All posts by T Farrell

Canned food, Food

Oranges and lemons: Samuel Hanson & Son

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Samuel Hanson & Son traded independently for over 200 years.

The early years of the business
Samuel Hanson established premises at 47 Botolph Lane in the City of London from 1747. The Hanson family are believed to have originated from Yorkshire.

Hanson traded as a fruit importer, mostly dealing in oranges, but also importing lemons and dried fruits from the Mediterranean area.

Samuel Hanson’s son, also called Samuel Hanson (1744 – 1829), took control of the business from 1763. He continued the trade in oranges. The business remained modest yet profitable.

Samuel Hanson III
Samuel Hanson (1804 – 1882), grandson of the founder, became the senior partner from 1825. He was a dedicated Evangelical Christian.

Nathaniel Smith Machin (1775 – 1837) had joined the business by 1830. His daughter was married to Samuel Hanson in 1832.

Batger & Co, the sugar refining and confectionery business of Bishopsgate Street, London, was acquired in 1856. Frederick Machin, son of N S Machin, was appointed manager of Batger & Co.

Frederick Machin had assumed full control of Batger & Co by 1864.

Reginald Hanson (1840 – 1905) joined his father in the business from the 1860s.

Merger with Jones, Evison & Barter
Samuel Hanson & Sons merged with Jones, Evison & Barter, tea and coffee merchants of Borough, Southwark, to form Samuel Hanson, Son, Evison & Barter from 1871. Samuel Hanson took the opportunity to retire, and the business was operated by Reginald Hanson, Edward Evison (1833 – 1907) and Henry Barter (1831 – 1889).

A branded coffee, Red White & Blue, was introduced from 1872. It was to prove one of the most successful product lines.

The Botolph Lane premises were enlarged and refronted in 1882.

Samuel Hanson died as a highly wealthy man in 1882. His personal estate was valued at over £134,000.

Edward Evison left the partnership in 1885, and the firm was continued by Reginald Hanson and Henry Barter under the name Samuel Hanson, Son & Barter. Reginald Hanson was the senior partner. The firm traded in fruits, tea, coffee, sugar, spices and wine.

Frederick George Ivey (1845 – 1914) was admitted into the partnership from around 1885.

Supported by able partners, Reginald Hanson was able to pursue outside interests. He served as Sheriff of London in 1881-82 and as Lord Mayor of London in 1886-87. He was knighted in 1882 and created a baronet in 1887.

Sir Reginald Hanson (1840 – 1905) in 1899

Henry Barter died in 1889 with a net personalty valued at £149,000.  Upon his death the name of the firm reverted to Samuel Hanson & Son. That year Thomas Cameron Tanner (1848 – 1930) became a partner.

Francis Stanhope Hanson (1868 – 1910), son of Sir Reginald Hanson, and his cousin, Percy Machin (born 1866), entered the firm as partners from 1899.

Sir Reginald Hanson died in 1905 with a gross estate valued at £495,416.

Edward Evison died in 1907 with an estate valued at £142,916.

Red, White & Blue was one of the most successful branded coffee products in Britain by 1907.

Francis Stanhope Hanson was knighted in 1909. He died the following year, and left a net personalty valued at £159,055. He was the last member of the Hanson family line to work for the business.

Hundreds of people were employed in 1914. The active partners were Frederick George Ivey, Thomas Cameron Tanner, Percy Machin and R C Tanner.

Frederick George Ivey died in 1914 and left an estate valued at £70,667. He left £40,000 for charitable causes and about £10,000 to Samuel Hanson & Son employees.

Noel Percy Machin (1898 – 1977) joined the firm in 1921. He became a partner from 1929.

Thomas Cameron Tanner died in 1930 with an estate valued at £191,094.

Samuel Hanson & Son is incorporated
Samuel Hanson & Son was incorporated as a private limited company in 1932. Noel Percy Machin was made joint-managing director.

A large trade in tinned lobster from Newfoundland had been established by the early 1930s. Tinned salmon was imported from British Columbia from around 1933.

A large canning factory was established at Toddington, Gloucestershire, from 1934.

Samuel Hanson & Son went public from 1935, with Percy Machin as chairman. The head office was located at the same site as 1747. Share capital amounted to £550,000.

The company had approximately 14,000 regular trade customers on its books. The business had never sustained an annual trading loss.

Samuel Hanson & Son largely supplied the armed forces during the Second World War. Red White & Blue coffee production continued for the duration of the conflict.

Financial difficulties and acquisition by Cerebos
Samuel Hanson & Son entered into difficulties during the Second World War and in the post-war period. Owing to a national dollar shortage, the company was forced to end its £1 million a year trade in California canned fruits and in Alaskan and Canadian tinned salmon, with a consequential loss of around £100,000 a year in gross profit.

Following the Second World War Samuel Hanson & Son acquired Home Grown Chicory, a chicory processing plant at Lakenheath, Suffolk.

Samuel Hanson & Son employed 500 people by 1947.

Samuel Hanson & Son paid its last ever dividend in 1949. Despite its economic troubles, Samuel Hanson & Son was able to maintain its reputation for high quality goods.

Samuel Hanson & Son had largely made the transition from importing foods to manufacturing finished products by 1951.

Samuel Hanson & Son was subject to a friendly takeover by Cerebos for £195,000 in cash in 1965. By this time Hanson was engaged in citrus processing, canning, chicory processing and wholesale distribution. Hanson also owned a South African subsidiary in Durban.

References
* The British Newspaper Archive
* The Times Digital Archive
* The Financial Times Digital Archive
* Hansons of Eastcheap by George Godwin (1947)

Consumer healthcare

Andrews Liver Salts

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How did Andrews Liver Salts became the highest-selling antacid in the world?

Scott & Turner introduce Andrews Liver Salts
William Henry Scott (1860 – 1922) and William Murdoch Turner (1862 – 1932) were proprietors of a successful wholesale margarine business at Gallowgate, Newcastle upon Tyne.

Scott was a prominent Wesleyan Methodist. He was a well-liked man, and held in a high regard by his workforce.

Scott & Turner began to manufacture Andrews Liver Salts, an antacid and stomach reliever, from 1895. The product was named after their office, located at St Andrew’s Buildings. Annual sales amounted to over two million tins by 1907.

Turner sold his stake in the business to W H Scott in 1907 and entered into retirement.

Sales of Andrews Liver Salts continued to grow, and the Gallowgate works were repeatedly expanded to accommodate increased production.

