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Vol. 51, No. 3, March 2011

Vending Features
ADP Taps Sodexo As Nationwide Food, Vending And OCS Provider
Emily Jed
Sodexo has expanded its relationship to provide onsite dining, vending and office refreshment services for the payroll giant's offices nationwide...

AVT Rolls Out Ironclad Work Glove Venders
Emily Jed
AVT Inc. has partnered with Ironclad Performance Wear to supply vending machines that allow workers to purchase task-specific apparel at the job...

Blue Bunny Ice Cream Producer Changes Name To Wells Enterprises
Tim Sanford
The name change of Wells' Dairy reflects a new direction for the leading maker of ice cream and frozen novelties...

Britten Plans Talk On Contracts At NAEP Confab In Florida On March 3
Tim Sanford
Veteran operator Tom Britten brings foodservice and vending contracts into perspective at National Association of Educational Procurement conference March 1-4 in Daytona Beach...

Broker Pioneer Luckower Dies
Tim Sanford
Herbert Luckower, founder and principal of Harrison, NY-based Luckower Co., died in late February...

Cadbury Boosts Kraft Sales, Hits Profit; Commodity Costs Dampen Outlook
Emily Jed
Kraft Foods Inc.'s sales jumped 30% during the fourth quarter, helped by its acquisition of Cadbury, but profits fell 24% due to costs related to...

Coca-Cola Acquires Honest Tea
Emily Jed
Coke completes a transaction that began three years ago when its Venturing and Emerging Brands unit purchased a minority stake in Honest Tea...

Coca-Cola Finishes 2010 On A High Note
Emily Jed
Coca-Cola Co.'s fourth-quarter net income more than tripled, boosted by the acquisition of its largest North American bottler and stronger sales...

Coinstar To Buy Back $50M In Stock
Emily Jed
The coin-counting and DVD-rental kiosk company said it will buy back $50 million of its common stock from Morgan Stanley...

Coinstar's Q4 Profit Rises, Q1 Estimates Downbeat
Emily Jed
Coinstar Inc. reported that profit tripled in the fourth quarter of 2010, in line with targets it lowered last month to account for disappointing sales from its Redbox DVD-rental kiosks...

DOE Issues Energy Consumption Testing Rules For Vending Machines
by Staff Reporter
The Department of Energy's rules related to testing of energy consumption by refrigerated beverage venders now include a provision for low-volume or built-to-order equipment...

Electric Vehicle Charging Stations Join Japan's Beverage Venders
Emily Jed
Japan's leading vending companies are set to deploy electrical vehicle charging stations alongside the beverage machines...

EVA Finalizes Program For 2-Day EurOps 2011 Conference In Portugal
Tim Sanford
The European Vending Association has published the details of the program for its upcoming EurOps conference, set for Estoril, Portugal, April 14-15...

EVA Widens AVEX Participation, Welcomes Astrosys As New Member
Tim Sanford
The European Vending Association has signed a reciprocal promotion agreement with the organizers of Britain's AVEX biennial convention and trade show…

Frito-Lay Tests 'Quieter' SunChips Bag
Emily Jed
PepsiCo's snack unit is testing a quieter version of a biodegradable bag to address consumer complaints that its initial attempt was too noisy...

FTC Recovers $3M From DVD Vending Biz-Op Scammers
Emily Jed
The federal agency said it has recovered more than $3 million that it will refund to investors who were duped in an alleged scam that promoted video rental machines…

G&J Marketing Becomes National Representative For Schwan's Line
Tim Sanford
G&J Marketing and Sales is now representing the Schwan Food Co.'s vendible convenience foods across the country...

GAO Study Reaffirms $1 Coin's Benefit, Note's Cost To Government
Tim Sanford
The Government Accountability Office's most recent analysis suggests that replacing the $1 bill with a $1 coin could save the government about $5.5 billion over 30 years...

Glenn Butler Forms CTO Services As Industry Technology Consultancy
Tim Sanford
The cofounder of Streamware Corp. and former chief technology officer of Crane Merchandising Systems has formed a new consultancy to aid technology-driven companies in the vending industry...

