John Mackintosh, 82. In the first five years of trading, the U.S. subsidiary had accumulated total trading losses of £42,580, and had written off most of its debts and assets. See Mackintosh Archives, II, A/-, The Mackintosh Toffee Company (America) Ltd., balance sheet, 31 Jan. 1909. Wilkins notes how Mackintosh hired the advertising company J. Walter Thompson in 1903, and by 1904 had employed a sales company, Lamont, Corliss & Co. He bought a factory in Asbury Park, New Jersey, and opened retail stores in a number of cities. Toffee was new to Americans, and he sold it unpackaged in broken slabs. By 1908, the product's lack of appealled to the closure of the New Jersey factory. See Wilkins, Mira, The History of Foreign Investment in the United States to 1914 (Cambridge, Mass., 1989), 334–6, 342, 345, 347.Google Scholar

17 Mackintosh Archives, Borthwick Institute, M/B1/1, board minutes, 26 Sept. 1902, 26 Dec. 1902, 2 Sept. 1903, 20 Nov. 1903, 12 Dec. 1903, 7 Sept. 1906, 12 Jan. 1907, 9 Dec. 1907, 22 & 24 July 1908, 20 Aug. 1908; Mackintosh Archives, M/B1/1, board minutes, 12 Jan. 1907, 18 & 19 March 1907, 13 April 1907, 9 Dec. 1907, 3 Nov. 1911.

18 Mackintosh Archives, IV, A/1877, “The Advertising Genius of John Mackintosh,” by E. L. Fletcher, T. B. Browne Ltd., March 1920; IV, A/1872, “50 Years of Mackintosh Advertising.”

19 Mackintosh Archives, II, board minutes, 30 Oct. 1909, 12 Dec. 1913; IV, A/1872, “50 Years of Mackintosh Advertising.”

20 Mackintosh Archives, II, board minutes, 1 Dec. 1916, 2 April 1917; IV, A/1872, “50 Years of Mackintosh Advertising.”

21 For a summary of the debates on British entrepreneurship, see Sidney Pollard, “Entrepreneurship, 1870–1914,” in Floud, Roderick and McCloskey, Donald N., eds., The Economic History of Britain since 1700, vol. 2 (Cambridge, U.K., 1994): 62–89.Google Scholar

22 Jeremy, “Chapel in a Business Career,” 95–103, 110–3.

23 On the New Connexion Methodists, see also John H. Y. Briggs, “‘The Radical Saints of Shelton’: The Ridgway Family, Methodist Pottery Manufacturers,” in Jeremy, Business and Religion in Britain, 47–71.

24 Fitzgerald, Rowntree and the Marketing Revolution, 45–74, 185–276, 404–23; Fitzgerald, British Labour Management; Fitzgerald, Robert, “Employers' Labour Strategies, Industrial Welfare, and the Response to New Unionism at Bryant and May, 1888–1930,” Business History 31 (1989): 48–65CrossRefGoogle Scholar; Fitzgerald, Robert, “Employment Relations and Industrial Welfare in Britain before 1939: Labor Markets versus Business Ethics,” Business and Economic History 28 (1999): 167–79.Google Scholar

25 Mackintosh Archives, Borthwick Institute, M/B1/2, board minutes, 27 Jan. 1920, and “Letter from John Mackintosh,’. dated 23 Oct. 1917; 28 Jan. 1920; 2 Feb. 1920.

26 John Mackintosh & Sons Ltd. was formally incorporated on 17 March 1921. See Mackintosh Archives, II, board minutes, Dee. 1957.

27 Mackintosh Archives, board minutes, 12 March 1920; Mackintosh Archives, Borthwick Institute, M/C8/3, report for EGM, 22 March 1921; M/S1/2, Prospectus, John Mackintosh & Sons Ltd., 10 March 1921.