Scott & Turner advertised Andrews Liver Salts as the highest-selling antacid in Britain by 1922. Around 300 people were employed by this time.

Scott continued to act as chairman of Scott & Turner until his death in 1922.

Sterling Drug acquires Scott & Turner
Scott & Turner was acquired by Sterling Drug of the United States in 1923.

Andrews Liver Salts were introduced to the Canadian market from 1924.

Andrews Liver Salts were advertised as the highest-selling antacid in the world from 1926.

Scott & Turner was acquired by Drug Inc of the United States in 1929.

A new gas-powered factory was established in 1934. A total of 350 to 450 people were employed.

Staff hours were reduced to five days a week, with no reduction in pay from 1935.

There were around 500 employees by 1944.

A new factory at Fawdon, Newcastle was opened in 1949 in order to meet rapidly growing demand overseas for Liver Salts. 27 percent of Liver Salt production was exported. The Gallowgate site was divested.

Export sales of Liver Salts ran at about £1 million a year by 1952.

Scott & Turner rebuilt the Fawdon site with high levels of automation in 1956.

Sterling Drug merged Scott & Turner with another subsidiary, Charles H Phillips Chemical Co, manufacturers of Milk of Magnesia, to form Phillips, Scott & Turner in 1960. The head office was at Acton Vale, London, and the northern sales office was based in Newcastle upon Tyne.

Andrews was the clear market leader in stomach remedies in Britain as late as 1978. A television campaign featuring the Pink Panther cartoon character boosted sales by 40 percent in 1986.

Andrews Liver Salts contained sodium bicarbonate, citric acid and magnesium sulphate as of 1993.

Recent ownership and closure of the Fawdon site
Sterling Healthcare was acquired by SmithKline Beecham in 1994.

About 700 people were employed at the Fawdon plant in 1994.

SmithKline Beecham merged with GlaxoWellcome to form GlaxoSmithKline in 2000.

The Fawdon site was closed in 2015. Andrews Liver Salts production was transferred to Spain.

Andrews Liver Salts was the fifth highest-selling indigestion remedy in Britain in 2017, behind Gaviscon, Rennie, Nexium and Zantac.

Beer & cider

Notes on the Carlsberg UK merger with Marston’s

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Some initial thoughts on the merger of the businesses of Carlsberg UK and the Marston’s Beer Company.

On 22 May 2020 it was announced that Carlsberg UK will merge with the brewing arm of Marston’s. Carlsberg will control 60 percent of the equity in the venture and Marston’s will hold the remainder.

The Twittersphere seems to believe that this is a “classic case” of “Big Beer” exercising control over the British brewing industry. Perhaps it is, but I would characterise it as more of an act of desperation on the part of Carlsberg. Not only will Marston’s continue to hold a large minority stake in the business, but they will receive a one off cash payment of £273 million.

As things stood, Carlsberg UK was undoubtedly in a position of weakness. Despite a major rebrand and overhaul of its recipe, Carlsberg lager remains stuck at third place in the standard lager market, behind Carling and Foster’s. Their only powerful brand in the premium lager market is San Miguel, which admittedly has enjoyed somewhat of a surge in popularity in recent years.

Other than the licence to brew Brooklyn Brewery products, Carlsberg’s most noticeable commitment to craft beer consisted of closing down their Leeds site, the largest cask ale brewery in the world, in 2008. The tie-up with Marston’s effectively reverses this decision, buying into a business that operates six breweries, largely producing cask ale.

Furthermore, the Marston’s tie-up represents a reversal of strategy for Carlsberg. They closed their own distribution network in 2016. Now, four years later, having access to the Marston’s distribution network is an appeal for them.

I honestly wish the venture success. I believe that both businesses are stronger together. Carlsberg has neglected its Tetley cask ale brand, which was the largest in the world as late as the mid-1990s, whereas Marston’s has nurtured and heavily invested in its own. Meanwhile Marston’s lacks strong lager brands, which Carlsberg provides.

Tobacco

Craven A cigarette: a history of Carreras

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Carreras became the second largest cigarette manufacturer in Britain. The business made its owner, Bernhard Baron, one of the richest men in the world. Carreras introduced the Craven A cigarette brand, which is still sold.

Jose Joaquin de Carreras
Jose Joaquin de Carreras (1824 – 1887) was the son of a Spanish nobleman who had claimed political asylum in Britain. Carreras had established a tobacconist business at 61 Princes Street, later renamed 7 Wardour Street, near Leicester Square, London, by 1853.

Carreras catered towards an affluent market, including George Craven, 3rd Earl of Craven (1841 – 1883), for whom he created a personalised tobacco blend in the early 1860s. The reputation of the product grew through the Earl’s social circle, and it was packaged in tins and sold to the wider public as Craven’s Mixture from 1867.

William Johnston Yapp
William Johnston Yapp (1861 – 1946) acquired the Carreras tobacconist shop for £3,525 in 1896.

The business was to prove successful under Yapp, although he would later claim that he simply got lucky. Business practices were certainly lax by the standards of today, and no financial accounts were kept.

Carreras continued to supply the quality upper-class market. It was a relatively small, though well-regarded business. J M Barrie (1860 – 1937), the author best known for Peter Pan, was a keen smoker of Craven’s Mixture.

Bernhard Baron
Bernhard Baron (1850 – 1929) was born to a poor French Jewish family in Brest-Litovsk, now part of Belarus, but then a part of the Russian Empire. When he was a child the family relocated to Rostov-on-Don in Southern Russia. His father was keen for him to avoid military conscription, so the family emigrated to Maryland, United States, in 1866.

Baron worked in a tobacconist’s shop, then a cigar factory. He had established Baron & Co, cigar manufacturers, on Pratt Street, Baltimore by 1879.

An inventive man, Baron designed a cigarette manufacturing machine. After he failed to sell it successfully in the United States, he relocated to England in 1896. He sold the patent rights to John Player & Sons, and other manufacturers, and made £150,000.

Carreras becomes a public company
Yapp had previously approached Imperial Tobacco and the American Tobacco Company regarding a sale of Carreras, but his proposed price of £150,000 was regarded as too expensive.

Yapp registered Carreras as a public company with a capital of £200,000 in 1903. The company was controlled by John Crowle (1841 – 1906), chairman, Baron, managing director, and Yapp.

Black Cat cigarettes were introduced from 1904.

