Automatic Merchandiser – February/March 2024

Brewing Up Success

Automatic Merchandiser is proud to recognize leaders in the vending, micro market and office coffee service industry in our second annual Legends of the Year awards program.

Jeff Gehman Consolidated Services Group Frank Gumma Sr. AVS Companies

Turn to page 14

Features

OCS Update: A business development strategy that is making a comeback When implemented properly, direct mail (the kind that requires a postage stamp), can be a powerful strategy for OCS operators.

2024 Legends of the Year Award Winners

Automatic Merchandiser honors leaders in vending, micro market and o ce co ee service.

3 compelling lessons from the 2023 CTW show

Conversations and education sessions provided valuable takeaways.

Inventory control management

Technology solutions can help manage inventory – a vital piece of business for any vending, OCS or micro market operation.

Visit vendingmarketwatch.com for more on hot topics in vending, micro markets and office coffee service

Interviews, Expert Insight & Tips

OCS Operator

One notable business development strategy that an OCS operator can do in 2024

2024 IS A NEW YEAR WITH A CHANGED MARKET condition, and that requires some new business development strategies. It’s all about renewing your focus on the three R’s: retention, referrals and revenue.

VendingMarketWatch.com/53083220

The benefits of sensor fusion technology for smart coolers in unattended retail

Greg Nagy with Robotic Retail explores how sensor fusion technology has the potential to revolutionize operational efficiency and customer interactions in automated retail operations. Vending and micro market operators who adopt this technology will stay ahead in a rapidly changing market.

VendingMarketWatch.com/53095568

Micro Market

For operators, the right technology is a critical component when selling a business

Making a move to enhance technology, from vending management systems to cashless payment platforms, is costly and time-consuming, but Mike Kelner of VBB Advisors says that such a move will pay for itself if an operator decides to sell their company.

VendingMarketWatch.com/53097570

Amazon’s Just Walk Out technology

The Just Walk Out technologypowered unattended store is a collaboration among BGSU, Chartwell’s Higher Education and Amazon. With a variety of craveable options along with campus-life staples, the store is filled with snacks, ice creams, gluten free-friendly options and more.

VendingMarketWatch.com/53083018

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Bob Tullio

Editorial Advisory Board

Nick Montano Contributor

Joe Hessling 365 Retail Markets

Josh Rosenberg Automated Retail Technologies

John Reilly Avanti Markets

Elyssa Steiner Cantaloupe Systems

Carl Moser Canteen Corporate

Evan Jarecki Gimme

Michael Miller Mondelēz International

Paresh Patel PayRange

Jeff Deitchler Prairie Fire Coffee

Legends, leaders and new products

WELCOME TO THE FEBRUARY/MARCH ISSUE. I HOPE

everyone’s year is off to a great start.

In this issue, we are honored to once again recognize leaders in the vending, micro market and office coffee service industry in our second annual Legends of the Year awards program. These outstanding individuals have shown a dedication to their companies, their customers and the industry. Read about all the 2024 winners starting on page 14.

You’ll also find a few key takeaways from NAMA’s 2023 Coffee, Tea & Water show on page 22. The CTW educational sessions provided valuable lessons for OCS operators, such as sustainability efforts, embracing innovation, and capitalizing on a wide range of opportunities.

In this issue’s operation profile, we turn the spotlight on World Cup Coffee based in Portland, Oregon. Led by Dan Welch, World Cup has earned a reputation for excellent service as well as a good cup of coffee. “We have defined ourselves by service, by being there within an hour and by keeping the equipment clean, full and working,” Dan said. Read about World Cup’s journey, from its founding in 1985, to starting its own roasting operation in 1993, to opening its first micro markets in 2022.

If you are interested in having your operation profiled in an upcoming issue of Automatic Merchandiser, please feel free to reach out to me. We would love to share your story too.

Lastly, in this issue you’ll find an overview of technology solutions for inventory control management on page 26. And, we’ve added a new product section on pages 40-41.

This month, we kicked off our third annual Most Influential Women in Convenience Services Awards. Be sure to nominate someone you know who is deserving of this prestigious award by April 5. The winners will be featured in the June/July issue.

In addition, we’ve opened our State of the Vending and Micro Market industry survey for our annual report that will also be released in the June/July issue. The survey is an opportunity for vending, micro market and office coffee service operators to anonymously share data with us that we will analyze to measure the industry’s overall performance in 2023. The deadline to complete the survey is May 3. Thank you in advance for your participation. It’s greatly appreciated!

Next issue, we will feature Automatic Merchandiser’s Readers’ Choice New Products of the Year awards. Thank you to everyone who took the time to cast your vote.

Molly Rogers Editor-in-Chief mrogers@endeavorb2b.com

Follow us at Facebook/VendingMarket

@VendingMagazine

linkedin.com/ company/2233840

Thank you in advance for participating in our State of the Vending and Micro Market report by taking our annual operator survey.

PayRange settles patent dispute with KioSo

[ TECHNOLOGY ]

PAYRANGE,

THE INVENTOR AND

SOLUTION

provider of a leading mobile payment app and hardware for automated retail, and KioSo Technologies, have settled a four-year patent dispute over mobile payment technology used to enable consumers to pay self-service retail machines such as laundry and vending machines. PayRange, which has an extensive patent portfolio, had alleged that KioSo and its a liate TechTrex had infringed on numerous PayRange patents. KioSo has agreed to license PayRange technology that could exceed $62 million over a 10-year period based on outcomes with a base license of $40 million.

PayRange has developed technology that empowers consumers to pay unconnected self-service machines with a smartphone. e earliest patents date back to 2013.

“We’re thrilled that we have nally resolved the patent dispute with KioSo and that our technological innovations have been vindicated,” said Paresh Patel, founder and CEO of PayRange. “ is agreement is more than a settlement; it’s recognition on the importance of intellectual property in fostering game-changing industry innovation and in the American Dream itself in which hard work, innovation, and individual property rights matter. We will continue to pursue enforcement of our payment app solution patents against all infringers.”