28 Mackintosh Archives, board minutes, 29 July 1921.

29 Mackintosh, By Faith and Work, 54.

30 Douglas Mackintosh first joined the firm in 1914 but soon saw distinguished war service on the Western Front, receiving serious injuries. At the company, he did not have the influence of his elder brother, Harold, who later assumed the role of chairman (after joining the Royal Navy Volunteer Reserve), nor of his younger brother, Eric, who was later involved in product development and the running of the Norwich factory. His contribution may have been curtailed by continuous ill health. Douglas Mackintosh retired in 1967. See Mackintosh Archives, Borthwick Institute, M/C6/2, company meetings, 10 May 1967; Report and Accounts 1966, 14. John Harry Guy was a Quaker and an accountant, trained by Price Waterhouse. He worked for the Ministry of Munitions during the First World War, joined Mackintosh in 1922, and held that “the central purpose of business conducted for private profit is fundamentally irreconcilable with the central purpose of Christianity, and one must give way to the other.” During the Second World War, Guy served as chairman of the Price Control Committee for Sugar Confectionery. He died in 1955. See Mackintosh Archives, board minutes, June 1955; Jeremy, Capitalists and Christians, 171. Frank Bottomley retired as production director in 1966, although he continued as a nonexecutive director. See Report and Accounts, 1966. On Fletcher, see Mackintosh, By Faith and Work, 57–8; Mackintosh Archives, XVII, A/2212, 20 Dec. 1923; XV, A/2134, Nov. 1965.

31 See Fitzgerald, Robert, British Labour Management and Industrial Welfare, 1846–1939 (London, 1988).Google Scholar

32 Mackintosh Archives, II, board minutes, 2 July 1920; Crutchley, John Mackintosh, 120. The company added another £1,000 to John Mackintosh's £2,000 bequest. In practice, John Mackintosh may have overcome his scepticism toward industrial welfare, and there is some suggestion that, in his later years, he began to approve of the various schemes ultimately instituted after his death.

33 The confectionery industry employed 77,715 people in 1924. See Census of Production, 1924.

34 Mackintosh Archives, II, board minutes, 5 Dec. 1919; VII, A/1979, Employees' Handbook, 1925; Rowntree Archives, newspaper cuttings, I, A/724, 19 Dec. 1921. Male employees with ten years' service were entitled to £200 of life insurance.

35 Rowntree Archives, newspaper cuttings, III, A/2432, newspaper cuttings, March 1928. Harold Mackintosh also received a baronetcy in 1935 “for public services,” including his work for the World Council of Christian Education and the Sunday School Association. See Mackintosh, By Faith and Work, 86–7.

36 Rowntree Archives, newspaper cuttings, I, A/724, 19 Dec. 1921; Mackintosh Archives, VII, A/1979, Employees' Handbook, 1925; VI, A/1983, newspaper cuttings; II, board minutes, 24 Nov. 1939; A/2284, newspaper cuttings, 19 & 26 Dec. 1953, 24 Jan. 1954; Mackintosh Archives, Borthwick Institute, M/B1/3, board minutes, 7 Dec. 1922. The pension scheme was introduced in 1939.

37 See Mackintosh, By Faith and Work.

38 See Hannah, Leslie, The Rise of the Corporate Economy (London, 1983).Google Scholar See also Sheldon, Oliver, The Philosophy of Management (London, 1923).Google Scholar

39 See Fitzgerald, British Labour Management.

40 Mackintosh Archives, II, board minutes, 17 May 1920.

41 Mackintosh Archives, XVII, A/2212, newspaper cuttings, 25 Jan. 1923, 9 Nov. 1923; Mackintosh Archives, Borthwick Institute, M/B1/3, board minutes, 14 Feb. 1928; Confectionery News, Aug. 1937, 73.

42 Mackintosh, By Faith and Work, 61.

43 Mackintosh Archives, VII, A/1991, Travellers' Bulletin, Oct. 1920.

44 Mackintosh Archives, VII, A/1991, Travellers' Bulletin, March-April 1921; A/1991, Travellers' Bulletin, 30 June 1921.

45 Mackintosh Archives, XVII, A/2212, newspaper cuttings, January 1923.

46 Mackintosh, By Faith and Work, 57–9.

47 Mackintosh Archives, IV, A/1872, “50 Years of Mackintosh Advertising”; VI, A/1895, memo on quality and price, 1922.

48 Mackintosh Archives, Borthwick Institute, M/B1/3, board minutes, 12 Sept. 1923.

49 Mackintosh Archives, VII, A/1991, Travellers' Bulletin, Sept.-Oct. 1921; VII, A/1991, Jan.-Feb. 1922.

50 Mackintosh Archives, Borthwick Institute, M/B1/3, board minutes, 8 Dec. 1924. See J. Terry & Sons, Terry's of York, 1767–1967 (York, 1967).Google Scholar Whitefield was founded in 1916, as a maker of chocolate and boiled sweets, and was eventually acquired by Rowntree in 1927. See Fitzgerald, Rowntree and the Marketing Revolution, 170; Confectioners' Union, July 1928, 23.

