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: and software suppliers are developing solutions for data integration that range from cloud-based systems to data standards used by micro market manufacturers. Product segment review In 2012, most product segments experienced an increase. The largest segment by revenue, cold beverage, grew more than 1.5 percent in the vending channel, beating the 1 percent revenue growth reported in overall retail by the Beverage Marketing Corp. (BMC). According to BMC, growth is attributed to the strengthened economy. Ready-to-drink tea and coffee, as well as energy drinks, were the beverages that grew the most, while established segments like carbonated soft drinks and fruit beverages didn't grow much in 2012, reports BMC data. Cold beverage machines, both closed front and glassfront, were relatively fat in 2012, up just half a percent, with the number of placed venders hovering around 3.5 million for both bottlers and vending operators, shown in chart 13. The canned cold beverage segment gained market share as vending operators used them to offer beverages at a lower price point. Cup drinks grew for a similar reason as well as some being placed in micro market locations. The national average canned cold beverage price remained at 76 cents in 2012, shown in chart 13C. The average bottle price increased to $1.33 and the cup to 71 cents. The candy, snack and confection segment increased in 2012, posting a 3.85 percent growth in revenue, the frst growth in fve years. However, 2012 also showed a decrease in this segments' unit sales, seen in chart 14B. According to Management Science Associates, Inc., which tracks UPC level sales data from vending machines and projects it to a national scale, vending operators raised prices in this cat32 Automatic Merchandiser STATE OF THE VENDING INDUSTRY CHART 13A: COLD BEVERAGE MACHINES BY TYPE, BOTTLERS AND VENDORS, 4-YEAR REVIEW BOTTLER OWNED TYPE Bottle and can closed front Glassfront Cup TOTAL 2009 2,300,000 195,000 0 2,495,000 2010 2,300,000 200,000 0 2,500,000 2011 2,280,000 210,000 0 2,490,000 2012 2,291,400 211,050 0 2,502,450 VENDOR OWNED TYPE Bottle and can closed front Glassfront Cup TOTAL 2009 972,000 25,000 8,000 1,005,000 2010 972,000 30,000 6,000 1,008,000 2011 972,000 35,000 4,000 1,011,000 2012 976,860 35,175 4,000 1,016,035 2012 42.15% 55.13 3.35 CHART 13B: COLD BEVERAGE SALES, 4-YEAR REVIEW % OF SALES TYPE Can Bottle Cup PROJECTED TOTALS TYPE Can Bottle Cup 2009 29% 70.7 0.3 2010 29% 70.8 0.2 2011 29% 70.7 0.3 2009 $1.69B 4.56 0.018 2010 $1.7B 4.11 0.017 2011 $1.704B 4.155 0.017 2012 $2.352B 3.076 0.187 Editor's Note: These totals only apply to the volume sold by vending operators, not bottlers. CHART 13C: AVERAGE COLD BEVERAGE PRICES, 4-YEAR REVIEW TYPE Can Bottle Cup 2009 71¢ $1.25 70¢ egory an average of 2.17 percent in the past year, shown in chart 14E. This accounts for the increase in revenue despite falling unit sales. Unit sales fell in all candy segments, nutritional snacks, baked foods and nuts/seeds. Conversely, the number of crackers as well as food and meat snacks sold showed an increase in 2012. Hot beverage sales rebounded in 2012. The number of machines increased to 2009 levels, shown in chart 15A. Operators also increased most coffee prices in 2012 including fresh-brewed regular coffee (5 cents), fresh-brewed specialty/favored (4 VendingMarketWatch.com June 2013 2010 73¢ $1.30 70¢ 2011 76¢ $1.32 70¢ 2012 76¢ $1.33 71¢ cents) and hot chocolate (7 cents). The most notable percent of sales change in this segment is a 6 percent increase in specialty, favored drinks for 2012, while fresh-brewed regular coffee dropped 20 percent. OCS continued its trend of growth in revenue for the fourth straight year, proving it's still a thriving segment for profts, shown in chart 12. OCS sales, as a percent of total revenue, continued to post higher than hot beverage, a trend that began in 2007. Of the major product segments, OCS posted the most 1-year sales gain. Consumer research still points to OCS