Healthier4U Vending Company

[AZVendor]

There was an interesting analysis by Automatic Merchandising Magazine's "VendingMarketWatch.com" editor, Emily Refermat today.  Here is what I think is the most important summary information: 

 

"...schools have led the initiative to require different snacks and beverages in their vending machines, often banning certain products altogether. Automatic Merchandiser and VendingMarketWatch figure about 2.5 percent of the full line vendors or candy/snack/beverages operations get 50 percent or more of their revenue from grade schools, and these (nutrition) mandates are their big concern."

 

"...strict snack and food rules that the U.S. Department of Agriculture plans to put on school vending machines nation-wide, including high schools, and revenues are likely to suffer even more."

 

"Many of these “school” operators were able to increase the number of locations they served in 2012, averaging 30 per operator. And while their sales increased in 2012, according to upcoming state of the vending research, it lagged behind what vendors reported overall."

 

"Operators serving schools are in a precarious situation....but the dark cloud of proposed legislation hangs over their businesses. Many have wondered if they can even survive such a (sic) aggressive product restriction since sales will drastically decrease."

 

"...it’s important to remember to diversity (sic) your locations. There’s no telling when one segment will be faced with challenges, such as the manufacturing segment over the last decade, and the school segment today. No longer can vending operators afford to keep all their eggs in one basket."

 

While I know that all the Healthy Vending opportunists will use this as ammunition to sell their programs, it is further substantiation of what most experienced vendors already know - that pending legislation will further erode profits and, as the Automatic Merchandiser people have also seen historically, healthy vending is not the profitable direction the industry should rely on.  Regular beverages and snacks will continue to be the driving force in successful vending operations.