This is the meeting where vendors and suppliers in office coffee service, micro-marts, and vending come together to build relationships and grow their hospitality business. The lingo is somewhat different in this segment, where operators act as distributors and consumers are everyone who populates workplaces nationwide. NAMA is the association representing the $25 billion U.S. vending and refreshment service industry, with more than 1,250 companies.
Business Dynamics
Refreshment services range from small businesses providing packaged snacks and drip coffee, to large corporations offering sophisticated specialty coffee brewing systems and catering service to keep employees engaged and in the workplace.
Micro-marts are gaining momentum in lieu of traditional vending, allowing for more consumer choice, fresh foods, and flexibility of payment and product selection.
Flavor and Format News
Coffee – single cup systems rule the marketplace with a wide range of brewers that make coffee with the touch of a button, as well as disposable pour-over style baskets that attach to any cup, some with functional claims like “lean” and “think” with ginseng and other nutrients added to the grounds. A vast selection of flavored coffees, roast levels, and teas to suit every taste were on offer, while cold brew and nitro coffee are on the horizon. Soup brewed in the same method as single cup coffee systems is an innovation in this channel, although it was curious not to see bone broth, which was trending for K-cup style brewers in 2015 in other segments.
Protein Snacks – inventive new flavors are hitting office refreshment, such as beef sticks packaged with string cheese, bacon jerky, and dried turkey nuggets with apples. Handheld sandwiches touting better breads and meats didn’t pass the taste test, although they were more visually appealing than expected.
Sweet Snacks – innovation is slow coming in this segment, with few examples of premium sweet treats. Notable products include chocolate covered whole freeze-dried fruits, crunchy nut clusters, and decadent Belgian waffles that satisfy without any topping.
Healthy snacks – products beyond produce are just starting to emerge in this segment, and include examples like beet tortilla chips, sweet potato “fries,” coconut snacks, Mediterranean staples like hummus, and specialty single ingredient dried fruit.
Warm Meals – emerging retail frozen products are the alternative to foodservice. Premium new BFY meals have a one-year shelf life in options like the chicken chile verde, red wine braised beef and polenta, and tandoori inspired spiced chicken, and are designed to slide out of the heated packet onto a plate in an inexplicably composed fashion.
Oatmeal – single serve bowls were offered in bulk cases in steel cut varieties with claims like all-natural, non-gmo, and low sugar. Trendy new flavors included salted caramel and blueberry apple with chia seeds.
Vending in the Digital Age
- Newfangled vending machines amp up their ordering process with premium graphics on interactive screens.
- New micro-market apps can take perpetual inventory with scan from
tote functionality and shrink analytics.
Custom Vending
- Non-traditional vending like the 24/7 pizzeria provide a fully
automated experience. - Premium merchandise like high-end electronics or anything
that is small enough to fit can now be customized to sell
within a vending machine.
Implications for Food Marketers
Packaging Sells – packaging is key, especially for micro-marts where consumers can pick up and hold items before they make a purchase.
Grab and Go – products designed for grab and go that can be consumed easily at a desk or on the move with no dishware and minimal cleanup are important to consumers.
Productivity Appeals – workplaces are keen to offer free or subsidized perks in the break room to prevent employees from leaving the office for fuel or a treat to get them through the day.
Taste Talk Tweet
Twitter chatter included: Compostable coffee pods, single-serve muffins with probiotics, k-cup dispensers for vending machines, micromarkets are here to stay, and the cold brew coffee craze continues.
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