Automatic vending: quick and appetising

An automatic vending machine can come to your rescue if you are feeling a bit peckish or need to unwind. Almost everyone has used one at some time, whether individually or with others, in the workplace or a railway station, from necessity or pleasure. Behind these highly popular machines lies a bustling sector packed with innovative providers. According to the Syndicat professionnel de la distribution automatique (the French Automatic Vending Association), 1,200 companies share the market. Although food and drink companies still dominate, there is currently an expansion in the number of other types of item available (such as DVDs, swimming pool accessories, books and newspapers). The success of automatic vending is easy to explain. It provides immediate satisfaction of needs and cravings wherever the customer may be. The taste enjoyment is on a par with foods from traditional outlets as they are often the same products. In the workplace, vending machines fill the requirement for refreshments which can be consumed quickly without the customer having to leave the premises.

A diversified market

It is useful to distinguish between the various players in the market. Some, such as the Autobar Group, supply hot and cold beverages and food; others specialise in espresso coffee (Saeco and Nespresso), branded beverages (Four Square) and water dispensers (Château d’eau). This offer caters for end-user requirements in the middle and top end of the product range. For instance, the Italian company Saeco and the Swiss company Nespresso are present everywhere in many countries: the home, the workplace, hotels and restaurants, and appeal to a demanding clientele both in terms of product and service (gourmet coffee, and designer machines and accessories). Businesses have a choice of installation options. Machines can be leased, in which case they are owned by the operator who provides installation, maintenance and restocking free of charge, and who pays himself via the price of the products consumed. Machines can also be rented or purchased. Whatever the option, it is in the supplier’s interest to be highly responsive, especially when machines need attention as they are obviously used much more intensively in the workplace where customers are less inclined to be patient. Another characteristic of the industry is that it can be affected by social and economic ups and downs. For example, vendors of sugary food and drinks have been faced with government pressure to fight obesity in young people since the machines are now banned from schools.

It is useful to distinguish between the various players in the market. Some, such as the Autobar Group, supply hot and cold beverages and food; others specialise in espresso coffee (Saeco and Nespresso), branded beverages (Four Square) and water dispensers (Château d’eau). This offer caters for end-user requirements in the middle and top end of the product range. For instance, the Italian company Saeco and the Swiss company Nespresso are present everywhere in many countries: the home, the workplace, hotels and restaurants, and appeal to a demanding clientele both in terms of product and service (gourmet coffee, and designer machines and accessories).Businesses have a choice of installation options. Machines can be leased, in which case they are owned by the operator who provides installation, maintenance and restocking free of charge, and who pays himself via the price of the products consumed. Machines can also be rented or purchased. Whatever the option, it is in the supplier’s interest to be highly responsive, especially when machines need attention as they are obviously used much more intensively in the workplace where customers are less inclined to be patient.Another characteristic of the industry is that it can be affected by social and economic ups and downs. For example, vendors of sugary food and drinks have been faced with government pressure to fight obesity in young people since the machines are now banned from schools.