Vending Market Watch News

» NAMA Will Move to One Show in 2010, Creating a Big 3-Day Event

The National Automatic Merchandising Association (NAMA) board of directors voted to combine the national and spring expos to create a fresh, 3-day springtime event that will deliver benefits for exhibitors and attendees alike, NAMA President and CEO Richard M. Geerdes, NCE, announced. Every aspect is being re-created to ensure attendees enjoy a completely innovative learning and networking experience.

In making the announcement, Geerdes said in a prepared statement, “This year the board of directors of NAMA decided that the time was right to refresh our event to a more powerful ‘must attend’ marketplace — one where everyone in our industry will converge at one time and place, allowing them to do everything at once. This combined show will become the place to go for all new solutions, ideas, education, products/services and connections to ensure that those attending will leave with a distinct competitive advantage.”

Advantages to creating one show include:

  • A single springtime event means companies can better focus marketing efforts and launch new products more effectively;
  • Exhibitors and attendees will enjoy cost savings;
  • All of the industry’s decision makers will be under one roof at one time;
  • One event is friendly to the environment with the elimination of an entire event carbon footprint.

The new and expanded show will premier April 28 to 30, 2010 in Chicago at McCormick Place North — which is a new environment — and will be followed in 2011 with the event scheduled for April 27 to 29. Future show locations will likely rotate between Las Vegas and Chicago.

As part of the decision, NAMA will build on the success of its Coffee Summit, launching an even stronger, harder-hitting, 2-day educational seminar event solely for the coffee community.

» NAMA Seeks People of the Year Nominations

Nominations are being accepted for the 2008 NAMA vending, coffee service and foodservice industry awards.
Nominations are welcome in one or all categories:

Golden Coin Operator of the Year — An individual and company who has exhibited the highest level of integrity, dedication and leadership in the vending industry.

Coffee Service Allied Member of the Year — An individual and company who best exemplifies support of the OCS industry through dedication, customer service and leadership.

Silver Coffee Service Operator of the Year — The operator who exhibits the highest level of integrity, dedication and leadership in the OCS industry.

Vending Allied Member of the Year Award — The individual and company that best exemplifies support of the vending industry through their dedication, customer service, and leadership.

Industry Person of the Year — An individual who has consistently exemplified the highest standards of professional excellence throughout his or her career in vending, OCS or foodservice management and who has been an inspiration to others.

The selection committee will consider e-mail nominations only. They must be received by Aug. 29. For information, visit www.vending.org.

» FDA Warns Consumers Against Raw Jalapenos in Salmonella Outbreak

Officials investigating a salmonella outbreak have isolated the bacteria in a jalapeño pepper from a small distribution facility in McAllen, Texas, and warned consumers nationwide to avoid eating raw jalapeños or products that contain them until more is known, according to news reports.

The Food and Drug Administration ended its warning against eating certain kinds of raw tomatoes, even though it had yet to pinpoint the source of the nation’s largest food-borne outbreak of illness in the last decade.

The National Restaurant Association claims the outbreak has cost the food industry at least $100 million.

A growers association called for Congress to investigate the Food and Drug Administration.

» Pierre Foods Files for Bankruptcy Protection

Pierre Foods, Inc. filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware to restructure its debt. The company intends to work with all of its constituencies to reach mutually acceptable resolutions and to exit bankruptcy as expeditiously as possible. Pierre Foods’ operations are expected to continue as normal throughout the bankruptcy process while the company executes on its reorganization plans.

“As a result of rising raw material prices experienced throughout our industry, it is necessary for Pierre Foods to create a capital structure more appropriate for both our operations and the current marketplace,” said Norbert Woodhams, chief executive officer of Pierre Foods, in a prepared statement.

» Eagle Rock Enterprises Inc. Acquires National Blind Enterprises Co-op

Eagle Rock Enterprises Inc., a vending supplier to the blind based in Bordertown, N.J., acquired National Blind Enterprises Co-op. Eagle Rock will provide the blind merchants and vendors with food and vending services, including cafeteria and vending supplies throughout the U.S. The Randolph Shepard Vending Facility Program reported $650 million of Income for 2007. Eagle Rock Enterprises will increase the sales and profits for the visually impaired business person through its national buying power. In the past, the buying has been done locally and regionally.

» Keurig Inc. Brewer Wins Design Award

Keurig, Inc., a subsidiary of Green Mountain Coffee Roasters, Inc., announced that its B3000 commercial single-cup brewer received a Silver Excellence in Design Award from Appliance DESIGN magazine.

Keurig’s B3000 brewer was recognized in the commercial/vending appliances category of Appliance DESIGN’s 21st annual excellence in design competition. An independent panel of industrial design experts evaluated entries based on aesthetics, human factors, innovation, and technical merits.

» Coca-Cola Co. Freezes Hiring in North America

Coca-Cola Co. has imposed a hiring freeze for most of its North American business unit, according to Beverage Digest, a beverage industry newsletter. Glaceau, Fuze, Odwalla and Coke North America’s Canadian unit are not part of the hiring freeze.

