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Vending Machine Operators
First Research, Sep 2009, Pages: 10
First Research is the leading industry intelligence company that helps sales teams perform faster and smarter, open doors, and close more deals. First Research performs the 'heavy lifting' by synthesizing hundreds of sources into an easy to digest format that a sales person can consume very quickly to better understand a prospect's business issues.
Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US vending machine operator industry includes about 5,000 companies with combined annual revenue of about $6 billion. Major companies include divisions of Coca-Cola, Compass Group, ARAMARK, and Sodexo. The industry is fragmented: the top 50 companies generate about 40 percent of industry sales.
COMPETITIVE LANDSCAPE
Consumer spending and business growth drive demand, since many vending machines are located in workplaces. The profitability of individual companies depends on effective merchandising, reliable service and maintenance, and securing prime locations. Large companies can offer a wide product selection, service large accounts, and enjoy scale advantages in purchasing, finance, and distribution. Small companies can compete effectively by serving a local market, providing superior customer service, or offering unique products. The industry is labor-intensive: average annual sales per employee are about $100,000.
Vending machine operators compete with companies providing food and beverages, including restaurants, grocery stores, convenience stores, and coffee shops.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products sold include cold beverages (40 percent of industry sales) and candy and snacks (30 percent). Other products include hot beverages, hot and cold meal products, ice cream, and cigarettes. The majority of cold beverages sold are soft drinks in cans, bottles, or cups. Candy includes chocolate, gum, and mints. Snacks include salty snacks (potato chips and pretzels); baked goods (cookies and cakes); crackers, nuts, and seeds; and nutritious bars. Companies may also offer office coffee services (OCS) and provide brewing ...
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