Crowle died in 1906, and Baron took over as chairman and managing director. Baron struggled for his first five years with Carreras, but maintained his faith in extensive advertising.

From left to right: Louis Bernhard Baron (1876 – 1934); Bernhard Baron (1850 – 1929); Edward Samson Baron (1892 – 1962)

Black Cat cigarettes had national distribution by 1908.

A large new factory was established on City Road, London, from 1910.

The Craven A cigarette, based on the Craven blend, had been introduced by 1914. It was to prove an immediate success. Carreras sales increased significantly during the First World War, and the factory had reached capacity by 1916.

The Baron cigarette manufacturing machinery was constantly improved. Baron claimed that Carreras had “the fastest, most efficient, and up-to-date cigarette-making machine in the world” by 1920.

Carreras became one of the first tobacco companies in Britain to package gift coupons with its cigarettes from the early 1920s.

The Carreras share price rose fourfold between 1922 and 1926. Half of production was exported by 1927.

Baron was notable for the exceptional treatment of his employees. He was quoted as saying, “My workpeople I regard as my children. I have only done what I think was right”.

Baron established a new factory in Mornington Crescent in 1928.It was perhaps the largest tobacco factory in the world, with nine acres of floorspace. It was the largest reinforced concrete building in Britain, as well as the largest factory in London, and boasted air-conditioning.

The former Carreras factory at Mornington Crescent (2016)

Baron established a charitable trust for hospitals in 1928 to which he donated £500,000. He gave away over £2 million across his lifetime, and was perhaps the most generous benefactor that Britain had known at the time.

Carreras was the second-largest cigarette manufacturer in Britain by 1928.

Bernhard Baron died in 1929 with an estate valued at £5 million. He was one of the richest men in the world. He was succeeded by his son, Louis Bernhard Baron (1876 – 1934).

Louis Bernhard Baron (1876 – 1934) by William Orpen in 1926

John Sinclair Ltd was acquired in 1930.

Advertising claimed that Craven A was the most widely smoked cork-tipped cigarette in the world by 1932.

Carreras held 14 percent of the British cigarette market in 1933. The company employed 4,000 people by 1934.

Louis Baron died in 1934, and he was succeeded as managing director by his nephew, Edward Samson Baron (1892 – 1962).

Yapp died in 1946 with an estate valued at £4.3 million. After making some bequests, he dedicated his fortune to charity.

Carreras acquired the valuable trademark rights to Alfred Dunhill cigarettes in the United Kingdom from 1952. Within three months Dunhills were the third highest-selling cigarettes in the London area.

Acquisition by Rembrandt Tobacco Corporation
The end of quota controls in 1955 allowed Imperial Tobacco to increase its sales of Players cigarettes. The Carreras brands such as Craven A and Dunhill suffered, and the company’s share of the cigarette market had declined to just three percent by 1955.

In the face of steadily declining profits, Carreras was acquired by the Rembrandt Tobacco Corporation of South Africa, controlled by Anton Rupert (1916 – 2006), for £1.3 million in 1958. Rupert merged Carreras business with Rothmans, which he already controlled.

Rupert was a dynamic man, who described business as like a game of chess, but with dynamite for pawns.

A 1927 advertisement for Craven A cigarettes

Edward S Baron retired as chairman and managing director of Carreras in 1958, but was retained as president and consultant.

Carreras Rothmans opened a new factory in Basildon, Essex, in 1959. The Mornington Crescent factory was unsuitable for modernisation, and was sold off and converted into offices. Guards and Piccadilly cigarettes were the principal brands.

Rupert was highly critical of the former Carreras management and board of directors. He suggested that brand sales had suffered due to “a lack of sufficient research, proper planning and packaging”. The company had not downsized its superstructure to reflect its declining sales. Much of the machinery was outdated. He found inefficiencies everywhere.

Rupert outsourced some operations to lower costs. He also focused on filtered cigarette production.

Edward S Baron, once reckoned one of the wealthiest tobacco manufacturers in Britain, died in 1962 with a net estate valued at just £20,549.

Carreras had captured six percent of the British filtered cigarette market by 1963. 90 percent of Carreras production for the British market was for filtered cigarettes. The Basildon factory produced half of all cigarettes exported from Britain.

A cigarette factory was opened in Jamaica in 1963.

A factory was opened in Northern Ireland in 1965, which doubled production capacity.

Carreras Rothmans profits increased fourfold between 1960 and 1966. Carreras Rothmans was the third largest tobacco manufacturer in Britain by 1967.

The company held the majority of the Jamaican cigarette market by 1972.

The Basildon factory was among the most modern in Europe by 1973 and employed 2,500 people. Carreras Rothmans accounted for 61 percent of all British cigarette exports.

A factory was opened in Darlington in 1977 to meet increasing export demands. The Spennymoor factory was opened in 1979.

Craven A cigarettes were produced in 17 factories in 14 countries by 1979. British-made Cravens were exported to a further 82 countries.

The Basildon site was closed with the loss of 1,200 jobs in 1984.

Carreras Rothmans was acquired by British American Tobacco in 1999.

As of 2020, Craven A cigarettes are still sold in various markets, including Jamaica, Canada, Australia and South Africa.

Vinegar

The vat of the land: Beaufoy & Co

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Beaufoy & Co was the largest vinegar brewer in Britain.

Mark Beaufoy establishes the business
Mark Beaufoy (1719 – 1782) was the son of a Quaker maltster from Evesham, Worcestershire. The Beaufoy family claimed Huguenot ancestry.

Mark Beaufoy was apprenticed to a gin distiller in Bristol. A guilty conscience ultimately convinced him to leave the business, and he re-trained in vinegar brewing in the Netherlands.

Mark Beaufoy (1719 – 1782), from a Thomas Gainsborough portrait

Beaufoy leased a vinegar brewery on the site of Cupar’s Gardens at Strand Bridge, London from 1740. The brewery itself had been established in 1730.

In an age before refrigeration, vinegar was a much more important commodity than it is today, due to its preservative effect on foodstuffs. Beaufoy soon secured contracts to supply the Admiralty with vinegar.

The Dutch vinegar brewers used the waste from their indigenous raisin wine industry to filter and flavour their vinegar. No such industry existed in Britain, so Beaufoy was forced to buy raisins in order to maintain true to the method. He steeped the raisins to extract their sugar and mucilage, and then used the remaining solids in vinegar manufacture.

