Automatic Merchandiser - 21

CHART 3A: Composite green coffee prices, 2014 to August 2019
150

CENTS PER POUND

120

90

60

2015
2016
Source: The International Coffee Organization, London, U.K.

CHART 3B: How rising
costs are being handled

5.6%
1.4%
5.6%
● Raising prices

6.8%
8.1%

● Absorbing
● Combination
7%
45.1%
● Adjusting product
mix
●12.7%
Selling additional services
● Changing workforce
22.5%
● Divesting business
● Other	
2015/16

2.7%
2.7%

2017

2018

4.8%
2.4%

7.1%

11.9%

23%

64.9%

2019

3.9%

5.8%
1.9%

17.7%

57.1%

52.9%

23.8%

2016/17

50%

2018/19

2017/18

15%

37.5%

21.4%

33.8%

30%

27.5%

31.4%

28.4%

2020

7.5%

29.4%

33.3%

16.7%

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

0

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

30

2019/20

*Other includes customer service, marketing, technology, business practices, etc.

Operators reported a larger increase in sales,

A STRONG ECONOMY FUELS OCS

While location and staff growth was
slightly smaller this year, operators
reported a larger increase in sales, with
90% of respondents saying that their
total sales rose, compared to 72% last
year (chart 2). Operators attributed
this to increased customer demand
from employees, increased pricing,
divesting smaller accounts that didn't
meet the return on investment (ROI),
the efforts of a strong sales team, and a
strong economy.
More than half of the survey
respondents said the typical location
population of their OCS accounts was
between 20 to 74 employees (chart
8), trending closely with the previous year's figures. However, a greater
number of OCS operators - 22.7%,

with

90% of respondents saying that

their total sales rose, compared to 72% last year.

CHART 4A: Revenue per cup in cents per cup,
Fraction pack automatic/pourover coffee, 5-year review
Revenue

2015/16
12¢

2016/17
11.7¢

2017/18
12.5¢

2018/19
11¢

2019/20
10.6¢

*Previous numbers have been adjusted based on additional data

CHART 4B: Revenue per cup, single-cup coffee, 5-year review
Revenue
Single-Cup
Capsule
Bean-ToCup per cup
cost

2015/16
45.3¢

2016/17
36.2¢

2017/18
-
47¢

2018/19
-
46¢

41¢

43¢

2019/20
-
46¢
36¢

*Previous numbers have been adjusted based on additional data

September 2020 * VendingMarketWatch.com

21



http://www.VendingMarketWatch.com

Automatic Merchandiser

Table of Contents for the Digital Edition of Automatic Merchandiser

Editor's Note: Looking Back to Look Forward
Industry News
OCS Update: Five Ways to Survive
Stirring It Up
Snack Attack
2019: A New High for OCS
Social Hubs
Dependable Vending: More Than Just a Name
Classifieds
Automatic Merchandiser - 1
Automatic Merchandiser - 2
Automatic Merchandiser - 3
Automatic Merchandiser - 4
Automatic Merchandiser - 5
Automatic Merchandiser - Editor's Note: Looking Back to Look Forward
Automatic Merchandiser - 7
Automatic Merchandiser - Industry News
Automatic Merchandiser - 9
Automatic Merchandiser - OCS Update: Five Ways to Survive
Automatic Merchandiser - 11
Automatic Merchandiser - Stirring It Up
Automatic Merchandiser - 13
Automatic Merchandiser - 14
Automatic Merchandiser - 15
Automatic Merchandiser - Snack Attack
Automatic Merchandiser - 17
Automatic Merchandiser - 18
Automatic Merchandiser - 19
Automatic Merchandiser - 2019: A New High for OCS
Automatic Merchandiser - 21
Automatic Merchandiser - 22
Automatic Merchandiser - 23
Automatic Merchandiser - 24
Automatic Merchandiser - 25
Automatic Merchandiser - 26
Automatic Merchandiser - Social Hubs
Automatic Merchandiser - Dependable Vending: More Than Just a Name
Automatic Merchandiser - 29
Automatic Merchandiser - 30
Automatic Merchandiser - 31
Automatic Merchandiser - 32
Automatic Merchandiser - 33
Automatic Merchandiser - 34
Automatic Merchandiser - 35
Automatic Merchandiser - 36
Automatic Merchandiser - Classifieds
Automatic Merchandiser - 38
Automatic Merchandiser - 39
Automatic Merchandiser - 40
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