51 Mackintosh Archives, Borthwick Institute, M/B1/3, board minutes, 18 Sept. 1924. See Wilson, Charles, The History of Unilever: A Study in Economic Growth and Social Change (1954), vol. 1, 237.Google Scholar The director was a Mr. S. (possibly Sidney) Van den Bergh, who bore the family name of the famous Dutch margarine and foods manufacturer, which merged with Jürgens to establish the Margarine Unie in 1927. As a Van den Bergh, he would have been well acquainted with the activities of the Africa and Eastern Trading Company. See Wilson, History of Unilever, vol. 2, 79, 128, 145.

52 Mackintosh Archives, XXI, newspaper cuttings, 18 Dec. 1929.

53 Fitzgerald, Rowntree and the Marketing Revolution, 524–7.

54 Mackintosh, By Faith and Work, 66; Fitzgerald, Rowntree and the Marketing Revolution, 531; Mackintosh Archives, XXI, newspaper cuttings, 23 Nov. 1931; 2, 3, 4, 5, 10, 12 Dec. 1931.

55 Mackintosh Archives, XI, A/2067, notes re United States and Canada, Oct. 1936; XI, A/2067, letter to Fletcher from Miller, 23 March 1939; XI, A/2067, letter from Fletcher, 1 Jan. 1936.

56 Mackintosh Archives, Borthwick Institute, M/B1/3, board minutes, 27 Nov. 1924; Mackintosh Archives, XXI, newspaper cuttings, 22 Dec. 1931; records of Rowntree-Mackintosh (Ireland), ACES flies, production conference, 1959; ACES files, memo, 23 Sept. 1959; Fitzgerald, Rowntree and the Marketing Revolution, 595.

57 Mackintosh Archives, Borthwick Institute, M/B1/3, board minutes, 19 Feb. 1925, 8 May 1925, 25 March 1927.

58 Mackintosh Archives, IV, A/1872, “50 Years of Mackintosh Advertising.”

59 Mackintosh Archives, VI, A/1922, “Mackintosh-Caley Ad-Ventures: Quality and Price.”

60 Mackintosh Archives, XIV, A/2122, sales and advertising policy, 3 Jan. 1928; circular, 1 Feb. 1928.

61 Mackintosh Archives, VII, A/1989, sales conference report, 1931.

62 Rowntree Archives, York board, 1, 11, and 25 Aug. 1931; 1 and 8 Sept. 1931; Fitzgerald, Rowntree and the Marketing Revolution, 293.

63 Rowntree Archives, III, A/3187, July 1978; XIV, A/2129, newspaper cuttings, Feb. 1962; directors' conferences, XXVII, 2 Oct. 1918; Confectioners' Union, July 1928, 56.

64 Wilson, History of Unilever, vol. 1, 237, 250–9, 304–5; vol. 2, 319–30; Fieldhouse, David K., Merchant Capital and Economic Decolonisation, 1929–1987 (Oxford, 1994), 3–16, 149–63.Google Scholar

65 Mackintosh, By Faith and Work, 61–3; Rowntree Archives, newspaper cuttings, III, A/3187, July 1978; Mackintosh Archives, XIV, A/2129, Feb. 1962; XVI, A/2161; XXI, newspaper cuttings, 1936; Mackintosh Archives, Borthwick Institute, M/B1/3, board minutes, 11 Sept.1932; M/C8/7, “Agreement between Mackintosh and UAC,” 1 July 1932.

66 Mackintosh Archives, XXI, 20 April 1937. In 1927, sugar confectionery sales stood at £33.3m; those of chocolate, at £31.4m. The figures for 1928 are £31.7m and £31.9m; in 1932, £26.3m and £27.7m; and, by 1938, £25.7m and £32.5m. See Fitzgerald, Rowntree and the Marketing Revolution, 622–4.