After Dr John Fothergill (1712 – 1780), a Quaker physician, suggested that Beaufoy might make raisin wine with this juice, he became a leading producer of “British wine”.

Mark Beaufoy died in 1782. His brother, John Hanbury Beaufoy (1761 – 1836), took over management of the business. John H Beaufoy was a cultured and erudite man.

Henry Beaufoy era
Henry Benjamin Hanbury Beaufoy (1786 – 1851) became senior partner in the business when he came of age.

Beaufoy & Co was one of the largest manufacturers in Lambeth by 1810.

Henry Benjamin Hanbury Beaufoy (1786 – 1851) by Henry William Pickersgill in 1848

The Beaufoy & Co site was subject to compulsory purchase for £34,705 in order to build Waterloo Bridge in 1812.

The brewery was relocated to Caron Place on the South Lambeth Road. The site was chosen as it was the closest place with a plot of land large enough to accommodate the works.

Beaufoy & Co was the largest brewer of vinegar in Britain by 1832, with 15 percent of the market in Britain and Ireland.

Beaufoy & Co was the fourth largest producer of vinegar in Britain in 1844.

H B H Beaufoy developed one of the finest private libraries in England. A Shakespeare First Folio was acquired in 1851.

H B H Beaufoy was a charitable man; he founded six scholarships at the City of London School, at a cost of £10,000, and spent £14,000 to build a ragged school (school for the poor) in Lambeth in 1851.

H B H Beaufoy died in 1851, and his brother Colonel George Beaufoy (1796 – 1864) took over management of the vinegar brewery. By this time the Caron Place site occupied over ten acres.

Colonel George Beaufoy enjoyed an annual income of around £6,000 by 1852.

Mark Hanbury Beaufoy
Colonel George Beaufoy died in 1864 and left a personal estate valued at under £250,000.

Ownership of the brewery passed to his only son, Mark Hanbury Beaufoy (1854 – 1922), for whom it was placed in trust and managed by his uncle until he came of age.

Dr Samuel Johnson’s armchair was acquired for the library in 1859.

Owing to public preference for a darker vinegar, caramel was added to the product by 1865.

Mark H Beaufoy was a cultured and genial man. He soon effected changes after he took over the business. He scrapped overtime, which had resulted in poor quality control from overworked employees. Beaufoy increased employee wages in order to compensate for the loss of overtime earnings. He argued, “all the work I now paid was for good work; previously a large percentage of it was bad work”.

The business employed 125 men in 1881.

M H Beaufoy introduced the eight hour working day for his workforce from 1889. With a half day on Saturday, this created a 45 hour working week. The change was regarded as successful, and Beaufoy was well-regarded by his workforce.

Vinegar production amounted to 790,096 gallons in 1898.*

Pott & Co, vinegar brewer of Southwark, was acquired in 1902.

The library was relocated to the family country residence at Coombe House, Wiltshire, from 1909. Some of the library contents were auctioned off. The Shakespeare First Folio was auctioned off in 1912.

Mergers and consolidation
Beaufoy was the oldest surviving manufacturer of vinegar in Britain by 1919.

Mark Hanbury Beaufoy died in 1922, and left a net personalty of £54,474.

The vinegar industry suffered from falling prices and decreasing demand in the post-war period. Consolidation seemed a reasonable defensive measure.

Beaufoy & Co merged with Grimble & Co to form Beaufoy Grimble, a public company with a capital of £160,000 in 1928. The head office was at Caron Place, South Lambeth. George Maurice Beaufoy (1893 – 1941) was appointed managing director.

Crosse & Blackwell merged their vinegar interests, including Champion & Slee and Sarson, with Beaufoy Grimble and Distillers to form British Vinegars in 1932. Beaufoy Grimble held a 21 percent stake in the venture, and G M Beaufoy became chairman of British Vinegars.

George Maurice Beaufoy was killed in the Blitz in 1941. He left a net estate of £19,678. Beaufoy, who had married in 1940, had no children, and his only brother had died in 1925. His death ended the Beaufoy family association with vinegar.

Beaufoy Grimble & Co was based at Leith, Scotland by 1954.

The Beaufoy vinegar brand was phased out after around 1961.

The Beaufoy site was closed in the 1970s. The brewery building still stands, and has been converted into housing.

The Scottish business was closed in 1983, and all production transferred to British Vinegars plants in England.

Beaufoy Grimble was voluntarily wound-up in 1986.

Source
* ‘Beaufoys of Lambeth’, David Thomas and Hugh Marks, Greater London Industrial Archaeological Society (2014).

Soft drinks

Wheeler & Co

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Wheeler & Co became one of the largest soft drinks producers in Belfast.

Walter James Wheeler (1830 – 1890) and Dr Henry Whitaker (1833 – 1912) acquired a chemist’s business at 38 Apothecaries Hall, opposite Bridge Street, Belfast, in 1858. Whitaker had previously served as an apprentice pharmacist with Grattan & Co.

Wheeler & Whitaker acquired the lease to a factory on Murphy Street, Belfast, which had access to the Cromac springs, in 1864.

Wheeler & Whitaker was the first Belfast soft drink manufacturer to utilise the Cromac springs, and it was to prove well-suited for the production of carbonated drinks due to its purity and mineral content.

Wheeler & Whitaker was ranked as one of the “Big Five” producers of soft drinks in Belfast by 1871. An extensive export trade had been developed by 1877.

Wheeler & Whitaker was subject to a break-up in 1882. Dr Whitaker took control of the chemists’s business, and Wheeler took control of the soft drinks business.

W J Wheeler died in 1890 and left an estate of £16,932. He was remembered as a kindly man.

Frederick Wheeler (1862 – 1939) succeeded his father as managing director of Wheeler & Co. A driven and determined man, the business expanded substantially under his direction.

Wheeler converted the firm into a private limited company, with capital of £20,000. He led a focus on the export trade.

The First World War was to have a negative impact upon Belfast soft drink producers. Businesses struggled to import ingredients, and to export produce.

The Republic of Ireland gained independence in 1919, and erected tariffs against imported British goods.

Norman Walter Frederick Wheeler (born 1892), son of Frederick Wheeler, placed the business into voluntary liquidation in 1923.

Wheeler & Co was acquired by George A Davison. He was declared bankrupt in 1927.

Wheeler & Co was still in business as late as 1942.

Shipping

Magnate personality: John Ellerman

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How did John Ellerman become the richest man in Britain?

