The National Automatic Merchandising Association (NAMA) 2011 profit report found that among the companies participating in the report, pre-tax profit improved in 2010. Pre-tax profit improved from 1.5 percent in 2009 to 2.4 percent in 2010 for typical firms.
Results were based on data provided by 105 participants. The tables and graphs in the 50-page report present a comprehensive guide for analyzing profitability. For analysis, results are broken down by firm size. Results are analyzed for firms with less than $2 million in sales and for those with more than $2 million. Financial operating ratios are also broken out for “typical” firms and “high profit” firms.
The report found financial performance varied widely among participants. Of greatest consequence, the report noted the typical firm had a 7.7 percent pre-tax return on assets (profit before taxes expressed as a percentage of total assets) while high profit firms generated a return on assets of 31.3 percent. For more information, call NAMA at 312-346-0370.
NAMA intros industry growth strategy
The National Automatic Merchandising Association (NAMA) introduced an industry growth strategy to revitalize the image of vending and stimulate growth. The plan was announced at the annual meeting at the NAMA OneShow in Chicago’s McCormick Place. NAMA will engage consumers in an interactive dialogue about vending. The strategy will include four major initiatives.
- Vend.Love.Win. This will be a Facebook contest that will encourage Gen Y and other consumers to upload photos, videos and descriptions of their favorite machines, locations and products. Users will encourage others to “like” their entries, and those with the most “likes” will win prizes. The contest will communicate messages about value, convenience, variety, quality and reliability.
- The Gratitude Tour. A mobile marketing tour will take machines on the road to seven markets with high Generation Y populations with open air events that feature “dream machines.”
- Putting Vending Online. This initiative will reach Gen Y consumers where they are through a “vendialogue,” an interactive buzz built through social media, Websites, blogs and Web feeds.
- Vending Vanguard. Implied “endorsements” of third parties will target Gen Y though leaders, social/recreational groups, vending industry leaders and college campus organizations.
Unified Strategies Group, VMI formalize new relationship
Starting July 1, 2011, the 17 Vend Marketing Institute (VMI) members will join the Unified Strategies Group (USG) as full members. USG, in turn, has launched a new technology oriented subsidiary called USG Connectivity which will initially be comprised of the operating companies joining from VMI. The focus of USG Connectivity will be compliance-based programming shaped by spiral data and consumer needs, and technology best practices focusing on telemetry and “micro markets.” USG Connectivity will be open to USG members who have begun the transformation to telemetry deployment and are willing to make a long-term commitment to telemetry and cashless as business tools. USG Connectivity will take a place alongside the Dynamic Purchasing Group (DPG) and Unified Vending Management as instruments to drive profitability and growth to USG’s independent operator owners.
Saeco names Seaga as master distributor
Saeco, an international maker of coffee solutions, has appointed Seaga Manufacturing Inc., a Freeport, Ill.-based vending machine manufacturer and service provider, as its North America master distributor for the Saeco range of vending and professional coffee machines.
J.M. Smucker buys Rowland Coffee
The J. M. Smucker Co. has completed an acquisition of the coffee brands and business operations of Rowland Coffee Roasters, Inc., a privately-held company headquartered in Miami, Fla. Rowland Coffee’s products are primarily sold under the Hispanic Cafe Bustelo® and Cafe Pilon brands with distribution in retail and foodservice channels concentrated in the northeastern U.S. and southern Florida.
Canteen acquires Tampa Bay Vending
Canteen Vending Services Inc. acquired the business and assets of Tampa Bay Vending, Inc. and its affiliates, Corporate Services Group, Inc. and Corporate Distribution Services, Inc., based in Tampa, Fla. Tampa Bay Vending had $28.3 million in 2009 revenue and 185 employees, accoding to The Tampa Bay Business Journal.
Prestige acquires Harrison Vending
Prestige Services Inc., based in Clifton Park, N.Y., acquired Harrison Vending Inc., a 2-route vending operation based in Hoosick Falls, N.Y. from the founding Harrison family, according to Mike Esposito, vending division manager of Prestige Services. Esposito said the acquisition gives Prestige a new geographic market. Prestige is leasing 2,000 square feet of space from Harrison Vending’s building, which has been sold. Prestige retained three Harrison employees, including a route supervisor and two drivers. Prestige now has a total of nine vending routes, one OCS route, five attended sites and 10 manual feeding customers.
