Vending Market News

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Cantaloupe Systems tabs Crane Streamware's Glenn Butler
Glenn Butler has joined Cantaloupe Systems as president and chief technology officer. Butler joins Cantaloupe after spending 15 years as the co-founder and chief technology officer at Crane Streamware. During his tenure at Streamware, he was the architect of the VendMAX and DeliveryMAX software systems, and worked to create the industry's first syndicated data service, InfoVEND.

David Larimer to succeed Roger Cohen as Filterfresh president
Roger Cohen, president of Filterfresh Coffee Service Inc., will retire at the close of the company's fiscal year in 2006. David C. Larimer joined the company in November 2005 as executive vice president and will transition to president. Cohen will continue to remain active with the company as a member of its board of directors.

Larimer brings 22 years of retail experience with a proven track record in sales, marketing, operations and franchise development.

Industry loses Ira Greenfield
Ira Greenfield, a veteran coffee service operator in Stamford, Conn., and his wife, Linda, recently passed away in a bus accident in Chile, where they were vacationing. The couple were among 12 Americans killed when a bus plunged 300 feet off of a mountain road.

Greenfield, 68, operated Best Brew Coffee Services in Stamford, Conn., before retiring from the coffee industry a few years ago. He was a board member of the Eastern Coffee Association and a member of the National Beverage Products Association.

Industry Loses Don Day
Don Day, a long-time vending industry veteran, recently passed away at the age of 78. He had retired from H.A. Franz & Co., the vending equipment distributor in Houston, Texas, where he oversaw vending sales. Day worked for Canteen, Aramark, Servomation and South Texas Vendors in Houston before joining H.A. Franz. He was president of both the Greater Houston Coffee and Vending Association and the Texas Merchandise Vending Association. He is survived by his wife, Pattie, and two children.

Validata tabs Gaston and canteen franchise group's David Clayton
Validata Computer & Research Corp. appointed David Clayton to oversee marketing and sales development. Most recently, Clayton was director of franchise development for Compass Group/Canteen and approximately 80 franchises. Validata also hired Mike Gaston to assume duties in marketing and communications.

Compass Group names new ceo Compass Group PLC named Richard Cousins, former CEO of buildings material company BPB PLC, as its new CEO. He will replace current CEO Michael Bailey on June 1.

Coffee Distributing Corp. tabs Filterfresh's Rodney Turner
Rodney Turner recently left his position as director of Filterfresh Coffee Service Inc.'s Eastern region, based in Lakewood, N.J., to become New Jersey sales manager for Garden City Park, N.Y.-based Coffee Distributing Corp., according to Robert Friedman, president of CDC. He will work from CDC's Clifton, N.J., office.

Mike Lawlor sells Apex Vending, rejoins USA Technologies
Michael Lawlor recently rejoined USA Technologies as vice president of national accounts after selling his vending business, Apex Vending Services in Malvern, Pa., near Philadelphia. He had been senior vice president of sales at USA Technologies until leaving in 2003 to go into the vending business.

Industry loses Dennis Blow
Dennis Blow, founder of Diablo Marketing in Danville, Calif., recently passed away. He was 71. He had been retired since 1999 when he sold the vend brokerage to Pacific Brokerage Co. in Yorba Linda, Calif. He lived in Pinehurst, N.C. He is survived by his wife, Edee O'Meara, three sons, a daughter, a brother, two sisters and several grandchildren.

Wrigley promotes Scozzafava
Ralph Scozzafava has assumed Wm. Wrigley Jr. Co.'s newly created position of vice president, worldwide commercial operations. He is responsible for sales and marketing for commercial business and will oversee the company's operations in 180 countries. Scozzafava joined Wrigley in 2001 as vice president, U.S. sales and customer marketing after serving in a variety of senior positions for Campbell Soup Co.

Industry loses John (Jack) Rielley
Industry veteran John (Jack) Rielley recently passed away at age 86. He retired from the National Automatic Merchandising Association in 1989, where he was director of sales and promotions. He previously worked for Canteen Corp. and Vend magazine. He is survived by a son, a daughter and five grandchildren.

Best Vendors signs in One Technology for remote data collection
Best Vendors, a vending management company based in Minneapolis, Minn., has selected inOne Technology, in Hunt Valley, Md., as exclusive supplier for remote data collection and other products for Best Vendors' national network. Best Vendors is owned by Compass Group.

With this contract, Best Vendors' operators are eligible for discounted pricing for purchases of inOne Technology's Easy 1 DEX retrofit kits and DEXmate vending machine controllers for equipment located in their accounts.