AVS Companies unveils new subsidiary, AVS Connect

AVS Connect is a pioneering software and technology company dedicated to changing the cooler market with technology and advanced point-ofsale systems. With an in-house team to handle all service and support, AVS Connect provides a full-service solution to vending and micro market operators. AVS Connect will serve as a replacement for Premium Product Group (PPG), and all CoolBlu Coolers and IceBlu Freezers will now be under the AVS Connect name. The company also announced that Michael Lawlor joined the team as the chief technology officer of AVS Connect.

VendingMarketWatch.com/53081550

Farmer Brothers appoints John Moore as president and chief executive officer

Before being named as the company’s interim CEO, Moore served as Farmer Brother’s head of coffee, where he was responsible for the company’s green coffee procurement, research and development, coffee excellence, roasting and manufacturing, and coffee sustainability initiatives.

VendingMarketWatch.com/53096052

Bigelow Tea achieves WBENC certification

Through the leadership of third-generation president and CEO, Cindi Bigelow, Bigelow Tea’s principles align with the mission of the Women’s Business Enterprise National Council (WBENC) certification, which enables and supports growth and innovation for women-run organizations. Bigelow Tea, founded in 1945 by Ruth Campbell Bigelow, has a history of pioneering excellence in the tea industry.

VendingMarketWatch.com/53095784

Chobani acquires La Colombe for $900 million

Chobani LLC announced it acquired La Colombe, a leader in the U.S. ready-to-drink (RTD) coffee category. Its offering will be complementary to Chobani’s core yogurt portfolio and modern foods innovations, including oat milk and creamer. La Colombe will continue to operate as an independent brand. VendingMarketWatch.com/53080873

Sodexo’s InReach acquires K&R Vending Services

Sodexo’s InReach announced the acquisition of Delaware-based K&R Vending Services. With this

addition, Sodexo’s InReach will serve Philadelphia, southern New Jersey, Delaware and eastern Maryland. K&R was founded in 1978 by Konrad and Richard Stutzmann. VendingMarketWatch.com/53082283

Ram Krishnan appointed CEO of PepsiCo Beverages North America

Krishnan succeeds Kirk Tanner, who retired Feb. 2, as chief executive officer for PepsiCo Beverages North America. Krishnan previously served as chief executive officer of international beverages and chief commercial officer for PepsiCo. In these roles, he oversaw the company’s global concentrate group, franchise operations, global beverage group, SodaStream,

Beyond the Bottle and the global commercial organization.

VendingMarketWatch.com/53083032

Cantaloupe acquires CHEQ

Cantaloupe Inc. announced the completion of its acquisition of Cheq Lifestyle Technology Inc. (CHEQ), a social payments platform. The acquisition expands Cantaloupe’s addressable market into solutions for sport stadiums, entertainment venues, festivals, hospitality, theme parks, full-service and fast-casual restaurants with a comprehensive suite of selfservice solutions. By leveraging mobile ordering, socially connected payments, real-time reporting and remote support, CHEQ empowers customers to streamline venue operations, increase efficiency and boost revenue.

VendingMarketWatch.com/53095525

James Simms to lead DSD sales at Flowers Foods

Flowers Foods named James Simms executive vice president of DSD (direct store distribution) sales operations, a newly created role. Simms joins Flowers from PepsiCo, most recently serving as vice president, PepsiCo customer lead, where he was accountable for strategic growth of PepsiCo’s total portfolio with key retailers.

VendingMarketWatch.com/53083393

Nayax

opens additional US technical

support center

Nayax Ltd., a global commerce enablement, payments and loyalty platform, announced the opening of a new technical support center for the U.S. market. Since the opening, Nayax has immediately seen enhanced support quality, reduced call times and increased customer satisfaction from significantly extending support resources.

VendingMarketWatch.com/53082435

OptConnect

acquires M2M

DataGlobal

OptConnect, a North American leading provider of managed service wireless connectivity, announced it acquired M2M DataGlobal (M2M), a leading IoT organization in Latin America. Together, these businesses create a premier managed wireless connectivity platform of scale, capable of supporting customers across a broad spectrum of industries and solution needs throughout North and South America. The acquisition of M2M marks a significant expansion in global reach, increasing its ability to support global partnerships with ultra-reliable connectivity and support in more countries.

VendingMarketWatch.com/53095907

KDP expands partnership with Lavazza Group

Keurig Dr Pepper announced the expansion of its current partnership with Italian coffee company, Lavazza Group, to include wider sales and distribution of Lavazza K-Cup pods and the introduction of the company’s Canadian brand, Kicking Horse Coffee, to the K-Cup pod format.

VendingMarketWatch.com/53095665

Five Star Food Service rebrands to Five Star Breaktime Solutions

The name change, a first for the company in its 30-year history, is accompanied by a refreshed visual identity including a new company logo, updated brand colors and a new website, www.fivestarbreaktime.com. Five Star Breaktime Solutions has experienced significant growth, transforming into a prominent regional operator in the convenience services industry.

VendingMarketWatch.com/53081958

Sodexo

announces U.S. president of workplace experience for corporate services

Sodexo appointed Amy O’Neil as president, workplace experience for corporate services for the U.S. O’Neil is responsible for strategic and operational leadership and elevating Sodexo’s integrated workplace experience solutions. She has spent more than two decades in the foodservice, technical services, facilities and hospitality sectors.

VendingMarketWatch.com/53083389

Eliza Woolston Sheffield appointed president of De’Longhi

America

De’Longhi, a global leader in the espresso and specialty coffee categories, announced Eliza Woolston Sheffield as the new president of De’Longhi America. Following years of continued expansion and growth for De’Longhi in North America, Sheffield will advance the company’s business in the U.S. and Canada in this newly established role.

VendingMarketWatch.com/53095403

Community

Coffee elects Tom Corley as president, CEO

Louisiana-based Community Coffee announced that Tom Corley has been elected as the incoming president and CEO as part of a planned CEO transition. Corley succeeds David Belanger, who in July of last year, announced his intention to retire after 12 years as CEO and a 25-year career with the company. Corley began his career as a sales representative with General Foods Inc. (now Kraft Heinz), where he worked for over 30 years, including his former role as president of sales and foodservice.