Professional Vending buys South Florida firm
Professional Vending Services of South Florida, based in Coconut Creek, Fla., acquired South Florida Vending LLC, a Canteen franchise based in Davie, Fla., from owners Dean Sharp and Darryl Ashmore for an undisclosed sum. Andy Kartiganer, owner of Professional Vending Services, said he will fold South Florida Vending’s five routes into his existing operation, which will have a total of nine routes. Kartiganer said with the acquisition, Professional Vending Services of South Florida becomes a Canteen franchise.
Cafection names Top Shelf Food and Saverino as brokers
Cafection Enterprises Inc., the Quebec, Canada-based manufacturer of Avalon coffee brewers, recently named two U.S. brokers, marking the company’s first broker agreements. Cafection named Top Shelf Food Sales, based in Londonderry, N.H., to cover New England, and Saverino & Associates, Carol Steam, Ill., to cover the Midwest. Mike Cochrane, director of sales for the U.S., manages the brokers. Cochrane said the company is considering brokers for other regions.
Five Star buys AAA Plus Vending & Coffee
Five Star Food Service Inc., based in Chattanooga, Tenn., recently acquired AAA Plus Vending & Coffee Service in Cookeville, Tenn. from owner Steve Allen for an undisclosed sum. The 3-route vending operation has been folded into Five Star Food Services’ existing operations.
Canteen buys Custom Vending Co. Inc.
Canteen Vending Services Inc. acquired the assets of Custom Vending Co. Inc. in Beltsville, Md. for an undisclosed sum, according to Dominic Finelli, vice president and a partner in Custom Vending Co. Custom Vending Co. was one of the largest independent vending companies in the Washington, D.C./Baltimore, Md. market.
Glacier Water files for public offering
Glacier Water Services, Inc., which owns and operates the largest network of filtered drinking water vending machines in the U.S. and Canada, has filed a registration statement for a proposed initial public offering of its common stock.
Nestle Waters to buy Sweet Leaf Tea
Nestle Waters North America Inc. signed an agreement to acquire the Sweet Leaf Tea Co. which includes the Sweet Leaf® and Tradewinds® beverage brands. Nestle Waters made an initial investment in Sweet Leaf in March 2009. This acquisition will expand the company’s beverage portfolio of bottled water to include high-quality iced teas, lemonades and juice drinks.
NAMA lists innovation awards for 2011
The National Automatic Merchandising Association (NAMA) announced its 2011 “iSpot” innovation awards. This marked the second year for the awards. The winners were recognized at the opening ceremonies during the NAMA OneShow at Chicago’s McCormick Place North. The winners are: Products: Main Street Café Protein Smoothies from Gehl Foods; Equipment Machinery – Other: ADA Compliance Retrofit Kit from Vendors Exchange International Inc.; Equipment Machinery – Technology: SmartShop from 365 Retail Markets; Equipment Machinery – Coffee/Water: Genesis Counter Top from MTN Products; Equipment Machinery – Machines: Alpine Elevator from U-Select-It Corp.
Pepsi to acquire Corvallis, Ore. bottler
Pepsi Beverages Co., the North American bottling division of PepsiCo Inc., has signed a letter of intent to acquire Pepsi-Cola of Corvallis, Ore., including its warehouse locations in Corvallis, Medford and Tillamook, according to The Democrat Herald in Albany, Ore.
AdvancePierre Foods buys Barber Foods
AdvancePierre Foods has acquired Barber Foods, a Portland, Me.-based, company which manufactures and distributes their signature stuffed chicken breasts as well as other chicken products.
J & J to acquire brands from ConAgra Foods
J & J Snack Foods Corp. will acquire several frozen food lines from ConAgra Foods for an undisclosed sum, including brands such as Patio, Hand Fulls, Holly Ridge Bakery, Villa Taliano, Top Picks and private label brands that sell dough-encased frozen goods.