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 ers have no comments. CHART 11: SHARE OF SALES BY 0.7% 0.6% 1.7% 3.6% 1.5% 2.2% The higher price is CATEGORY, 4-YEAR REVIEW commonly the posted ● Candy/snacks/ ●Cold beverages 21% 21% price and a sign is confections 27.4% 28% ●Manual 5.2% 6.3% added that details the ●OCS foodservice 1.6% 1.8% amount discounted for ●Ice cream 5.1% 4.5% ●Milk 29.6% 31% 4.1% 3.9% using cash. ●Vended food ●Cigarettes Remote machine ●Micro markets ●Other* 2009 2010 monitoring (RMM), 0.4% 1.4% ●Hot beverages 2.1% 3.9% 1.3% 2% sometimes referred to a machine being *Includes cooperative service 21.4% 21% vending, music, games, bulk wireless, increased 8 17.2% 28.4% vending, bottled water, sundries, 6.4% 9.2% percent in 2012, see toiletries, condoms, kiddie rides, 1.6% and other foodservice revenue. 30.9% chart 10A. While this 5.8% 2.5% 4.3% 31% 3.7% increase represents 1.8% 3.8% machines with RMM 2012 2011 capabilities, operators reported adding RMM CHART 12: PROJECTED SALES BY CATEGORY, 4-YEAR REVIEW even if they just added PERCENT REVENUE CHANGES the hardware, but 2009 2010 2011 2012 2009 2010 2011 2012 weren't yet using the $5.97 $5.88 $5.97 -8.50% 1.58% -1.50% 1.58% wireless monitoring Cold beverages $5.87 5.39 5.384 3.33 -17.8 -0.08 -0.1 -38.15 capabilities to deliver Manual foodser- 5.437 vice greater operating effCandy/snacks/ 4.167 4.04 3.977 4.13 -0.05 -3 -1.55 3.85 ciencies. Based on oper- confections ator reports, there are at OCS 1.043 1.212 1.213 1.78 -3.4 16.2 0.01 46.74 least 80,000 machines Vend food 1.012 0.866 0.815 1.12 -20.9 -14.4 -5.8 37.42 with RMM capability. Micro Markets N/A N/A N/A 0.35 Technology addi- Hot beverages 0.813 0.75 0.7 0.73 -16.1 -7.7 -1.3 4.29 tions continued in 2012 Milk 0.337 0.288 0.246 0.4 -3.7 -4.9 -14.5 62.60 with more touchscreen Ice cream 0.317 0.346 0.303 0.48 2.2 9.14 -12.4 58.42 0.14 0.115 0.076 0.27 7.7 -17.8 -33.9 255.26 vending machines and Cigarettes 0.713 0.421 0.379 0.75 -15.1 -40.9 -10 97.89 video screen retrofts. Other Operators added this technology as more options became signifcant change in the vending busi- including those of fresh food — typiavailable, also indicated in chart 10A. ness strategy. While there is an esti- cally 30 percent of market sales — and Many examples introduced in 2012, mated 2,800 micro markets in service, draw more customers to use the syssuch as small retroft vending screens, operators reported 1.8 percent of their tem than use the traditional vending allowed operators to purchase one business drew revenue from this seg- bank. Some operators reported losing piece of hardware, but get the benefts ment in 2012. That's the equivalent long-time locations to micro markets of video screens and cashless payment to almost 90,000 machines. if they didn't embrace the technology. acceptance — making the investment The popularity of micro marThe largest challenge presented by even more attractive. Many operators kets are attributed to many things, micro markets is the new merchandisreported liking that these video screens including allowing more products ing requirement since it needs to be could also be used to display nutritional to be displayed in the same area and managed more like a retail store than a information when the calorie disclosure increasing variety. Because micro vending machine. Also, in 2012 micro rule is fnally published by the FDA. market kiosks use cashless payments, market data was not able to integrate operators can use penny increments with existing vending management Micro markets spike on product prices, as well as collect systems (VMS), making it diffcult The addition of micro markets jumped sales tax at the end of the transaction, to accurately track and manage all 10 percent in 2012, according to vend- similar to other retail establishments. aspects of the business using one sysing operators, marking it as the most Micro markets also drive up all sales, tem. Recently however, micro market 30 Automatic Merchandiser VendingMarketWatch.com June 2013

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