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Vol. 53, No. 8, August 2013

Vending Features
Appeals Court Upholds Ruling To Block Bloomberg Soda Ban
Emily Jed
The Supreme Court's Appellate Division ruled on July 30 that the city's Board of Health "failed to act within the bounds of its delegated authority" when it moved to prohibit sugary drinks larger than 16 fluid ounces in New York City restaurants, delis, movie theaters and other foodservice establishments...

Cantaloupe Systems Issues Latest Update To Seed Platform; Release Includes 14 Customer-Requested Improvements
Cantaloupe Systems Press Release
The release makes it easier to get started with Seed Office (Cantaloupe's Web-based VMS) and to control product shrinkage, and it adds 14 different customer-requested improvements throughout Seed Platform [press release]

Canteen Vending Machines Join DFW Airport Rewards Program
Emily Jed
Travelers using vending machines at the Dallas Fort Worth International Airport can now participate in the DFW Customer Rewards Program through a new partnership involving Canteen Vending, USA Technologies and Thanks Again LLC...

Coca-Cola Q2 Profit And Volume Drop Amid Slumping U.S. Soda Sales
Emily Jed
The beverage giant's profit dropped 4% in the second quarter and volume growth declined in several key markets. Net income was $2.68 billion, or 59¢ a share, down 4% from $2.79 billion, or 61¢ per share, a year earlier...

Coinco Releases Vantage Upgrade For Canadian Polymer $5 And $10 Bills
Emily Jed
Coin Acceptors Inc. has released its $5 and $10 polymer Vantage software almost four months ahead of the Bank of Canada's schedule to start circulation of the new bills...

Congresswoman Wants To End Tax Break For Companies Marketing 'Unhealthy' Foods
Emily Jed
Congresswoman Rosa DeLauro (D-CT) introduced legislation that aims to close a tax exemption "loophole" for food manufacturers that market foods considered to be "unhealthy"...

Crane Co. And MEI Revise Acquisition Terms; Price Drops To $804M, Reflecting EC Remedies
Nick Montano
The revision takes into account the conditions required by the European Commission before it clears the transaction: Crane's divestiture of its Payment Solutions' B2B banknote recycler product line, and its licensing in Europe of Payment Solutions' Currenza C2 coin recycler line...

Crane Co. Reports Conditional Clearance By EC For Acquisition Of MEI
Emily Jed
Stamford, CT-based parent of the U.S.'s largest vending machine and unattended payments systems manufacturer reports that the EC will clear its MEI purchase if conditions for divesting two product lines are met…

Crane Co. Reports Strong Companywide Second Quarter; Merchandising Systems' Sales Drop 13%
Nick Montano
Crane Merchandising Systems sales of $84.8 million decreased $12.7 million, or 13%, with higher sales in Payment Solutions more than offsetting a significant decline in Vending Solutions. Lower capital spending by some bottlers and continued weakness in Europe spurred vending declines...

DOE Extends Cold-Drink Vender Energy Standards Comment Period
Emily Jed
The U.S. Department of Energy has extended the deadline for public comment on the framework document regarding energy conservation standards for refrigerated beverage vending machines to August 16...

Dr Pepper Snapple Removes Vitamin E From 7Up In Settlement Over Antioxidant Claims
Emily Jed

FDA Plans To Publish Vender Calorie Label Regulation In September
Emily Jed
The FDA's initial projection for issuing final calorie-disclosure rules for vending machines came and went last April. Its new target is September...

Finland's Uniqul Develops Fast Facial-Recognition Payment System
Emily Jed
Customers simply tap “OK” at payment terminal and are on their way, with no need for a wallet, credit card or mobile phone...

Frito-Lay Price Increases Boost PepsiCo Q2 Profit
Emily Jed
PepsiCo Inc.'s profit improved in the second quarter, aided by price increases for its Frito-Lay snacks, which offset weak beverage sales. PepsiCo earned $2.01 billion, or $1.28 a share, for the period ended June 15...

Hershey Raises Outlook On Strong Q2 Momentum
Emily Jed
The chocolate giant’s earnings climbed 18% in the second quarter as demand for its core candy brands grew and the costs of confection ingredients declined...