Early life
John Reeves Ellerman (1862 – 1933) was born in Hull, a large port town on the Yorkshire coast. He was the son of Johann Herman Ellerman (1819 – 1871), a shipbroker and corn merchant who had emigrated from Hamburg in the 1840s.

John Reeves Ellerman (1862 – 1933)

His father died in 1871, and left a relatively modest estate of £600. Ellerman spent much of his childhood in Caen in Normandy, before being educated at the King Edward VI School in Birmingham. Ellerman reportedly commented, “if I had gone to a public [fee-paying] school I should never have got so far in business”.

Ellerman inherited around £14,000 from his maternal grandfather in 1879, and used the money to train as a chartered accountant under William Smedley of Newhall Street, Birmingham. Smedley, a “Victorian eccentric”, was a successful speculative investor, and almost certainly inspired the young Ellerman.*

Ellerman subsequently became an accountant at Quilter Ball & Co, headed by Sir Cuthbert Quilter (1841 – 1911), one of the great accountants of the era. Quilter regarded Ellerman as one of the most promising accountants he had ever employed. Ellerman was offered a position as partner, but declined in order to establish himself independently.

J R Ellerman & Co, accountants of Moorgate Street in the City of London, was established in 1887. Ellerman soon enjoyed an annual income worth thousands of pounds.

Shipping interests
Frederick Richards Leyland (1832 – 1892), owner of the Leyland shipping line, died suddenly in 1892. Ellerman capitalised on the opportunity, and with a group of investors including Christopher Furness (1852 – 1912), acquired the line for £770,000. This was a shrewd acquisition, as company profits during the previous four years had averaged £121,159.

The new company had a share capital of £450,000. The assets acquired were excellent, and the modern fleet boasted a gross tonnage of 60,511. Existing management was continued.

Hard work, shrewdness and good luck would see Ellerman amass great wealth. He divested his accountancy business in order to focus on capital investment from 1896. Ellerman was the first prominent investor to have received formal accountancy training, and this was to afford him a significant advantage with regards to financial and legal knowledge.

The Leyland shipping line was sold to J P Morgan (1837 – 1913) in 1901. Ellerman gained £1.2 million in cash for his stake, a sale that represented a 33 percent premium over market prices.**

Ellerman established the London, Liverpool and Ocean Shipping Company with a share capital of £1.3 million. He invested a capital of £500,000.

Ellerman acquired the Leyland Mediterranean fleet of eleven vessels. He also acquired the Papayanni Steamship Co of Liverpool. Both assets were significantly undervalued. These businesses formed the basis of the Ellerman shipping line.

Ellerman then acquired the City line, which ran between Glasgow and the West Indies, and controlled 400,000 tons of shipping, for an estimated £1 million.

Later in 1901 Ellerman acquired the Hall line and the Westcott and Lawrence line (with nine steamers and a gross tonnage of 15,000 tons).

Ellerman extends his interests to include brewing and the media
Ellerman was a quiet, unassuming figure. He spent just five percent of his income, and reinvested the remainder. TIME magazine described his lifestyle as one of “almost miserly simplicity”. According to his daughter, Ellerman was not materialistic, “he was a mathematician, and his interests were in abstractions”.

Ellerman paid great attention to the smaller details of business. He was remarkable for his kindness in offering advice towards those who sought it. He retained the most highly-skilled managers from the businesses he acquired, and respected the decisions that they made when he was absent.

Ellerman identified the brewing industry, with the exception of the global brands of Bass and Guinness, as stagnant. Perceiving the industry as undervalued, he began to invest in breweries from 1897.

Ellerman became the largest shareholder in the Financial Times and one of the largest shareholders in the Daily Mail in 1904.

Ellerman was created a baronet in 1905.

Ellerman acquired the Bucknall line, which had 28 vessels and a large freight trade with South and East Africa, in 1908. Following the purchase Ellerman controlled 108 vessels with a combined tonnage of over 420,000.

Ellerman became the third largest shareholder in The Times in 1912. He also acquired the Sphere and Tatler. Ellerman acquired over a third share of the Illustrated London News and Sketch in 1913.

Ellerman rendered valuable assistance to the Ministry of Shipping during the First World War. He also equipped and maintained the Ellerman Hospital at St John’s Lodge, Regent’s Park, London.

Ellerman was the richest man in Britain by 1916, worth, at his own estimate, £20 million. His income that year was estimated at £3 million.

Ellerman made his most significant purchase with the acquisition of Thomas Wilson & Co of Hull for £4.1 million in 1916. Thomas Wilson & Co was the largest privately-owned shipping line in the world, with a fleet of 70 ships.

Ellerman controlled 204 vessels following the Wilson & Co acquisition, representing one eighth of British mercantile shipping. Unfortunately, the Wilson purchase was to prove a rare misstep for Ellerman, due to a slump in global shipping following the First World War.

Ellerman was extremely shy of publicity. He sold his house in Eastbourne in the early 1920s after double-decker buses were introduced which would have allowed passengers to glimpse a view of his home.

Ellerman sold his controlling interest in the St Clement’s Press, owner of the Financial Times, to the Berry brothers in 1919. He sold his holding in The Times to John Walter and John Jacob Astor (1886 – 1971) in 1922.

Ellerman divested his illustrated newspapers, which included the Sphere, Tatler and Eve to the Inveresk Paper Company for around £3 million in 1926.

Ellerman controlled over two million tons of shipping and was the third largest owner of shipping in the world in 1927.

The Inland Revenue privately assessed Ellerman as easily the richest man in Britain in 1929, with a fortune valued at more than twice that of the next wealthiest individual.

Ellerman died in 1933 with a British estate valued at £36,684,994, equivalent to around £20 billion in 2022 prices. Death duties amounted to around £18 million. It was estimated that Ellerman paid between £17 million and £20 million in wealth taxes during his lifetime.

Notes

  1. The Heart To Artemis, Bryher (1963).
  2. ‘J P Morgan in London and New York before 1914’ by Leslie Hannah (2011).
Beer & cider

Milking the profits: a history of Mackeson Stout

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Mackeson became the first brewery to introduce milk stout.

The Hythe Brewery and the Mackeson family
James Pashley (1596 – 1670) was a brewer in Hythe, Kent. He had established the Hythe Brewery on Hythe High Street by 1669.