VendingMarketWatch.com/53082178

Caribou Coffee enters license agreement with JDE Peet’s

Under the agreement, JDE Peet’s will manufacture, market and sell Caribou Coffee’s consumer packaged goods and foodservice coffee products outside of its coffeehouses. The transaction, valued at $260 million, also includes the transfer of Caribou Coffee’s roasting operations in Minnesota and its office coffee and foodservice contracts.

VendingMarketWatch.com/53083242

Break Free From Connection Fees

New PayRange BluKey Connect™ offers a shared data connection across multiple machines.

Say goodbye to paying for connectivity on each machine! Add mobile and card payments, plus full VMS to all your machines on a shared data connection. With PayRange and our new BluKey Connect, you have the freedom to bring your own connectivity to a location — whether it’s internet, cellular, ethernet or WiFi. Experience the ease of managing multiple machines with just one connection, eliminating duplicate costs and maximizing your profits.

PayRange Vending Solution:

BluKey™ - Mobile payments for machines

VendSights™ - Complete Vending Management System

BluCard™ - Convenience of a card reader

OEM - PayRange is factory installed on select machines

A business development strategy that is

making a comeback

When implemented properly, direct mail (the kind that requires a postage stamp), can be a powerful strategy for OCS operators.

By Bob Tullio, Contributing Editor

IN JANUARY’S BEST OF OCS COLUMN, WE focused on a business development strategy I presented in our rst Automatic Merchandiser Vending & OCS Nation podcast of 2024. It was all about renewing your focus on the three R’s –retention, referrals and revenue – well-suited for o ce co ee service as well as convenience services operators. In the podcast, I also talked about the resurgence of direct mail, which I used heavily as an operator, usually in the form of postcards.

DOES DIRECT MAIL STILL WORK? e mere mention of direct mail generated some feedback from listeners along the lines of “I haven’t thought about using direct mail for years. Does that still work?”

Marty Cooper – a veteran advertising executive who has held senior marketing, advertising and communications positions for Disneyland, Universal Studios and Playboy Enterprises and served over 200 of his own clients a er years in the corporate world – said that B2B direct mail is working today because it is not as common as it was before social marketing took over. Ongoing postage rate increases have also discouraged the use of direct mail. ese factors all mean less competition in the postal mailbox and a greater chance of being noticed. Patricia Cowan, owner of RainMaker Sales Support, has also become a believer in the power of direct mail. She said her company is providing more direct mail support to her clients than ever before. With so many emails in their inboxes every

day, prospects are tuning out the digital bombardment. “After we send direct mail, we get positive feedback. Some people tell us they haven’t even seen a business card in years. So, when they receive a letter in the mail, it gets their attention,” she said.

DEFINING CHARACTERISTICS FOR A SUCCESSFUL DIRECT MAIL CAMPAIGN

Cooper identified some defining characteristics associated with a successful direct mail campaign. “First of all, you need to understand the wants and needs of the target audience,” he said. “Creativity is also important. Frequency also needs to be considered. For best results, no less than three mailings.”

How many message points should the direct mail piece deliver? Cooper said there should be no more than two. He also put emphasis on another fundamental aspect of direct mail. “Because direct mail is so expensive, you need to have a highly targeted list, rather than a generalized larger list,” Cooper said.

“Arrange a test of the messaging and audience. It’s always a prudent financial decision to test two or even three approaches in a small way before embarking on a whole campaign,” he added. Cooper suggests working with directmail.com or usdatacorporation.com for list acquisition.

DIRECT OR CLEVER?

We have all seen advertising that is incredibly clever, sometimes so clever, it leaves us asking, what is the product being advertised? One question relating to B2B direct mail: Is it better to be direct or clever?

“Sometimes one, sometimes the other,” Cooper said. “It depends on the audience, the product or service, the competition’s strategy and what feels right. The cleverest piece of advertising I ever saw was a billboard for Ford cars. The board showed a stack of hot cakes and the following line: ‘Selling like Fords.’ Just a few words, but clever. It made you think, it made you smile; that’s being clever with a purpose.”

SOME EXAMPLES OF VENDING AND OCS CAMPAIGNS

As a convenience services operator, I used direct mail on a regular basis, often targeting specific business types. In a direct mail piece to car dealerships, the postcard cover read: As a car dealer, when is the last time you received a rebate?

In a direct mail piece to office environments, my most successful campaign featured postcard copy that read: Headache relief for the office manager.

Cooper said it is important to keep an eye on your creative team to make sure they haven’t fallen in love with the look of the advertisement, more than the content itself.

MANDATORY: QR CODES PROMOTE ENGAGEMENT

The use of QR codes on postcards and other direct mail pieces are increasing in popularity. Cooper

noted that using a QR code is a great way to send a message beyond the direct mail piece. It can open the door to a collection of photos, a video file, an audio file, special offers or simply act as a gateway to a key, relevant page on a website. The use of QR codes promotes interactive engagement between the advertiser and the prospect.

Cooper said their use is mandatory today, “unless you are selling burial plots or walk-in bathtubs to senior citizens.” ■

About the author

VendingMarketWatch.com contributing editor and industry consultant Bob Tullio is a content specialist who advises operators in the convenience services industry on how to build a successful business from the ground up and advises suppliers on how to successfully connect with operators. Tullio’s YouTube channel, b2b Perspective, is designed to “elevate your business in two minutes.” Visit www.tulliob2b.com or email bob@tulliob2b.com.

Sparkling water growth dazzles and delights with bubbles on tap

Sparkling water growth dazzles

and delights with bubbles on tap

Our love for ‘fizzy’ drinks goes back a long way, gaining popularity in the 1700’s with the introduction of soda water and its perceived health benefits. The addition of sugar and flavour exploded in the 1800’s with the creation of lemonades and colas. Today’s popularity has come full circle with sparkling water back en vogue, with expected growth to reach $76.95 billion by 2028, driven again by its health benefits.

Our love for ‘fizzy’ drinks goes back a long way, gaining popularity in the 1700’s with the introduction of soda water and its perceived health benefits. The addition of sugar and flavour exploded in the 1800’s with the creation of lemonades and colas. Today’s popularity has come full circle with sparkling water back en vogue, with expected growth to reach $76.95 billion by 2028, driven again by its health benefits.

