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well, accounting for nearly 28 per- cent in annual revenues (see chart 14). Bagged candy grew the most from 2014, pushing revenues up nearly 33 percent. Chocolate candy and non chocolate candy both saw increases as well, however, the non chocolate category brought in nearly twice the amount of revenue. The only candy category to decline in 2015 was gum and mints, which lost units, if not sales revenue. For snacks, those categorized as nutritious showed the largest increase, 31.7 percent for revenue. This growth is unsurprising as consumers are mov- ing towards certain types of healthier snacks and alternative options. Nuts and seeds also did well, as did food snacks, both growing more than 20 percent in revenue. Despite the focus on healthy items, consumers still like indulgences, a fact supported by the revenue growth in pastry, 19.7 percent, as well as chips 13.9 percent. Bagged snacks grew the least, but still showed a positive move- ment of 2.3 percent for revenue. Cold beverage Energy drinks grew the most in both revenue and unit sales, according to Cantaloupe data. In both the smaller 12 ounce size as well as the larger 16 to 20 ounce size, the revenue growth was over 27 percent. The next stron- OCS BREAKOUT In 2014, offce coffee service (OCS) made up the majority of non-vending service revenues in the vending industry, but that changed in 2015. OCS still makes up a signifcant portion, 6.8 percent, but it is now third behind the micro markets and manual foodservice service segments (see chart 11B. Other was not included since it is comprised of many even smaller services that would each contribute less than OCS separately). Operators report more competition in OCS than in previous years, espe- cially among the smaller companies concerned about cost of OCS op- tions for their employees. This represents about 22 percent of OCS locations, which operators report aren't even large enough to support vending machines. From operator statements, these locations are interested in offering coffee and related products to employees, but then cut when costs are perceived as too high. These locations are the most likely to turn to the internet e-commerce sites and big box stores or wholesale clubs for their OCS needs. In other areas where the workforce is stable or growing there is still steep competition from coffee shops. There are cafes and fast food outlets offering coffee close by most facilities, and these are often patronized by employees. Many operators fnd employers are less willing to cover the cost of offering quality OCS to employees in these areas. 24% 13.5% 8.3% 9.4% 22.9% 21.9% 6.8% Percentage of vending industry that OCS makes up ● 0% ● 1-20% ● 21-40% ● 41-60% ● 61-80% ● 81-100% 2015 OCS LOCATIONS ALSO BIG ENOUGH FOR VENDING MACHINE SERVICE 3.5% 3.9% 1.5% 3.5% 3.3% 3.5% 3.8% 2.8% 2.3% 3.3% 3.2% 4.0% RANKING OF DIFFERENT OCS OPTIONS IN 2015 (1 = LOWEST, 5 = HIGHEST) ● Consumer preference ● Profitability 1 2 3 4 5 Pre-packaged single-cup Thermal brewer using frac pack Freeze-dried Bean-to-cup Specialty coffee machine Air pot brewer using frac pack 32 Automatic Merchandiser VendingMarketWatch.com June/July 2016 STATE OF THE INDUSTRY