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QA NAMA Chair Greg Sidwell Provides Perspective On Landmark Public Health Commitment

NAMA Chair Greg Sidwell Greg Sidwell, president of G&J Marketing & Sales (Palm Harbor, FL), has played an instrumental role in helping shape and launch NAMA's Public Health Commitment during his one-year term as National Automatic Merchandising Association chairman, which began at the NAMA Show last April. NAMA, with the support of the Partnership for a Healthier America and the Alliance for a Healthier Generation, announced in October its adoption of the public health commitment to subst...

December 19, 2019 by Emily Jed

NAMA Chair Greg Sidwell

Greg Sidwell, president of G&J Marketing & Sales (Palm Harbor, FL), has played an instrumental role in helping shape and launch NAMA's Public Health Commitment during his one-year term as National Automatic Merchandising Association chairman, which began at the NAMA Show last April.

NAMA, with the support of the Partnership for a Healthier America and the Alliance for a Healthier Generation, announced in October its adoption of the public health commitment to substantially increase the percentage of "better for you" offerings to 33% in the nation's vending machines.  | READ MORE

The commitment, implemented over the next three years, represents a nearly 40% increase over current levels of "better for you" offerings -- those that meet at least two recognized public health standards.

The commitment is the latest and most comprehensive effort by the industry directed at public health.  Beginning in 2005 with the launch of FitPick, a "better for you" labelling program, the industry has worked collaboratively with industry members and national public health organizations to be part of the solution.

"In the months and years ahead, we will continue to work with our members to measure the results of this commitment to deliver a meaningful increase in the number of 'better for you' options in the marketplace," Sidwell said upon making the announcement. "We'll also continue to work collaboratively with public health partners, and to engage with food manufacturers to encourage them to support this important initiative through new products that meet the commitment."

Sidwell recently shared his enthusiasm for NAMA's Public Health Commitment with Vending Times and provided his insight into its importance for consumers, operators and suppliers alike. Sidwell has the added advantage of having a front-row seat to changing consumer preferences and demands over his decades at the helm of one of the nation's leading product brokerages, and from the industry relationships he's forged.

VT: From your perspective, tell us a little more about NAMA's Public Health Commitment.  Why is this important for the industry?

SIDWELL: What NAMA is trying to accomplish is important for the entire industry and meeting consumers' needs today and tomorrow. Consumers demand healthier choices, whether that means organic, non-GMO, higher protein, less saturated fat, no sugar.

I'm 61, and I eat healthier today than I ever did in my life, which is my choice and preference, and I hear from so many operators that they're focused on healthier eating right along with their customers. The younger workforce is better educated about food and what they're consuming than any generation has been before.

Through the Public Health Commitment, NAMA is working to ensure that 33% of products available in vending machines are healthy. To take on something like that seems big, but just by responding to consumer demand, sales data show us that the industry is already at 24% of products in machines on average meeting better-for-you standards, which is nearly one-fourth of products.

By making this commitment and working with public health organizations, we showed we already meet the guidelines with a quarter of the products and we'll get to one-third and they will help us find a way to get there and not by forcing us to. That's key – that it's a partnership to figure out products that meet the standards with the taste and quality consumers demand.

It's very achievable to go from one quarter to one third. I also believe that consumer preference will take us past one third and the trend will continue to increase. It's good for society and for the industry. Yes, it's a big task to achieve but one I'm very excited about.

VT: Why is this the right time for the industry to embark on a landmark commitment?

SIDWELL:NAMA's Public Health Commitment was born through the efforts of NAMA and the NAMA board. One thing the board tries to do is to look to both future opportunities and threats for the industry. Sometimes, you get lucky and they line up where a threat and an opportunity can play off one another and lead to positive action.

Vending has long been a target under fire for offering high-fat, high-calorie and high-sugar products, but vending has only been meeting consumer preferences. And as those preferences have changed, we have changed to align with their demands. But perception is reality in the eyes of the government.

NAMA and its board have been paying attention for quite some time to the resources the government is putting toward making our society healthier, and for great reasons, but regulation by government around the movement could be a threat to our industry.

There is a big desire from consumers and government for people to eat healthier and we as an industry have long been providing healthier solutions and educating consumers through FitPick but we also saw new challenges as efforts to regulate healthy vending have ramped up and knew it was the right thing on many levels to get ahead of what's coming.

The Public Health Commitment takes what could be a huge threat if we do nothing, but we are doing something big, which turns it into an opportunity. By making the commitment to go from one quarter to one third better-for-you choices -- when we put a number to something, now we've made a true, measurable commitment.

VT: What added insight can you offer on the Public Health Commitment from your standpoint as a leading vendible product broker?

SIDWELL: Through the lens of G&J Marketing, our biggest request from our operator customers is for healthier, better-for-you. That includes quality, clean ingredients, high protein, low fat.

By far and away, better-for-you is the biggest request and products in the category and we get almost immediate trial for the products we take out that have the flavor and taste profile to drive the volume to warrant operators putting them in their machines.

It's a sign of the times that there are thousands and thousands to try from and not all will be winners but the category no doubt is a huge winner and here to stay forever.

