Vending Industry Trends; Cold Drinks Still Top the List

 

At Planet Antares Incorporated, we pride ourselves on quality and service. Our machines are some of the best in the business; reliable, versatile and easy to maintain. With top-of-the-line machines and increased sales tracking measures, analysis has become easier and more useful. Findings indicate a strong industry; one that is continuously growing.

Soft drinks remained the largest vended cold-drink category last year; 53% of dollar sales were from regular sodas, and another 14% from diet drinks. Water continued to hold strong with 9%, with juice drinks and sports drinks adding another 14%. Premium cold drinks in vendible packages found receptive niches in the vending marketplace last year, rising from 2% to 3% of sales. Consumers willing to pay the price for a specialty beverage in other retail channels proved equally willing when their favorites was available in a vending machine. The continuing proliferation of beverages, perhaps especially those offering some perceived benefit or enhancement, has given operators new opportunities.

As the industry continues to change and diversify, a few key factors should be noted.

Nutrition concerns increase. More school districts imposed restrictions on vending products in 2004. While schools did not represent a major customer segment, concerns about nutrition expanded to other accounts.

Customer demographics diversify. From a historical perspective, the vending customer has become more diverse in age, gender, ethnicity, race, income and occupation. With a more diverse base of customers to serve, vending operators found more use for management reports that offered insight about customer preferences.

Candy/snack/confection sales are up. Candy, snack and confection sales posted gains in 2004 and are still increasing steadily, with the introduction of new options for consumers. Much of the improvement was driven by manufacturer price increases, particularly in candy bars, the segment's largest single revenue generator.

Meat, cheese and nut snacks gain. Meat, cheese and nut snacks, while small categories compared to candy bars and bagged chips, posted a big increase for the second straight year in 2004. These snacks fit into low-carbohydrate diets which continue to be popular.

Overall, the vending industry held strong over the past year as the economy strengthened