» Innova Pure Water Inc. Joins Seychelle Water on Filtration Systems

Seychelle Water Filtration Products, a leader in the development, manufacture and sale of proprietary water filtration systems for portable water filtration bottles, has entered into a joint venture agreement with Innova Pure Water, Inc. to work together to expand their sales and marketing efforts in the growing worldwide filtered water market.

» MEI Offers Vendors Easy “No Landfill” Recycling Process for Validators

MEI has teamed with electronic recycling companies Intercon Solutions and Scientific Recycling Inc. (SRI) to offer a “no landfill” recycling process for electronic vending products. MEI recently uncovered the need for this process when the company received a large number of outdated bill validators from vending and amusement customers
who were taking advantage of MEI’s “New $5 trade-in Program.” The program was recently extended to Sept. 15 due to overwhelming response.

When Intercon and SRI receive units for recycling, they disassemble the products and return the components to the market instead of disposing them as waste to be buried in landfills. Using this process, operators can now be sure that the units are disposed of in an environmentally responsible way. To date, MEI has recycled thousands of units, and its goal is to keep that number growing.

To kick off the product recycling program, MEI is managing the product logistics of the pick-up and transport, and paying the expenses for the bill validators being recycled through the trade-in program. MEI encourages all customers to utilize this or a similar recycling program as they upgrade their vending machines and other electronic products to help decrease unnecessary landfill waste.

» Copper Moon Coffee Buys Coffee Etc. from Crystal Food Services

Indianapolis, Ind. specialty coffee roaster Copper Moon Coffee LLC acquired Coffee, Etc., a coffee service provider owned by Crystal Food Services, a division of Marsh Supermarkets, based in Indianapolis, Ind. Coffee, Etc. will be renamed Copper Moon Refreshment Services and will enable Copper Moon to provide superior office coffee service to the greater Indianapolis market.

Doug Bachman, vice president and general manager of Copper Moon, will oversee the company’s refreshment services division.

Copper Moon will operate its new office coffee service division from its headquarters and 50,000-square-foot roasting plant on the east side of Indianapolis. The terms of the deal include a customer base of hundreds of central Indiana businesses and convenience store chains. The company will continue to offer professional-grade equipment, installation and maintenance as well as a wide variety of premium coffees, cappuccinos, teas, water, flavored syrups and allied products.

» Aramark Acquires Gold Cup Coffee Service Inc.

Aramark Refreshment Services has acquired Gold Cup Coffee Service, Inc., a Tampa, Fla.-based provider of office coffee service throughout Florida, metro-Atlanta in Georgia and in North and South Carolina, for an undisclosed sum.

The acquisition was completed June 30, 2008 and Aramark will continue to operate the business under the Gold Cup Coffee Service name.

Founded in 1971, Gold Cup Coffee provides office coffee service that includes brand-name coffee, tea, hot chocolate, soups, and allied products. Gold Cup Coffee has a customer base of 6,500 serviced by more than 40 delivery routes. All customers and Gold Cup Coffee’s 100 employees are being integrated into Aramark’s operations.

» Sodexo Joins Energy Management Firm to Provide New Services

Sodexo, a provider of food and facilities management services, and VIP Energy Services, an energy management consulting firm, have announced an exclusive arrangement aimed at providing energy management services to current and future clients.

» South Carolina Vendors Raise Charity Funds, Set 2009 Winter Conference

The South Carolina Vending Association (SCVA) raised $2,809 during their annual winter training conference to support their three South Carolina charities, Camp Wonder Hands, Columbia; McLeod’s Children’s Hospital, Florence; and Shriner’s Children’s Hospital, Greenville. The proceeds were split equally among the three charities.
The 21st annual SCVA winter training conference will be held in Charleston, Jan. 22 to 25, 2009. SCVA will again host a silent auction to raise money for their South Carolina charities. For information, contact SCVA at: P.O. Box 181, Davidson, NC 28036; Phone: 704-896-296; Fax: 704-896-9533.

» Two More Vendors Join SPIO Media Network

Two vending companies recently joined the SPIO Media Network: Sterling Services, based in Canton, Mich. and Advantage Vending & Distribution, based in Ferndale, Wash. SPIO is a direct-to-consumer marketing company which uses vending machines to distribute promotional offers or marketing messages to targeted audiences.
SPIO is expanding in markets such as Phoenix, Ariz., Chicago, Ill., Detroit, Mich., New York, N.Y., Dallas, Texas, Houston, Texas and other markets and is excited to add the Detroit and Seattle markets to the network.

» Nestle Seeks to Expand Anderson, Ind. Bottling Plant

Nestle will seek permission for an expansion that could add 140 jobs at its Anderson, Ind. bottling plant. Nestle said the request is a pre-emptive move so that when the company is ready for the expansion, so it does not take as long to begin work.

The city reported that the company plans for the project to produce a new beverage.