"We believe it is a win-win for our customers — our operators — and should provide a huge momentum boost to the industry, providing vital technology and very affordable prices," said Tony McDonald, president of Best Vendors, in a prepared statement.

"Our remote monitoring experience over the last four years has proven that we can save vending operators up to 50 percent in route operations," explained Gene Ostendorf, inOne Technology president. "For the first time in our industry," he added, "Best Vendors' operators will be able to purchase wireless remote monitoring products for an average of less than $100 per machine, assuming three or more machines per bank of equipment."

JCM Gold Ltd. opens office in Macau
JCM Gold (H.K.) Ltd. has opened a new sales office in Macau. The office will offer direct local sales and support, including product training, troubleshooting and maintenance.

The office will sell and service the entire line of JCM products, including the World Bill Acceptor (WBA®), Universal Bill Acceptor (UBA™), Trident™ Table Safe System and Intelligent Cash Box (ICB®).

MEI and Transaction Network Services form strategic relationship
Transaction Network Services (TNS), Inc., a provider of business-critical network and data communications services for transaction-oriented applications, announced a strategic relationship with MEI. Under the non-exclusive relationship, TNS and MEI will provide vending customers with the ability to purchase items via cash, coins, debit or credit cards supported by MEI's remote data port technology.

TNS is a provider of point-of-sale transaction processing networking and is Pepsi trademark-authorized for credit and debit card vending transactions. The MEI™ remote data port provides the added benefit of supporting the MEI Easitrax™ vending management system, which offers dynamic scheduling, machine status alerts, curbside polling that eliminates the "first walk" to the machine, and other functions enhancing control and efficiency.

Compasss Group buys High Food Services Ltd., Lancaster, Pa.
Compass Group, owner of Canteen Vending Services Inc., has acquired the Lancaster, Pa.-based High Food Services Ltd., which had about $16 million in vending, coffee service, catering and foodservice sales in 2005, for an undisclosed sum.

Mike Van Belle, senior vice president and chief financial officer at The High Companies, said his company decided that vending and foodservice did not fit into its long-term plans. The High Companies is a "mini conglomerate" that owns businesses in structural steel fabrication, precast concrete manufacturing, steel distribution, real estate management, construction and hotel management.

Van Belle said The High Companies recognized that the vending and foodservice industries have been consolidating in the last 10 years and that at $16 million in annual sales, High Food Services is not a large player in the industry. He said it made sense to sell the company to another player that could make the necessary investments to grow the business.

Van Belle said Compass Group agreed to retain most if not all of High Food services' 140 employees. He said the High Food Services name will be kept during a transition period. He further noted that Compass Group agreed to maintain its Lancaster, Pa., and Hanover Pa., operating facilities.

Aramark acquires Davenport, Ia., OCS firm
Aramark Refreshment Services has acquired the OCS business of Country Club Coffee based in Davenport, Ia., from owner Rick Gustas for an undisclosed sum.

Country Club Coffee provides OCS throughout the eastern Iowa and western Illinois region. The acquisition brings more than 1,000 businesses to the Aramark Refreshment Services' client base.

Country Club Coffee will continue to operate its restaurant foodservice/coffee shop and waffle businesses.

Aramark already has market centers in Cedar Rapids, Ia., and Moline, Ill., which serve the markets served by Country Club Coffee. Customers will be served from those market centers. About half of Country Club Coffee's 10 employees will join Aramark.

Whirlpool Corp. completes Maytag Corp. acquisition
Whirlpool Corp. has completed its acquisition of Maytag Corp. The combined enterprise will immediately begin the integration process. Maytag Corp. owns Dixie Narco Inc.

"The addition of the Maytag, Jenn-Air, Amana and other brands, and the people who support those brands, will allow Whirlpool to more fully deploy our innovation capability across a wide assortment of high-quality products and services," said Jeff M. Fettig, Whirlpool's chairman and CEO, in a prepared statement.

Under the terms of the agreement between the two companies, former stockholders of Maytag Corp. are entitled to receive $10.50 in cash and 0.1193 of a share of Whirlpool common stock for each share of Maytag common stock held or a total of approximately $848 million in cash and approximately 9.6 million shares of Whirlpool common stock.

The aggregate transaction value, including approximately $0.9 billion of Maytag debt, is $2.6 billion.

Supreme Foods buys assets of Dennis Foods, Chesapeake, Va.
A newly formed unit of Supreme Foods, Inc., Suffolk, Va., purchased certain assets of Dennis Foods Inc., Chesapeake, Va. The new group, Supreme Vending, LLC, recently began servicing customers of Dennis Foods, a division of Tidewater Coffee Distributors, Ltd.

