Automatic Merchandiser

SEP 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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SPONSORED SPONSORED fee margins in some cases, although OCS operators heavy in traditional single-cup didn't receive much relief as those prices didn't drop. To help margins, half of operators again raised prices in 2012, although that represents fewer operators than in 2011, see chart 4a. More than 40 percent made no changes in price. The reason for this is mixed. In some cases, it was due to lots of competition driving acceptable prices, making it diffcult for operators to increase them. To maintain proftability in these cases, operators used cost cutting in other areas of their operations, such as in paper goods and services offered. Other operators made no change because they had previously raised prices to a proftable level and coffee consumption increased. According to the National Coffee Association (NCA), overall coffee consumption is up 5 percent over last year among Americans. In its National Coffee Drinking Trends Report, the NCA reported that 83 percent of U.S. adults now drink coffee, compared to 78 percent from the 2012 report. Daily consumption has remained strong and steady at 63 percent, with those who drink coffee at least once a week up slightly to 75 percent. CONTINUED BY BY OPERATOR PRICING ACTIVITY CHART 4A: OPERATOR PRICING ACTIVITY, 5-YEAR REVIEW ● RAISED PRICES ● LOWERED PRICES ● NO CHANGE Yes 1.8% Yes 21% 10% 40% 51.4% 13% 51.4% 66% 88.2% 45.7% 14.3% 2008/2009 2009/2010 2010/2011 24.5% 43.3% 1.5% 50% 74% 6.7% 2011/2012 15 2012/2013 CHART 4B: REVENUE PER CUP IN CENTS PER CUP, FRACTION PACK PLUMBED IN/POUROVER COFFEE, 10-YEAR REVIEW 12 10.8¢ 11.7¢ 12.9¢ 9 6 3 0 5.8¢ 7.1¢ 7.7¢ 7.7¢ 7.8¢ 7.9¢ 8.0¢ 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 CHART 4C: REVENUE PER CUP, SINGLE-CUP COFFEE, 3-YEAR REVIEW 2010/2011 42.5¢ Revenue ▶ 2011/2012 41.8¢ 2012/2013 43.1¢ CHART 3: COMPOSITE GREEN COFFEE PRICES, 2009 TO JUNE 2013 200 150 100 2012 September 2013 VendingMarketWatch.com Jun Jul Jan Feb Mar Apr May Oct Nov Dec Jan 2010 2011 Source: International Coffee Organization, London, U.K. Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Apr May Jun Jul Aug Sep Jan Feb Mar Oct Nov Dec 0 Apr May Jun Jul Aug Sep 50 Jan Feb Mar CENTS PER POUND 250 2013 Automatic Merchandiser 19

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