VendingMarketWatch Blog

Slowly but surely, progress is being made against childhood obesity. The First Lady’s “Let’s Move!” campaign and the increased funding for school food programs are positive changes, and overall, the food industry has welcomed these initiatives and continues to play a supportive role.

Last week, “Jamie Oliver’s Food Revolution” debuted on ABC TV. The British celebrity chef has made it a mission to expose children to good food and improve their eating habits, and last week’s premiere TV show drew more than 7 million viewers. The show was engaging and uplifting, as the dynamic Oliver captivated youngsters with the wonders of nutrition. He also coerced administrators, foodservice directors and foodservice employees to go out of their way to assist him in his efforts.

The show captivated millions of viewers, and the blogosphere is buzzing with calls for change in school districts nationwide.

Jamie Oliver is the right man for this moment in our nation’s culinary history. For too long, health and nutrition education has been tedious, failing to engage anyone, most of all youngsters.

I hate to quote a dictator, but the late Vladimir Lenin’s maxim applies in this case: “If you want to make an omelet, you must be willing to break a few eggs.”

Oliver’s communicative style is engaging but also confrontational, and in his show, the foodservice workers came across as clueless about nutrition and freshness. So much that the School Nutrition Association felt compelled to issue a press release in their defense.

The dialogue in and of itself is positive.

The debate is necessary. The food industry, including the vending industry, has supported nutrition education.

And as the dialogue continues, the industry will come under more scrutiny and will face criticism.

The food industry must have thick skin as the nation struggles with the obesity problem.

It has been noted that childhood obesity threatens the well being of the nation’s work force, which all industries depend on for their own well being. It also creates higher health care costs, which businesses and individuals alike are forced to absorb.

The food industry has played a pioneering role in supporting nutrition education and calling for public funding for school food programs.

The National Automatic Merchandising Association has been ahead of the curve with its “Fit Pick” program.

Vending operators who want to know more about what’s ahead in food regulations and what education tools and products they can offer their customers should be sure to attend the OneShow in Chicago next month.

The ramifications of the new health care bill on the refreshment services industry probably won’t be clear for a few years. In the meantime, vending operators should brace themselves for the need to post calorie information at the point of sale.

At this writing, we are not sure how calorie information will have to be displayed. The National Automatic Merchandising Association (NAMA) is attentively following the rule making process.

Health Insurance Costs To Rise

The new health care bill will affect refreshment service operators in two major ways:

• It will further increase operators’ health insurance costs. This is what happened in Massachusetts, the only state to require everyone to have health insurance and provide free coverage for the poor.
• It will drive up health insurance costs for our customers and cause them to reduce payrolls.

Now that that’s out of the way, let’s talk about calorie posting.

Calorie Posting Mandate

The bill includes calorie posting rules for vending machines along with menu labeling for restaurants. The federal government hasn’t determined specific regulations, such as print fonts and the sizes to be used in calorie displays.

These regulations probably won’t be finalized for a few years.

A Consistent Set Of Rules Is A Good Thing

One positive aspect of the labeling requirement is that it will halt the growing patchwork of state and local regulations and replace it with a consistent national  standard. This will be easier on consumers and product manufacturers alike.

In the meantime, vending technology providers are introducing products that will enable operators to provide nutrition information at the point of sale.

Ned Monroe, NAMA’s senior vice president of government affairs, has stated that digital displays on machines that allow a consumer to view nutrition information will exempt the operator from calorie posting requirements. Hence, the new video screens will be a way to address the requirement.

At last year’s national NAMA expo, Kraft Vending & OCS and Crane Co. displayed the “diji touch” machine that provides nutrition data in addition to other information.

Vendors Exchange International Inc. showed a retrofit screen that can update nutrition data with a standard SD card.

Since then, other products have been developed. More will be shown at next month’s OneShow in Chicago.

Operators who have been on the fence about technology have a new reason to get up to speed about these new and exciting products.

The nation’s economy continues to struggle. Many businesses are finding it hard to borrow money from banks that would enable them to begin hiring people again. Consumers remain cautious about spending.
But tax fever continues to run high among career tax advocates, and soda taxes is their latest bandwagon. These advocates are not concerned about placing new burdens on consumers and businesses at a time when they can least afford them. To tax advocates, there’s no such thing as a bad tax.
The fact that tax advocates are ramping up their calls for more food and beverage taxes demonstrates how out of touch these individuals are with the concerns of most people.
One of the most extreme examples I came across was a guest editorial published last week by the San Jose Mercury News in San Jose, Calif. from Harold Goldstein, executive director of the Davis-based California Center for Public Health Advocacy. Goldstein supports a state bill to levy a penny tax on every teaspoon of added sugar or other caloric sweeteners in commercial beverages to fund childhood obesity prevention and other children’s health programs.
Goldstein claims new research supports the rationale of the traditional “Twinkie tax,” which holds that taxing certain products will encourage healthier habits. This is a discussion unto itself. The nation’s biggest concern, however, is the economy, and the impact of taxes on jobs is less debatable than the role taxes play on consumer behavior. And nowhere is this evidenced more dramatically than in the state where Goldstein’s organization is based: California.
With unemployment above 12 percent, California has one of the worst economies in the nation. The governor declared a fiscal emergency in January that includes possible reductions in services and pay cuts for state workers.
Tax advocates like Goldstein either don’t make any connection between unemployment and taxes, or they don’t care about the economic consequences that taxes create. California’s taxes have driven businesses out of the state, eroding tax revenues paid by businesses and their employees.
Fixing the nation’s economy should be the top priority of our nation’s policymakers. Higher taxes will not help fix the economy.
If you’re interested in learning more about what you as an individual can do to fight food and beverage taxes, go to http://www.nofoodtaxes.com/
 

…AND ANOTHER 21% SAY “MAYBE, SO THEY ARE NETWORKING” (CHECKED OUT LINKEDIN LATELY?)
By Dave McCaffrey

In late 2009, WorldatWork reported a Right Management survey of more than 904 workers in North America asked: Do you plan to pursue new job opportunities as the economy improves in 2010? The answers are startling:
60%—Yes, I intend to leave: 21%—Maybe, I’m networking: 6%—Not likely, but I’ve updated my resume: 13% — No, I will stay.