Hershey Profit Climbs 7%, Forecast Bright For 2011
Emily Jed
Hershey Co. said earnings rose 7% in the fourth quarter, boosted by brisk holiday sales in the U.S. and accelerated growth in emerging markets...

Hot-Beverage Vending And OCS Pioneer Thomas Nesser Dies At 80
Tim Sanford
Thomas A. Nesser, the founder of Sirness Services, and a strong believer in quality coffee, died on Feb. 26. He was 80...

Iowa Pilots Nutrition-Rating System For Vending Machines
Emily Jed
Iowa health officials are testing a color-coding system to help consumers identify "healthier" choices in vending machines...

JVMA Foresees Extensive Earthquake, Tsunami Damage To Vending
by Staff Reporter
As part of Japan's economic recovery effort, JVMA's Takashi Kurosaki has begun the task of assessing the disaster's impact on the vending industry...

Majority Of Vendors Plan To Add Cashless This Year, Survey Suggests
Tim Sanford
Apriva reports that a survey it conducted among 200 operator member companies of NAMA found some 57% of them planning to add or expand cashless payment capability in 2011...

Malloy's Budget Maintains Connecticut's Vending Tax Exemption
Emily Jed
Connecticut's vending operators breathed a collective sigh of relief on Feb. 16 when Gov. Dannel Malloy unveiled a two-year budget plan that maintains the industry's existing tax exemption...

Monroe, Mueller Find Rep. DeLauro Sympathetic To Label Concerns
Emily Jed
NAMA's government affairs VP and the Connecticut Vending Association's legislative director are hopeful federal calorie-disclosure rules due this month will take the industry's concerns into account after meeting with the bill's co-author...

NAMA Announces 2011 Industry Award Winners
Emily Jed
Dr. Michael Kasavana will take top honors at this year's vending industry awards presented by the National Automatic Merchandising Association...

NAMA Enlists Operators To Oppose Florida Bottled Water Tax
Emily Jed
Florida State Sen. Evelyn Lynn wants to levy a 6% tax on bottled water in containers of less than one gallon, including those sold through vending machines...

Next Generation Acquires Upstate NY Canteen Franchise
Emily Jed
Next Generation Vending and Food Service Inc. announced that it has acquired the assets of Canteen Co. of Utica-Rome...

Oklahoma Zoo Art Contest Beautifies Dr Pepper Machines
Emily Jed
Dr Pepper machines become works of art at Oklahoma Zoo...

PepsiCo Q4 Profit Falls 5%, Cost Pressures Lower 2011 Forecast
Emily Jed
PepsiCo said higher commodity costs led to a 5% drop in profit during the fourth quarter to $1.37 billion, or 85¢ a share...

Redbox To Enter Movie-Streaming Arena
DVD-rental kiosk giant says it's developing a subscription movie-streaming service that will compete head to head with Netflix...

S&J Vending's Sam Krinsky Dies At 80
Samuel Krinsky, an owner of S&J Vending Corp., a full-line vending and amusement operation, died on March 4...

Sanden Vendo Wins Patent For Auto-Adjusting Delivery Mechanism
by Staff Reporter
Sanden Vendo America Inc. has been awarded Patent 7,904,199 for a vending machine product retrieval and delivery system...

SeeCoast Manufacturing: Famed Maker Of Coin-Op Viewers Celebrates 50 Years In Business
Hank Schlesinger
The Fairhope, AL-based company has been bringing the world into sharp focus since it was founded in 1960. Today, SeeCoast coin-op telescopes and binoculars can be found in all 50 states and more than 80 countries...

Snyder's-Lance Converts To Independent Operator Delivery Network, Merger Costs Hit Q4 Profits
Emily Jed
Snyder's-Lance Inc. said it will convert its company-owned, direct-store delivery routes to an independent-operator structure over the next 12 to 18 months...

Taiwan Mandates Recycling Bins Near Vending Machines
by Staff Reporter
Beginning this month in Taiwan, all beverage venders in public places must have a recycling bin in close proximity...