67 Mackintosh Archives, XI, A/2060, “Mackintosh's Acquire Caley's,” 8 July 1932; XVI, A/2161; Eric D. Mackintosh, Norwich Adventure: An Account of Events at Chapel Field Works, 1932–1942, 38. Mackintosh Archives, XVI, A/2161.

68 Mackintosh Archives, VII, A/1989, sales conference, 1930.

69 Mackintosh Archives, XXI, newspaper cuttings, 20 Dec. 1933; Mackintosh, By Faith and Work, 65; Mackintosh, Norwich Adventure, 9–11, 13–14.

70 Mackintosh Archives, VI, A/1887–9, memo on new sales policy, 10 Nov. 1935; VI, A/1895, memo, 17 Nov. 1934.

71 Mackintosh Archives, VII, A/1989, sales conference.

72 Fitzgerald, Rowntree and the Marketing Revolution, 277–314.

73 The concept of a middle-range, twist-wrapped assortment in a carton was imitated by Cadbury in 1938, when it introduced Roses.

74 Mackintosh Archives, VII, A/1980, Coordinating Advertising and Display, 19 Sept. 1935; XIV, A/2113, notes for Sir Harold, 27 Oct. 1937; IX, A/2010, circulars, 3, 30 April 1936.

75 Motion Pictures Magazine, Feb. 1928; Leonard Matlin's 1999 Movie and Video Guide.

76 Mackintosh Archives, II, board minutes, 27 Sept. 1935; I, 25 Nov. 1935; XIV, A/2129, newspaper cuttings, Feb. 1962; VI, A/1887–89, memo., 1 Feb. 1936; Rowntree Archives, newspaper cuttings, III, A/3187, July 1978.

77 Mackintosh, XI, A/2057, 1936–7. See Sundblom, Haddon, Charles, Barbara F., and Taylor, J. R., Dream of Santa: Haddon Sundblom's Advertising Paintings for Christmas, 1931–1964 (New York, 1997).Google Scholar

78 Mackintosh, Norwich Adventure, 43–52; Mackintosh, By Faith and Work, 65–6.

79 Mackintosh, Norwich Adventure, 56–7; XIV, A/2127, “Rolo is a Big Line”; circular, 8 Oct. 1937.

80 Prest, Alan R. and Adams, A. A., Consumers' Expenditure in the United Kingdom, 1900–19, vols. 1–2 (Cambridge, U.K., 1954)Google Scholar; Stone and Rowe, Measurement of Consumers' Expenditure, vols. 1–2; Biscuit, Cake, Chocolate and Confectionery Alliance, Statistical Yearbook (London, 1986).Google Scholar

81 Fitzgerald, Rowntree and the Marketing Revolution, 38, 129–38, 142–4, 146, 149, 151, 155, 167, 169–70, 173, 177, 261, 287, 290–301, 314, 327, 387, 475, 511, 516–7, 595.

82 In the 1920s, Edward Sharp & Sons of Maidstone, Kent, was regarded as a leading confectionery firm. It began making its Super Kream Toffee in 1910 and undertook national advertising in 1919. See Confectioners' Union, July 1928, 49.

83 Fitzgerald, Rowntree and the Marketing Revolution, 517–18. On cocoa cultivation and the commodity trade, see also Clarence-Smith, William G., Cocoa and Chocolate, 1765–1914 (London, 2000).CrossRefGoogle Scholar On the sugar industry, see Chalmin, Philippe, The Sugar Giant: A History of tate and Lyle (London, 1990)Google Scholar; Anderson, Bruce L. and Stoney, Peter J. M., eds., Commerce, Industry and Transport: Studies in Economic Change in Merseyside (Liverpool, 1983).Google ScholarHugill, Anthony, Sugar and All That…A History of Tate and Lyle (London, 1978).Google Scholar

84 Mackintosh Archives, XI, A/2060, documents on pricing; VII, A/1980, Mackintosh price maintenance proposals, 31 Aug. 1933; XXI, A/-, minimum resale prices; XXI, A/-, sales memorandum, 4 Oct. 1938; XIII, A/2094, 23 Jan. 1937, 30 Dec. 1940; XII, A/2094, sales organization and sales methods, April 1930; XIII, A/2094, 1 June 1937, 27 Aug. 1937; XIII, A/2094, industrial combination and the confectionery trade, 17 Sept. 1937; XII, A/2094, minutes of Toffee Manufacturers Group, 1 April 1937; XII, A/2094, 5 April 1937, minutes of Toffee Manufacturers Group; XII, A/2094, 29 Sept. 1936, Toffee Manufacturers Group; E. L. Fletcher in Confectionery News, Aug. 1937.

