Vending Machine Operators Industry Overview

Excerpt from Vending Machine Operators Report

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.

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 industry is fragmented: the top 50 companies generate about 40 percent of industry sales.

Products, Operations & Technology

Major products sold include cold soda (40 percent of industry sales), candy and snacks, hot beverages, hot and cold meal products, ice cream, and cigarettes. 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, and cream. With bulk vending, machines randomly dispense candies, nuts, gumballs, or capsules containing novelty items.