Tri-State Council Warns Of Personal-Leave Initiative In Philadelphia
Tim Sanford
Goodman Vending's Tony Buckholz alerted NAMA about a proposed ordinance requiring employers in Philadelphia to provide minimum personal and sick leave days to all employees...

Vending Sales Specialists Form Premier Broker Partners To Cover U.S.
Tim Sanford
Nine leading vending/OCS brokerages have formed a nationwide sales organization aimed at strengthening local, regional and national representation...

VendTek Becomes Distributor For Crane's Automatic Products Line
Tim Sanford
Michigan distributor widens its equipment range with the addition of Automatic Products machines...


Massachusetts Sets School Nutrition Rules For Vending, A La Carte Lines
Emily Jed
The state's health regulators have proposed rules to exclude soft drinks, salty and high-calorie snacks, white bread sandwiches and other foods considered to be unhealthy in vending machines...

Nevada Assemblyman Drafts 'Junk Food' Bill
Emily Jed
A state lawmaker is drafting a bill that would levy an extra sales tax on "junk food" purchased in Nevada restaurants and convenience stores. He did not specify vending machines...

Sacramento Councilman Proposes Tax On Soda; Wants It Out Of Vending Machines
Emily Jed
Councilman Kevin McCarty is exploring a tax on soda sold in Sacramento, as part of a broader initiative to combat child obesity...

Washington Bill Would Nix 'Junk Food' From Venders In State Buildings
Emily Jed
State Rep. Laurie Jinkins has introduced a bill that mandates Washington agencies to improve nutrition of food sold to state employees and in state institutions...


Vending Machines Face Nutrition Restrictions In Nation's Capital
Emily Jed
District of Columbia council member introduces bill that would regulate the types of snacks offered in municipal and federal facilities in the nation's capital...

Music and Games Features
TouchTunes Unveils Virtuo Smart Jukebox
by Staff Reporter
TouchTunes unveiled its Virtuo, a first-of-its-kind system that breaks through the digital entertainment category with advanced music, technology and advertising capabilities...

Alabama Operators To Remove All Bingo Machines From State
Marcus Webb
Leading bingo game operators and manufacturers agree to remove thousands of machines from Alabama locations under an agreement with the state's new attorney general...

Alaska To Charge Pull-Tab Operator With Bribery
Marcus Webb
A pull-tab operator from Spenard, AK, has come under fire from Alaska Dept. of Revenue investigators who allege that he has solicited $10,000 kickbacks or bribes...

AMOA And Jukebox Providers Team Up For St. Baldrick's Fundraiser
Nick Montano
The operators association spearheads special jukebox fundraiser for St. Baldrick's Foundation. The program, which donates a penny a paid play, requires music operators to opt in and kicks off March 13 on AMI, Ecast and TouchTunes jukeboxes...

Amusement Expo Buyer Attendance Jumps 47%
Nick Montano
Attendance soars at Amusement Expo in Las Vegas. AMOA and AAMA honor industry leaders and products at second annual coin-op trade show...

Apple's Pix Place Photo Kiosk Contends For AMOA Innovator Award
Tim Sanford
The photobooth maker's new Pix Place networked photo kiosk has been chosen as a finalist from the nominees for AMOA's Innovator Award...

Ashdown Succeeds Freimuth As LAI Chief
Tim Sanford
Industry veteran Alan Freimuth announces his retirement as full-time chief executive of LAI Games. Marshall Ashdown takes helm on May 1...

Bob's Space Racers Employee Sabotaged Games, Police Say
Marcus Webb
A programmer for Bob's Space Racers faces possible felony charges for deliberately bugging 450 of the company's games with computer viruses...

California Animal-Rights Activists Target Lobster Zone Cranes
Marcus Webb
Lobster Zones remain in operation in two southern California restaurants, but have been removed from another local venue following public demonstrations against the seafood crane machine organized by Orange County People for Animals…

Cancer Claims Arachnid Owner John Martin
Marcus Webb
John R. Martin, owner and president of Arachnid Inc., and inventor of many technologies associated with electronic darts, music downloading and touchscreen games, died on Feb. 27...

