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rebate program requirements . This caused them to raise prices, (chart 7), and reduce product variety in (chart 8B). Many operators reporting replac- ing bottles with cans to maintain their current price points without further eroding margins, (chart 13). In 2013, vending operators reported fewer candy sales due to price increases and reducing candy selections in machines. What drove the percent of revenue increase in the candy, snack and confection was snacks and baked goods, which showed healthy growth in multiple subcategories, see chart 14B. Opera- tors reported replacing many candy selections with less expensive snack options as a way to deal with higher costs of goods. It was also where operators were most likely to raise prices (chart 7). OCS in, vended hot beverage fat OCS experienced sales growth in 2013 as operators used it to help offset fat or declining vending sales. More than 21 percent of operators added OCS ser- vice in 2013, see chart 9B. It accounts for 14.66 percent of share of sales. The growth of OCS comes even as vended hot beverage struggles to gain, instead shrinking somewhat in 2013 as a per- centage of sales. Regular coffee con- tinues to be the strongest vended hot beverage type, but specialty and fa- vored coffees are gaining sales (chart 15B). Cappuccino is regulatory written in as the most successful vended hot beverage item under "other" by opera- tors, which also gained in 2013. Interestingly, vended hot beverage prices have dropped. Presumably, this has happened as more locations pre- fer OCS. The competition has forced lower prices at machines. Vended food is fat Vended food, which increased some- what in 2012 has stalled in 2013. Operators report that its percentage of sales is around 7 percent, mostly made up of frozen, pre-packaged items — a long standing trend. How- ever, shelf stable products increased to more than 20 percent in 2013, as a percentage of sales (chart 16B). Oper- ators did this to help with margins and lower spoilage rates. Ice cream and milk continue to struggle, representing less than CHART 15B: HOT BEVERAGE SALES, 4-YEAR REVIEW 2010 2011 2012 2013 Fresh-brew regular 54.90% 58.33% 38.29% 38.92% Fresh-brew decaf 5.42 3.89 6.4 5.53 Fresh-brew specialty/favored 7.9 5.72 11.75 11.85 Freeze-dried regular 3.1 4.54 8.57 7.01 Freeze-dried specialty 7.86 5.76 8.78 9.68 Tea 1.72 2.54 5 3.62 Hot chocolate 11.67 12.75 10.88 12.86 Soup 0.53 1.37 1.92 1.28 Other 6.75 5.06 8.37 9.3 CHART 15C: HOT BEVERAGE PROJECTED TOTALS, IN MILLIONS 2010 2011 2012 2013 Fresh-brew regular $411.75M $408.31M $281.05M $334.71M Fresh-brew decaf 40.5 27.23 46.98 47.56 Fresh-brew specialty/favored 59.25 40.04 86.24 101.91 Freeze-dried regular 23.25 31.78 62.9 60.29 Freeze-dried specialty 58.5 40.32 64.45 83.25 Tea 12.9 17.78 36.7 31.13 Hot chocolate 87.53 89.25 79.86 110.60 Soup 3.99 9.59 14.09 11.01 Other 50.63 35.42 61.44 79.98 CHART 15D: HOT BEVERAGE PRICES, 4-YEAR REVIEW 2010 2011 2012 2013 Fresh-brew regular 59¢ 59¢ 64¢ 62¢ Fresh-brew decaf 58 58 60 54 Fresh-brew specialty/favored 65 65 69 66 Freeze-dried regular 59 57 49 37 Freeze-dried specialty 59 59 56 43 Tea 55 55 53 45 Hot chocolate 59 59 66 64 Soup 57 55 50 24 36 Automatic Merchandiser VendingMarketWatch.com June 2014 STATE OF THE INDUSTRY CHART 15A: HOT BEVERAGE MACHINE ESTIMATES, 4-YEAR REVIEW 2010 2011 2012 2013 315,000 309,000 318,270 318,000 CAPPUCCINO is regularly written in as the most successful vended hot beverage item under "other." autm_26-39_0614SOVI.indd 36 6/11/14 10:07 AM