The relationship between the water cooler and vending industries now seem to be closer than they have ever been before and on inspection there are many reasons why this is so.
Since the economic down turn most industries have had to more urgently inwardly reflect and outwardly develop to survive in a market where customers are gripping their wallets tightly and where convincing them to open them up is increasingly difficult.
It is against this back drop of increased competition that both the water and vending markets have noticed each other more seriously; perhaps sometimes as a threat and at other times an opportunity. The target client base is generally the same, with the same decision makers and often even the same locations in buildings.
Both industries have a number of common threads that have aligned them for a symbiotic partnership. Each has a wide range of equipment with varying layers of technological complexity delivered by a large number of regional providers topped up with a handful of national organisations. Both have a similar contract, installation procedure and routine maintenance model and on coffee vending also the cross over of water fitting regulations, hygiene and filtration systems. It seems inevitable that these industries which are rapidly approaching a cross roads in a maturing market driven by lower margins and higher expectations as well as concerns over pending legislation, need to diversify by offering additional services to existing clients.
The natural progression of diversification is to look to your core competencies and see what can be easily delivered without completely reinventing the organisation. When the core business models of vending and water are placed side by side the parallels are remarkably similar. Over and above the regulations are the obvious similarities including an equipment rental model, supported by an engineering and operator backbone.
As an increasingly obvious direction for business progression, trade associations have also tried to keep up with the pace by being more supportive of each other and where suitable creating strategic alliances. In June 2009 the EPDWA vocalised its plans to join forces with EVA (European Vending Association) so that the core topics already identified by the market could be better vocalised in one united voice. EVA has a proven track record on positive influencing EU policies on behalf of the vending industry, the relationship now directly benefits for the EPDWA with its experience networking in Brussels.
The EPDWA has recently undergone a name change to become even more inclusive of emerging technologies within the market, heralding innovations such as the latest bag in box systems currently being rolled out across Europe. The newly fashioned EDWCA (European Drinking Water Cooler Association) plans to offer its support to a wider membership across Europe and help further support existing water cooler companies and vending companies that are planning to add these services to their existing portfolio.
Since the EVA partnership started the combined forces have tacked numerous issues for the benefit of both membership groups. From the EDWCA’s perspective it is imperative that ever competitor in the market or organisations considering entering the market are all using the most applicable standards. In this role the EDWCA has guided EVA on issues experienced by the water cooler association that also effect their vending members particularly surrounding hygiene, installation and filtration. The EDWCA offers a wealth of experience from its affiliated microbiologist Mike Hurst and a various EC members including Derek Callaghan who has assisted on the numerous EVA topics. Currently projects include the legislation in regard to HFC gas R=134a.
When the EDWCA reviewed its European strategy it believed that as mains fed units spread throughout Europe, the knowledge gained by the association work over the past decade can be used as a benchmark and template for other national suppliers and distributors. The EVA relationship further supports the credibility of the EDWCA to spread the message across Europe.
At a press meeting James Anderton, Chairman of the EDWCA stated that: “The overlap between the two associations is simple: many vending solutions include the utilisation of a mains water source, connection and even filtration. Therefore any future policy decision in these areas would represent a similar issue to mains fed cooler providers. The relationship with EVA will ensure that the voice of the European water cooler industry and its members are represented during policy shaping.”
Arnaud van Amerongen, Chairman of EVA expressed that: “Whilst influencing policy is an intricate and involved process, it is imperative to gets ones message across clearly as early as possible and most important before legislation is created. Contrary to popular belief, Brussels politicians encourage industry input, recognizing that they need specialist knowledge to ensure that policies are robust and workable.”
The relationship underpins the importance that EVA places on the water cooler industry and likewise how important vending is becoming to the water cooler industry. However the core benefit of this partnership has been to create a more focused approach to the assisting the policy making game played out in Brussels for the benefit of the two interlinking industries.
Would you buy your vending machines and equipment from the world-wide-web?