Vending International
Soft drinks brands maximise machine revenues says Nick Bingham
Published:  16 May, 2008

Vending soft drinks means high margins and a substantial revenue stream for both soft drinks manufacturers and vending machine operators throughout the UK.

Recent years have seen a shift away from traditional closed-front and spiral vending machines to glass-front vendors specifically designed to sell bottles and cans. Major brands now adopt the same approach to retail vending sales as other retail sectors where maximising brand visibility combined with quick, convenient access to product maximises impulse sales.

The latest automatic glass-front vending machines can produce as much as five times the revenue on traditional closed-front machines from a single site. A well managed vending programme, utilising the latest glass-front bottle and can machines, will typically vend in excess of 200 products each day and generate revenues in excess of £80,000 (e105,000) per annum.

Automatic glass-front machines such as the BevMax, introduced to the UK by The Vending Corporation, maximise product visibility and brand impact as well as providing the customer with the opportunity to view the actual product he or she will purchase - including any offer/promotion appearing on the packaging (something that has never been possible with closed-front machines where the actual product is not seen).

Machines such as the BevMax have been designed to resemble oversized glass-front chilled cabinets (similar to back bar chillers) which offer greater appeal to consumers and provide a simple and effective clarity of display as is increasingly the case within other retail channels such as supermarkets.

Major brands are well aware of the advantages of glass-front vending machines specifically developed to vend cold drinks. Public vending sites throughout the UK are testament to the success of these new machines which can provide as many as 45 different selections or, where required, as few as one. While machine branding on the latest examples is available as an option, it is by no means essential for product recognition as all products are clearly visible from the outside and the machine always looks full (until the last selection is sold). This is particularly relevant for those sites where machine branding is forbidden or not in keeping with surroundings.

From a consumer perspective, confidence in vending, choice of product and the overall experience of knowing ‘what you see is what you get' is more important than ever. Traditional closed-front vending machines rely on graphics to tell customers what is available and do not allow consumers to see the product itself until purchased or, indeed, whether or not a particular selection is sold out. The result is a significant reduction in impulse purchases and a far less fulfilling vending experience for the consumer.

From an operating/brand holder point of view, the latest machines are able to vend almost any shape or size of product and accept new packaging designs without the need to make expensive technical enhancements to the machine.

This is increasingly important where brands choose to update packaging and introduce new products at regular intervals.

New fully automated glass-front vending machines have been designed specifically for the cold drinks industry. Models such as the latest BevMax 3 from The Vending Corporation include an x-y picker cup that enables highly carbonated drinks to be sold from any selection within the machine. These and similar machines avoid the need to drop carbonated products and hence reduce foaming - so no more tapping the top of a can or bottle and risking a trip to the dry cleaners. The latest machines are also able to deliver the drink at waist height so the customer no longer needs to bend down to floor level to receive the product.

The last few years have seen the leaders in soft drink vending machine manufacturing invest millions of dollars in the development of new vending machines specifically for the soft drinks industry. From greater choice and visibility of product, through to payment and product delivery, the latest machines result in the total consumer vend experience being dramatically improved.

Vending revenues have also seen a dramatic increase as the philosophy behind sales in other retail sectors has been applied to the development of such machines. The emphasis behind development has been on full product visibility, reliability in the field and an enhanced experience for brand/operator and customer alike. The result is a vending retail sector that generates some of the highest margins available and an opportunity that leading brands see as too good to miss.

Nick Bingham is a Marketing Director with The Vending Corporation

http://www.thevendingcorporation.com/






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