From convenience stores to restaurants, the selection of brands and flavours provides a dazzling array, with mocktails driving growth out of the salad bar and into the hotel bar. Often packaged in cans or bottles, sparkling water at scale can prove costly, wasteful and ‘takes up space’, but the

From convenience stores to restaurants, the selection of brands and flavours provides a dazzling array, with mocktails driving growth out of the salad bar and into the hotel bar. Often packaged in cans or bottles, sparkling water at scale can prove costly, wasteful and ‘takes up space’, but the

advancement in luxury sparkling water dispensers deliver a sustainable, convenient solution.

advancement in luxury sparkling water dispensers deliver a sustainable, convenient solution.

Growth in sparkling water dispensers continues to dazzle, with manufacturer Borg & Overström reporting 40% growth in their DeepSparkle® sparkling water systems in the last 4 years, as hotels to workplaces look to delight with a more sustainable sparkling water solution. Borg & Overström indicate a parallel trend for integrated taps, having seen of 37% increase in the last year alone, with sparking water options dominating.

Growth in sparkling water dispensers continues to dazzle, with manufacturer Borg & Overström reporting 40% growth in their DeepSparkle® sparkling water systems in the last 4 years, as hotels to workplaces look to delight with a more sustainable sparkling water solution. Borg & Overström indicate a parallel trend for integrated taps, having seen of 37% increase in the last year alone, with sparking water options dominating.

Sophisticated sparkling water solutions such as Borg & Overström’s T2 or T3 tap, integrate into any countertop, allowing easy access to premium, bottleless soda water. Sparkling

Sophisticated sparkling water solutions such as Borg & Overström’s T2 or T3 tap, integrate into any countertop, allowing easy access to premium, bottleless soda water. Sparkling

water may delight but, sparkling water on tap, without waste proves to win over operators, businesses and consumers alike, with growth set to continue.

water may delight but, sparkling water on tap, without waste proves to win over operators, businesses and consumers alike, with growth set to continue.

Automatic Merchandiser recognizes leaders in the vending, micro market and office coffee service industry.

By Molly Rogers, Editor-in-Chief

Automatic Merchandiser is proud to recognize leaders in the vending, micro market and office coffee service industry in our second annual Legends of the Year awards program. Criteria for the awards included: at least 25 years in the industry, job commitment, leadership, industry involvement, achievements and contributions.

These outstanding individuals have shown a dedication to their companies, their customers and the industry, and Automatic Merchandiser is pleased to honor them with this prestigious recognition. Congratulations to the 2024 Legends of the Year award winners.

Connie Baarlaer

Connie Baarlaer has been with Vendors Supply since October 2004 and has 39 years of CPG industry experience. As general manager, she is responsible for the Ohio distribution center of Vendors Supply. Her objective is to remain focused on customer satisfaction, while increasing profitability for all parties. Baarlaer strives to provide excellent customer service by providing what customers want and anticipating what they need. She believes fostering a strong partnership with customers is what makes everyone successful and sets them apart from competitors. Baarlaer is involved with the OAMA, IRPA and KAMC councils because she knows the value they bring to the industry. Her favorite quote is: “Be the reason someone believes in the goodness of others.”

Tom DiNardo

Tom DiNardo has been contributing to the unattended retail business for more than 40 years and is extremely active in several associations, including NAMA and USG. DiNardo served as the chairman of the board at USG for six years and helped grow the organization to over 4,000 members. He acquired Culinary Ventures Vending in 1993, and it is one of the largest independent vending operators in the U.S. with locations in New Jersey, Florida and Maryland. DiNardo truly values the relationships he has built with manufacturers such as Pepsi, Frito and PIM, to name a few. They, along with several other manufacturers, played an integral role in helping DiNardo become a success in the industry. While continuously growing his business and partnership with many of the key snack and beverage companies within this industry, he has also developed his own line of snacks. His passion for the industry is extremely apparent during any conversations together. His family and children, who are part of the organization, exude this same passion, which he has passed on to each of them.

Buddy Duke

Buddy Duke began his career in the vending and foodservice industry in January 1976. Just out of high school, he started as a delivery driver for Servomation (Service America) in Nashville, Tennessee. Then, he became a route driver, utility driver and route manager. In 1983, Duke was promoted to branch manager and moved to Jackson, Tennessee. A few years later, he was promoted to general manager and was responsible for all operations in west Tennessee and Mississippi. In 1993, he left Service America to become the general manager with ABI Food Service (Coca-Cola) in Chattanooga. ABI sold to Five Star Food Service in 1998. At that time, Duke became general manager until 2008. He was then promoted to a regional vice president position covering east Tennessee, north Georgia and north Alabama. Today, he is the senior vice president of operations for Five Star in the West region. His area now covers middle Tennessee, northwest Alabama and north Mississippi. Duke says he has been blessed to have spent so many years in the industry. He contributes his success to surrounding himself with hard-working, dedicated employees, good mentors and a supportive family.

Tommy Elliott II

Tommy Elliott is a second-generation vending operator who grew up in the business. His parents (Tom Sr. and Sandra) founded Tomdra in 1966. After graduating from high school in 1975, he joined the U.S. Army and then worked in the industry selling vending machines and equipment. In 1993, he joined the family business working with his brother and sister. He started the company’s OCS division and later served as operations manager. He is the company’s purchasing manager and oversees the warehouse pre-pick operation. In 2005, he graduated from the NAMA Executive Development Program and has been an advocate for the vending industry, serving four years as president of the Arizona Automatic Merchandising Council. For over 30 years, he has been the first to embrace new technology and better practices to advance the industry.

Mike Ferguson

Mike Ferguson started VMAC Solutions to represent vending and OCS operators sell and exit their business. He started his career in the convenience services industry in 1989 as a sales representative in Houston, Texas. In 1991, Ferguson started his own convenience services company and ran it for 25 years. After later selling the business in two segments, vending first, office coffee later, he started an e-commerce business and later sold it. He joined the corporate world in this industry but saw the need to represent the seller side operators as an intermediary using his industry knowledge both as an owner and operator. Ferguson has earned the Pros to Know award twice and has published many articles for Automatic Merchandiser. Being a former operator for over 25 years has helped Ferguson relate to his clients to get the best deal for selling their business.

