Beaver Machine Corp Opens High-Tech Subsidiary New BMC Media-Kiosk Could Be Worlds Smartest Vending Machine

New Bulk-Loading Automated System Creates Custom Mixes Delivered In A Heat-Sealed, Labeled Package

NEWMARKET, ON, Canada -- Bulk vending, an industry that prides itself on traditional mechanical equipment, has just taken a quantum leap forward. The change comes in the form of Beaver Machine Corp.'s new bulk-loading kiosk. At first glance, the highly sophisticated BMC Media-Kiosk seems to bridge the gap between full-line and bulk vending. However, that initial assessment might be an oversimplification. Instead, Beaver's ambitious automatic retailing concept may create a new vending category that is not only technologically advanced and consumer oriented, but also is marketing savvy.

The BMC Media-Kiosk is not the first electronic bulk vender, nor the first vending machine to feature touch controls and digital signage, but it may just prove to be the most elegant automated retailing concept introduced to date. It is certainly among the most technologically advanced. It's the first product offering from BMC Universal Technologies, a newly founded Beaver Machine Corp. subsidiary. And it looks to be the starting point for a line of tech-based products from the firm that built its reputation on quality machining and engineering beginning 50 years ago in Canada.

Photo: Bernie (l.) and Robert Schwarzli with the BMC Media-Kiosk

Measuring 33" D. x 90" W. and 76" H., almost the size of three full-line venders, the BMC Media-Kiosk offers a selection of product choices from eight bins somewhat similar in appearance to standard bulk vending heads. The patron makes a selection on the machine's 42" touchscreen interface, and has the ability to choose one product or a mixture of several. The screen displays the nutritional values of each selection. The customer, and bystanders, then watch the action through a large viewing window as a bag is carried beneath each bin and filled automatically; portion sizes are operator-programmable. The bag is labeled with nutritional information (printed after the order is entered and paid for), then it's filled and heat sealed before it's delivered to the consumer. What emerges from the machine is something very much like a traditional candy counter retail purchase or prepackaged vend product. To coin a phrase, it is a "custom vendable."

"We've created a kiosk that effectively shrinks a packaging factory down to a small footprint," said Beaver president Bernie Schwarzli, who is also chief executive of the new high-tech division. "That was the biggest challenge of all -- to have the ability to select eight different products, put them into a bag, print on the bag all the selections purchased and then dispense a hygienically sealed bag."

Build A Package By Touch: A patron makes a selection at the BMC Media-Kiosk by touch input. Using the machine's 42" touchscreen interface (at left), the customer can choose one product or a mixture of several. Placing the order is simple: A patron approaches the kiosk, touches the screen to activate the menu and pokes at selections to build a virtual preorder (poke the screen's corner to see nutritional and caloric data). Once the payment is processed, the order is labeled, bagged, sealed and placed in delivery area.

Food sanitation is becoming increasingly important to consumers, and the BMC Media-Kiosk finishes a product, free from germ transfers. While these safeguards are meaningful in the realm of public perception, calorie disclosure, on the other hand, is the law of the land, and the new kiosk makes sure that operators are in compliance. The U.S. Food and Drug Administration now requires that caloric information be listed in a consistent, direct and accessible manner on vending machines, in addition to menus in chain restaurants and retail food establishments. The new kiosk has provisions for remote entry of caloric content, based on the specified portion size of an order, for onscreen display and imprinting onto the bag.

From The Outside In

The BMC Media-Kiosk is the product of a multimillion-dollar, five-year R&D effort. Both the effort and investment are apparent in the design, which brings order to a complex automation proposition. Schwarzli reported that a 20-person in-house team pulled together the mechanical and electronic components of the system, including all the operational software.

The machine's sturdy steel construction employs a hinged design with removable panels for easy servicing, with the unit's product section and mechanics partitioned. There is also a self-contained partitioned section for the slideout cash vault for extra security.

The front touchscreen control panel, at which consumers make their selections and service personnel perform onsite adjustments, offers an attract-mode option in which it displays video clips, which can include full-fledged advertisements for featured products. A rear-mounted, high-definition 65" LED screen offers the same capability, and calls attention to the vender in "island" installations. Content for these two screens can be loaded locally or remotely. There are also two 50" H. x 21" W. backlit screens on either side of the unit, offering a static "billboard" display option. This 360° mixed-media promotion potential is found neither on existing bulk vending nor full-line equipment (one model in Mondelez's Diji-Touch line, designed to be placed against walls, features 46" LCDs on three sides of the machine).

The use of vending machines for advertising and sales promotion began with the very first commercial venders, many of which were placed by confectionery suppliers in their retailers' locations to serve as "sales stimulators." With the rise of digital signage, wireless networks and pattern recognition hardware and software, with which the BMC Media-Kiosk is equipped, leading consumer product manufacturers have explored the potential of interactive vending machines as media for attracting consumer attention and reinforcing customer engagement.

The BMC Media-Kiosk can accommodate virtually all payment media, from bills and coins through credit and debit cards to the increasingly popular NFC cashless systems like Apple Pay and Android Pay. All critical functions -- inventory, cashbox and diagnostics -- can be remotely monitored.

