Vending Machine Operators

First Research, Inc.
March 16, 2015
10 Pages - SKU: FRRS5493162
Countries covered: United States

Vending Machine Operators

Brief Excerpt from Industry Overview Chapter:

Companies in this industry sell soft drinks, candy, snacks and other products through vending machines. Major companies include divisions of ARAMARK, Coca-Cola, Compass Group, and Sodexo.

The US vending machine operators industry includes about 4,200 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $7 billion.

COMPETITIVE LANDSCAPE

Consumer spending and employment 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 US industry is fragmented: the top 50 companies generate about 40 percent of industry sales.

Vending machine operators compete with other providers of ready-to-consume food and beverages, including restaurants, grocery stores, convenience stores, and coffee shops.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products sold include soft drinks (about 40 percent of sales), candy and snacks, hot beverages, hot and cold meal products, and ice cream. 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 machines, sweeteners,...



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