Vending outfit set to bag impulse buyer

By PETER GRIFFIN

A new generation of super-smart vending Machines is needed to deliver the goods to a growing market of impulse buyers, says Vending Technologies, one of New Zealand's largest independent vending machine operators.

And making its machines more intelligent is how VTL hopes to carve out a larger part of the competitive vending market.

The company has boosted its forecast profit for the financial year to March 2002 to $4.9 million after tax, up 20 per cent on the $4.09 million previous forecast.

It has announced a new licensing programme that is expected to increase the company's market share and boost its presence in emerging markets such as Australia and the United States.

The minimum cost of VTL's licences will be $30,000, with operators typically ordering between eight and 15 vending machines.

VTL expects to sell 52 licences in the next 12 months.

The company has signed a major deal with Cadbury, giving it 70 per cent of the confectionery space in each vending machine.

VTL is ranked third in the New Zealand vending market behind Coca-Cola and Bluebird, but general manager Rob Seymour says the company is in a better position because its machines support a wider range of brands.

"In general, fast-moving consumer goods companies are not set up to operate a multibrand vending channel. They don't run supermarkets or dairies; there's no real business case for them to run vending channels."

Cadbury commercial development director Chris Dee said consumers were more demanding when it came to the location of vending machines and the range of brands they stocked.

"Our behaviour is becoming more compulsive. Confectionery must be in our face if we are to buy it these days."

VTL has also released new software, VendSmart 4.2, which will allow operators to monitor consumer trends more closely.

That software lets head office know exactly how much of each product is being sold each day from each machine.

It also allows machine operators to advertise specials for certain times of the day, to immediately identify when a machine is broken and why, and to know when products are being pilfered.

Technology is also expected to lure consumers into using vending machines more often to pick up snacks. A partnership with Vodafone will give the mobile network operator's customers the ability to buy items from vending machines via their cellphone.

The customer makes a call to the Vodafone switch, which relays it to a phone in the vending machine. The machine then generates a credit that simulates the customer inserting coins.

VTL shares closed up 9c at $3.03 last night, up from a list price of $1.20.