 Following the collapse in early 1967 of Sunshine and its short-lived sister label Kommotion Records, Aulton was hired as a house producer and A&R manager by Festival Records.He oversaw the installation of the 4-track recording equipment at Festival's new Pyrmont studio, and from 1967 to 1973 he produced and engineered most of Festival's pop output, as well as performing uncredited backing vocals and instrumental contributions on many of these recordings, one example being his distinctive falsetto on the 1968 Christopher James (real name Francis Edwards) recordings "Goodbye Mama" and "Going Home for the Last Time".Between 1967 and 1973, Aulton produced many hit singles for local acts, released on the Festival and Spin Records labels.