Automatic Merchandiser

AUG 2015

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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VendingMarketWatch Top News Stories ore than 200 NAMA members and guests convened in Washington, D.C. for the association's Take the Hill inaugural Fly-In July 21st and 22nd. "This frst-ever Fly-In was a tremendous success by any metric," Eric Dell, SVP of government affairs said. "We are blown away by the support this event received from our members, sponsors and legisla- tors. The impact and value of the relationships we've enhanced with lawmakers is critically important as we expand NAMA's footprint in Washington. The Fly-In demonstrated advocacy in action without question and will help move the needle on the industry's most signifcant issues." Attendees representing 35 states plus D.C. took part in more than 180 meetings with elected offcials and their staffs from both the Senate and the House. Participants met with a record 62 percent of the U.S. Senate and 29 percent of the U.S. House of Representatives, reaching a total of 35 percent of congressional offces overall. Discus- sions focused on Calorie Disclosure/Health and Wellness, the Small Business Regula- tory Flexibility Improvements Act and Coin and Currency. Some of the largest state delegations included Georgia, Maryland, Pennsylvania, Virginia and California. M NAMA Hosts Inaugural Capitol Hill Fly-In from unfavorable foreign exchange; and a divestiture impact of $4 million, or 1 percent; partially offset by positive core sales growth of $5 million, or 1 percent. In the Payment & Merchandising Technologies segment, sales increased $2 million driven by core sales growth of $17 million, or 9 percent, partially offset by $13 million, or 7 percent, of unfavorable foreign exchange and a $2 million, or 1 per- cent, divestiture impact. Vending Industry's Struggle With Required Healthy Snacks Gets Public Attention ▶ The New York Post ran an article highlighting the vending industry's struggle to maintain proftability while being required to stock only certain, "healthy" items in vending machines. The article entitled "Vending Machine Revenues Crater Under Strict Nutrition Rules" highlights the loss of revenue for both the operator and the location which often relies on a com- mission from vending sales. It's not just schools that are affected. Hospitals and government buildings are also subject to strict nutri- tional guidelines. For Butch Yamali, chief executive of the Dover Group in New York, healthy vending regula- tions have cut his sales in half. The company will lay off 10 percent of its staff in the fall. Tom Murn, CEO of The Answer Group, told the news source that his machines saw a 50 percent drop in sales with the regulations. He has been able to keep good mar- gins by adding non-vending items such as umbrellas and phone chargers. Participants at NAMA's inaugural Fly-In event met with 62 percent of the U.S. Senate. Royal Cup, Inc. Acquires Teasy Teas ▶ Royal Cup, Inc. announced that it recently acquired Teasy Teas, LLC, a Birmingham-based manufac- turer of gourmet and artisan teas, in a move to expand and diversify its specialty tea offerings. Marshall Malone, former owner of Teasy Teas and Alabama Chai, has joined the Royal Cup team as its Tea Category Manager. Hershey To Be Sued For Ice Breaker Gum Packaging 'Slack' ▶ A lawsuit was fled in the U.S. District Court in New York against Hershey Co., claiming that its Ice Breakers gum brand contains more "slack" or air in the container than is functionally necessary, Legal Newsline originally reported. The plaintiffs claim the container size misleads cus- tomers as to the volume of gum they are buying, which may violate the Federal Food Drug & Cosmetic Act, says the source. There are alleg- edly eight favors of the Ice Breakers Ice Cube gum in tube packaging affected by this lawsuit. Crane Co. Reports Second Quarter Results ▶ Crane Co. reported sec- ond quarter 2015 sales were $711 million, a decrease of 5 percent compared to $750 million in the second quarter of 2014. The sales decline was comprised of a $39 million, or 5 percent, impact 6 Automatic Merchandiser VendingMarketWatch.com August 2015

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