Judge Greenlights Class-Action Suit Over Vitaminwater Claims
by Staff Reporter
United States Magistrate Judge Robert M. Levy has given the green light for Coca-Cola to face a class-action lawsuit accusing the beverage giant of misleading consumers by overstating the health benefits of its Vitaminwater drink...

Lou Gehrig's Disease Claims Connecticut Operator Michael Pohorylo
Emily Jed
Veteran vending operator Michael R. Pohorylo died on July 22 at his home in Suffield, CT, following a battle with amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig's disease. He was 61...

Mobile Payments Gain Traction In Canada, But Not At Point Of Sale
Emily Jed
More than 50% of Canadian smartphone owners have used them to make payments but the incidence of in-store payments using mobile phones remains very low...

NAMA Is Cautiously Optimistic Regarding Update On Debit Card Swipe Fees
NAMA Press Release
The rule change is a positive development for the vending industry, said Eric Dell, NAMA's government affairs expert. But he warns that it does not change debit-card transaction fees at this time [press release]

New York Mayor Launches 'Recycle Everything' Ad Campaign
Grey New York Press Release
Following the largest expansion of New York City's recycling program in 25 years, Mayor Bloomberg unveiled a multi-channel consumer public education campaign to drive awareness of recycling...

North America Is Bright Spot For Compass Group In Q3
Emily Jed
Compass Group, the world's biggest caterer and parent of Canteen Vending, posted a 4% rise in third-quarter organic revenue, boosted by strong business in North America and emerging markets...

NRA Hails Court's Reversal Of Federal Reserve's Debit Card Fee Rules; NAMA Is 'Cautiously Optimistic'
Tim Sanford
Merchants claimed victory Wednesday after a federal judge in Washington rejects the Federal Reserve’s price caps on interchange fees banks charge them for processing transactions made with debit cards...

PepsiCo Pays $9M, Removes All-Natural Claim In Naked Juice Settlement
Emily Jed
The packaged juice and smoothie maker agreed to pay $9 million to settle the suit by a group of consumers who charged that its drinks could not be called natural and GMO-free...

Pete Tullio Begins Term As NAMA Chairman
Emily Jed
Pete Tullio of southern California’s Gourmet Coffee Service has begun his one-year term as chair of the National Automatic Merchandising Association’s board of directors...

Redbox Slump Hits Outerwall Q2; Company Formerly Known As Coinstar Completes ecoATM Acquisition
Emily Jed
Outerwall Inc., the automated retailing innovator formerly known as Coinstar, said its net income rose to $46.9 million, or $1.64 a share, in the second quarter from $36.9 million, or $1.11 a share, a year earlier...

SEVA Confab Combines Networking, Education And Family Fun: Aug. 6-8
Emily Jed
The Southeast Vending Association will return to Florida’s Sandestin Golf & Beach Resort here from Aug. 6-8 for its 2013 conference...

Smart Lunches Expands Meal Delivery, Vending Services To Philadelphia Schools
Emily Jed
The Web-based provider of away-from-home "healthy" meals for children expands its services to the greater Philadelphia area. Services include Smart Snax vending machines...

Sodexo Revenue Grows Amid Foodservice Declines
Emily Jed
Sodexo's nine-month revenue grew 2.3%, driven by demand for its facilities management services...

Strongbow Launches Dark Fruit With Interactive Vending Machine
Strongbow Press Release
To mark the launch of Strongbow Dark Fruit, commuters were challenged to step up and take aim at an interactive vending machine at one of the UK's busiest train stations, as part of the brand's EARN IT. campaign [press release]

Twinkies Return In Triumph, And Their New Distribution Model Favors Vending
Emily Jed
Twinkies and other iconic Hostess snack cakes officially returned to store shelves on July 15, with a new distribution model that will pave the way for a big presence in vending machines...

USA Technologies Celebrates 5,000th Customer For Its ePort Connect Cashless Payment and Telemetry Program
USAT Press Release
New York's Fitzgerald Brothers Beverages Inc. crossed the 5,000th customer mark, which for USA Technologies translates to a 69% compound annual growth rate from approximately 1,000 customers three years ago...

