Automatic Merchandiser

OCT 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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M I C R O M A R K E T S E Q U I P M E N T T R E N D S machine to a micro market hybrid. Vendors Exchange revealed such a system at the 2014 NAMA One- Show, the DISCOVER™. Still being developed as a prototype, the system will be ready in 2015 with improved features, indicates Stephanie Begley, director of marketing at Veii. "This system is designed to bridge the gap between a vending machine and a micro market," said Begley. "It will incorporate many new features like pagination and swipe technology." Begley explains the DISCOVER product is being designed to accom- modate large offces that are still too small for a full micro market system (75 to 150 employees). The touchscreen is placed on the snack machine door and incorporates a scanner and preset options for items in a nearby cooler, open shelf or pastry case. "It is a truly inno- vative way to combine the vending space with the micro market space," added Begley. Locked coolers In a micro market, fresh food is a top-selling category. Part of the attrac- tion is that food can be packaged in containers that better showcase the product, without having to ft in a vending machine food carousel. The other driver is that consumers can read the food label and examine the item prior to purchase — a beneft in the micro market over the vending machine. However, a micro market requires a greater level of security and trust than a vending machine as items are not behind a locked door requir- ing payment. How can we get the benefts from both? A locked cooler, which allows for alternative packag- ing, pre-purchase examination and ensuring the operator gets paid. In 2012, ShelfX launched a locked cooler with attached RFID-enabled access and cashless payment accep- tance. The system won a NAMA Innovation award two years in a row. "The ShelfX ideal locations are what we call soft vending locations," said Ran Margalit, ShelfX CEO. Margalit explains that offces, hos- pitals and other workplaces would be examples of soft vending. "With a micro market you have to trust people not to steal, or eat without paying," explained Mar- galit. "The solution today is a cam- era, but it's hard to know if product is missing. Especially because some theft is people taking product up near the kiosk and pretending to scan or scanning and then hitting cancel." There are other times cameras might not be an option at a location such as if the union doesn't allow it or the employer has a policy against it. To ensure security while still offering the availability of fresh food, ShelfX uses a NFC cashless payment reader and pressure plates inside the cooler. The end user scans their NFC-enabled credit or ShelfX card, which unlocks the cooler. The consumer can then pick up, examine, select or put back the item. The pressure plate registers if a product was removed or replaced. Once the door is closed, whatever item is removed is charged to the account. "It can be a dry goods cabinet, cooler or freezer," said Margalit. In fact, the company is testing a micro market concept where consumers use their Xcard to access a locked room with open shelves and glass coolers. Consumers wave their Xcard in front of the shelf or cooler before taking an item. Once the item is taken, they can wave their Xcard again to close the transaction. If an item is removed without holding the Xcard frst, a loud buzzer is activated. "The ShelfX system allows you to vend anything and the consumer experience is superior," said Mar- galit. No moving parts mean a lower service cost than vending and the system costs less than most micro market kiosks, adds Margalit. An additional feature of ShelfX is the display which shows the cost of an item the consumer has removed. "It can alert the consumer that the product has ingredients he or she has indicated they are allergic to," explains Margalit. Also, in schools, parents can review their student's buying history and replenish the card account. Selling 24/7 A relative newcomer to the indus- try, Pantry Labs Inc., has brought an innovative locked cooler solution best suited to niche sites that also offer foodservice. "It is a way for foodser- vice to sell food even after the cafete- ria or canteen has closed," said Alex Yancher, co-founder of Pantry Labs. Once the foodservice operation has ceased operating for the day, unsold food is wrapped, tagged with an RFID label and placed in the Pantry Labs cooler. The Pantry Labs system requires the end user to swipe a credit card or authorized ID card to unlock the cooler. The user can examine food items and make a selection by just taking the item out of the cooler. Once the item is removed and door closed, the RFID label on the food item is rec- ognized as missing so the customer gets charged. "It is ideally suited for locations like hospitals, campuses and airports that have people around 24/7," indicated Yancher. GET micro market benefts with the security of a vending machine. October 2014 VendingMarketWatch.com Automatic Merchandiser 23

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