Improving with Age

For 208 years, discriminating hostesses have seated their dinner guests at place settings crafted by Josiah Wedgwood Ltd. Catherine the Great of Russia had 952 pieces created for her summer palace near St. Petersburg; Queen Charlotte of Britain in 1765 was so enamored of her cream-colored earthenware that she commanded that it henceforth be called "the Queen's Ware." Only recently the Queen of Thailand placed her order for 400 pieces of powder blue Columbia.

Last week the company's 150 shareholders, mostly members of the Wedgwood family, decided by a narrow margin of eight votes to offer stock to the public. Not pinched for capital, the company nevertheless is in an expansive mood. A further impetus is the Kennedy Round, which promises tariff cuts on china sold abroad. While its markets are firm, Wedgwood wants to create new ones. Says Managing Director Arthur Bryan, 44: "We can sell 75% of our output without even trying, but it's the top 25% that adds zip to our profits."

Too Arrogant to Sell. The first non-Wedgwoodian to direct the firm, Bryan ascended in 1963 after he had added zip to stagnating operations in America, where representatives were living off the company's great name. "They were too damn arrogant to write a sale," says he. Heads rolled, operations were reorganized, and in less than two years North American sales jumped by a third. That market, in fact, accounts for about 40% of the company's sales.

Although the company produces table settings capable of competing with Scandinavia's most modern designs, traditional patterns account for over 80% of its business. "We just can't get any interest in our modern designs abroad," says Bryan. The old standbys --earthenware and jasper ware--after about 200 years on the market are still big sellers, and last year helped spur company profits to a 25% rise.

By planning to expand foreign markets, which even now supply about 70% of its business, Wedgwood is continuing a tradition that was inaugurated by Founder Josiah. Interested in export business as well as foreign affairs, the 18th century visionary saw the potential of the colonies and endorsed the French Revolution as he had the American Revolution before it. At home, he applied advanced industrial techniques at his factory near Stoke-on-Trent, where he taught workers the art of creating finely glazed bone china.

Quality Before Quantity. Until recently the company has avoided producing low-priced china. It did try in 1948 to mass-produce a line, but the results were unmarketable. Last year, however, Wedgwood bought Tuscan China Holdings Ltd. and the earthenware-pottery firm of William Adams. Both are quality producers in the low price range; the Wedgwood name will not appear on their products.

With the expansion that will continue with the sale of stock to the public, the company hopes that it can eventually catch up with its orders. Then perhaps Chairman Josiah Wedgwood, 67, the great-great-great-grandson of the founder, will not be forced to apologize to customers "who have had to suffer the long and vexatious delays owing to orders running in excess of productive capacity."

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