Yawn-Activated Vending Machine Dispenses Douwe Egberts Coffee In South Africa
Emily Jed
A vending machine in South Africa's busiest airport delivered a caffeine fix to weary travelers when they yawned...

365 Retail Markets' Home Base Lounge Demonstrates Micromarket Possibilities
Emily Jed
365 Retail Markets is settling into its new headquarters in Troy, MI, a focal point of which is an employee lounge that showcases its micromarkets in a real-world setting...

Breakroom Provisions Enhances Management With Anti-Theft Widget, iPod Touch Handheld
Emily Jed
The company's DASH interface features management tools and reports that allow operators to monitor key business metrics in real time using tablets, mobile devices or PCs...

Jelly Belly Launches Turnkey Micromarket Program
Emily Jed
The candy company is making a splash in micromarkets with a turnkey program that prominently displays its iconic jelly beans and best-selling confections on a "ripple rack," and it's provided to operators free of charge...

Vending Industry Expert Predicts 35,000 Micromarket Locations Within Decade
Tim Sanford
The number of micromarket locations in the United States rose 170% between 2011 and 2012, according to a study conducted by veteran vending market researcher Brad Bachtelle of Bachtelle & Associates (Tustin, CA). "What have we done? We've created a new channel," Bachtelle said. "It's driving more sales, pleasing customers and exciting our industry"...

Music and Games Features
AMI Entertainment And Apple Industries Release Photobooth Upgrade For NGX Jukebox
Tim Sanford
The kit allows NGX operators to enhance their patrons’ jukebox experience with photographic services using Apple’s Smile 2.0 Face Place photobooth technology...

AMOA's National Dart Association Inaugurates Junior Tournament
Nick Montano
The first-ever NDA Junior Tournament is set for June 20-22, 2014, at the Ramada Minneapolis-St. Paul Airport at the Mall in Bloomington, MN. It will be open to contestants 20 years of age or younger...

CEC Entertainment Inc. To Webcast 2013 Q2 Financial Results: Aug 1.
CEC Entertainment Inc. Press Release
The second-quarter 2013 conference call will begin at 3:30 p.m. Central Time, and will be broadcast live over the Internet...

Dave & Buster's Inc. Announces Record-Setting Adjusted EBITDA
Dave & Buster's Inc. Press Release
Dave & Buster's Inc., an operator of high-volume entertainment and dining complexes, announced financial results for its first quarter of 2013, ended May 5. Comparable store sales increase 1.8%...

Dave & Buster's Inspires New Arcade Rules In Massachusetts Town, Plans First Connecticut Store
Nick Montano
The Woburn, MA, City Council approved regulations that limit the deployment of coin-op amusement machines. New rules follow Dave & Buster's petition a few months earlier for special permits to build a new center in the Boston suburb...

Digital Centre Introduces Ultraportable And Modular I-Go Photobooth
Tim Sanford
The easily transportable photobooth incorporates all of the cutting-edge features of the manufacturer’s Software Expression suite...

Extended Earnings: All You Can Arcade Will Match Videogames With Nontraditional Locations
Hank Schlesinger
A new company has a plan to put operators' aging videogame assets to work. All You Can Arcade is seeking to match corporate locations and home players with popular videos...

Gov. Haley Signs Bill Banning Sweepstakes Cafés In South Carolina
by Staff Reporter
The new law is designed to close all loopholes that allowed sweepstakes cafés to operate in various jurisdictions of South Carolina...

Internet Café Proponents Claim Harassment By 'Casino Industry'; Ohio's Anti-Sweepstakes Law Goes Into Effect Sept. 4
by Staff Reporter
Individuals gathering signatures to put a repeal of Ohio's Internet sweepstakes ban on the ballot claim they're being hindered by "corporate casino interests"...

IT Enables Remote Message Posting To PowerPutt Live 2012 Marquee
Tim Sanford
Operators of Incredible Technologies' PowerPutt Live 2013 miniature golf simulator now can create and download their own messages to the nostalgic scrolling "dot matrix" display on the game's marquee...

