germany the vending market in 2015 - bdv compact ...€¦ · •on average there are about 148...

©2016 European Vending Association. All rights reserved

In co-operation with

©2016 European Vending AssociationAll rights reserved

GERMANY

The Vending Market in 2015

Published in July 2016


COPYRIGHT ©

Copyright© by the European Vending Association aisbl, Brussels 2016.

All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by means, electronic, mechanical,photocopying, recording or otherwise, or stored in any retrieval system of any nature, without the written permission of the EVA.Permission is granted to members of the project team that is responsible for the development of this document to reproduce itstrictly for purposes of EVA activity.

DISCLAIMER

The opinions and findings in this document by the European Vending Association represent its professional judgment, given withdue consideration to the necessary limitation of practical operation and state of the art at the time of writing. The EVA shall notincur any liability to anyone for use or reliance upon this document. Nor shall the EVA incur any obligations for damages, includingconsequential damages, arising out of or in connection with the use, interpretation of, or reliance upon this document.

Legal information

1


• About the EVA 3

• Scope and Methodology 6

• Geographical Scope 7

• Market Landscape 8

• Key Market Insights 9• Key Market Metrics 10• Vending Machine Fieldbase by Machine Category 11• Hot Beverage Fieldbase by Machine Type and Coffee Type 12• Average Consumption by Machine Category 16• Number of Vends by Machine Category 17• Average Vend Price by Machine Category 18• Vending Revenue by Machine Category 19• The Major Operators 20

• Web and Social Media References 21

• Appendices: 22

• Definitions 23• About the Market Report 26• Project Team and Contacts 27

The German Vending Market in 2015Contents

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• Created in 1994, the European Vending Association (EVA) is a not-for-profit organisation that promotes the interests of the coffee service and vending industries.

• EVA membership covers all the various activities of the industry, including: • Machine, component (e.g. payments systems, water filters, etc.) and accessories manufacturing;• Ingredient supplying (e.g. food products, cups suppliers, etc.);• Operating (e.g. managing, filling and maintaining the machines).

• The EVA has established itself in Brussels as the reference organisation for coffee service and vending vis-à-vis the EU Institutions and other major stakeholders. The EVA also maintains close links with the European Central Bank, the various Mints and the Central Banks worldwide.

About the EVA

3


EVA activities

• The Mission of the EVA is…

• To protect, promote and provide leadership to the self-serve coffee, food and beverage and Point of Use (POU) industry;

• To provide a single voice for self-serve coffee, food and beverage and POU industry in Europe;

• To become the reference organisation for providing data, and information about our industry to all relevant stakeholders.

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EU Lobbying

Market Analysis

Industry Information & Standards

Events & Networking


Source: EVA 2015 Consumer Behaviour Study produced by5,500 vending consumers in 11 countries (500 per country) took part in this survey in February and March 2015.The countries were: Austria, France, Germany, Italy, Netherlands, Poland, Romania, Russia, Spain, Sweden, UK.

2015 EVA Study of Consumer Behaviour regarding OCS & VendingSelected European-level highlights, based on 5,500 responses from consumers of OCS & Vending across 11 countries.

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The # 1 item purchased in chilled vending machines is water

58Percentage of European Consumers who use chilled vending machines at

least once per week

€3.98 average weekly spend per

person at a chilled vending machine

3 out of 4 Consumers prefer to

use a chilled vending machine in the afternoon

CONVENIENCE is the #1

reason cited for using a chilled vending machine

1/5 people drink at least 5 hot

beverages a day

30% of Europeans wish to see a wider variety of products in vending

machines

Most consumers drink coffee for

“the taste”


• Scope• This report focusses on the market for traditional vending, with some insights into OCS.• The market for domestic & professional capsule machines, and the Horeca sector are outside the scope.

• There are three main sources of data and insights for the Market Reports:• Leading Operators from each market, who share general market insights and information on the following metrics:

• Consumption by machine type (Hot Beverage, Cold Beverage and Snack)• Average Selling Price by product category (Hot Beverage, Cold Beverage and Snack)• Loss rate from the machine base• Refurbished Machines: share of machine placements that are refurbished

• The European Vending Machine Manufacturers’ Association who share information on new machine sales• Key suppliers and industry experts are also interviewed to gain further market insights• The project team would like to extend their thanks and appreciation to all those who have contributed

• Market modelling:• The data from the above inputs is consolidated and used to model the active machine base in each market• The machine base is then combined with the inputs on pricing and consumption to determine the overall sales volume and sales value• The new 2015 data is then compared with data from previous years’ Market Reports to show key trends. The data from previous years is based on the

work done in 2008-2009 by the EVA in cooperation with Datamonitor. One of the outputs of this work was an econometric model which correlated key metrics in each country with the actual performance of key metrics in the vending market. This model was used between 2010 and 2014.

