Millennials will cause the change
Perhaps you've heard about 'disrup-
tive technology or innovation.' A
great example is video rental stores.
Blockbuster stores were relegated to
history's trash bin by Redbox and
Netfix. Other brands following
Blockbuster's lead include Kodak,
Radio Shack, Border's Books, Lin-
ens 'n' Things, Circuit City and F.W.
Woolworth Company.
The most disruptive event for
vending right now is the people we
are serving. They are changing.
According to an article in Fast Com-
pany magazine, in 2015 Millennials
(those born from 1981 to 1996) will be
the majority of the workforce. They
are remarkably different from their
parents' generation. Their eating hab-
its, shopping behavior and high-rate of
technology usage will force our indus-
try to change. Already technology has
taken hold in the U.S. at a faster rate
than in recent history. (See Technol-
ogy usage is increasing sidebar.)
Although as an industry we are
not very quick to innovate (it's not
a faw, just a fact), there have been
successful developments includ-
ing: (A.) The BevMax bottle-drop
machine, which allowed operators to
expand product offerings as the cold
drink category exploded with more
product alternatives. (B.) Single-cup
brewing, which gave OCS operators
a way to compete more effectively
against the coffee shops. (C.) Large-
size single-serve snacks, which were
all but instantly accepted at sand-
wich shops and on-site foodservice
locations. They took years to gain
traction in vending (spirals had to
be changed out to accommodate the
larger bags), but allowed the industry
to compete with retail.
The forecast for the next 5 years
Early each year there are predictions
and forecasts exploring the trends for
the next 12 months. Given the disrup-
tive events and the technologies that
did gain traction in vending, this is
what the year 2020 might hold for us:
Beverages:
We will be selling few if any 12-ounce
cans or 20-ounce bottles. It will be
individually customized beverages
from equipment like the Coca-Cola
Freestyle or the Pepsi Spire. There are
also other innovative developments
which will impact our cold drink sales
such as the Keurig Kold™ system.
› What does this mean for us?
You can deliver far more variety and
offer customized beverages at every
location. You can do it with less space
and without the need for vending
38 Automatic Merchandiser VendingMarketWatch.com April 2015
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