EUROPEAN VENDING MARKET TRENDS

VENDEXPO MOSCOW 2012

Catherine Piana

Director General

• 2008 EVA Market Surveys and 2009 Update

– First Survey

– European summary +21 countries including Russia

– Market + Consumer

• 2010 – 2011: new EVA Update

– Publication in the Spring 2012

– Free for EVA Members!

EVA market intelligence

• Drivers and barriers

– Macro-economic

– Consumers

– Industry

• Some facts and figures about the market

• Some facts and figures about consumers

• Overall recommendations

My agenda today

• Drivers

– Snack culture, meal-time fragmentation

– Regulation on shop trading hours

– Openness to market development

– Longer working hours and rising demand

– Connectivity and technological advances

• Barriers

– Recession and uncertainty

– Trading restrictions

– Health movement in vending

– Regulation on the environment >< industry development

Drivers and Barriers – macro-economic

• Drivers

– Convenience

– Meal-time fragmentation

– Indulgence

– Energy boost

• Barriers

– Value for money

– Limited product choice

– Lack of trust in vending machines

– Quality

– Hygiene

– Visual appearance

Drivers and barriers – Consumer’s perspective

• Drivers

– Access to products 24/7

– Demand for a low cost to serve

– Create a better experience in the workplace

• Barriers

– Competition from other channels

– Limited product range and premium offering

– Limited knowledge of end consumer

– Lack of convenient payment systems.

Drivers and barriers – the Industry

• Strength of barriers is particularly strong in the area of consumers and the industry

• By using the opportunity that each of the barrier contains, vending in Europe can achieve significant growth in the long term

Conclusion barriers and drivers

Consumer Insights

• Main locations for vending consumption are

– Workplace - office floor: 25%

– Workplace – canteen: 14%

– Hospitals and clinics: 12%

– College & university campus: 9%

– Train and metro stations: 8%

– Retail outlet / shopping mall: 7%

Consumers insights and locations

• Eastern Europeans

– More engaged with the vending experience • More confident in the quality of vending

– Image and visual appearance are an important driver

– Convenient and easier payment options are crucial

– Ask for more information from vending products

Regional variations

• Put a food machine next to every drinks machines!

• « Tell a story » to the consumer

• Missed meal opportunity:

– 14% of Europeans don’t have breakfast every day!

– 76% of Europeans who miss breakfast eat a morning snack most days (European Breakfast Cereal Association)

• Converting non-users by:

– Placing more machines • +30% business opportunity

– Accept more payment options• +25% business opportunity

– Improved quality: +30% business opportunity

– Increase variety: + 51% business opportunity

Opportunities from consumer insights

• Turnover: €12 billion in 2009 (down from 13 in 2008)

• 3.77 million machines

– 1.2 million are freestanding

– 2 million are located in the workplace

• 10,000 operators

– 69% are small companies running less than 100 machines

– The top five operators cumulate 15% of the industry value

– In Russia, top five operators = 44% of market shares

• 85,500 people employed

The Vending Market

• Technology

– Vending can benefit from the high mobile phone penetration rate (>120% in UK, Italy and Germany)

– To change consumer perceptions of the vending channel

– Digital screens = consumer interaction

– New payment systems

– Anti-vandalism

– Telemetry

How to make barriers become opportunities?

• Vending has to move to the next level

• All vending activities are linked

– Operators and machine manufacturers:• improve maintenance and respond to consumers’ needs

– Telemetry and operators:• cooperate to collect consumer information

• Current thoughts in associations:

– How to promote vending to consumers?

– How to communicate positively to Authorities?

• The development of vending is only at the beginning...

Final message

Join our social media community

The Vending Group @VendingEurope

Thank you for your attentionQuestions are welcome!

Catherine PianaTel +32 475 54 32 98

cp@vending-europe.eu