Day 041 - 28 Oct 94 - Page 10

     
     1        accident and insurance payments, the advertising is over 30
     2        per cent of the turnover, the sales?
     3        A.  That is correct, yes.
     4
     5   Q.   Look at, for example, breakfast cereal which has a No. 25
     6        against it, just over halfway down that column?
     7        A.  Yes.
     8
     9   Q.   Have you found that?
    10        A.  Yes.
    11
    12   Q.   It appears overall they spend over 10 per cent of their
    13        sales on advertising?
    14        A.  That is right.
    15
    16   Q.   Then at the top of the next column we see that cinema
    17        spends about 10 and a half per cent and cleaners, scourers
    18        and detergents household -- it sounds like the Army --
    19        spend over 40 per cent ----
    20        A.  That is correct.
    21
    22   Q.   -- in advertising.  Have you had a chance to consider this
    23        document?
    24        A.  Yes, I have, yes.
    25
    26   Q.   How do you think -- we can all do the sums for ourselves --
    27        that McDonald's five per cent of sales spent on advertising
    28        compares overall with what I might call "big players" in
    29        the domestic consumer market?
    30        A.  I think we would be average and maybe slightly below
    31        average in terms of the total of our money we spend as a
    32        percentage.
    33
    34   MR. JUSTICE BELL:  I notice on page 139, about 10 items up,
    35        there is "pastry, pizza and other cereal, frozen" which is
    36        just under five per cent.  So, it is in the same area as
    37        you say you are if these figures are accurate.  Is there
    38        anything else which might be comparable to your field of
    39        operation?
    40        A.  Directly ----
    41
    42   Q.   We can look later, I suppose.
    43
    44   MR. RAMPTON:  Yes, we can.  One notices "laxatives" at the top
    45        of the right-hand column on the second page.
    46
    47   MR. JUSTICE BELL:  Whose side are you on, Mr. Rampton!   It is
    48        just something which would relate to fast foods?
    49        A.  Yes, it is difficult because these are total product
    50        categories and they would, I would imagine, include home 
    51        use as well on the pizza side, etc.  But, really, in terms 
    52        of just browsing through these, the five per cent that we 
    53        spend does not seem to be exceptional in any way.
    54
    55   MR. RAMPTON:  Can you turn back to the first table?  We have
    56        some actual names, actual figures.  I do not believe,
    57        Mr. Hawkes -- you will correct me if I am wrong -- there is
    58        anything directly comparable to McDonald's in that table
    59        which is the one outlined in black.  But one does see, does
    60        one not, that all of those companies named there, one sees