Whole Grains Council: Ultra-Convenient Nutrition With Healthy Vending Machines

8/7/2019 Whole Grains Council: Ultra-Convenient Nutrition With Healthy Vending Machines

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THE WHOLE GRAIN INVASION:

VENDING MACHINES MAKE WHOLE GRAINS ULTRA-CONVENIENT

Sean Kelly, CEOH.U.M.A.N. Healthy Vending


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Your Top 3 Take-Aways

1. Its Not Vending Its Automated Retail (AR)Forget the Way You Think About Vending Machines

2.AR is Key to Increased Whole Grain ConsumptionMassive, Significantly Under-Utilized Opportunity

3. Demystified Channel Can No Longer Be IgnoredClear-Cut Strategies for Gaining Entry & Creating Success


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TRADITIONALVENDING

INDUSTRY SNAPSHOT(VENDING 1.0)


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State of the Industry (USA)

Too Large to Ignore

Revenue of $20B in 2009 Snacks/Foods/Dry Goods $5B+ (~25%)

4.8M Snack & Beverage Machines 1.3M Snack-Only, 190K Food-Only

Nutritional Snacks = 0.028% of Sales Large Growth Opportunity for Healthy Brands


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Sounds Good, But

We Have a Problem!


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TRADITIONALVENDING TROUBLES

YOYREVENUE DOWN 10%, PRE-TAXPROFITS


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Whats the Solution?

Healthy Vending(Vending 2.0)


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THE HEALTHYVENDING OPPORTUNITY

SHAKING-UP A STAGNANT INDUSTRY

2009 Nutritional SnackRevenues Up 16%

Expanded Customer Base

Higher Priced Items =More Profit Per Sale

And Most Importantly


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Sky-Rocketing Location Demand

Local, State & Federal Legislation Healthy, Hungry-Free Kids Act of 2010 ($4.5B) Michelle Obamas Lets Move Campaign Statewide Bans onJunk Food & Soda in Schools

Access to LocationsPreviously Off-Limits

Increased Awareness(JOs Food Revolution, EmployeePerformance)


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Fantastic, But

We Have Another Problem!


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So Whats the REAL Solution?

Healthy, Automated Retail(Vending 3.0)


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Healthy, Automated Retail

Vending 3.0 Defined

Finally Catches-Up Vending Industryto the 21st Century

Convenience (1.0), Health (2.0)& Innovation (3.0)

Allows for Success by Solving

Top 5 Healthy Vending Pitfalls


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Healthy Vending Pitfall #1

ProductCannibalization (SellingFerraris Nextto Buicks)

Mixed Message: Combining Unhealthy & Healthy

JunkFood = Less Expensive, More Recognizable Vending1.0 is Purely AboutImpulse-Based Buying

Unhealthy Items Typically HaveBetter Packaging

Unhealthy Items Fit Machine Image Match Machine Construction


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Automated Retail Solution #1

100% Healthy, No Exceptions

Clear Message ofHealth Promotion

People Will EatWhats inFrontofThem

#1Factorin Sell-Through ofHealthy Items & HV Success

Will Typically Leadto Maintenanceor Increasein Sales


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Lack ofEducationatPOS

Only Recognizable Products Sell

Conveyance ofHealth Benefits isAbsolutely Essential

Products Cantbe Picked-Up &Felt

Missing OpportunitytoInfluence CustomersPurchasing Decisions


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PC-Powered LCD Displays Educate ConsumeratPOS

23 HD Displays ProvideNutrition Info, Health Tips,

& Purchasing Advice

Remote Loading, Always Fresh

Products New to Channel

Can Succeed

ProductPromotions, Advertisements,Contests, SMS Messaging, & More


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Using Same Old Vending Machines

Jalopy Shell onaFerrari Engine

Consumer Psychology Mismatch Machine Shouts SugarFix &Guilty Pleasure

HabitFormed Over Decades

WholeFoods Feel & EnvironmentCompletely Absent


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Automated RetailerthatConveys Premium Image

Paradigm Shiftin Psychology

Shouts Im Different & Hey,Im the Cool Kidin Class Consumers ExpectDifferentItems Willingto Pay Morefor Experience

Wow-Factors Include: Infrared Sensing Elevator LED Lighting (Strobe Options) Enhanced Appearance: Inviting

Graphics, LCD Display Touch Screen Technology (More Interactive)


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Lagging Technology, StagnantInnovation

Cashless Readers = Necessity Only 2.3% ofMachines Upgradedin 09

Remote Monitoring, AdvancedReportinga Rarity

Still Using CoilsReally? Lack ofVersatility Limited Capacity


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21st

Century Technology

Cashless Readers Allow for CCs,RFIDs, ID Cards & More

SMS TextAlerts on Low Inventory,Machine Down, Other Events

No More Coils: Conveyor Belts VendJustAboutAnything Higher Capacity = Less Service


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Many Operators DontCare

Plop & Drop Service No Sampling Events Limited Customer Involvement

Would Rather SellJunk Its WhatThey Know Rebates = Majority ofProfits

Machines are Energy Hogs 1 Machine Can = Power Consumption

of US Household


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Passionate Operators Fighting Countrys Problems

10% ofProfits to Charities thatFightChildhood Obesity

New Model ofService I ReallyCare

Eco-Friendlier Machines 30-50% Energy Savings 10% MarketShare = 517M kWh &

$62M Saved/Yr, Enoughto Power 58K Homes


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The End Result:

Healthy Automated RetailSuccess


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Fancy That: It Works

Healthy Automated Retail Performancein Schools

EC Sodexo Schools: HighestCommissions Ever Commission Guarantees Upon Replacement Students Healthier, Budgets Stable

1 Machine Per 200 HS Students 50 Vends/DaySales of$1,500/Month $750+ Profits/Month


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Get Involved:

How To Gain Access &Achieve Healthy Vending

Success


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ACHIEVING HEALTHYVENDING SUCCESS #1

RECOGNIZE THE OPPORTUNITY INTERNALLY

MostCompanies Ignore Channel

Createa Plan & Go After It

Thereare NO Clear-CutWinnersin Healthy Snacks/Dry Goods

Next3-5 Years Are Essential


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RECOGNIZE THE OPPORTUNITY EXTERNALLY

CreateYour Own AutomatedRetail Brand (Its Easy)

Amys Kitchen, Stonyfield,

Del Monte,Fresh Direct Immediate Access, Maybe Most

Inexpensive Route

Strong Marketing/Branding Opp

Partner witha CompanythatHandles All LogisticsforYou (JustProvide Product)


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OTHER ESSENTIALS TO SUCCESSFUL MARKET ENTRY

Create PackagingthatPOPS Individual, Single Serve Wrappers

Very Important

GetInvolvedin IntimateSampling & Education Events

Location Leverage IfYouHave Access to Good Account,Yourein LikeFlynn


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Remember


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Your Top 3 Take-Aways

1. Its NotVending Its Automated Retail (AR)Forgetthe Way You Think AboutVending Machines

2.AR is Keyto Increased Whole Grain ConsumptionMassive, Significantly Under-Utilized Opportunity

3. Demystified Channel Can No Longer Be IgnoredClear-CutStrategies for Gaining Entry & Creating Success


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Lets Chat About How Automated RetailCan Amplify Your Business in 2011 &

Beyond!

Sean Kelly, CEO

H.U.M.A.N. Healthy Vending

www.healthyvending.com

Whole Grains Council: Ultra-Convenient Nutrition With Healthy Vending Machines

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