I've been in the industry for 35 years, and what naturally occurs with a big shift in consumer preference, is that the needs and wants that are clear now have been taking shape over the past 15 years and accelerating. It started small and sometimes you need one or two generations for the shift in mindset to fully take hold and expand into the workforce and impact purchasing habits in a big way.

Fifteen years ago, only certain hotels and motels had gyms. Now, nearly any lodging establishment has a place to exercise. It started small and grew to catch on, reflecting consumers' growing focus on health and demand for it in their daily lives.

Out of 1,000 people, maybe 10 wanted "healthy" items 15 years ago from the vending machine and then 50 did three years later, and then 140 10 years later. It's been a consumer change in direction long enough to make it a viable category. One quarter of machines having better-for-you offerings, driven by consumer demand and operators responding, is huge and it took years to get there.

Another movement over the past five years or so is that consumer packaged goods companies have been focused on "stealth health." They don't come out and say they changed the ingredients. But if you look at the sodium content on many products, for example, versus five years ago, it's a huge difference. Many CPG manufacturers have removed GMOs and eliminated chemical additives. They don't publicize it to not lose the support of the brand or the old, loyal consumers may leave, but if they don't reformulate, they will lose new consumers reading the ingredients. So the ones reading the labels will buy it, and the old, loyal consumer doesn't know the difference.

VT: At this time, what is your message to those operators and others who wonder how this could impact the industry?

SIDWELL:Any time you deal with change it's difficult. Routine is our comfort level in life, our agenda throughout the day and the way we run our businesses. When we begin to talk about things we're not well versed in, we are forced to go out of our comfort zone and that's how we forge ahead, so we all should be involved.

Everyone from operators, to brokers, to distributors all win with this commitment and have already been part of the healthier movement that we are just building on and taking to a new level.

Distributors like Vistar and Vendors Supply have catalogues that highlight their healthier products, which have grown to thousands of SKUs. What's helping drive a movement that's staying is that better-for-you today tastes good and not like eating cardboard. There are many great products today and more constantly coming out.

We all want to be the destination preference of consumers and the only way is to be ahead of the trends; we can't be chasing them. We can see what's coming and be ahead of it and that's something that's excited me most. We have a chance to be one of the first industries to ensure one-third of products are better for you, and it's a business opportunity for all of us.

VT: How does an operator who wants to participate comply with the standards? How is their compliance measured?

SIDWELL:It's as simple as one-third of products in machines complying with two of the following health standards: American Heart Association; Centers for Disease Control; Center For Science in the Public Interest; Partnership for a Healthier America and U.S. Department of Agriculture. There are links to all of them on the NAMA website.

At G&J, before we put products out, we look at the nutritionals and whether they meet the Public Health Commitment and we tell our customers when we present them whether or not they meet the "better for you" standards. Even if a product doesn't meet the guidelines, it can be a good seller for the other 66% of the mix.

It's not hard for us to do that for our customers and I think that will be more standard for brokers and distributors and direct sales people to indicate upfront for the operator what products meet the standards.

Our collaboration with Partnership for a Healthier America and the Alliance for a Healthier Generation are important because they work to help us better understand and meet varied consumer definitions of healthy. Just because it's high in protein or low in fat, it may contain other ingredients that are not considered healthy, so it doesn't meet the guidelines.

What's bigger is that you now have standards to meet the needs of the consumer, not just with a false sense of thinking that just low fat or low calorie is enough. The guidelines NAMA has committed to are based on what today's educated, nutritionally aware consumers are looking for because they know they're recognized by the government and key health organizations. 

The foundational operators helping launch the Public Health Commitment are some of the biggest, more prominent companies and they are leading the way by example. They see we're serious and they are committed to work with us.

Editor's note:The foundational participating operator companies are: Accent Food Services  (Pflugerville, TX); All Star Services  (Port Huron, MI); American Food & Vending Corp. (Syracuse, NY); Aramark Refreshment Services (Philadelphia, PA); Canteen (Charlotte, NC); Diamond Vending (Highland, IN); Evergreen Refreshments (Seattle, WA); Five Star Food Service (Chattanooga, TN); Imperial Inc. (Tulsa, OK); Refreshment Solutions (New Orleans, LA); Trolley House Refreshments Inc. (Richmond, VA); and Vendedge (Roswell, GA).

VT: As you round the corner, you're nearly finishing the first half of your tenure as NAMA chair. How has it been? 

SIDWELL:It's been extremely rewarding. It's given me the opportunity to learn more about what's happening and get in front of consumer needs and wants. It's been very rewarding help industry move forward in a positive way.

NAMA staff do all they can to minimize the time required to be chair of board. They recognize how busy we all are in this industry and they make it as easy as possible to all collectively work together to help the industry grow and continue in right direction.

VT: Looking ahead, how will the Public Health Commitment shape the coming years for the industry?

SIDWELL: I have no doubt in five to 10 years, more than 33% of products will meet the Public Health Commitment criteria. Consumers have decided to focus on longevity and health and quality of life and that movement will only get stronger, not weaker, and we will evolve the commitment in step with it.