LAS VEGAS -- VendEver Corp. said it has consummated its agreement with Feiloli Electronic Co. of Taiwan to move manufacturing of Cotton Candy Factory to the U.S. Feiloi is currently the exclusive manufacturer of the VendEver's vending machine, which began shipping to operators earlier this month. Read more.
PHOTO: VendEver's Brian Duke and Feiloli's Chiming Tsai shake on deal that grants VendEver permission to manufacture the Cotton Candy Factory in the U.S.
In a joint statement, Feiloli president Chiming Tsai and VendEver president Brian Duke said they had agreed to the arrangement so their companies can "cooperatively" deliver as many machines as possible to the North American market by the end of 2011. They are in talks with four factories serving the vending and amusement sectors to manufacture in the U.S., a move that is expected to increase production capacity.
"This is the first time that Feiloli has ventured into a cooperative manufacturing effort with any other manufacturer," Duke reported.
The agreement, Duke added, is a major step in providing a sufficient number of machines to meet "explosive" demand. Because Feiloli builds crane, novelty and amusement equipment for major suppliers around the world, he said, the factory is unable to devote its manufacturing capacity solely on the Cotton Candy Factory.
"By moving production to the U.S., Feiloli can continue to concentrate on building all their other products, and VendEver will be able to concentrate on making the best machine in the quantities needed for the North American market," said Duke.
VendEver has exclusive rights to the Cotton Candy Factory for North and Latin America, and sales to these regions are being handled from its Las Vegas headquarters. Feiloli will sell the line in Europe and Asia.
The Cotton Candy Factory prepares a serving of cotton candy on a stick in less than a minute. It is equipped with a self-cleaning mechanism that's activated after every 10 vends to scour the sides of the candy bowl.