Buddy Duke contributes his success to surrounding himself with hard-working, dedicated employees, good mentors and a supportive family.

Mike Frye

Mike Frye entered the vending industry in 1995 as the vending equipment salesperson for Southeastern Vending Services in Charlotte, North Carolina. In 1999, he became the national sales manager for U-Select-It in Des Moines, Iowa. His responsibilities included distribution and national accounts. In 2007, he returned to Southeastern Vending Services as sales manager, overseeing all aspects of SVS equipment distribution and its service center, which provides electronic and OCS refurbishment, among other products and services. As the business has changed over the years, Frye has evolved today to focus on advanced vending equipment technology, smart markets and the micro market segment. He has received numerous awards including 2010 Outstanding Supplier-Shasta Vending, 2011 North Carolina Vending Association Supplier of the Year, 2017 Virginia Automatic Merchandising Association Supplier of the Year and 2018 Virginia Automatic Merchandising Association Supplier of the Year. He currently serves on the Virginia Automatic Merchandising Association board, and he is a past member of the Atlantic Coast Exposition planning committee and NAMA trade show committee.

Robert Gayer

Robert Gayer has been in the coffee world for over 40 years, working for OCS companies and for a coffee roaster as a sales manager and later executive vice president, helping the company become a large private label packer in Florida through a distributor BC Coffee. Gayer was named Supplier of the Year for the Southern Coffee Break Service and was named Automatic Merchandiser’s Supplier of the Year in 1993. He was also involved with the development and success of flavored bags of coffee. Today, Gayer works as a broker dealing with other companies, including National Coffee and Cold Fire Roasters. “Over the years, I’ve witnessed so many changes – K-cups and other singleserve products, then bean-to-cup and other new ideas for OCS to help make them more competitive. I have made so many friends and I truly love what I do.”

Frank Gumma Sr.

Frank Gumma Sr. founded AVS Companies in 1971 as a used vending machine sales house and has since grown the company into a multi-branch, full-service network, serving operators of every sort of coin machine, including gaming. Gumma’s legacy in the convenience services industry is a testament to his vision, hard work and adaptability. Even with Gumma’s retirement from AVS Companies in 2012, his journey from modest beginnings to establishing a thriving and multifaceted company continues to inspire the entire AVS Companies team. With over 50 years in business, there’s no doubt that his dedication to quality and innovation ensures that his legacy continues to thrive in the years ahead.

Jeff Gehman

Jeff Gehman began his career in the industry in 1990 as sales/marketing manager at Ephrata Diamond Spring Water and Diamond Station Coffee. In the next seven years, Diamond Station Coffee served office customers in four states, and a retail DSD network was developed in 1992 to grow to 270 store locations. Gehman credits the Kaloyanides family for helping him learn all aspects of coffee roasting and especially the generosity of the late Michael Kaloyanides and Steve Kaloyanides Sr. In 1997, Gehman joined Consolidated Services Group and partner John Salterio. Salterio and Gehman worked to form a leading foodservice coffee trading company. Consolidated Services Group is focused on representing coffees and related products across the U.S., and the company trains and develop its distributor partners. Gehman has a master’s degree in business/food marketing from Saint Joseph’s University and is a certified coffee specialist.

Lance Hall

Lance Hall is senior vice president of sales for Brokers Unlimited, which has market coverage in eight Southeastern states as well as national support with Premier Sales & Marketing. Hall is from Mobile, Alabama, and attended Alabama Southern College on a basketball scholarship. He has worked in the food industry all his career and joined the vending family in 2002 when Kenny Freeman hired him as an account executive. He was promoted to sales manager in 2012 and to senior vice president of sales in 2022. He has also proudly served on the SEVA Board since 2012. In 2014, Hall completed the NAMA Executive Development Program. He is also a longstanding member of the Alabama Vending Association. What he loves most about the industry is building longterm relationships with his customers.

Paul Ihn

Paul Ihn is vice president of product strategy and day-to-day operations with Naturals2go. Since April 2022, he has been steering Naturals2go, a company renowned for fostering local vending businesses since 1987. Ihn is the linchpin for all product strategy and operational matters, ensuring the company’s offerings are both innovative and operationally sound. Ihn’s previous experience includes vice president of engineering and operations with the Wittern Group, a comprehensive service provider for the vending industry, where he played a pivotal role. He spearheaded strategic deployment, advanced R&D activities, and the verification and validation of a wide array of vending products. He was also engineering vice president with Crane Merchandising Systems (CMS). His role at CMS, which followed the acquisition of Automatic Products Inc. (APi) in 2006, saw him leading all engineering functions. Ihn initially joined APi in 1996 as senior vice president of engineering.

Steve Jamison

Kurk Johnson

Kurk Johnson is vice president of sales with Cantaloupe/Three Square Market. His nearly 50-year journey in the vending industry commenced within his family’s business, Minnesota Valley Vending. Here, he embraced the values of hard work, exceptional customer experiences and comprehensive product knowledge throughout his almost two decades as a business owner. In his 16+ years at Lieberman Companies, Johnson excelled in vending and micro market sales, earning awards such as Salesman of the Year (Lieberman Companies/Fast Corp 2007) and Top Salesperson (Crane GPL 2003). Further recognition followed with Automatic Merchandiser’s Pros to Know award in 2016. Upon joining the team at Three Square Market, now Cantaloupe, Johnson received the Employee of the Year award in 2017. Reflecting on his career, Johnson is amazed by the technological advancements in the vending industry and the meaningful connections forged.

Gary Joyner

Steve Jamison is a regional account executive with Innovative DisplayWorks. He has enjoyed success in the beverage and vending industry for over 30 years, supporting beverage brands, vending operators and distributors as an OEM. He has excelled in building strong customer relationships within the vending industry across the U.S. He’s also been a leader in managing and executing sales plans and driving new business directly with his customer base.