Dennis Foods, established in 1979, is a privately owned snack and beverage vending company serving public schools throughout Virginia and the Carolinas. It specializes in providing nutritious products to public schools and currently has more than 2,000 vending machines in public schools.

Supreme Foods has been a regional, independent, family-owned foodservice distributor since 1973 and services more than 1,000 restaurants and institutions throughout Virginia and North Carolina.

Coca-Cola and CCE ask court to dismiss bottler lawsuit
The Coca-Cola Co. and Coca-Cola Enterprises (CCE) recently filed separate motions to dismiss a lawsuit attempting to block CCE from testing warehouse delivery of Powerade to a customer within its exclusive territory.

The Powerade contract clearly allows a bottler to choose warehouse delivery within its exclusive territory, the filing stated.

Ferrara Pan becomes principal distributor of Kraft chocolate brands
Ferrara Pan Candy Co. has become principal U.S. distributor of Kraft Food's four chocolate brands, according to candybusinessinsider.com. Toblerone, Terry's Chocolate Orange and Milka are established in the U.S. Côte D'Or, a brand in Belgium since 1883, is a newcomer to the U.S. market.

Humpty Dumpty Snack Foods Signs Pact With Old Dutch Foods
Humpty Dumpty Snack Foods Inc., a Canada-based marketer and distributor of snack food products, has entered into an agreement with Old Dutch Foods Ltd., based in St. Paul, Minn., and HD Snax Ltd., a wholly-owned subsidiary of Old Dutch, pursuant to which HD Snax has agreed to make an all-cash offer to acquire 100 percent of the company's common shares at $2.85 per share in a transaction valued at approximately $26.7 million.

The cash consideration per share represents a premium of approximately 5 percent over the company's closing share price on March 20, 2006 of $2.71.

Old Dutch products are sold to the vending trade.

Nestlé tabs Sabbers to broker Hot Pockets in New York City area
Nestlé Hand Held Food Group has appointed Sabbers & Associates, Emerson, N.J., as its new broker for Hot Pockets for the New York City metropolitan area.

Sabbers & Associates is a broker for the vending/coffee service/coffee roaster market. Its other lines include Nesquik, White Castle, Florida's Natural, Sweet ‘N Low, Kerry, Rockline, Wilbur Curtis, Pod Pack and Slim Fast.

Vend Marketing Institute members exit Better Vendors co-op
Vending company members of the Vend Marketing Institute, a group of vending companies that work together through joint marketing and purchasing programs, recently resigned from the Better Vendors Association (BVA), a vending purchasing cooperative. Chris Stave, executive director of the VMI, which is based in Louisville, Ky., said it was in the best interest of VMI members not to belong to a purchasing cooperative.

Brian Faley, executive director of BVA, said the board decided that membership in VMI presented a conflict of interest since VMI is viewed as a buying cooperative. Shortly after this determination was made, the VMI members resigned from BVA.

Stave said that the VMI's main purpose is marketing and promotions, but the group does have some cooperative purchasing agreements with suppliers. He said some of its members still belong to the Vendors Purchasing Council, another purchasing cooperative.

Illinois council creates Perricone scholarship
The Illinois Automatic Merchandising Council has created the Peter F. Perricone Scholarship Program to benefit employees, sons and daughters of employees of member companies. The program is administered by Scholarship Management Services, a department of Scholarship America, a national, nonprofit educational support and student aid service organization that seeks to involve and assist the private sector in expanding educational opportunities and encouraging educational achievement. IAMC members and staff are not involved in the scholarship selection process in any way.

Applicants must be employees or dependent children of full-time employees of member companies of IAMC. Employees must have a minimum of two years employment at the time of application deadline. Member companies must have been IAMC members for two years. Four awards of $500 each will be given.

Application requests will be honored between March 15 and May 1, 2006.

For information, contact the IAMC/Peter F. Perricone Scholarship Program, Scholarship Management Services, One Scholarship Way, P.O. Box 297, St. Peter, MN 56082; Phone: 507-931-1682; Fax: 507-931-9168.

Crane Streamware launches consulting services group
Crane Streamware, a Crane Co. company, has launched a consulting services group to help vending operators improve their operation with new processes, methodologies and business models. The consulting services group's offerings will cover a broad range of knowledge areas, with a focus on improving profitability through best practices implementation, improved route, office and warehouse efficiencies; cash and product controls; and enhanced merchandising.

Rich Horrigan, Streamware's director of customer relations, said the consulting services group was a natural outgrowth of the company's long-term experience with vending operations. Under the leadership of Peg Barcelo, Streamware's consulting group will help operators use VendMAX and DeliveryMAX.

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