85 The Mackintosh and Caley management staffs were not merged, however, until 1946. See Mackintosh Archives, Borthwick Institute, M/B1/6, board minutes, 13 Dec. 1946.

86 Mackintosh Archives, Borthwick Institute, M/C8/11, circular to shareholders, 18 April 1939; M/C8/13, agreement between Mackintosh and Caley, 1939; memo, 23 June 1939; XXI, newspaper cuttings, 19 April 1939; IV, A/1872, “50 Years of Mack Advertising.”

87 Fitzgerald, Rowntree and the Marketing Revolution, 277–346.

88 Mackintosh, By Faith and Work, 88–148; Mackintosh Archives, XIV, A/2113, “Caley Lines in Course of Preparation,” 23 Aug. 1943; XIV, A/2129, newspaper cuttings, Feb. 1962; IV, A/1872, “50 Years of Mackintosh Advertising”; XVI, A/2161; Rowntree Archives, newspaper cuttings, III, A/3187, July 1978.

89 Mackintosh Archives, VI, A/1884, preamble to marketing; Mackintosh Archives, Borthwick Institute, M/B1/8, board minutes, 25 Feb. 1953.

90 Mackintosh Archives, Borthwick Institute, M/B1/6, board minutes, 13 Dec. 1946. Fletcher retired entirely in 1953. See Mackintosh Archives, IX, A/2043.

91 With exporters and dollar earners receiving preference in the allocation of controlled supplies, Quality Street was exported to the United States in 1950. See Rowntree Archives, newspaper cuttings, III, A/3187, July 1978. Mackintosh also created John Mackintosh & Sons Gmbh., and began the manufacture of toffees in Germany through a local firm. Mackintosh Archives, Borthwick Institute, M/B1/7, 26 July 1950, 15 Feb. 1951.

92 Mackintosh Archives, VII, A/1981, report of sales conference held on 20 Oct. 1950; IX, A/2105, Mackintosh 1952 advertising, July 1952; II, Mackintosh board, 25 Feb. 1953; XII, A/2072, letters, July 1950, May 1951.

93 The new committees were called the New Lines Policy Committee and the New Lines Detail Committee.

94 Mackintosh Archives, II, Mackintosh board, 25 May 1950, 26 July 1950, 2 Oct. 1951.

95 Mackintosh Archives, II, Mackintosh board, 13 May 1953.

96 Mackintosh was made a peer in 1948. See Mackintosh, By Faith and Work, 145, 244.

97 Mackintosh Archives, Borthwick Institute, M/B1/8, board minutes, 27 Sept. 1955; Mackintosh Archives, II, Mackintosh board, 25 Feb. 1953.

98 Mackintosh Archives, Borthwick Institute, M/B1/8, board minutes, 29 Nov. 1955, 7 May 1957; Mackintosh Archives, XIV, A/2122, Feb. 1962. By 1962, Mackintosh employed some 5,000 people, 2,000 of whom were located at the Caley factory. See Rowntree Archives, newspaper cuttings, III, A/3187, July 1978. The confectionery industry employed 93,857 people in 1954 and 91,300 in 1963, so that Mackintosh employees therefore approximated, respectively, 4.2 percent and 5.4 percent of the total. See Census of Production, 1954, 1963.

99 Mitchell, Brian R., British Historical Statistics (Cambridge, U.K., 1990), 823–4Google Scholar, 831–5, 848–50; Central Statistical Office, Economic Trends (1996), 12, 41, 148; Biscuit, Cake, Chocolate and Confectionery Alliance, Statistical Yearbook (1986). All the figures quoted, including Mackintosh sales, are given in real terms.

100 Mackintosh Archives, Borthwick Institute, M/B1/10, board minutes, 26 Feb. 1958.

101 Mackintosh Archives, Borthwick Institute, M/B1/10, board minutes, 10 April 1959; M/B1/11, board minutes, 20 Oct. 1959; Rowntree Archives, newspaper cuttings, HI, A/3187, July 1978; Mackintosh Archives, XIV, A/2129, newspaper cuttings, Feb. 1962; IV, A/1872, “50 Years of Mackintosh Advertising”; XXII, A/2894, 1964; XIV, A/2131, newspaper cuttings, April 1964, 22 May 1964; XIV, A/2129, newspaper cuttings, 19 May 1960.

