Hot Beverage Vending

In 2004, hot beverage vending machines continued to increase in revenue. Vending machine hot beverage sales were bolstered by an increasing demand for coffee, which was fueled by the popularity of gourmet coffee houses. Vending machine operators sought out modern equipment to meet the consumer demand for good quality coffee and a variety of coffee based specialty beverages. Interestingly, vending machine operators found that the demand came from locations that were smaller than those to which they had been previously accustomed. Therefore, more small fresh-brew and branded soluble coffee equipment was placed in the field. Due in part to changing price perceptions caused by gourmet coffee sales, consumers were willing to pay a higher price for quality coffee from vending machines. Vending machine consumers were also eager to purchase coffee based beverages, like espressos, mochas, and lattes, which have been made fashionable in recent years by coffee house chains found throughout the country. The slight decrease in vending machine decaffeinated coffee sales may be a reflection of consumer response to recent reassuring health news regarding coffee consumption.

Other hot beverages such as hot chocolate, soup, and tea continued to sell well. The percentage of sales for these hot beverage vending selections sold in 2004 were:

DRINK TYPE
Coffee
(including gourmet mixes)
Hot Chocolate
Soup
Tea
Decaffeinated Coffee
Novelty Flavored Hot Drinks
(hot cider, etc.)

% OF SALES
77%

11%
0.5%
1.5%
9.5%
0.5%

Over the course of ten years, hot beverage vending has almost doubled in revenue. In 1994, the total dollar volume of hot beverage vending machine sales was $2,288,800,000 but in 2004 the total dollar volume of hot beverage vending machine sales had increased to $4,213,809,000.

Consumer preference and increasing demand for gourmet coffee is reflected in the breakdown of coffee type sold in vending machines in 2004 compared to 2002. The portion of total volume of coffee sold in vending machines of each type of coffee is compared below:

TYPE OF COFFEE % of total volume sold
Fresh Brew
Gourmet
(sweet, milk-based coffee derivatives)
Freeze-Dried
(spray and dried instant)
Decaffeinated Coffee

2002
56%
10%

11%

23%

2004
51%
14%

13%

22%

Since 2002, there have also been slight changes in consumer preferences towards other hot beverage items. The changes in the type of hot beverages which vending machine operators are choosing to distribute are as follows:

TYPE OF HOT BEVERAGE % of operators using
Hot Chocolate
Soup
Tea
Decaffeinated Coffee
Novelty Hot Beverage

2002

95%
58%
63%
92%
08%

2004

96%
55%
64%
92%
07%

Vencoa offers a great selection of diverse vending machines for sale. Visit our Coffee Vending Machines to find out more information on Vencoa’s models and prices.

For more information on FRESH, FROZEN FOODS & DESERTS VENDING.

For more information, please contact Peter LeVine or any one of his talented colleagues at (800) 223-4101, (650) 493-2258, or contact us through our

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All vending machines are priced lower than the identical machines from Selectivend, USI, Fawn, or Federal.

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*Vencoa is an authorized distributor of USI vending machines and is not an authorized distributor of Selectivend products.