Automatic Merchandiser

JUN 2013

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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SPECIAL ANNUAL REP ORT: STATE OF THE VENDING INDUSTRY THE WAIT FOR RECOVERY IS OVER In 2012, the vending industry showed positive growth as revenues improved. Operators continued to raise prices, aggressively invest in technology and expand heavily into micro markets. By Emily Refermat, Editor 24 Automatic Merchandiser CHART 1: INDUSTRY REVENUE IN BILLIONS, 10-YEAR REVIEW BILLIONS OF DOLLARS e are through the proverbial tunnel and can see the light. A slowly recovering economy and increasing consumer confdence has pushed dollars spent on foodservice upwards, including those spent in the vending industry. Overall, the four-year decline in vending operation revenues fnally ended in fscal 2012. Operators reported an average growth of 1.86 percentage points, raising this year's Automatic Merchandiser State of the Vending Industry Report aggregate industry revenue to $19.31 billion, up from $18.96 billion in 2011. The growth was accompanied by more operators raising prices — 83 percent — in a continuing effort to keep up with increasing product and operating costs. These operators met with less resistance than in the past as end users saw other retailers also raise prices. Technology was named as one of the top factors contributing to growth, along with the improving economy. Operators reported investing in systems that allow an operation to run with higher profts 25 20 22.54 23.21 22.05 21.05 21.26 21.89 19.85 19.25 18.96 19.31 15 10 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 CHART 2: OPERATOR SALES % OF 2012 OPERATORS PROJECTED 2012 SALES % OF 2012 SALES PROJECTED 2011 SALES % OF 2011 SALES SIZE REVENUE RANGE Small under $1M 61.32% $1.32B 7.20% $1.8B 10% Medium $1M - $4.9M 20.60% 1.28B 7% 0.9B 5% Large $5M - $9.9M 9% Extra large $10M + 8% TOTAL 2.16B 11.80% 13.57B 74% $18.34 BILLION* 2.34B 13% 12.97B 72% $18.01 BILLION* *Does not include 5 percent of total industry revenue for machines owned and operated by locations. Editor's Note: Revenue totals for individual groups were rounded off, therefore the sums will not completely reflect the totals. and lower operating costs, installing more diverse payment options and launching micro markets. VendingMarketWatch.com June 2013 A challenge that affected many vendors in 2012 was healthy vending requirements in schools as well

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