• Fresh Analysis for 2015:• New data sources mean that for the first time we are able to split Table Top Hot Beverage Machines into two categories: Automatic (with cup drop) and

Semi Automatic (without cup drop). This is the first step of our plan to also fully report on the OCS market in the future.• New data sources have also resulted in some modifications to the historical data – when this has happened it is clearly highlighted.

Scope and Methodology

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• The full EVA Market Report covers 21 European countries

• Countries covered are:• Austria• Belgium• Czech Republic• Denmark• France• Germany• Greece• Hungary• Republic of Ireland• Italy• Netherlands• Poland• Portugal• Russia• Slovakia• Spain• Sweden• Switzerland• Turkey• United Kingdom• Ukraine

Geographical Scope

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8

In co-operation with

2015 Market Landscape

GERMANY


• Some Key Facts:• The German Vending Market is the largest in Europe, with revenue in 2015 of €3,193 million Euros.• In Germany, vending machines sell 14.9 million food and drink items every day. • Hot beverages represent 73% of the vending sales volume, cold beverages 14%, and snack & food 13%.• On average there are about 148 Germans per vending machine; this is higher than average, but still some way behind the “free vend

countries”, like the Netherlands (37) or Sweden (53).• There are around 15,000 people directly employed in vending in Germany.• Over 80% of machines are located in the workplace.

• Market Dynamics• The economy in Germany continues to be strong, and has resulted in a buoyant vending industry where consumption levels are

continuing to recover towards pre-crash levels, something that hasn’t happened in any other market.• The key long term trend in the market is the move away from instant and freshbrew to bean-to-cup in Hot beverage, which has been

accompanied by sustained growth in table tops. Both these changes are a clear sign of premiumisation, and reflect the changes in the ‘High Street’ hot beverage offering which has been accelerated by the rise of American-style coffee shops like McCafé and Starbucks.

• Milk based specialities are stronger than ever, and machines using fresh liquid milk for Macchiato, Cappuccino etc are becoming more and more prevalent in the workplace.

• Premium coffee-to-go in public sites has started, but is still a long way behind the UK, where ‘Gourmet Vending’ is now a €250 million business, led by Costa Express. The potential for growth of this type of offer in Germany is clear.

Key Market Insights

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©2016 European Vending Association. All rights reservedSources: 2015 interviews with operators, vending industry suppliers & experts and the BDV; plus EVMMA data, EVA market report history and team analysis

German Market – Key MetricsOverall continued growth in Machine Base, Number of Vends and Revenue.

• Overall machine base was 544,700, up 1.2% vs 2014

• Driven by Hot beverage

• Overall number of vends was 5,433 million, up 2.7% vs 2014

• Driven by Hot beverage and Snack & Food

• Overall Revenue was €3,193 million, up 3.8% vs 2014

• Growth in all 3 categories

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PLEASE NOTE: As a result of the new, improved methodology, and an increased number of operator interviews, the following changes have been made compared to past EVA reports:• the vend prices for Hot beverage has been revised up slightly• the machine base for Hot beverage has been revised upwards, and the mix adjusted• the consumption for Hot beverage and Snack & Food have been revised up, and for Cold

beverage revised downwards

These changes have impacted revenues for each category and in total


Overall Vending Fieldbase by Machine CategoryOverall continued steady growth, driven primarily by Hot beverage.

• The total fieldbase was 544,700 in 2015, up 1.2% vs 2014

• Hot Beverage – Table Top was 235,400, up 2.8%

• Hot Beverage – Free Standing was 92,500, up 1.4%

• Cold Beverage was 127,600, down 1.2%

• Snack & Food was 89,200, up 0.4%

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Hot Beverage Machine Base Evolution 2006-2015Major switch from Instant and Freshbrew to Bean-to-Cup.Steady advance of Table Top Semi Automatics.

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20152006 20152006

Please note: Table top capsule machines are outside the scope of this report


Free Standing Hot Beverage Machine Fieldbase by Coffee TypeOverall slight growth, driven primarily by Bean-to-Cup.

• The total fieldbase of Free Standing Hot Beverage Machines was 92,500 in 2015, up 1.4% vs 2014

• Instant was 33,900, up 1.8%

• Freshbrew was 26,100, down 5.1%

• Bean-to-Cup was 32,400, up 6.8%

• The continued growth in Bean-to-Cup is good news for the market as it is a clear driver of improved drink quality

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Table Top Automatic Hot Beverage Machine Fieldbase by Coffee TypeContinued overall decline, although Bean-to-cup steady.

