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.