Ben Johnson

Ben Johnson is president of Martin Coffee Company. His journey in the coffee industry began in 1998 when he joined Martin Coffee Company, founded by his grandfather, Fred Martin, in 1957. Since assuming the role of president in 2009, he has demonstrated unwavering commitment to the success and growth of the company. Under his leadership, Martin Coffee Company has become one of the oldest independent coffee roasters and service providers in the southeastern U.S. His astute understanding of market trends and innovative approach to incorporating the latest technology have been instrumental in the constant growth of the business. He has been recognized by the Jacksonville Chamber of Commerce in 2020 as the Small Business Leader of the Year. Johnson’s involvement in multiple boards and his dedication to creating opportunities for working students and adults with intellectual differences set him apart. He has spearheaded the establishment of several coffee shops dedicated to hiring individuals with intellectual differences. These establishments serve as a beacon of inclusivity, providing opportunities for individuals who might not have otherwise had the chance to enter the workforce.

Gary Joyner started Advantage Refreshments in Orlando, Florida, in 1994. Today, the company has customers in seven Southeast states and offers a turnkey business opportunity for entrepreneurs looking to own and operate a financially successful vending business in their hometown. “Vending like numerous industries needs new forward-thinking individuals who are open to unique and out-of-the-box methods of delivering vending products and services to highdollar volume vending locations,” said Joyner. In 2016, Joyner was also a recipient of Automatic Merchandiser’s Pros to Know award.

Bill Lambert

In 1971, Bill Lambert purchased a small company in Memphis, Tennessee, that sold coffee brewing equipment and instant coffee. With determination, Lambert expanded his product line to include office coffee machines and established a complete roasting and manufacturing facility. He imported coffee from South America to Memphis for roasting and packaging, utilizing a route system to distribute products to offices, restaurants and industries. Lamberts Coffee was a first to introduce coffee pods, filter pouch coffee and bean-to-cup systems. What started as a one-person operation in his garage became a successful company with offices in seven locations. Lambert’s son, David, joined the business and became president, while Bill remains active as the CEO of Lamberts Inc.

Micah Larsen

Micah Larsen was introduced to the unattended retail and self-service industry in January 2019 as the national sales manager at OptConnect. He began working with reputable companies such as 365 Retail Markets, Bevi, Kiosk Information Systems, Ice House America, OnQ Solutions, Tiny Mobile Robots and others. In March 2023, Larsen became director of sales for Switch Always On, a disruptor in smart power management at the edge. With over five years of business development and sales experience in the unattended retail and self-service industry, and over 24 years in B2B relationship sales, Larsen brings an immense passion for helping operators, business owners and entrepreneurs increase profits through technology. He has built a reputation for always delivering results, and as director of sales, he’s excited to continue working hard for his clients.

Gary Massey

Dan O’Brien

Gary Massey’s four-decade career began as a summer job with Dr Pepper in Dallas, then became service manager, overseeing all merchandising equipment in the DFW region. Massey was the first employee Sanden hired to spearhead development of U.S. distribution for coolers and vending machines. After Sanden acquired the Vendo Company in 1988, Massey became the product manager integrating MDB interface and developing new vending machines. Transitioning to a sales role, in 2001, he joined Mars Inc. selling Easitrax software to leading operators. His responsibilities expanded to payment systems culminating in his appointment as U.S. sales director. In this role, his team implemented cashless payment solutions that left an indelible mark on the industry. Last year, Massey returned to the industry he loves by joining IDW, selling coolers and using his wealth of experience to help shape the future of the business.

Phil Masters

Phil Masters has shaped the convenience services industry for over five decades. Since earning a marketing degree in 1970, Masters has played a pivotal role at the Wittern Group as a leader in evolving vending solutions. He has spearheaded new stylings for the Wittern Group’s vending equipment line and pioneered corporate partnerships and branding campaigns. Masters is fortunate to be a part of driving the success of several Wittern Group companies and looks forward to celebrating its 100th anniversary in 2031. He is thankful for the opportunities to introduce new programs and provide innovative, tailored solutions to help individuals and companies reach their vending goals and thrive in an evolving market.

Dan O’Brien entered the convenience services industry in 2006 when Steven Burch, president of Burch Food Services, hired him to manage the company’s sales efforts. O’Brien oversees sales, purchasing and warehouse operations, and he directs the unattended retail business segment. O’Brien has held various roles in the Burch organization during his tenure. He managed the office coffee service division, provided leadership to the company’s in-house culinary operations, and led the Burch team in the transition of vending to markets. He implemented LightSpeed into Burch’s warehouse operations, assisted in the development of a data dashboard using PowerBi, and led the conversion of Burch Food Services vend management system to Gimme VMS. In addition to his work with Burch, O’Brien actively works with Gimme’s management and engineering teams in the strategic alignment between products and its partners. O’Brien is a graduate of the University of Texas at Austin.

Billy O’Neal

Billy O’Neal started Lee Dee Vending in 1971 in Alexandria, Louisiana. The company services a 60-mile radius and covers 11 parishes in the central Louisiana area. Lee Dee Vending has been in business for 52 years and became a Canteen franchise in 2003. When O’Neal signed to become a franchise, he brought four other vendors in Louisiana to become franchises as well. O’Neal was instrumental in starting VMOL (Vending Machine Operators of Louisiana), served as secretary/treasurer for 26 years and remains an active member. He was also instrumental in making VMAGS (Vending Machine Association of the Gulf South) a successful endeavor and was a dedicated board member from the 1980s until 2004, during which he served as chairman. He is also an active participant with SEVA (Southeastern Vending Association). O’Neal has been a key figure in building and maintaining VMOL membership and organizing and developing the SEVA convention. He was National Expo program chairman for the NAMA Expo in 2000 held in New Orleans. Today, his family is also involved in running the business.

Aleksandar Radosav

Aleksandar Radosav is president and CTO of Coffea Group Inc. Radosav, a trailblazer in the coffee industry, began his journey in 1996 with VKI/Vend-King and was involved in the creation of the first Avalon coffee machine. His innovative spirit led him to create the first “iCup” just a few years later. He poured his love and knowledge of chemistry and electronics into a “Golden Cup.” In 2007, Radosav established Coffea, leaving an indelible mark on the industry. His passion for perfection culminated in the development of the first groundbreaking vacuum brewing system (Coffea brewer), drawing inspiration from the Vacuum Pot/Syphon principle. Radosav’s credentials include notable affiliations with industry giants. He owns several U.S. patents and has been awarded with many praises and recognitions such as NAMA-CCS, NRA – Kitchen Innovations, SCA, and SBA. His visionary leadership and dedication to excellence have earned him acclaim and respect, solidifying his legacy as a driving force behind advancements in coffee and tea technology. Radosav’s unwavering commitment to pushing the boundaries of coffee innovation has left an enduring impact on the industry, showcasing “The Art, Science & Technology of Brewing Spectacular Coffee.”