Legacy Coin-Op Updates Song Bird Stand And Amp For TouchTunes' Virtuo Jukebox
Tim Sanford
Legacy Coin-Operated Disbributors has updated its novel Song Bird stands, designed to adapt TouchTunes Interactive Networks' Virtuo wallmount jukeboxes for freestanding installation...

Pyramid Technologies Taps Speedy's As Authorized Service Center
Tim Sanford
Speedy's One Stop Repair Service's factory-trained technicians will repair bill validators that are both in and out of warranty...

Senior Arcades Are Beginning To Reopen In Florida
Nick Montano
Some 40 adult arcades have reopened in Florida since the state's new anti-sweepstakes café law forced them to close in mid-April. Arcade operators are complying with the law by offering retrofitted coin-operated gaming devices and restricting prizes...

Shaffer Services Turns 25
Nick Montano
Founded in 1988 as a division of Shaffer Distributing Co., Columbus, OH-based Shaffer Services is celebrating 25 years as a jukebox and games operation...

Team Play's Prize Hoops Conversion Kit Updates Legacy Stacker Games
Hank Schlesinger
The basketball-themed update makes use of Stacker's existing cabinetry and other original components to offer operators a cost-effective new game...

U.S. Drinkers Divide Between Beer And Wine As Favorite; Younger Consumers Most Likely To Have Shifted Preferences Away From Beer
Jeffrey M. Jones/Gallup
Surprising new data from Gallup show that Americans' taste for beer is declining, compared to wine and hard liquor. In the early 1990s, 71% of the 18-29 cohort preferred beer. Now, only 41% of today's youth cohort says beer is their favorite, as do only 43% of 30 to 49 year olds...

UK Distributorship AMG Leisure Tours LAI Games Factory In Jakarta
Nick Montano
LAI Games' Indonesia-based factory hosts visit by UK-based amusement distributor AMG Leisure...

Unis Debuts Funfair Bash Ball-Toss Ticket Redemption Game For Kids
Tim Sanford
As in many traditional ball-centric amusements for which fairs are famous, Funfair Bash rewards success in a number of skills, from hitting targets in motion to striking a specific area of an immobile target...

Bulk Vending
'Forensic Accounting' Curbs Internal Theft At Capital Vending
Hank Schlesinger
Losses caused by bulk vending route personnel are far more costly than those caused by vandals. Even small thefts can substantially affect the bottom line in the long run, if not detected in time...

Hispanic Traffic Grows In C-Store Sector
Hank Schlesinger
The Hispanic population is increasingly favoring convenience stores, which have become lucrative bulk vending locations in some markets, as shopping destinations...

SweetWorks Appoints Joel Brown To Supply Chain Manager Position
Tim Sanford

Editorial: Vending
Is 'Better For You' A Category?
Tim Sanford
Over the years, a number of astute industry observers have warned operators that they are losing sales by declining to put items on their menus that they consider "fads." Even supposing the skeptics to be correct and the item falls out of favor after six months, somebody can be selling a whole lot of it in the meanwhile... by Tim Sanford

Editorial: Music and Games
Gaining The 30,000 Foot View Of The Daily Maze
Hank Schlesinger
Not long ago, a bulk vending operator confessed to me a growing uneasiness concerning his business. "Sometimes I feel like a rat in a maze," he said. Maybe the 30,000-ft. view could help him find a way out...by Hank Schlesinger

Bulk Vending and Crane Products
August 2013's Spotlight on Product for Bulk Vending, Cranes and Redemption

Coffee Service News
Cinnabon K-Cups Will Arrive For The Holidays
Emily Jed

Lipton Launches Hot And Iced Tea K-Cups
Emily Jed

Marley Coffee Acquires Black Rock Beverage Services
Nick Montano
Marley Coffee has signed a letter of intent to acquire the assets of Black Rock Beverage Services, a coffee and food services provider in the greater Denver market...

Martinson Flavored Coffees Debut In RealCup Capsules
Emily Jed
Mother Parkers Tea & Coffee Inc. is launching a line of Martinson single-serve flavored coffees in RealCups, which are compatible with most Keurig brewers...

