Automatic Merchandiser

JUN 2014

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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n just ten years — from 2003 to 2013 — OCS beverage sales grew nearly 100 percent. Additionally, single-serve beverages increased 26 percent to be the largest segment of OCS and OCS beverage unit volume grew by more than a third. Research presented by StudyLogic at the 2014 NAMA OneShow shows that the increase of single-serve consumption has been driving sig- nifcant growth in OCS sales and unit volume, as well as capturing share from other OCS segments. No signs of slowing Between 2003 and 2013, OCS hot beverage volume increased nearly one billion units, from 2.5 billion to 3.4 billion units. Meanwhile, OCS hot beverage sales grew from $930 million in 2003 to $1.8 billion in 2013, a nearly 100 percent increase in just ten years. And the numbers are pro- jected to continue climbing over the next two years. By 2016, StudyLogic predicts that OCS hot beverage volume is expected to grow to 3.9 billion units while sales are projected to reach $2.5 billion in that same time period. Single-serve drives growth Single-serve is a signifcant driving force in the positive OCS growth. In 2003, single- serve was practically non-existent, accounting for approximately 6 percent of the OCS market, mean- while instant coffee accounted for 44.9 percent. In 2013, single-serve beverages grew to account for 32.5 percent of the OCS segment and became the largest segment within OCS. Instant coffee decreased to account for 28.1 percent of the OCS segment in 2013. In sales volume, OCS single- serve coffee beverages are expected to make over $1.0 billion dollars in 2016 while unit volume is predicted to reach nearly 1.5 billion. OCS: fastest growing channel From 2003 to 2013, OCS has been the fastest growing channel in terms of unit volume compared to drug stores, wholesale/club, food/grocery and national chains. OCS is expected to be the biggest growth channel through 2016. Methodology StudyLogic, a leading global market research and business intelligence frm, conducted this study entitled "Eye On Competitive Retail." The study consists of one million weekly panel mem- bers who are defned as U.S. adults age 18 and older. Panelists take a short online survey. The study measures all U.S. food and beverage consumption; how- ever, it is designed to track unit consumption at the local market retail vendor level. The research was pre - sented by StudyLogic's Executive Vice President and Chief Operating Offcer, Sam- uel Nahmias, at the NAMA OneShow educational ses- sion "Consumption Trends: The Future of At-Work Hot Beverage Service." I Decade Of Difference By Adrienne Zimmer, Assistant Editor Within the last ten years, OCS hot beverage sales and unit volume have rapidly increased, brought on largely by the rise of single-serve. In 2013 32.5 percent of OCS was single serve. Total OCS hot beverages by sales Total OCS hot beverages by units 12 Automatic Merchandiser VendingMarketWatch.com June 2014 O C S U P D A T E S P O N S O R E D B Y autm_12-13_0614OCSUpdate_F.indd 12 6/11/14 11:08 AM

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