Jim Roberson

Jim Roberson started his career in the vending industry in 1972 as a route salesman at Pet Bakeries. Soon after, he was transferred to Food Vendors Supply and was promoted to sales manager within five months. Since then, he has served the industry in multiple ways. Roberson has been a salesman with AVA Supply in Charlotte, a food broker for Weathers Marketing, a salesman for VSA and finally as a food broker with Brokers Unlimited since they opened in 1994. Since his start in the industry over 50 years ago, he has served on the ACE Planning Committee and on the NCVA Board. In 2001 and again in 2009, he was awarded the North Carolina Vending Association Supplier of the Year. In 2018, he was awarded the ACE Lifetime Achievement Award. At the young age of 81, Roberson is still calling on his loyal customers in North Carolina.

At the young age of 81, Jim Roberson is still calling on his loyal customers in North Carolina.

Mike Weisser

In 1996, Mike Weisser began his career in the convenience services industry with the Vendo Company of Fresno, California. Weisser started as a customer service representative and became a technical service manager after just one year. In 2000, he accepted a promotion as Vendo’s regional sales manager of the Midwest, and in 2008, now SandenVendo America, asked that he relocate his family to the newly opened headquarters in Dallas as its director of business development. He had several roles of increasing responsibility until becoming its president and CEO in 2017. In 2023, Weisser left SandenVendo to join Innovative DisplayWorks (IDW) as its new vice president of business development where he creates and deploys the company’s unattended retail strategy. Weisser says the success he’s enjoyed over the years is because of his wife, his customers and the coworkers he surrounded himself with.

Honorable Mentions

Louis A. Kershbaumer, Vending Machine Sales

Ken Seymour, BE’S Refreshments

COFFEE, TEA & WATER SOLUTIONS

OConversations and education sessions provided valuable takeaways.

By Bob Tullio, Contributing Editor

NE BENEFIT OF NAMA’S annual Co ee, Tea and Water Show (CTW) is the willingness of operators to help one another by sharing trends and ideas that have an impact on

the industry, through conversations and the educational seminars. e 2023 show, held November 6-7 in Indianapolis, was no exception, and there was plenty of valuable takeaways. Here are three compelling lessons from the show.

LESSON #1: SUSTAINABILITY EFFORTS CAN ENGAGE YOUR OWN WORKFORCE, CLIENTS AND CUSTOMERS. In the CTW education session, “Approaching Sustainability,” Rich “Raz” Razgaitis, CEO and co-founder of FloWater, made a strong case for operators to implement a strategic sustainability program. “It will help the environment and your bottom-line,” he said.

Razgaitis said that customers, employees and investors are increasingly demanding strong ESG (environmental, social and governance) policies. “It’s time to consider not just how to create sustainability plans that have a meaningful impact but also how those plans can be a nancial net positive for your business,” he added.

Razgaitis outlined how a business can bene t from sustainable practices:

• Reducing the raw materials used to manufacture your products will lower your costs.

• Sustainability can become a crucial marketing di erentiator from competitors with similar products or services.

Vinne, bsd studio / Shutterstock

• Build a strong workforce and improve employee retention.

65% of employees surveyed by Unilay said they would be more likely to work for a company with sustainable practices.

He also explored strategies on how to sell sustainability:

• See sustainability as an amenity, not a penalty. It’s a bene t for your customers and employees.

• Don’t sell on sustainability; sell on innovation.

• Don’t sell FAB (features, advantages and bene ts). Instead, use meaningful outcomes and data.

• Create a fantastic anchor product, and then leverage the halo e ect around it.

LESSON #2: INNOVATION CREATES OPPORTUNITY FOR OPERATORS.

In an interview at CTW, Josh Rosenberg, president and chief revenue o cer, Automated Retail Technologies, was passionate about taking steps to keep employees in the workplace, consuming products that are being sold by operators.

“We have to continue to look at the co ee service landscape. e opportunity for us is to o er innovation,” said Rosenberg. “We know they will buy co ee and tea from us, but the consumer is still more likely to go o site to get their espresso and their specialty co ee drink. In this room, we have the equipment that will allow you to bring those products to their door. ere is so much value prop to having the high-end co ee amenity on site.”

Rosenberg added that the OCS industry’s solution is a perfect t for o ces that don’t want delivery people coming into the o ce and don’t want their employees going o site.

Creating the right space

Steve Orlando, co-founder of Fixturelite, said operators need to focus on the breakroom as part of the innovation concept. “We need to make the OCS amenity

an experience for our customers, with quality and presentation,” said Orlando. “ at goes hand-in-hand with the innovative solutions we need to o er. If you want employees to stay in the workplace enjoying

your products, you need to create a space that employees want to spend time in.”

Bean-to-cup brewers are leading the way when it comes to OCS innovation, generating both customer satisfaction and operator revenue. In the CTW education session, “Demystifying and Maximizing Bean-to-Cup ROI,” John Stavros, territory manager for Evoca Group North America, reminded operators that bean-to-cup is an excellent opportunity to create strong customer relationships.

“In the right accounts, beanto-cup brewers have the highest potential to match client needs,” Stavros said. “From the modular nature of the equipment to the everchanging interface and experience, providing coffee from whole bean allows operators to control the taste and branding of their services while getting the most opportunity to control their costs and formulate a strategy for success.”

LESSON #3: OPERATORS NEED TO BE PROACTIVE AND CAPITALIZE ON THE WIDE RANGE OF OPPORTUNITIES.

While innovation is critical, it takes a proactive approach by operators to capitalize on the opportunities in the workplace that are often overlooked. In the CTW education session, “Cold Brew: Hot Opportunities,” Bill Kirchoff, food service manager at Distant Lands Coffee, and Mike Hoeft, VP of sales at Bunn, talked about cold brew coffee –an opportunity for revenue that many operators shy away from.