Chuck E. Cheese's Q4 Profits Drop Nearly 50%, But Comps Rise
Marcus Webb
The children's entertainment arcade and pizza chain saw fourth-quarter profits for the period fall 48% from the same period a year ago...

Dave & Buster's Plans Stock Buyback; Q4 Sees Higher Comp Store Sales
Marcus Webb
The entertainment chain said its indirect parent holding company intends to offer 12.25% senior discount notes to generate $100 million. Separately, D&B's comparable store sales increased 1.2% in last quarter...

Ecast Makes Financial Contribution To AMOA-NY's Antipiracy Warchest
Nick Montano
Ecast Inc. is contributing an undisclosed sum to the Amusement and Music Owners Association of New York Inc.'s legal fund, which will be used to combat unlicensed jukeboxes and other sources of unauthorized music...

Four States Mull Online Poker Legalization
Marcus Webb
Bills to legalize online gambling have now been introduced in the legislatures of Iowa, California and Florida, and an online poker legalization bill has passed in New Jersey...

IAAPA Names Cleary President And Chief
Nick Montano
James "Chip" Cleary assumes top post at the International Association of Amusement Parks and Attractions on April 4...

IMA Planners Report Strong Turnout And Emphasis On Consolidation
Tim Sanford
Germany's 2011 IMA international trade fair for amusement and vending machines drew slightly larger attendance than last year’s show...

Iowa's Internet Gambling Moves Forward
Marcus Webb
Iowa's Senate Study Bill 1165 includes a section that legalizes Internet poker for state residents. The Senate is expected to vote on the measure soon...

Japan's AOU Show Previews New Videogames
Marcus Webb
February's All Nippon Amusement Machine Operators' Union Amusement Expo previews games expected to be introduced into the U.S. later this year...

Namco Restructures, Cuts Staff 10% On Weak Fiscal Results
Marcus Webb
Namco Bandai, looking at a $343 million net loss for the fiscal year ending March 31, said it would reduce its workforce by 630 jobs...

NC Gov Punts On Legalizing Poker Or Sweeps Videos
Marcus Webb
Bev Perdue submitted her 2011 budget proposal for North Carolina without asking lawmakers to legalize payoff video games with cash prizes, contrary to predictions...

NC Poker And Sweepstakes Operators Break Ties
Marcus Webb
The Entertainment Group of North Carolina has reportedly severed ties with spokesman and lobbyist Brad Crone of Campaign Connections...

Play Mechanix's Roy Yanase Dies
Nick Montano
Ryoichi (Roy) Yanase, lead animator for videogame studio Play Mechanix, died on Feb. 3. He was 39...

Redemption Plus Becomes Part Of BPAA SmartBuy
Tim Sanford
The Bowling Proprietors Association of America has added Redemption Plus to its member-based discount buying programming...

Sega Plans To Raise Profile In U.S. On Social Networks
Marcus Webb
Japan's leading coin-op videogame manufacturer is planning to get more aggressive about promotion on social networks to increase its profile in the United States…

Sega's Suzuki Wins Pioneer Award
Marcus Webb
The leader of the creative teams that developed arcade classics like Hang On, Out Run and Virtua Fighterwill receive the Pioneer Award at the 2011 Game Developers Choice Awards...

Smoking Wars Heat Up In 4 States; Private Clubs At Issue
Marcus Webb
South Dakota and Connecticut join Ohio and North Carolina in challenging the constitutionality of allowing smoking in private clubs...

Stern Introduces Rolling Stones Rock-History-Themed Pinball Game
Nick Montano
Now available from Stern Pinball Inc. is The Rolling Stones flipper game, designed to appeal to all pinball enthusiasts...

T&M's Michael Riquier Dies At 62
Nick Montano
Michael Riquier, the founder of MBR Industries and a partner in Connecticut's T&M Distributors, died on Feb. 7. He was 62...

Texas Lawmakers Mull Racetrack VLTs, Statewide Smoking Ban
Marcus Webb
State Sen. Juan "Chuy" Hinojosa said a video lottery system could raise $1B annually for Texas and introduced a bill to legalize video lottery games...

