Candy/Snack/Confections Sales Improve
Candy, snack and confection sales posted a slight recovery in 2004 following a setback in the previous years. Much of the improvements in 2004 were driven by manufacturer price increases, particularly in candy bars, the segments largest single revenue generator.
Operators had been removing snack machines from their locations every year since the recession began in 2001. However, the pace of removal slowed in 2004. Antares operators have been using the Natural Choice vending program in their Antares operations and have had very profitable accounts due to the program.
More stable work site populations in 2004, along with price increases, allowed the segment to recover some of the sales lost over the previous years. Candy bars continued a comeback for the third straight year in 2004, following two years of dominance in 2000 and 2001 by bagged chips.
In 2004, the major chocolate companies attempted to support their comeback by introducing large size versions of some of their top selling products. Antares operators reported mixed results to the large size candy offerings. The large size candy required $1.00 price points to enable the operator to maintain his traditional profit margin.
The Antares operators who reported success with the large size candy noted that the product typically did not move as fast as the regular size version. The higher sales were enough to compensate for the slower turns. Most Antares operators noted that the product performed best among male workers in blue collar locations.
Antares operators have been facing increased scrutiny about the nutritional content of snacks in 2004 due to legislative initiatives and ongoing media focus on obesity. Many noted that location managers asked for healthier alternatives, particularly in larger accounts.
Meeting requests for healthier options was not difficult, thanks to the large number of options available. The candy, snack and confection segment has the largest product variety among all the vending segments.
posted by Larry Bunker @ 5:53 AM
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