INSIDE: The BMC Media-Kiosk finishes a product by sourcing confections from individual bins, placing them in a bag and sealing the bag thermally. The process is free from germ transfers. The vending machine, or smart appliance, is equipped with eight bulk-loading bins (each with a 40-lb. capacity). A bin can be assigned an SKU to match the manufacturer's product code; a manufacturer's use-by date and lot number can also be assigned. The bins currently handle unwrapped units, and are expected to support other product types soon. A high-tech internal climate control system creates an optimal storage environment for products, and keeps electrical components safe. The kiosk was designed to plug into any 115V. 15-amp outlet, and the draw from all electronic components is capped at 15 amps. The main computer monitors thel components and maintains internal balance. Likewise, the kiosk's vital signs can be monitored remotely by humans. OUTSIDE: The BMC Media-Kiosk is made of rugged steel panels and components with elegant finishes and lines. The cabinet's hinges, and other hardware, are not visible from the outside, creating an impenetrable appearance to onlookers. The internal hinge design, however, allows the panels to be easily opened and removed by service personnel; all four sides have hinged doors. Measuring 33" D. x 90" W. and 76" H., the kiosk can fit through a standard doorway opening. In addition to the main 42" touchscreen on the front side, the machine has a 65" rear-hi-def LED screen on the opposite side, and two 50" H. x 21" W. backlit screens on both narrow sides, which provide a static "billboard" display option. For brands and promotionally minded operators, this configuration enables a 360° advertising-viewing range when located in island configuration. It also can be placed against a wall, in which case the operator would not require the posterior LCD.

Each of the eight interchangeable "smart" product bins measures 5" W. x 10" D. x 21" H. and accommodates up to 40 lbs. of product. A far cry from standard bulk vending heads, each bin is equipped with its own circuit board and eight to 10 sensors that monitor everything from temperature to product levels and motor drive status. The bin-sensing system connects to the machine's controller board through a single coupling at the rear of the bin, resembling a USB socket, eliminating the need for wiring harness plugs: sensors connect as soon as a bin slides into place.

At the heart of the BMC Media-Kiosk is the cartridge-based printer, which was developed in-house. "There was no printer available on the market that could print on the bag material and fit inside the unit," Schwarzli said. "So we designed our own. We have applied for patents on the entire printing process."

BMC Universal Technologies' printing system uses specialized ink cartridges, and can print ingredients and nutritional information. This opens the possibilities for a brand owner to remotely upload discount coupons for printing on the bag, and these can be used at brick-and-mortar store locations during specified times.

When a vend is initiated and the payment accepted, a pre-branded bag measuring 6.5" x 7.5" is drawn from a supply that holds up to 1,500, custom-imprinted on the back and presented to the transport mechanism for movement past the 30" x 38" viewing window, where it is filled, sealed and dispensed.

Simple Design

The design parameters for BMC Universal Technologies' automated candy store were simple but daunting. It was engineered with three major objectives in mind. First, it had to provide brand companies with an exceptional solution for promoting or test-marketing their products. Second, it had to offer a unique purchasing experience for customers. Third, it had to possess easy serviceability for the vending operator.

Schwarzli recognizes that the concept is not suited to many conventional bulk-vending locations, or for most bulk vendors. Rather, it is a niche machine. However, there are many lucrative niches for it, from shopping malls and movie theaters to theme parks, FECs and bowling centers.

There is also the price tag -- gasp-inducing by traditional bulk vending standards -- though BMC Universal Technologies is planning to offer leasing options. One hint that it might find a welcome home on the corporate side is the kiosk's software that tracks a wide array of consumer preferences.

The sophisticated vender is also designed for the international market. Just as Beaver gained a global reputation by offering mechanical coin mechanisms for countries all over the world, the high-tech DIY candy store is programmable for virtually any market, in terms of language for consumers and operating personnel, along with payment choices. "This machine is designed for the global market," Schwarzli said. "Beaver products are in over 120 countries worldwide and we have every intention of selling into those countries with this machine."

Is This The Future?

According to Schwarzli, Beaver's BMC-Universal Technologies subsidiary is devoted to developing new product categories employing advanced technology, while Beaver will continue to manufacture its iconic bulk venders.

"Anything coming out of BMC-Universal Technologies is going to involve electronics and computerization," he said. "The full line of Beavers -- the legacy business -- will continue on and will produce new products for the traditional bulk vending industry."

But there is potential for some technological synergy between the two entities. "Part of what we're visualizing is some of the experience at BMC Universal Technologies will blend a little bit into the traditional side, allowing more payment possibilities for the bulk vending segment," Schwarzli said. This could open up new possibilities for bulk traditional vending and the iconic gumball machines that built an industry.

Innovation Track Record

For many vending industry observers, it might come as no surprise that Beaver Machine Corp. is making an ambitious leap into high-tech retail automation. Founded in 1963 as Machine-O-Matic, the company's innovation is well known. Its NG coin-mechanisms are widely viewed as an industry standard for quality and reliability. Used in Beaver's machines, as well as by other OEMs, the mechanical coin acceptors have become a favorite not just in North America, but around the world. Likewise, Beaver has led the way with innovation with a number of industry firsts, including the development of a polycarbonate, shatter-resistant bulk product globe.

The manufacturer's design team has kept pace with a steady stream of designs aimed at adapting bulk vending to an expanding number of locations. These include the Tri-Towers and Pyramids bulk vending rack configurations, known as the Towers line, which gained wide acceptance in shopping malls nationwide. As the 52-year-old company enters a marketplace of technologically advanced equipment, it does so with a solid track record of successful innovation and a reputation for quality products.

Bulk confections, which can be portioned easily and offer a high markup, seem to be very appealing products for this high-tech marketing concept. BMC Universal Technologies has developed a new kind of vending machine that combines the fun of a traditional candy counter with state-of-the-art product delivery engineering. And its Media-Kiosk is the latest example, and perhaps most advanced, of how vending machines can be the ultimate media for location-targeted advertising.

BMC Universal Technologies is located at 1341 Kerrisdale Blvd., Newmarket, ON, L3Y 8Z8, Canada. The vending tech startup is online at bmcuniversaltech.com. For information, call (800) 265-6772 in the U.S or (905) 836-4700 in Canada or overseas. Email queries to sales@bmcuniversaltech.com.