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 BY 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 Automatic Merchandiser 27

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