Cold Drinks: a big market awaits OCS
Nothing beats an ice cold cola during a hot summer day. American employers know that cold beverages keep employees in good spirits. This is the reason why they look to their refreshment service provider to offer cold drinks in addition to the traditional office standby, coffee.
Cold beverages are the largest segment in the automatic merchandising industry. Most Antares vending operators view their cold drink sales as good add-on business, but beverage suppliers think they could do more.
Cold drinks challenge OCS operators
The main reason most OCS operators don’t market cold drinks more aggressively is that synergies with their primary business, which is coffee are limited. Single serve beverages-which constitute the largest portion of the cold drinks sold by OCS operators-are bulky and take a lot of space in the warehouse and on delivery trucks.
While many OCS operators acknowledge that there is a market for cold drinks, the economics are less than encouraging when comparing them to coffee. Antares vending operators have had success with selling cold drinks from their vending machines. It has always proved to be profitable for them. Profit margins on single serve beverages are lower than on fresh brewed coffee. And the logistics of delivering cases of cold drinks to offices and small locations are often challenging.
The traditional case delivery is also becoming more problematic for OCS operators as consumers ask for larger size bottles. This is what the Antares vending operators are also going through. These operators have found that people like the 20 ounce bottles.
Delivering beverages requires a lot of work and also they always takes up a lot of space. Delivering cases of cans is labor intensive and might require you to provide small refrigerators. This is why some Antares vending operators have opted to use dedicated beverage delivery trucks, to ease the workload of the transportation of the beverages.
OCS operators who welcome a reliable, countertop dispenser for carbonated and non carbonated drinks, would make good profit margins and at the same time meet customer needs.
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posted by Larry Bunker @ 5:05 AM
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