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CHART 11: HOW RISING COSTS ARE BEING HANDLED, 5-YEAR REVIEW
● RAISING PRICES
● ABSORBING
● COMBINATION
● OTHER
1%
23%
68%
6.5%
12.1%
8%
24.2%
48.5%
15.2%
38.3%
48.2%
34%
48.9%
13.6%
2008/2009
2009/2010
2011/2012
30.4%
9.8%
17%
2010/2011
53%
2012/2013
tive single cup machines that discourage pilfering by employees, as this is
still a concern among many locations.
Pods are seeing a resurgence as equipment manufacturers show the equipment is more reliable than in the past
and the pods themselves are considered a "green" alternative to K-Cups.
Chart 8 shows how marketshare has
shifted over the past 5 years for single
cup brewers, with Keurig and Mars
Drinks (Flavia) brewers leading, but
Newco's are gaining placements.
Another driver behind single cup
growth is the popularity of specialty
drinks, which have increased sales of
machines able to brew cappuccinos
and lattes. This is shown in chart 6.
Espresso/cappuccino drinks, as a part
of the OCS sales, grew almost 2 percent in 2012, while private label and
even national brand sales percentages
fell. Operators also reported a rise in
favored coffee and varietals or origins
(coffee grown in a specifc region).
Resurgence of bean-to-cup machines
have increased whole bean sales.
Chart 6 also shows the shift in
the typical OCS customer. While coffee remains strong, its sales share has
shrunk in the past 12 months. The
product category with the largest
gain was bottled and fltered water.
Both the drive for healthy products,
noted by vending operators, as well
as the day part met by water is contributing to this segments' growth.
NAMA sponsored research on
the OCS consumer revealed that
water is consumed all day, as compared to coffee and tea, which were
mostly consumed in the morning.
September 2013
VendingMarketWatch.com
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