Miss Ellie's Coffee Launches In Keurig-Compatible Portion Packaging
Emily Jed
Coffee.org’s signature Miss Ellie’s Coffee is now available in RealCup single-cup packs compatible for use with Keurig K-Cup brewers...

NAMA Plans Research To Gauge OCS Market Size, Share, Opportunity
Emily Jed
The National Automatic Merchandising Association has partnered with Studylogic to provide its members with data on the size and share of the OCS market on a quarterly basis...

New Social Media Contests Enliven National Coffee Service Month In September
Emily Jed
The National Automatic Merchandising Association is gearing up for the second annual National Coffee Service Month, which serves as a vehicle for OCS operators to execute specially designed marketing and promotional efforts...

NPD Predicts Prepared Retail Foods Will Outpace Restaurant Growth
Emily Jed
Prepared foods from supermarkets, drugstores and other retail outlets will continue to steal visits from restaurants, according a new forecast from the NPD Group...

Private-Equity Firm Buys DS Waters Of America
Emily Jed
New York City-based Crestview Partners will acquire Atlanta-based DS Waters from a group of equity owners for an undisclosed sum through a merger. The transaction is expected to close within the next three months...

Report Analyzes Explosive Single-Cup Growth, Predicts Continuation
Emily Jed
Total U.S. coffee market dollar sales grew 10% in 2012, attributable primarily to a dramatic jump in the single-cup segment...

Foodservice News
New Technomic Report Examines Factors Driving High Burger Consumption
Technomic Press Release

Guest Columns
Offer Full Coffee Variety In Taste-Tests To Bolster Sales
By Kevin Daw
Heritage Coffee, my company, recently conducted a study on roasting trends in blend composition, roast coloration and pack weights, among other attributes. This is a great exercise to see what exactly is winning the battles out there and in what direction overall trends are moving... by Kevin Daw

Service Isn't Service If It Doesn't Serve The Company's Clients
By Matt Greenwald
The first two letters in OCS are easy to understand for anyone: office and coffee. These nouns "office" (or workplace environments) and of course "coffee," the legal, habit-forming elixir many of us live on (in more ways than one). In this article, I discuss why it's so important to provide customers with superior overall service... by Matt Greenwald

Time-Tested Marketing Tools Can Add Office Coffee Clients And Volume
By Len Rashkin
Over the years, OCS operators have experimented with many ways to attract new customers and to increase their allied product sales through different marketing strategies. Let's take a look at how this is done...by Len Rashkin

NYSAVA's Luckower Golf Outing Returns To Westchester On Sept. 18
Emily Jed

Registration Opens For NAMA Coffee, Tea & Water Show In Nashville
Emily Jed

Tri-State Food Expo Planners Ready October Inaugural Event In NJ
Tim Sanford

Walt Disney World Resort President George Kalogridis To Speak At IAAPA Attractions Expo 2013 Lunch And Learn
IAAPA Press Release

Names in the News
Campbell Taps Carolan Retail Prexy, Hassett Away-From-Home SVP
Tim Sanford

CompuVend Systems Promotes Severin Beale To IT Director
Emily Jed

Gellman Associates Appoints O'Ferrell Representative For VA And WV
Tim Sanford

Jacques Bonnette Augments CompuVend's Support And Training Team
Emily Jed

Syvella Robinson Joins Smith’s Coffee As Business Development Coordinator
Emily Jed

TouchTunes Names Jim Wilson, Former Atari CEO, Chief Operating Officer
Nick Montano

Small Business News
Bill Aims To Repeal Affordable Care Act Definition Of Full-Time Employment
Emily Jed

Upfront with the Publisher
'Fair Trade' Is About More Than Sourcing
Alicia Lavay
The success of Marley Coffee goes far beyond brand image, and the message of "fair trade" stands to benefit the entire coffee industry... by Alicia Lavay

Vending Machine Products
Charley's Shelf-Stable RTD Flavored Milks Meet ABA School Standard
Tim Sanford

Monogram Expands Its Turkey Meat Snack Lineup For Micromarkets
Emily Jed

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