Nestle broke ground on the $359 million plant in 2006 to make and distribute Nesquik and Coffee-Mate products.

» Coca-Cola Enterprises to Raise Soda Prices After Labor Day

Coca-Cola Enterprises, Inc., said it will raise soda prices after Labor Day because of higher commodity costs and declining U.S. soda sales, according to news reports.

» APV Enterprises sues Sodexo Vending

APV Enterprises Inc., based in Parsippany, N.J., sued Sodexo Vending Services LLC, a vending management company, for breach of contract. In response, Sodexo denied the claims and charged that APV Enterprises failed to adhere to the contract.

APV claims it paid Sodexo $19,000 in 2005 to provide vending to Sodexo managed accounts only to find that some accounts were in precarious condition and some not actually under contract to Sodexo. It claims some accounts were lost or transferred to other vendors prior to the initial contract. APV asked the court to order Sodexo from removing further machines, inform APV the whereabouts of removed machines, and provide unspecified compensatory and punitive damages.

Sodexo claims APV did not properly maintain equipment, failed to submit required sales and commission reports, and did not follow a court order to remove its machines by May 6, 2008.

APV is represented by Christopher Luongo and Sodexo is represented by Gerald Hughes.

People In The News

» Industry Veterans Form Multi-Disciplinary Consultancy

Four vending industry professionals recently joined forces to launch a business consultancy for the vending and food service disciplines: Royal Sales & Consulting, based in Elgin, Ill. Key players include Ron Lyle, a 28-year veteran industry consultant; Jim Covington, a 30-year veteran in contract management services; Don Sikich, a 35-year vending service veteran; and Walter Bucki, a 36-year professional who spent more than 20 years in regional management with two of the nation’s largest foodservice/vending companies. For information, call 847-809-0104 or visit: www.royalsalesinc.com.

» Diedrich Coffee Inc. Tabs Hansen’s Beverage Co.’s James Harris as Vice President of Sales

Diedrich Coffee, Inc. announced that James L. Harris has joined the company as vice president of sales. Harris will be based in Irvine, Calif. and will manage the company’s sales team throughout the U.S. and Canada.

Harris was most recently with Hansen’s Beverage Co. as the vice president of international sales for the Monster Energy Drink brand. Previously, he served as the senior vice president of sales for the Western Region with Fiji Water and held various positions with Haagen-Dazs Ice Cream and the Pepsi-Cola Bottling Group.

» Seaga Manufacturing, Inc. Promotes Prakash Kopparapu To Director Of Engineering, Research And Development

Seaga Manufacturing, Inc., promoted Prakash Kopparapu to director of engineering, research and development for its worldwide operations.

Kopparapu has been with Seaga since February of 2006 and was previously with Dixie Narco, Inc. as a project engineer. He has extensive experience in the vending industry in addition to a master’s degree in engineering from Tennessee Tech University. In his new role, he will provide better communication between Seaga’s U.S. and India operations to facilitate sharing of knowledge, standards and practices between the two facilities.

» Hershey Co. Tabs Johnson & Johnson’s Hall-Lorello As Vice President, Global Innovation

The Hershey Co. named Diane Hall-Lorello as vice president, global portfolio innovation. She will report to Michele Buck, senior vice president, global chief marketing officer, The Hershey Co.
Lorello joins Hershey from Johnson & Johnson, where she was global group product director for the Listerine brand and held additional responsibility for pipeline innovation across the Pfizer consumer health care group.

» Specialty Coffee Association of America Names Ric Rhinehart Executive Director

The Specialty Coffee Association of America named Ric Rhinehart executive director. He has served as interim executive director since September 2007 and was a board officer prior to the interim position.

» Sandenvendo America Inc. Promotes Mike Weisser to Business Development Manager

SandenVendo America, Inc. has promoted Mike Weisser to business development manager to focus on the continued growth and diversification of SandenVendo’s product line and customer base. He has been with SandenVendo for 14 years, most recently serving as the regional sales manager for the Midwest.

» Former Cory Coffee Corp. President Sol Shulman Dies

Sol Shulman, a former president of the Cory Coffee Corp., recently passed away. He resided in Coconut Creek, Fla.

Norman Schlegel, a vice president and general manager at Cory Corp. and now retired and living in Chicago, told VendingMarketWatch Shulman was president of the Autopoint division of Cory Corp. before Cory Corp. was acquired by Hershey Chocolate Co.

Autopoint was a mechanical pencil manufacturer.

After Hershey Chocolate Co. acquired Cory Corp., Shulman became president of the Cory Coffee division, Schlegel said. Cory Coffee Co. was eventually acquired by ARA Services, now known as Aramark Corp.

» Hall of Fame Beverages Tabs Reyes for the Hispanic Market

Hall of Fame Beverages, Inc., which recently signed a distribution agreement with AVT Inc. to sell its beverages in AVT’s machines, has named Harold E. Reyes vice president of business development for the Hispanic market. He will direct and develop distribution, marketing, and advertising campaigns targeting the Hispanic market.

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