European Vending Association Vending in Europe Today 1 Vending in Europe Today: Opportunities and Challenges Catherine Piana EVA Director-General.

Vending in Europe Today

1

Vending in Europe Today:

Opportunities and Challenges

Catherine PianaEVA Director-General


2

An introduction to the WVA


3

Some facts and figures

3.7 Million machines on Location

Turnover: 20-25 Billion € (estimate)

10,000 operating companies Mostly SMEs, family business


4

Some facts and figures (2004 data used)

76.080

81.500

88.000

200.000

470.800

477.000

562.000

593.000

613.650

0 100.000 200.000 300.000 400.000 500.000 600.000 700.000

Austria

Switzerland

Sweden

Netherlands

Spain

Germany

UK

France

Italy

Machine Park: Leading Countries


5


Japan

USA

Poland

NL

Penetration rate: Persons per machine

82

5457

48

45


6

38

35

51

USA

Japan

NL

Urban population: persons per machine



7


Urban penetration: persons per machine

152

95

86

86

80

70

62

58

51

0 20 40 60 80 100 120 140 160

Germany

UK

Italy

Sweden

France

Spain

Switzerland

Austria

Netherlands


8

Some facts and figuresSales of Vending Machines

293.255

336.649 344.620

260.000

270.000

280.000

290.000

300.000

310.000

320.000

330.000

340.000

350.000

2003 2004 2005

14,8% 2,4%

Qu

an

titi

es

Years


9

Some facts and figuresSales of Vending Machines

% on total sales

121,556

33,37135,48033,712

83,309

37,192

35.27%9.68%10.30%9.78%10.79%24.17%

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

ITA UK / Irl. FRA GER SPA Others

Qu

an

titi

es


10


External factors Macro-economic Business environment Consumer trends

Internal indications Growth, density

Challenges Legislative Cost-Efficiency Image / Positioning


11

External Factors

Macro-economic: real Gross Domestic Product Real GDP growth EU 27: +3.0% in 2006 Forecast EU 27: +2.9% in 2007

− More mature markets: around 2%− Newer markets up to 11% (Baltic countries)

Consequences Some markets are no longer growing (UK) Growth perspectives:

− Central and Eastern European Countries,− Baltic Countries, − South East Europe (Greece, Turkey)


12

External Factors

Changing workplaceLess manufacturing plantsDecreasing workforceWorkforce typology changing

−Blue collar / white collar−Women

Smaller unit

ConsequencesMore machinesSmaller machinesWider choice


13

External Factors

Consumer Trends On-the-go / Convenience Diet-conscious consumers Fair trade products Organic products Coffee and chocolate specialties (latte, macchiato, etc) Increasing acceptance of automated transactions

Consequences Need to be more aware of consumers’ requests Widen the range and change it regularly


14

The Vending Market

A maturing businessModerate growth since 2000Slow down around 2001-2002

−Introduction of the Euro−Recession

Growth mainly in new marketsConsolidation

ConsequencesFierce competition

Need to reduce costs Need to increase efficiency

Widening the service portfolio?


15

Machine-related CE-Mark Directives: Machine

safety, magnetic compatibility, low voltage, etc

Environmental Directives: waste of end-of-life machines, use of hazardous substances, eco-efficiency

Hygiene: materials in contact with foodstuffs (plastics)

Product-related Hygiene Traceability Labelling of ingredients,

allergens

Challenges: EU Legislation


16

Diet and nutrition Schools Next targets:

Workplace Hospitals, leisure centres

Vending must remain proactive

Environment Energy consumption and eco-

efficiency Sustainability Packaging and recycling targets

Vending is an easy target Diet and nutrition, the environment,

employment, and in general

Challenges: EU Legislation


17

Challenges: A more efficient Vending Business

Reduce costs: examplesTransportation costsLost sales / Stock outagesWasted time and energyShrinkage (cash that disappears)

Improve the potential of each machine Improve the inventory planning and

control Improve route planning Make appropriate use of IT and

support systems


18

Opportunity: What technology can do

DATA: real time monitoring EVA-DTS:

− Data reporting: sales, cash collection, individual products sold, price of products − Allows for remote control of machine

GIS: Geographical Information Systems− Using digital maps to identify location of company and competitors’

GSM/GPRS: − Allows to transport data from a distance


19

Opportunity: What technology can do

Payment systems Improved reliability and securityCoin validators have become cash management devices

Bank note validators much more reliable and less subject to jams

Cashless systems−Proprietary−Global banking systems, e.g. PayPass


20

Challenges: Image and Positioning

Last resort / distress channel Poor image of vending

−Low quality−Low reliability−Low design

Blamed (partly) for the obesity epidemic

Vending = junk food = fat kids

Challenged on environmental impact

Machines vs kettles Plastic cups vs china or paper cups Eco-efficiency (lights at night, etc)


21

Positioning Vending

Make vending all pervasiveSeek new locationsSeek new meal occasionsCreate a “vending experience”Vary range on offer “Healthier”, fair trade, organic Specialties (latte, macchiato) Non Food Provide information ScreensBetter public imageTurning vending into automated retail


22

Conclusions

Vending is mutating Business environment Vending is coming to maturity Operators more professional Consumers expect more Consumers acceptance of automation

Vending, automated retail, self- or assisted retail checkouts, kiosks, etc are convergingNew opportunities are arising for operators and suppliers alike

Widening the product and service portfolioWe should seize these opportunities and not view them as threats


23

Thank you!

European Vending Association aisbl44, rue van Eyck – 1000 BrusselsTel: +32 2 512 00 75Fax: + 32 2 502 23 42E-mail: [email protected]

Questions

European Vending Association Vending in Europe Today 1 Vending in Europe Today: Opportunities and Challenges Catherine Piana EVA Director-General.

Documents

vending market

figures slide

turkey slide

eastern european countries

family business slide

south east europe greece

life machines

baltic countries consequences