102 Mackintosh Archives, XXI, newspaper cuttings, 27 May 1954; II, Mackintosh board, 16 June 1949; 3 Nov. 1952; 25 Sept. 1953; 27 Aug. 1954; Dec. 1957; Mackintosh Archives, Borthwick Institute, M/B1/10, 28 Jan. 1958.

103 Mackintosh, By Faith and Work, 131–8, 243–4, 271–3.

104 Mackintosh Archives, Borthwick Institute, M/B1/11, board minutes, 10 Feb. 1960; Mackintosh Archives, XIV, A/2130, 29 June 1962; XVI, A/2135, Jan. 1969. In 1955, £2.6m was spent on confectionery advertising in Britain, split fairly evenly between chocolate and sugar confectionery. By 1960, expenditure had risen to £8.2m, and £4.8m of this figure was used to promote chocolate. See XIV, A/2130, newspaper cuttings, April 1962.

105 Rowntree Archives, miscellaneous, III, A/-, Cocoa, Chocolate and Confectionery Alliance, “Cocoa and Chocolate Industry in the United Kingdom,” 1962, 40.

106 Fitzgerald, Rowntree and the Marketing Revolution, 463–73, 492–7.

107 Mackintosh Archives, XIV, A/2130, newspaper cuttings, April 1962; Rowntree Archives, newspaper cuttings, III, A/3187, March 1964.

l08 Rowntree Archives, newspaper cuttings, III, A/2146, 17 May 1963; Biscuit, Cake, Chocolate and Confectionery Alliance, Statistical Yearbook (1986), 68. Purchase tax was introduced on 8 May 1962 at 15 percent. It was increased in July 1966 to 16.5 percent; in April 1968, to 20 percent; and in November 1968, to 22 percent.

109 Census of Production, 1960–69. The distributors' share of consumer values remained steady, while that of manufacturers diminished.

110 Jones, Aubrey, The New Inflation: The Politics of Prices and Incomes (London, 1973), 62–5, 119–30, 205–17.Google Scholar The first phase of price and income policy ended in 1969 when the Labour government was faced with a number of strikes in the prelude to a General Election. The Prices and Incomes Board was formally abolished by the new Conservative government in 1971, only to be reintroduced after a pay and price freeze in 1973.

111 Mackintosh Archives, XV, newspaper cuttings, A/2134, 1 Jan. 1967, 20 Oct. 1967, 23 & 24 Sept. 1968; XVI, A/2135, 29 Jan. 1969; Sunday Telegraph, 1 Jan. 1967. The confectionery industry made an application to the National Board for Prices and Incomes in January 1968. See Report and Accounts 1966, 15.

112 The Restrictive Trade Practices Act was passed in 1956; the Retail Prices Act, in 1964.

113 Mackintosh Archives, XV, A/2134, 19 Aug. 1965. There were a number of cases and injunctions in the early 1960s. See, for example, Rowntree Archives, newspaper cuttings, III, A/2145, May 1962; A/2147, 19 Nov. 1963; 22 Nov. 1963; 6 Dec. 1963.

114 Fitzgerald, Rowntree and the Marketing Revolution, 474–89; Mackintosh Archives, XVI, A/2166, 25 July 1967; XV, newspaper cuttings, A/2134, 19 Oct. 1967; XIV, A/2131, newspaper cuttings, 7 Dec. 1963.

115 Mackintosh Archives, XV, newspaper cuttings, A/2134, 19 Oct. 1967. Between 1915 and 1980, the market share of retailers with less than ten outlets declined from 80 percent to 30 percent, while that of multiple outlets grew from 10 percent to nearly 70 percent. See Jefferys, James B., Retail Trading in Britain, 1850–1950 (Cambridge, 1954), 123–5, 471.Google Scholar

116 Mackintosh Archives, XIV, A/2130, newspaper cuttings, April 1962; XV, newspaper cuttings, A/2134, 10, 11 April 1967; XV, newspaper cuttings, A/2132, 13 March 1965; Mackintosh Archives, Borthwick Institute, M/B1/12, BM, 2 Sept. 1965; Rowntree Archives, newspaper cuttings, III, A/3187, March 1964.