Tungol Acquires IT's Silent Partner Software Unit
Tim Sanford
Jimmy Tungol has acquired Incredible Technologies' Silent Partner division to form Silent Partner Software LLC, a new route management software firm...

VA Lawmakers Ban Sweeps Games; Gov. Expected To Sign
Marcus Webb
Virginia's General Assembly has passed a measure to ban sweepstakes videogames by near unanimous votes. If signed by Gov. Bob McDonnell as expected, the bill will become Virginia law on July 1...

Vegan Militants Assail California Lobster Zone Skill Game Locations
Tim Sanford
The California Lobster Zone reports that a vocal vegan group is targeting its skill crane game and its restaurant and sports bar customers with a barrage of emails, onsite protests and threats of fines or even prison under state law...

WSJ Gives Valentine's Salute To IT Founders
Marcus Webb
A story in the Feb. 14 edition of The Wall Street Journal about married couples who are business partners gives a strong mention to the founders of Incredible Technologies...

Bulk Vending
Operators And Exhibitors Hail 61st NBVA Show A Success
Hank Schlesinger
With nearly unanimous opinions, the National Bulk Vendors Association's 61st annual trade show and convention - and first collocated - was a rousing success...

Editorial: Vending
The Limits To Measurement
Tim Sanford
Longtime participants in industry educational events will have noticed that certain slogans or catchphrases (often miscalled "mantras") find favor at different times. Few are new; most summarize an important truth. For some reason, some of them rise to the top of the collective mind, remain there awhile, and then subside... by Tim Sanford

Editorial: Music and Games
How To Find New Opportunities
Marcus Webb
Leading industry members constantly wonder: Where is the "next big thing" coming from in the amusement and music industry? Where can we get new blood? How can we generate fresh thinking? And above all, where do great new ideas and opportunities come from? by Marcus Webb

The Fuel And The Fire Of Business Technology
Hank Schlesinger
My high school auto shop teacher's favorite expression was "fuel or fire?" He simply meant that 90% of the time when a car won't start, the problem could be traced to the fuel delivery or electrical systems. I can see a similar concept when it comes to technology in bulk vending... by Hank Schlesinger

Coffee Service News
Appeals Court Rules In Favor Of Starbucks In Kraft Dispute
Emily Jed
Starbucks Corp. moved closer to ending its distribution partnership with Kraft Foods Inc. after a U.S. Appeals Court upheld a lower court ruling against Kraft...

Autocrat Partners With Private Equity Firms To Fund Growth
Emily Jed
Family-owned Autocrat LLC has entered into a partnership with an investment group led by Trent Capital Partners and Argosy Private Equity...

Canteen Acquires Long Island's Coffee Distributing Corp.
Emily Jed
Compass Group's vending division has acquired a leading OCS operation serving the New York, New Jersey and Connecticut Tri-State area...

Dunkin' Donuts Inks Keurig K-Cup Deal
Emily Jed
Dunkin' Brands Inc. has signed a deal with Green Mountain Coffee Roasters to sell K-Cup portion packs of Dunkin' Donuts coffee at its stores starting this summer...

Green Mountain Q1 Sales Surge; Costs And Charges Affect Earnings
by Staff Reporter
Green Mountain Coffee Roasters Inc. reported fiscal first-quarter results on Feb. 2 that beat Wall Street's expectations. Its shares continue to rise...

Landshire Acquires Mom's Food Products
Emily Jed
Landshire Inc. has acquired a Ft. Worth, TX-based company also specializing in convenience sandwiches for the vending, c-stores and foodservice...

Liquid Coffee Inc. Makes Industry Debut, OCS Veteran Stu Kaner Spearheads Effort
Emily Jed
Liquid Coffee Inc. is rolling out its well-established line of shelf-stable coffee and tea concentrates to the OCS and vending industry. Coffee veteran Stuart Kaner has joined the company to lead the charge...

Mars Adds Alterra Coffee To Flavia Lineup
Emily Jed
Mars Drinks has added the Alterra Coffee brand to the line of filterpacks available for use in its single-cup Flavia machines...