• The fieldbase for Table Top Automatic Hot Beverage Machines was 32,800 in 2015, down 2.9% vs 2014

• Instant was 10,400 in 2015, down 4.7% vs 2014

• Freshbrew was 4,900, down 8.5% vs 2014

• Bean-to-Cup was 17,500 in 2015, down 0.1% vs 2014

• The decline reflects the move away from table top automatic towards table top semi automatic

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Table Top Semi Automatic Hot Bev Machine Fieldbase by Coffee TypeContinued growth, driven by Bean-to-cup.

• The total fieldbase of Table Top Semi Automatic Hot Beverage Machines was 202,600 in 2015, up 3.7% vs 2014

• Instant was 41,800 in 2015, down 4.7% vs 2014

• Freshbrew was 23,900 in 2015, down 7.3% vs 2014

• Bean-to-Cup was 136,900 in 2015, up 8.9% vs 2014

• The continued growth reflects the move away from table top automatic towards table top semi automatic

• The trend is likely to continue

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Average Consumption by Machine CategoryConsumption continuing to grow slightly in all 3 categories.

• Hot beverage consumption:

• 232 drinks / machine / week in 2015, up 1.0% vs 2014

• Cold beverage consumption:

• 113 drinks / machine / week in 2015, up 0.2% vs 2014

• Snack & Food consumption:

• 157 units / machine/ week in 2015, up 2.5% vs 2014

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Number of Vends by Machine CategoryContinued steady growth fuelled by Hot and Snack & Food, with slight fall in Cold.

• The total number of vends was 5,433 million in 2015, up 2.7% vs 2014

• Hot Beverage machines delivered 3,955 million vends in 2015, up 3.4% vs 2014

• Cold Beverage machines delivered 750 millions vends in 2015, down 1.0% vs 2014

• Snack & Food machines delivered 728 million vends in 2015, up 2.9% vs 2014

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Average Vend Prices by Machine CategoryPrices rising slightly in all 3 categories.

• Hot beverage price:

• €0.42 per drink in 2015, up 2.0% vs 2014

• Cold beverage price:

• €1.02 per drink in 2015, up 1.5% vs 2014

• Snack & Food consumption:

• €1.05 per drink in 2015, up 0.7% vs 2014

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Vending Revenue by Machine CategoryOverall continued growth in all 3 categories.

Total revenue was €3,193 million in 2015, up 3.8% vs 2014

• Overall Hot beverage revenue:

• €1,668 million in 2015, up 5.4% vs 2014

• Overall Cold beverage revenue:

• €761 million in 2015, up 0.5% vs 2014

• Overall Snack & Food revenue:

• €765 million in 2015, up 3.6% vs 2014

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• The major operators and buying groups in the market in 2015, in alphabetical order, were:• AP Automaten-Partner (buying group)• Aramark• CA Vending (buying group)• Coca Cola• Dallmayr• Maas International• Mars Drinks (operates nationally through a network of Dienstleister)• Selecta

• Key players in OCS, in alphabetical order, were:• Franke• Idee OCS• Jura• Kaffee Partner• Melitta• Saeco• Seeberger• Tchibo• WMF

The Major Operators in Germany

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• The EVA highly welcomes feedback about the market report. Please send your comments, feedback and questions to:• Erwin Wetzel, EVA Director General: [email protected]• Martin Colston, EVA Consultant for Market Research: [email protected]

Web and Social Media References

The Vending Group @VendingEurope European Vending Association

The 24/7 Blog

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mailto:[email protected]


http://www.vending-europe.eu/en/blog.html


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Appendix


• The market report includes two types of vending machines, three sub-categories of vending offers, and three product categories.

• Most table top machines are hot drinks machines, but there are also table top glass-fronted machines selling cold drinks and snacks.

Table Top Free Standing

Appendix 1Definitions – part 1

Hot Drinks Machines Cold Drink Machines Glass Fronted Machines

Coffee, tea, chocolate Water, juice and carbonated soft drinks

Confectionary, savoury snacks, fruit, sandwiches,

hot and fresh food

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Terms used Definition

Number of vends The number of unique product units dispensed by a given vending machine e.g. one cup of coffee is equal to one vending transaction.

Table top beverage machines

All machines that are positioned on a work surface or a bespoke cabinet.This includes fully automatic, semi automatic and manual machines.- AUTOMATIC machines DO include cup and sugar dispensing; and usually have the option for payment systems.- SEMI AUTOMATIC machines do NOT dispense cups; and typically do NOT dispense sugar or toppings either.

They generally do not have payment systems.

Hot drinks Hot beverages, mainly coffee, tea , chocolate, coffee specialties, hot water dispensed into a cup.