Overseas version of Mackeson Stout

The Hythe Brewery was acquired by two brothers, Henry Mackeson (1772 – 1860) and William Mackeson (1774 – 1821) from John Friend in 1801. The Mackeson family originated from Deal in Kent. Henry Mackeson had served an apprenticeship to Benjamin Bell (1749 – 1806), the first Scottish surgeon.

William Mackeson died in 1821 and the business was continued by Henry Mackeson.

Nine men were employed at the Hythe Brewery in 1851.

Henry Mackeson died in 1860, and his son, Henry Bean Mackeson (1813 – 1894) took control of the Hythe Brewery.

Henry Bean Mackeson was a courteous, and well-respected man. He employed 37 men in 1871, and 36 men in 1881. He served as Mayor of Hythe for nine consecutive years.

Henry Mackeson takes control of the business, and milk stout is introduced
Henry Mackeson (1861 – 1935), studied chemistry at Edinburgh and London. He became the head of the business following the death of his father in 1894.

Mackeson was persistent and hard working, and developed the business. He invested in new buildings and machinery, and updated the range of beers provided in order to meet changing customer preference. He was reckoned as one of the finest judges of barley in Britian.

Henry Mackeson was joined in partnership by his brother, George Lawrie Mackeson (1864 – 1950).

Mackeson & Co was incorporated with a share capital of £120,000 in 1900.

Mackeson & Co acquired various patents relating to using lactose, or milk sugar, in brewing from 1908. Stout was already recommended as a source of energy during convalescence, and Mackeson believed that the addition of lactose would further increase its nutritional value. Mackeson Milk Stout, the first milk stout in the world, was introduced in 1909. 9 lbs (4.1 kg) of lactose were used in each 36 gallon barrel. The product was an immediate success.

Henry and George Lawrie Mackeson sold their shareholdings to H & G Simonds, a large brewery based in Reading, for £285,000 in 1920. The two brothers took the opportunity to enter into retirement.

Mackeson became a well-established brand throughout Kent. The brewery employed 120 people by 1929.

Mackeson is acquired by Whitbread
Whitbread, a large London brewer, acquired Mackeson & Co for a generous price in 1929.

Whitbread considered the discontinuation of Mackeson Milk Stout, as sales were small and locally based. However following a successful trial in Sheffield the product was afforded nationwide distribution from 1936. The J Walter Thompson advertising agency was engaged to market the brand towards women, who it was reasoned would appreciate its smooth palate and sweet taste. Over 50,000 barrels were sold in 1939, accounting for nearly ten percent of Whitbread production.

The name of the product was changed to “Mackeson Stout” from around 1942 onwards. The Ministry of Food had placed pressure on Whitbread to removed milk from the name as it was erroneous.

Sales gained momentum following the Second World War. Mackeson benefited from an increasing demand for bottled beers, which, although more expensive, provided consistent flavour and quality. 103,000 barrels of Mackeson were produced in 1948.

Lactose accounted for eight percent of the Mackeson Stout grist in 1954.

Whitbread bottled beers were available in over half the licensed houses in Britain by 1955. Demand was such that Whitbread had to subcontract around 20 percent of its bottling to other companies.

Whitbread dedicated £510,000, some 60 percent of its advertising budget, to marketing Mackeson Stout in 1957. The beer accounted for almost half of revenue at Whitbread by 1960. Sales had effectively quadrupled during the 1950s, and 425,000 barrels of Mackeson Stout were sold in 1961.

Mackeson Stout held around a quarter of the stout market in Britain by 1963. Whitbread trialled a draught version of the beer at this time.

A reciprocal agreement was signed with Bass in 1965, who agreed to stock Mackeson Stout across its estate of 4,100 public houses in exchange for Whitbread selling Bass beers throughout their estate.

Mackeson Stout had an ABV of over four percent in 1968, and sold for a premium price.

The Hythe brewery was closed in 1968. Mackeson Stout production was relocated to Whitbread’s Exchange Brewery in Sheffield.

Mackeson Stout had been introduced in cans by 1971.

Sales were developed overseas. Mackeson Stout was sold in South Africa between 1967 and 1972. The beer was brewed under licence in Jamaica and Trinidad from 1973. It was produced in Singapore from 1978 and in Nigeria from 1979.

Sales of Mackeson had entered into decline by the late 1970s, as lager grew in popularity among female drinkers.

The Exchange Brewery was closed in 1993, and Whitbread relocated production to their Castle Eden, Co Durham and Samlesbury, Lancashire plants.

Mackeson saw its ABV reduced from 4.3 percent in 1988 to 3 percent by 1995.

Mackeson XXX Stout was imported into the United States by the Hudepohl-Schoenling Brewing Company of Cincinnati, Ohio from the early 1990s. Hudepohl-Schoenling were awarded the rights to brew Mackeson XXX Stout under licence from around 2000.

The former Mackeson malthouse in Hythe (2007)

Whitbread sold its brewing operations to Interbrew of Belgium for £400 million in 2000. Interbrew merged with AmBev to form Inbev in 2004.

Mackeson Stout has been produced under contract by a number of brewers since 1999, including Young’s of Wandsworth, Ridley’s of Chelmsford, Cameron’s of Hartlepool, Hydes of Manchester and Brains of Cardiff.

The ABV of Mackeson was reduced to 2.8 percent in order to qualify for duty relief in 2012.

According to information kindly provided by InBev, Mackeson Stout contained 600g of lactose per hectolitre of final product as of 2020.

Sources
* British Newspaper Archive
* The Times Historical Archive
* The Story of Whitbread PLC 1742-1990 by Nicholas Barritt Redman
* Census, birth and death records
* Martyn Cornell
* Ron Pattinson

Beer & cider

Beer we go again: E Smithwick & Sons

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How did Smithwick’s rise from relative obscurity to become the largest ale brewer in Ireland?

Origins and the Edmond Smithwick era
The Smithwicks were a well-established and highly-respected Catholic family in Kilkenny, Ireland.

John Smithwick (1763 – 1842) entered into business as a wholesale and general grocer with premises on Kilkenny High Street. From modest beginnings Smithwick grew wealthy, and he leased a distillery at St Francis Abbey, Kilkenny, on behalf of his eldest son, Edmond Smithwick (1801 – 1876), from 1827.

St Francis Abbey is a ruinous former Franciscan abbey built in the early 13th century.