NAMA Plans Coffee/Tea/Water Show For Las Vegas, Oct. 18-20
Tim Sanford
The National Automatic Merchandising Association has announced that its expanded office beverage exposition, Coffee Tea & Water 2011, will be held at Bally's Resort in October...

Sodexo Wins $926M Marine Corps Foodservice Bid
Emily Jed
Sodexo announced that it has won the bid for a single contract of up to eight years each to provide foodservice at 31 USMC garrison mess halls...

Starbucks And Green Mountain Ink Keurig Deal
Emily Jed
Starbucks coffee and Tazo tea will soon be available in K-Cups for use in the Keurig single-cup brewing system...

Starbucks Ramps Up Single-Cup Presence With In-Room Brewer Pact
Emily Jed
Starbucks Corp. said it will supply its ground coffee for use in a single-serve brewing system owned by Courtesy Products, a provider of in-room coffee service to hotels...

Cover Stories

Indulgent Shelf-Stable Milk Drinks Broaden Vend Mix
Emily Jed
Consumers across all demographics have developed a taste for the creamy satisfaction and rich flavors of contemporary milk-based drinks, and vending operators are better positioned than ever to represent the booming category in their cold beverage mixes...

Guest Columns
Cashless Payments Go Mainstream In Unattended POS Markets
by Michael Lawlor
Support and use for cashless transactions are moving rapidly into nontraditional vending and other unattended point of sale markets... by Michael Lawlor

Printed Form For Prospects Enhances Salesforce Effectiveness
by Len Rashkin
What information is critical to making the sale? This month I'll show OCS managers how to create a form that will instantly guide telemarketers and field personnel in collecting information... by Len Rashkin

Today's 3D Boom: Could It Transform Pay-For-Play Videogames?
by Kevin Williams
One of the oldest jokes in the entertainment industry speaks of "an overnight success, only 20 years in the making." It is frequently true of performers, and it is equally true of technology, that seemingly sudden breakthroughs are often preceded by years of misfires, frustrations and failures. This is certainly the case with 3D... by Kevin Williams

Tommy Gate Readies New Cantilever Van Lift, Expands Iowa Plant
Tim Sanford
Tommy Gate Co. is in the final stages of testing what it describes as the first American-made cantilever lift for panel vans. Woodbine Manufacturing Co. finishes the first phase of a factory expansion project...

Arkansas Council Plans Annual Meeting In Hot Springs, Mar. 31-Apr. 1
by Staff Reporter
The Clarion Resort on the Lake in Hot Springs will host this year's Arkansas Vending Council annual meeting and conference...

Betson Plans April 15-16 Vending-Amusement Expo In Verona, NY
Emily Jed
The distributorship said it expects a large turnout from operators in New England, New York, New Jersey, Connecticut and Pennsylvania...

EAG Expo Organizers Applaud Increased Attendance At 2011 Event
Tim Sanford
The British Amusement Catering Trade Association reports that attendance at the 2011 European Amusement & Gaming Expo grew 9% over the show's first staging early last year...

Mississippi Vending Association Plans March 14 Legislative Luncheon
Emily Jed
The Mississippi Automatic Merchandising Association will gather its members for a luncheon on Monday, March 14, in Pearl, MS...

Small Business News
GPS Systems To Shift From Hardware To Smartphone, Tablet Apps
Hank Schlesinger
GPS systems are due for a major shift away from dedicated devices to one of many applications found on smartphones and tablets computers...

Smartphones Are Becoming Crucial Business Tools For Street Operators
Hank Schlesinger
One of the small vending operator's most valuable business tools may be one of the most overlooked. Even worse, the operator probably already owns it...

Upfront with the Publisher
Let's Not Get Lost In Let's Remember
Alicia Lavay
I found the mood upbeat at Amusement Expo, which replaced the annual trade shows long held by AMOA and AAMA. This year, for the first time, the NBVA staged its annual bulk vending confab in conjunction with the show. We all can benefit from shows that address the entire industry, which is undergoing many changes that also are provoking laments... by Alicia Lavay

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