Office Coffee Service (OCS)OCS is a specific part of vending and is defined as: a hot drink table top operation in the office environment with a small potential usergroup in the area of the machines, and where the machines are filled by the company where the machines are located, but maintained bythe operator, and hot drinks ingredients supplied by the operator. OCS machines are designed without payment system, but a paymentoption can be offered via an add-in module.

Vending MachineAn operational machine located at either a client site or in a public location designed specifically for the sale and dispensing of food anddrinks. It excludes all "stock" machines that are not in service in one of the channels detailed above. This excludes cigarette and gamblingmachines.

Vending OperatorA company, in which more than 50% of its turnover, is derived from operating, servicing or trading vending machines, both in B2C (directto consumer) or B2B markets (corporate clients). It excludes companies with minor turnover shares on filling & cleaning machines such asFM companies, Catering companies, Gasoline retailers or other retailers.

Vending Sales Net sales (excl. VAT) generated by vending machines on vending services. Sum from all cash and invoice income generated by a vendingmachine. This excludes any impact from acquiring companies, and sales to other vending operators.



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Terms used Definition

Instant coffee The coffee is prepared mixing hot water with coffee powder, soluble or freeze dried, in special mixing bowls, or directly in the cup.

Ground coffee / FreshbrewThe coffee is prepared in a special brewer, where hot water passes through the ground fresh coffee with a pressure close to 0 bar (withthe same system we can obtain tea from leaf tea).

Bean-to-CupBean-to-Cup is in the vast majority related to the espresso brewing technology: coffee beans are ground in the machine and then a pumppushes hot water through the ground fresh coffee with a pressure between 4 and 10 bars.

Numbering Convention

Commas:Decimal point:Million:Billion:Billion:

1,2341.20

1,000,0001,000,000,000

1,000 million

= One thousand two hundred and thirty four= One and two tenths= 1 million= 1 billion= 1 billion


• The Market Reports are now into their 4th generation:• In 2009, the EVA commissioned Datamonitor to produce a first pan-European market and consumer survey using universal definitions

and methodology for all countries. The first report covered the period from 2003 to 2008.In 2010, the EVA and Datamonitor published the update of the key performance indicators.

• The 2010-2011 updates and the 2012 report were carried out by David Hoskin, a former EVA President.• The 2013-2014 review has been produced by Catherine Piana, EVA Consultant for Market Research.• The 2015 review has been produced by Martin Colston, EVA Consultant for Market Research

• In this 4th generation of the Market Report, the EVA has made the following improvements:• Detailed inputs from more operators than ever before, on a wider number of key metrics – for which many thanks• Increased robustness of the modelling based on the operator inputs• New data sources mean that for the first time we are able to split Table Top Hot Beverage Machines into two categories: Automatic

(with cup drop) and Semi Automatic (without cup drop). This is the first step of our plan to also report on the OCS market in the future.

• New data sources have also resulted in some modifications to the historical data – when this has happened it is clearly highlighted.

• There may be some discrepancies between the EVA Market Reports and reports made by individual country Associations. This is due to differences in definitions used by the EVA and some country Associations.

Appendix 2About the Market Report

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PROJECT TEAM:

• Aris Kaschefi, EVA Executive Committee Member, Project Supervision

• Erwin Wetzel, EVA Director General, Project Supervision

• Martin Colston, Consultant for Market Research, Data Collection, Analysis and Report Production

CONTACTS:

• European Vending Association aisbl

• www.vending-europe.eu

• Erwin Wetzel, EVA Director General, [email protected]

• Julie Barth, Head of Administration & Events, [email protected]

Appendix 32015 Project Team and Contacts

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http://www.vending-europe.eu/




• Colston Consultants was founded in 2014, and is an independent strategy and insight consultancy specialising in the Vending industry.

• The principle consultant is Martin Colston, who has nearly 30 years’ experience in Vending and the wider Away From Home Hot Beverage industry in the UK, USA, Canada, Japan, China, France and Germany.

• In addition to the EVA Market Reports, Martin also produces the annual UK Vending Industry Census for the UK Vending Association, the AVA.

• Martin was the Global Strategic Insight Director for Mars Drinks for 10 years, responsible for all primary research globally, all competitor analysis and data acquisition, and then using the insights gained to develop robust growth strategies and support key business investment decisions.

• While at Mars Drinks, Martin was a member of both the Mars Incorporated Global Strategy Community and the Mars Incorporated Global Insight Community.

• Also while at Mars Drinks, Martin was a regular data contributor to the both the annual AVA Census and to the quarterly EVMMA machine sales tracker.

About Colston Consultants

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[email protected]


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