The brewery was built around the historic St Francis Abbey, as seen in this 2007 photograph

An adjoining brewery was acquired on lease from 1833. Ireland had relatively few breweries, numbered at just 207 in 1831, against 5,419 in England. Kilkenny was to prove an advantageous location for the production of beer, given that it was situated in one of the most best barley growing regions in Ireland. The brewery soon overtook the distillery to become the predominant business.

Edmond Smithwick hosted Daniel O’Connell (1775 – 1847), the Catholic emancipation campaigner, in 1840. Amongst this fervour of nationalistic mood, there was a revival of a campaign for Irish consumers to purchase Irish-made goods. Smithwick himself argued that if the middle classes supported Irish industry, lower taxes would ensue, as there would be fewer unemployed to support.*

Highly-regarded by the community, Edmond Smithwick was elected Mayor of Kilkenny in 1844.

Edmond Smithwick greatly extended and modernised the brewery in 1851. He also hired a highly experienced brewer.

Edmond Smithwick funded an all-expenses paid trip for over 100 employees to the Great Exhibition of Dublin in 1853.

His brother, Daniel Smithwick (died 1869), established a bottling works.

Edmond Smithwick had commenced exports to British Empire markets by 1855.

The business traded as E Smithwick & Sons by 1861.

Edmond Smithwick was re-elected Mayor of Kilkenny in 1864 and 1865.

Edmond Smithwick had spent thousands of pounds on improvements to his site by 1867. It was one of the foremost industrial concerns in the south of Ireland. The brewery employed hundreds of people. Smithwick had a reputation as a fair employer who paid a good wage.

Edmond Smithwick acquired the precinct of St Francis’s Abbey for £3,100 in 1867.

Edmond’s sons take over the business
Edmond Smithwick died in 1877, and the business was continued by his three sons, John William Smithwick (1835 – 1894), Edmond Smithwick (1839 – 1912) and Daniel Smithwick (1840 – 1883).

The business was incorporated as E Smithwick & Sons in 1890.

The brewery employed around 400 people in 1900.

The market consolidates
The success of the company in the beginning of the twentieth century was credited to its chairman, Michael Buggy (1855 – 1935), a solicitor.

E Smithwick & Sons was one of only 25 breweries remaining in Ireland by 1917, and one of only 15 to brew stout, porter and ale.

James Sullivan & Co, a rival Kilkenny brewery with a production capacity of 20,000 barrels a year, entered into receivership in 1917, and the assets were acquired by E Smithwick & Sons in 1919. The purchase left E Smithwick & Sons as the sole surviving brewery in Kilkenny.

Strong growth under W A Smithwick
Walter Aloysius Smithwick (1908 – 1993), the grandson of John William Smithwick, became a company director from 1931. He was responsible for introducing a large sales team to the business, which was to prove highly successful in increasing revenue. Smithwick’s products had national distribution by 1935. Over 400 licensed establishments in Dublin were supplied by 1937.

Walter Aloysius Smithwick (1908 – 1993)

E Smithwick & Sons was the oldest and most important industrial concern in Kilkenny by 1937, and employed over 140 people in the city.

E Smithwick & Sons won first prize for best bottle conditioned beer in a British Commonwealth competition in 1937.** Shortly afterwards, the beer was rebranded as Smithwick’s No.1.

The Second World War hampered production, with output reduced to just 6,000 barrels in 1942.

Walter Smithwick became chairman and managing director from 1947. He determined to make Smithwick’s the leading ale brand in Ireland. Sales grew quickly under his dynamic leadership, and improved distribution saw annual production reach 50,000 barrels by 1952.

The Great Northern Brewery in Dundalk was purchased for £37,500 in order to supplement brewing capacity in 1954. The news was greeted positively, as it presented an opportunity for W A Smithwick to introduce his superior management skills to the acquired business.

Smithwick’s Brewery was registered as a public company with a capital of £500,000 in 1956. That year Guinness, the large Dublin-based brewery, took a stake in the business.

The Dundalk purchase was to prove problematic. Public taste increasingly favoured keg beer, and Smithwick’s lacked sufficient capital to convert the Dundalk brewery for this purpose. The Dundalk brewery was sold to Guinness, who invested to convert the plant towards the production of Harp lager.

E Smithwick & Sons held over 60 percent of the Irish ale market by 1960, a total of around 60,000 barrels a year. The four products were Smithwick’s No.1, a deep gold ale, Smithwick’s Export Ale, Smithwick’s SS Ale, and Smithwick’s Barley Wine.

Time, a pasteurised beer, was introduced from 1960.

Vintage bottles of Smithwick’s Barley Wine

Smithwick’s Barley Wine won the Olympic Gold Medal at the World Beer Olympics in 1963.

Takeover by Guinness and investment
Guinness acquired a 60 percent interest in Smithwick’s for £750,000 in 1964. The remainder of the business was acquired the following year for £490,000.

Smithwick’s had been slow to anticipate the increased demand for draught beer. It introduced a lager brand, which failed, in part because it lacked the marketing power of Guinness and rival English brewers. Smithwick’s was also struggling with the capital demands of investing in draught beer.

Walter Smithwick did not regret his decision to sell the brewery. He knew the business needed large amounts of capital if it was to remain competitive, and to fail to take the business public would have seen it struggle to survive. Smithwick understood that a workforce of 250 were dependant on the brewery for their livelihood.

A new brewhouse was established in June 1965. The first keg beer from Smithwick’s was introduced that year. Brewed to be darker and sweeter, it probably drew influence from Watney’s Red Barrel, which was popular in Ireland at the time.

Some Smithwick’s bottling had been transferred to Dundalk by 1968.

The Smithwick’s brewery was expanded in 1969.

Walter Smithwick retired in 1973.

Hop varieties in use in the early 1970s included Irish-grown Fuggles, Goldings and Bullion. Hop pellets were in use by 1985.

Budweiser was produced under licence at the Kilkenny brewery from 1987. A £1 million investment was made to enable lager production at the brewery.

Growth as an export brand
Kilkenny Irish Beer (c.5% ABV) was introduced, originally as an export-only product, in 1987. The Kilkenny name was chosen as opposed to Smithwick’s as it was easier for non-native English speakers to pronounce. The initial market was Germany.

Draught Smithwick’s for the Northern Ireland market was brewed at Dundalk by 1988. Smithwicks Ale bottling was transferred to Dundalk as part of a rationalisation drive from 1989.

Export sales of Smithwick’s and Kilkenny increased by over one third in 1994, with a large market in Canada.

