Vending International
Taking a breather We talk ‘Vending and Leisure'...
Published:  09 November, 2009

Following the success of its pilot project on vending in schools, in 2005 the Department of Health Regional Public Health Team carried out a snap shot survey of the vending situation in leisure and sport centres in the East of England, the results of which highlighted a number of contradictions. In his analysis of the survey's findings, Jason Gwinnett of the Regional Public Health Group rightly said that a conflicting message was being sent to the users of such facilities: "Leisure and sport centres in all sectors must strike a balance between profits and the health of their users.

If the ethos of leisure and sport centres is to improve people's health and wellbeing, then we need to move away from the conventional vending of processed snack products designed for a quick energy-fix and replace them with real food and snacks or mini-meals. The use of refrigerated vending opens up the options of vending food such as sandwiches and fresh fruit. By following proven practice, healthy vending can complement sport and leisure centres' ethos and make profits at the same time," he said.

Tantalising the taste buds

Leading market research company, Mintel has found that the British spent a staggering £57 per head of population on chocolate in 2008 - second only Switzerland. But the UK is developing a healthier appetite when it comes to chocolate confectionery, says the Group. Reduced sugar chocolate launches rose from just six in 2007 to 26 in 2008, gluten free chocolate launches from 13 in 2007 to 40 in 2008 and additive free chocolate from 22 in 2007 to 46 in 2008. The healthier eating message is, it would seem, finally starting to filter through to the masses and leisure facilities are perfectly placed to help lead the way.

Latest research from Mintel also reveals that sales of sports and energy drinks are set to hit the £1billion mark. After a healthy growth of 51% between 2004 and 2008, sales of sports and energy drinks continue to thrive. "Even in 2008, as economic pressures put the skids on previously growing non-alcoholic markets such as smoothies and bottled water, this market grew by 10% from £855 million in 2007 to reach £941 million in 2008. Volume sales are also impressive, last year we knocked back some 484 million litres of the stuff, also up 10% on 2007 (442 million litres). In 2009, for the first time, the market is estimated to reach 525 million litres and a value of just over £1 billion.

"What is more, the thirst for these sprightly beverages is set to continue. Indeed, over the next five years, value sales are forecast to increase by an energetic 48% to reach £1.5 billion, whilst volume sales will rise by 44% to reach 757 million litres," says Mintel.

Within the market, it is energy drinks which are driving the sales. Indeed, the energy drinks market (£716 million) currently dwarfs sports drinks, with 2008 value sales of £225 million. In terms of actual sales, the energy drinks market experienced a £241 million increase between 2004 and 2008, in contrast to £89 million for sports drinks, adds the leading market research group.

Jonny Forsyth, Senior Drinks Analyst at Mintel said: "The challenge for the industry going forward is to grow its user base by successfully targeting females, 35-54 year olds and workers. The problem is that energy drinks appeal most to the physically active and men aged between 15 and 34 do more exercise than anyone else. A more mainstream opportunity lies in targeting mental rather than physical energy."

A leisurely look at the alternatives

It's not just food and drink that is boosting sales in the leisure sector. Leisure Vending for example, includes novelty items such as toys, capsules and sweets;  condoms, sanitary products and other items; as well as Tubs, Pringles and Hot Nuts. This offers a number of opportunities for shops, pubs, restaurants, hotels and other leisure facilities to widen their profit margins both directly as a result of the machine, and indirectly by increasing customer footfall and length of stay.

Command Leisure works primarily alongside the Tomy UK Capsule Vending Division, which appeals to outlets right across the retail services sector offering limited edition collectables to coincide with major film releases and maximise sales, together with making stock changes at carefully pre-determined times to maintain constant interest. It also operates and sites the Beaver Range of vending machines which offers a different product to the customer. Beaver vends cost just 20p and range from sweets, confectionary such as jelly beans through to lucky dips, encapsulated products and high bounce balls.

The home entertainment sector has been one area on which retailers have focused during the credit crunch. The Movie Booth says a survey from Halifax Home Insurers shows that nearly 60% of people now prefer to spend Saturday nights with friends and family at each other's homes as opposed to spending money at bars, clubs and restaurants. The DVD rental kiosk concept is one example of a service that has been of benefit to retailers in the UK and Ireland since demand for home entertainment increased and the Movie Booth currently operates DVD kiosks in stores including Spar, Nisa, Budgens and Tesco.

So while traditional leisure facilities must provide healthy food and drink on the go, other settings that fall under the leisure umbrella can also use the vast range of other products and services available to add value to what they do and make life easier and more enjoyable for their customers in the process.






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