117 Mackintosh Archives, XIV, A/2131, newspaper cuttings, 7 Dec. 1963.

118 Mackintosh Archives, Borthwick Institute, M/B1/12, board minutes, 2 Sept. 1965.

119 Mackintosh Archives, IV, A/1872, “50 Years of Mackintosh Advertising”; XXI, A/2976, memo, 11 May 1977; XV, A/2134, May 1967. The extension of manufacturing facilities at Castleford began in 1967, three years after developments at Halifax, and was to cost £1m. See Report and Accounts 1966, 16. Joseph Bellamy had been apprenticed to a chemist at Leeds and transferred the supposed medical qualities of licorice to his bakery and confectionery shop in 1890. He moved to Castleford in 1898, gradually making his product for other firms.

120 Mackintosh Archives, Borthwick Institute, M/B1/12, BM, 28 July 1965; M/B1/14, 20 Oct. 1965; M/B1/14, 6 July 1966, 30 March 1967; Mackintosh Archives, XV, A/2132, newspaper cuttings, 25 March 1965; Report and Accounts 1965, 14. In founding ABMAC Deliveries Ltd., Mackintosh withdrew from Associated Deliveries Ltd., formed in conjunction with other food manufacturers, and, by 1969, Mackintosh owned 30 percent of its new, jointly owned subsidiary. See Report and Accounts 1969, 18.

121 Report and Accounts 1966, 15.

122 Mackintosh Archives, XV, newspaper cuttings, A/2132, 1965; Mackintosh Archives, Borthwick Institute, M/B1/15, 21 June 1967.

123 Mackintosh Archives, XXI, A/2976, memo, 11 May 1977; XVI, A/2135, 21 Feb. 1969; IV, A/1872, “50 Years of Mackintosh Advertising”; Mackintosh Archives, Borthwick Institute, M/B1/17, 31 March 1969. Fox's Glacier Mints appeared in 1919.

124 Mackintosh Archives, Borthwick Institute, M/B1/12, 28 March 1962; M/B1/12, 8 Jan. 1964.

125 Mackintosh Archives, Borthwick Institute, II, Mackintosh board, 16 June 1949; 3 Nov. 1952; 25 Sept. 1953; 27 Aug. 1954, 12 Dec. 1957

126 Mackintosh Archives, XV, newspaper cuttings, A/2132, 1965.

127 Fitzgerald, Rowntree and the Marketing Revolution, 614, 618; Smith, Chris, Child, John, and Rowlinson, Michael, Reshaping Work: The Cadbury Experience (Cambridge, U.K., 1990), 95.Google Scholar

128 Mackintosh Archives, XV, A/2134, 20 Oct. 1967.

129 Mackintosh Archives, XV, newspaper cuttings, A/2132, 1965; XV, newspaper cuttings, A/2132, 25 March 1965.

130 Mackintosh Archives, Borthwick Institute, M/B1/12, board minutes, 20 Aug. 1964. Ian Mackintosh replaced Bottomley as production director. See Report and Accounts 1966, 14.

131 Mackintosh Archives, Borthwick Institute, M/B1/12, board minutes, 20 Aug. 1964.

132 Mackintosh Archives, II, board minutes, 13 Jan. 1965; Mackintosh Archives, Borthwick Institute, M/C6/2, company meetings, 10 May 1967.

133 Report and Accounts 1966, 14.

134 Mackintosh Archives, XV, newspaper cuttings, A/2132, 1965; XV, newspaper cuttings, A/2132, 25 March 1965.

135 Mackintosh Archives, Borthwick Institute, M/B1/12, board minutes, 6 & 7 April 1965; M/B1/15, 26–27 July 1967; Report and Accounts 1967, 14.

136 Mackintosh Archives, Borthwick Institute, M/B1/12, Mackintosh board, 22 June 1965, 24 Aug. 1965. Management workshops were initiated in January 1968. See M/B1/15, Mackintosh board, 19 July 1967.