Domestic sales of Smithwick’s declined every year from the mid-1980s, and ale, excluding stout, comprised just ten percent of the Irish beer market by 1995.

A reduced-strength (4.3% ABV) version of Kilkenny Irish Beer was introduced to the Irish market in 1995. A Guinness executive explained that it was a different beer from Smithwick’s. It was a premium-priced product, and was intended to revitalise the declining ale category, and prevent the newly-launched Caffrey’s, a rival Irish ale from Bass, from taking market share.

Dundalk brewed all bottled and canned Smithwick’s, including the Barley Wine, by 1995.

Production of Smithwick’s beer for the domestic market had been transferred to the Guinness-owned Cherry’s Brewery in Waterford by 1997.

43,000 hectolitres (75 million pints) of Kilkenny Irish Beer had been sold across 53 different countries in 1999. The beer was sold in 1,860 domestic Irish pubs.

The Kilkenny Brewery employed 150 people in 2000. It was an efficient site, but was suffering from capacity constraints.

Smithwick’s Barley Wine was discontinued in 2001.

The front of the St Francis Abbey brewery, Kilkenny (2012)

The Kilkenny and Dunalk breweries were closed in 2013, with production relocated to St James’s Gate, Dublin, the home of Guinness.

Smithwick’s remains a leading ale brand in Ireland, with estimated sales of around 58,000 barrels in 2020, according to data from Euromonitor.

Notes
* It remains unclear exactly which Mr Smithwick was speaking at this Kilkenny meeting, but Edmond Smithwick (1801 – 1877) is the most likely.
** The Brewing Trade Review Bottled Beer Exhibition was the awarding body

Soft drinks

Water way to go: Apollinaris

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How did Apollinaris became the highest-selling mineral water in the world?

Establishment of the company and growth
George Murray Smith (1824 – 1901) was the head of a successful London publishing business. He first encountered Apollinaris spring water whilst dining with Ernest Hart (1835 – 1898), the editor of the British Medical Journal, in 1872. Smith appreciated its taste, and determined to acquire the spring.

George Murray Smith (1824 – 1901) in 1901

The Apollinaris spring is situated in the German Rhineland. It is an alkaline and highly-aerated water, and contains sodium chloride and calcium, sodium and magnesium carbonates. The Apollinaris spring was first commercially exploited, in a modest way, from 1852.

Smith partnered with Edward Steinkopff (1838 – 1906), a Frankfurt-born merchant, to establish a British company with the worldwide distribution rights to Apollinaris water in 1873. The Apollinaris Company had its head office at 19 Regent Street, London. Steinkopff became company chairman and Julius Charles Prince (1851 – 1914) was appointed as managing director.

Murray Smith was a skilled businessman, and he organised faster, more efficient and safer distribution of Apollinaris from Germany. Meanwhile, Steinkopff was praised for his high energy, and his bold and prudent business decisions.

Company growth was to prove swift; just under 1.8 million bottles were sold in 1874, the figure had risen to over ten million bottles in 1881.

Apollinaris water soon established a prestigious reputation. Queen Victoria used Apollinaris as a mixer for Scotch whisky or claret. Over 19.5 million bottles were sold in 1895.

Foundation of a public company
Apollinaris acquired Johannis, a rival German mineral water producer, for around £400,000 in 1897.

Apollinaris & Johannis was formed as a public company with a capital of £2,380,000 from 1897. Steinkopff and Smith divested their shares, largely to Frederick Gordon (1835 – 1904), the pioneer of the first modern hotel in London. Gordon became president of the company.

Frederick Gordon (1835 – 1904)

Gordon merged Apollinaris & Johannis with A & F Pears, a struggling soap manufacturer, in 1898. The contemporary press expressed scepticism regarding the merger, although Gordon insisted that cost-efficiencies in distribution and sales between the two companies could be made.

Apollinaris & Johannis held Royal Warrants to supply the King and the Prince of Wales by 1902.

Frederick Gordon died in 1904.

Over 30 million bottles of Apollinaris were sold in the 1905-1906 financial year.

Steinkopff died with an estate valued at £1.3 million in 1906. He dedicated £1 million to charity and the remainder to his daughter.

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Apollinaris was a popular culture staple, especially among the middle and upper classes. It was referenced by many leading novelists of the era, including Henry James, Edith Wharton and James Joyce.

A & F Pears was sold to Lever Brothers in 1914.

War time troubles
Only Perrier could rival Apollinaris as the best-known sparkling mineral water in Britain by 1914.

Apollinaris & Johannis had a capital of over £3 million by 1915. The company employed about 100 clerical staff and 60 to 80 warehouse workers.

Post-war economic chaos in Europe severely hampered company operations, and exports faced the challenge of increasing import tariffs across the world.

Apollinaris & Johannis was forced to diversify, and a range of British-produced soft drinks had been introduced under the Presta brand by 1930. The company name was changed to Apollinaris & Presta from 1931.

Apollinaris was rendered increasingly expensive as the value of the German currency grew throughout the 1930s.

The German government had introduced a moratorium by 1936 which prevented Apollinaris & Presta from withdrawing funds from the Nazi-controlled country. Exports from Germany had become highly restricted by 1939.

Apollinaris & Presta was appointed sole distributor of Perrier water in the United Kingdom and Ireland from 1938-9.

Decline
The Apollinaris spring was expropriated by Heinrich Himmler’s SS in 1943.

British rationing controls restricted the company from producing Presta soft drinks between 1943 and 1948.

Company control of the Apollinaris spring and bottle works were regained in 1947-48. The site had been starved of investment during the war years.

Apollinaris & Presta entered into financial difficulty, and lost its stock market quotation in 1955. The spring and bottling works were acquired by Dortmunder Union, a German brewery. Schweppes acquired Presta and the distribution rights for Apollinaris across the British Commonwealth and the Americas.

Apollinaris was the highest-selling mineral water in Europe by 1978.

Schweppes acquired a 28 percent stake in Apollinaris in 1991. Schweppes acquired the 72 percent of Apollinaris that it did not already own from Brau & Brunnen, the successor to Dortmunder Union, for €151 million in 2002.

Apollinaris was acquired by Coca-Cola for an undisclosed sum in 2006. It was the second highest-selling mineral water in its native market. Presta is also still sold in Germany.

Coca-Cola ended retail sales of Apollinaris in Germany in 2021. The drink continues to be sold in hotels, restaurants and bars.