Douglas J. Matthews, president and COO at Right Management. “Employees are clearly expressing their pent up frustration with how they have been treated through the downturn. While employers may have taken the necessary steps to streamline operations to remain viable, it appears many employees may have felt neglected in the process. The result is a disengaged and disgruntled workforce.”

Matthews said that the best workers are mobile in any economy. “We know that people are attracted by career development opportunities, attaining work-life balance and working for an innovative company culture. If management doesn’t provide employees with these opportunities, then workers are going to take their knowledge and skills elsewhere. Talented staff can change jobs because they can and want to, not because they have to.”

So….which of your team will get happy feet and head out the door the first chance they get?

If you do not have an idea of who is engaged and who is NOT engaged at your company, might be a good time to put some time, talent and treasure against the potential issue.

There are many ways to measure engagement; if you would like to discuss, let me know.

Happy Daze to all!

Mac

*WorldatWork; The Total Rewards Association, November 2009

Politicians are famous for speaking out of “both sides of their mouth,” but the U.S. Mint and Treasury? That’s a hard pill to swallow.
During the President’s inauguration, the New England Mint, a private mint, took official  quarters and layered them with images of Barack Obama. The New England Mint then advertised these coins for sale as limited edition items.
A recent NBC TV news story reports that these Obama quarters are still being used by merchants and banks in New York City, despite the fact that the U.S. Mint does not approve them. To view the recent TV report, go to:
http://www.nbcnewyork.com/news/local-beat/Obama-Quarters-Loose-Change-85821077.html
After reading this story on the Internet, I sought clarification from the U.S. Mint about the use of these quarters.
Mike White, a spokesman for the U.S. Mint, told me the Mint doesn’t encourage or even approve of the Obama coin, but it’s not illegal. Coins have been colorized for years for promotional purposes.
Coins have been altered for various purposes, he said, and as long as it’s not represented as anything but an altered coin, it’s not illegal.
After investigating the use of colorized quarters further, I got even more confused.
A few years ago, 20th Century Fox promoted the movie, “Fantastic Four: Rise of the Silver Surfer,” by placing a printed image of the “Silver Surfer” character, along with the movie’s Web address, on 40,000 California state commemorative quarters, and releasing these coins into circulation.
The U.S. Mint objected to this use of the California quarter for promotional purposes.
Spokesman White said the 20th Century Fox coin was an advertisement. He said the Obama coin is not an advertisement “in the same way” as the 20th Century Fox quarter. The movie coin was different because it is designed to sell “a specific product,” White said.
Before you try to figure out why the Mint objected more to what 20th Century Fox did than what the New England Mint did with the Obama quarter, keep in mind that the Mint did nothing more about the 20th Century Fox promotion than make a statement about it.
White noted that the Mint has no enforcement powers; taking action against illegal currency is up to either the Justice Department or the Secret Service.
Could it be that the government agencies simply don’t want to bother with regulating coin currency issues?

Who killed Juan Valdez? Las Vegas police have a suspect, according to the news media.
Whoops! That’s the wrong Juan Valdez.

The Juan Valdez that VendingMarketWatch is interested in was never party to a street drug deal like the Juan killed Sunday in Las Vegas. We’re concerned about the guy with the mule whose image stands for 100 percent Colombian coffee, the one-time gold coffee standard.

Where are you, Senor Valdez? You and your mule got lost in the mountains while Starbucks, Peet’s, Caribou, Green Mountain, Seattle’s Best Coffee, McDonald’s, Dunkin’ Donuts, Folgers, Millstone, Maxwell House, and others changed America’s relationship with coffee. One hundred percent Colombian coffee is no longer the mark of excellence it was!

Dow Jones News recently reported that the money-losing Juan Valdez chain of Colombian coffee shops closed its Times Square branch in New York City on Feb. 28. To understand how out of touch the iconic Juan Valdez has become with the consumer, a spokesman for Colombia’s National Federation of Coffee Growers, which owns the Juan Valdez brand, said the closure was due to changing consumption patterns because of the ailing economy, and consumers buying more coffee from supermarkets to brew at home and fewer coffee drinks prepared in shops. Talk about being lost in the mountains!

Most of the big coffee chains have reported strong growth despite the sluggish economy. That’s because they, along with some of the leading convenience foodservice chains and coffee service operators, have delivered the value consumers are looking for. Coffee retailers are winning despite the recession because they are committed to quality and constantly reminding the consumer they are giving them what they want.

Juan Valdez offers a lesson in failed marketing and advertising. Brands mean everything in refreshment services. To sustain their strength, operators and manufacturers have to continue to support their brands with marketing and advertising. The responsibility rests with both parties; manufacturers must provide the creative messaging, and operators have to use the communication programs that marketing initiatives provide.

Otherwise, grab your mule, pack a lunch and give our best to Juan.