137 Mackintosh Archives, Borthwick Institute, M/B1/15, Mackintosh board, 26 April 1967; M/B1/16, Mackintosh board, 31 Jan. 1968

138 Economist, 12 April 1969, 77.

139 Mackintosh Archives, Borthwick Institute, M/B1/15, Mackintosh board, 26 April 1967.

140 Associated Chocolate and Confectionery ceased to be a holding company and was unified under the name Rowntree Mackintosh (Ireland) Ltd. in 1960. See Rowntree Archives, Rowntree Mackintosh (Ireland), memo, March 1987.

141 Rowntree Archives, marketing, II, A/2379, 7 Oct. 1969; Rowntree board, 28 May 1969.

142 Another 6 percent of shares would be allocated to other relatives and supporters.

143 Rowntree Archives, York committee, 27 Feb. 1968; memo, 15 May 1969; memo, 21 Oct. 1969; message from E. D. Mackintosh, 15 May 1969; press release, 10 Jan. 1969; York committee, 24 April 1969, 9 May 1969; memo, 29 Nov. 1968; marketing, II, A/2379, 7 Oct. 1969; Mackintosh Archives, Borthwick Institute, M/B1/17, 31 March 1969; M/1B/17, 22 April 1969; XV, newspaper cuttings, A/2134, 19 Oct. 1967.

144 Mackintosh Archives, Borthwick Institute, M/B1/17, Mackintosh board, 31 March 1969; M/1B/17, Mackintosh board, 22 April 1969; Mackintosh Archives, XV, newspaper cut tings, A/2134, 19 Oct. 1967.

145 Rowntree Archives, press release, 15 April 1969; newspaper cuttings, III, A/1538, 29 Jan. 1969, 19 Feb. 1969, March 1969; Economist, 18 Jan. 1969, 75–6; Mackintosh Archives, XV, newspaper cuttings, A/2134, 8, 9, 10, 11 Jan. 1969; East Anglian Daily Times, 9 Jan. 1969; Northern Echo, 9 Jan. 1969.

146 Economist, 5 April 1969, 68.

147 See Corley, “Consumer Marketing in Britain”; Hamish Fraser, W., The Coming of the Mass Market, 1850–1914 (London, 1981)CrossRefGoogle Scholar; Nevett, Terence, Advertising in Britain: A History (London, 1982)Google Scholar; Benson, John, The Rise of Consumer Society in Britain, 1880–1980 (London, 1994).Google Scholar

148 See Fitzgerald, Rowntree and the Marketing Revolution.

149 Fitzgerald, Rowntree and the Marketing Revolution, 277–346. See also British Institute of Marketing, A Survey of the Functions of Marketing, Brand and Product Awareness (London, 1961)Google Scholar, and Marketing Organisation in British Industry (London, 1970).

150 Fitzgerald, R., “Ownership, Organization, and Management: British Business and the Branded Consumer Goods Industries,” in Cassis, Youssef, Crouzet, Francois, and Gourvish, Terry R., eds., Management and Business in Britain and France: The Age of the Corporate Economy (Oxford, 1995), 31–51.Google Scholar

151 Fitzgerald, Rowntree and the Marketing Revolution, 277–346.

132 Ibid., 185–216, 424–73.

153 Biscuit, Cake, Chocolate and Confectionery Alliance, Statistical Yearbook.

154 Mitchell, British Historical Statistics, 823–4, 831–5, 848–50; CSO, Economic Trench, 12, 41, 148; Biscuit, Cake, Chocolate and Confectionery Alliance, Statistical Yearbook. The Engels coefficient in Britain was 39.8 in 1900; 36.8 in 1913; 40.4 in 1922; 33.0 in 1938; 33.7 in 1954; and 27.5 in 1969.

155 In 1969, the unit value of confectionery output—taken as an aggregate—was 279 percent higher in real terms than in 1938.

156 Weber, Max, The Protestant Ethic and the Spirit of Capitalism (London, 1992), 44.Google Scholar

157 See Chandler, Sede and Scope, 235–7, 239–49, 284–6, 291–4, 389–92.

158 See, for example, Peacock, Alan and Bannock, Graham, Corporate Takeovers and the Public Interest (Aberdeen, 1991)Google Scholar, which critically reviews Nestles acquisition of Rowntree pic, the successor to Rowntree-Mackintosh, in 1988.

159 Diaper, “J. S. Fry and Sons,” 33–54.