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Healthy Vending Machine, the start of vending machine revolution.

Healthy Vending Machine, the start of vending machine revolution.

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  • CatherineSummer -> pool parties, wedding season, beachside vacationsTime to get fit through diet and exercise
  • Speaking of diets, no longer just about calorie reductionCould mean vegan, gluten free lifestyle
  • So we live with these diet goals and needs, but due to our busy lives, it gets so difficult to eat well
  • Catherine
  • Catherine
  • Pat
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  • Pat - Among the 4 largest vending companies in USA
  • Pat - http://www.2buhealthyvending.com/Pages/home.aspxhttp://uppermacungie.patch.com/articles/a-new-breed-of-healthful-vending-machines-at-lehigh-valley-hospital-3#photo-6805168
  • PatImpulse driven purchases to part of a daily routineCheetos example
  • Bruce
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  • Bruce - Talk about growth potential/opportunity
  • Pat


  • 1. Vending Business StrategyPresented by:Tannis HuangBruce KaabipourCatherine SuhPatrick Yen
  • 2. Summer Is Here!Problem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 3. Speaking Of Diets…Problem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 4. The “Problem”Why is it so difficult to find healthy and convenient foodand beverage products???Problem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 5. Right Outside These VeryDoors…Problem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 6. How Vending Can Make ADifference
  • 7. Solution...so we will empower consumers to make good decisions,elevating our vending platform with technologyProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 8. The $11.9B Vending ServicesIndustryCold Beverages49%Candies &Snacks33%HotFood7%Fresh Food10%Hot Beverages1%Problem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 9. Industry Trends Sales of candy, snacks and confections declined by1.5% in 2011 Vending sales bottomed out in 2012/2013 and havebeen on the rise
  • 10. The TruthThe industry has not adapted to consumer preferencesProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 11. “Millennials describe their food and beverage brands asmore healthy, organic, and natural than those of theirparents. They also report that their [preferred] foods aremore expensive.”--The Hartman GroupProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 12. How does Compass fit in?Problem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 13. Let’s Look At Compass We offer a wide variety of foodservices,vending services, and ancillary supportservices 2012 Worldwide Revenue - $27.33B US Vending Revenue – $1.4B with 11.7% of USvending market shareProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 14. Compass: 2bU Vending machine line catering to the healthy,eco-conscious consumer Introduced in 2009 and as of 2011, 400 machinesare in operationProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 15. Our New Direction We want to leverage our purchasing scale, existingrelationships with clients and suppliers, and existinginfrastructure to better meet the emerging food needsfor today’s consumerImpulsePurchases outof NeedPreference-drivenpurchasesProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 16. How Do We Do This?1. Healthy lifestyle ecosystem2. Mobile payments3. Dense locations with healthy preferences Educational institutions, offices, gyms, airports4. Giving consumers what they wantWithout making them drive to:Problem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 17. Engaging Customers Through AHealthy Lifestyle Ecosystem App to help customers track and count the calories theyconsume at 2bU machines Integration with other apps like MyFitnessPal andFatSecret Helping consumers make choices that are in-line withdietary restrictions/preferences Geofencing: Send consumers pop-up messages whenthey are near machines Social vending – mobile payments, rewardsprograms, voting for new product lineupsProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 18. Mobile FreedomProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 19. Strategic LocationProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 20. Sample Product OfferingsHealthy snacks Frozen preparedfoodsHealthybeveragesProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 21. Financial ProjectionProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 22. Financial ProjectionProblem SolutionIndustryOverviewTrends Compass Strategy Financials
  • 23. Our Vision Use Vending as a platform to make the world healthierand greener
  • 24. Thank You!
  • 25. KeyPartnerships:Purpose drivenorganizations ie.1% foundationSocial Media:Local VendorsWeightmanagement/calorie countingappCustomerSegments:*Gen Y/Millenials*Office PopulationsValueProposition:*Empowerconsumer to makeinformed snackingchoices*Personalization*Reducing carbonfoot print*Healthy food asaccessible as junkfoodKey Activities:*Maintenance/Svc Contracts*Tracking/Monitoringinventory levels*Active sourcing*RelationshipsRevenue Streams:*Small premium over current vending options*Cashless pymt -> mobile wallet*Additional advertising from product suppliers*Majority revenue to come from vending salesCost Structure:Location, marketing, replenishment, equipment, energy, IT, purchasingKey Resources:*3rd party logistics*Cash*Product suppliers*IT infrastructuremgmtDistributionChannels:*Social Media*Groupon*2bU app*VendingmachinesCustomerRelationships:*Personalized dietassistance*Co-creation ofproduct offerings*Reward programs*Geo-fencing
  • 26. Financial Projection Fixed Cost: Equipment Depreciation Cost Variable Cost: Purchasing Cost Electronic Costs Replenishment Cost and stock Cost Location Cost Overhead Cost: IT and Marketing Cost
  • 27. Assumption- Financial Projection Assume the initial number of machine is 500 Assume the number of machine will grow 100% in thefirst two years and then 50% in the following years Assume the quantity of unit sold is 4000 and theaverage unit price is $3.5
  • 28. Current Strategy – North America Vending relies heavily on blue collar manufacturingsites, but manufacturing facilities are on the decline Compass’s size allows for EOS in cost saving largepurchases Canteen Vending focus on serving office coffee insingle cup brewers and pots.
  • 29. Response to changing tastes 2009 – Introduces 2BU, healthy and sociallyresponsible vending on college campuses…noteverywhere yet Micromarket – fresh food and beverage selection withremote security and automated payments. No need foran attendant. Best for office dining spaces
  • 30. Strategy Increase 2BU line Offer hot/cold food options in machines Incorporate technology into machines – make it aplatform to gain sales and as a first option forconsumers Bottle-less hot/cold eco-vending
  • 31. Compass Vending Services Canteen Vending Group and Best Vendors Provide vending brokerage and managementservices 20,000 Vending Operators in US Canteen currently has a healthy vending linecalled 2bU Introduced in 2009 and as of 2011, 400machines are in operationProblem SolutionIndustryOverviewTrends Compass Strategy Financials