Day 043 - 01 Nov 94 - Page 09

     
     1        A.  It is a copy of a page from a magazine that lists
     2        advertising by a number of advertisers in the United States
     3        and what they spend on their advertising, and what their
     4        sales are, as well.
     5
     6   MR. MORRIS:  I can hardly read my one.
     7
     8   MR. JUSTICE BELL:  Parts of it are not easy to read, but let us
     9        see how we go.
    10
    11   MR. RAMPTON:  I think I can probably manage to read out the
    12        figures and the names.  Mr. Green, if you look at the
    13        left-hand side there are category headings.  Go almost
    14        three-quarters of the way down.  "Restaurants", do you see
    15        that?
    16        A.  Yes, I do.
    17
    18   Q.   Grand Metropolitan, is it, Immaco?
    19        A.  I think it is Immasco.
    20
    Q.   McDonald's Corporation, Pepsi Cola, and Wendy's
    22        International.  What do Wendy's International sell?
    23        A.  Wendy's is also a hamburger quick service restaurant.
    24
    25   Q.   Are Wendy's a competitor of McDonald's in the United
    26        States?
    27        A.  Yes, it is.
    28
    29   Q.   Doing the best I can, the third column is headed "Sales
    30        per" something "dollar"?
    31        A.  "Sales per ad dollar".
    32
    33   Q.   "Sales per ad dollar".  These figures may not be reliable
    34         -- and you tell us if they are not -- but in the first of
    35        the two columns in that larger column, one sees that
    36        McDonald's have attributed to it a figure of 5.3; is that
    37        right?
    38        A.  Yes.
    39
    40   Q.   And Wendy's has attributed to it a figure of 7. 8----
         A.  That is correct.
    42
    43   Q.   ----for 1993.  Can we get any guidance from that comparison
    44        as to the amount of sales revenue or the proportion of
    45        sales revenue which is spent on advertising by those two
    46        companies?
    47        A.  Probably the easiest way to look at that would be to
    48        take the amount under US advertising spending -- for
    49        example, under Wendy's, I believe it is about $168 million
    50         -- and divide that into US sales, which would be $1 
    51        billion 320 million. 
    52 
    53   Q.   In doing that sum, which of those two companies spends more
    54        on advertising?
    55        A.  Percentage-wise?
    56
    57   Q.   Yes.
    58        A.  I believe Wendy's does.
    59
    60   MR. RAMPTON:   Before I come to some figures, actual amounts