They pointed to the fact that cold brew coffee is one of the hottest trends in the U.S. coffee market. According to a 2022

report, the total size of this market stood at around $166 million in 2017, and by 2025, this figure is forecast by Statista to increase to around $944 million and could go as high as over $1.37 billion, according to research firm Technavio.

In their presentation, they cited reasons why cold brew is easy to sell. It increases productivity (keeping employees in house), it is viewed as a positive amenity so it attracts and retains talent, it is often seen as a healthier beverage than others, and many consumers like the taste.

Don’t overlook obvious revenue In a convention floor interview, industry consultant Orrin Huebner said cold brew is just one of many revenue opportunities that operators need to embrace. He said that operators especially need to look at the water opportunity, with many quality products available, like the sleek point-of-use equipment from Borg & Overström and others. Huebner also believes that operators

are selling themselves short when it comes to price increases and not charging enough or anything at all to perform certain services.

“Don’t overlook the obvious revenue that is available,” Huebner said. “Nobody walks into your house today to perform a service for less than $80-$125. Yet, operators are walking into locations and changing the filters for free. We should be looking at quarterly filter changes and telling the story to the customer that we are here for you, and part of that is about good water and clean equipment, because if you do not have high-quality water and clean water lines, it leads to potential health concerns. Ice machines should be flushed twice a year for a fee. Kombucha should be flushed out every month – there is bacteria buildup. We just aren’t doing it enough. We can charge $85 to flush a line. Your cost is minimal, and if you schedule it correctly, you can change filters, service an ice machine and flush lines – that means three services in one trip, which really cuts your employee costs. It all falls to the bottom-line. It’s incremental profit at that point.”

Huebner also said that operators are too focused on adding new accounts instead of looking at their existing accounts. “There are so many options from water machines to ice machines,” he said. “The best thing operators can do today is look at their accounts and ask, what add-ons are there? You just have to look for them and embrace them. If you can pay off your water and ice machines in 12 to 14 months, after that, it becomes an annuity that just keeps paying off over and over, especially when service fees become part of the equation.”

Inventory control management

Technology solutions can help manage inventory – a vital piece of business for any vending, OCS or micro market operation.

By Molly Rogers, Editor-in-Chief

WHY IS INVENTORY

management important?

Staci ornton Ryan –a second-generation operator, industry consultant and founder of Convenience Brigade –said it can be summed up in one word, consolidation. “Gone are the days that it is necessary to log into multiple VMS platforms.”

Convenience Brigade assists operators with setting up Cantaloupe’s technology solutions: Seed Delivery, Seed Market and Seed Warehouse. “Getting these o the ground can be an uphill task for operators. Many operators simply don’t have the time it takes to get these new systems fully functional,” Ryan said. “We o er an A-Z plan for implementation. is allows us to do the heavy li ing, while the operator functions in supporting and guidance roles.”

Cantaloupe makes it possible for all lines of business to operate in a centralized location. Seed Delivery, Seed Market and Seed Warehouse combine with Seed O ce to produce a one-stop shop for inventory management. Seed Delivery handles OCS and pantry orders and invoicing. Seed Market brings in all the various market VMS systems together in the Seed database. ere is also the traditional vending VMS in Seed.

ese work together with Seed Warehouse to track what’s going out of the warehouse as well as what’s coming in – all in real time.

Ryan said that Seed Warehouse can sometimes be an underutilized tool. It tracks inventory and can even create orders. Taking weekly and monthly inventories is easy, and once the initial setup is complete, maintaining Seed Warehouse is also simple.

“With supply chain issues improving, but not completely back to normal, it’s a tremendous asset for operators to be able to reliably see what’s on hand in the warehouse with a few simple clicks in Seed,” Ryan said. “Knowing how much to order so you don’t run out of product or overstock your warehouse is critical to minimizing problems in the eld and a company’s cash ow. Smart so ware like the warehouse functionality in Cantaloupe can help to make that the norm.”

She also explained that it is important to stay on top of costs as soon as they increase to help maintain margins in your operation. “Tired of monthly or quarterly updating your unit costs for 1,000+ items? Utilizing the purchase and receive functionality in Cantaloupe will update unit costs automatically every time you receive/purchase

product. Cantaloupe uses a unique method of calculating unit cost that mirrors FIFO costing accurately,” Ryan said.

e Cantaloupe platform also manages pre-pick calculating and interfaces seamlessly with an operator’s pick platform. It manages the ow of products leaving and coming back to the warehouse for daily operations. Ryan said, “Properly implemented, this is a game-changer. With the adoption of pre-picking for routes, the need to monitor route truck inventory variances has virtually become obsolete.”

CUSTOMIZING SOLUTIONS

Nayax, a global commerce enablement, payments and loyalty platform, also o ers inventory management solutions – allowing operators to run their day-to-day operations in real time. Pete Carmain, vice president of national accounts, said, “Anything in ‘real time’ is e cient, and that is the goal of any VMS. We believe in inventory management as a baseline for any management system. So much so that we have it built into our backend system, Nayax Core, as well as our enterprise VMS solution, VendSys.”

Nayax works with helping operators grow their businesses efficiently, and one of the first questions they ask is, how do you control inventory? “That question alone will guide us in customizing a solution for that operator,” Carmain explained. “Inventory management is both macro and micro. It allows operators to drill down to the individual item or all items’ categories. That’s a powerful tool when you think of knowing exactly what products are selling, not selling, and when/where to order more, so there are no gaps in service.”

SOLVING INVENTORY CONTROL

Another solutions provider, Atlanta-based Gimme, can help solve inventory control in several specific ways. The first is with pictures, explained co-founder and CEO Evan Jarecki. “Merchandisers are required to take pictures at every micro market and vending service. It only takes a few seconds to capture the images, and the accountability gains are huge. Supervisors and managers can review these images to ensure stockouts are filled,

planogram compliance and product organization.”

And the second way is product history log. “Most operators want to follow the life cycle of a product, or product ‘flow,’ from the time it hits their warehouse to the time it sells to a consumer,” Jarecki said. “With Gimme, warehouse managers can view their upcoming orders, on-hand stock levels, pick orders and ultimately confirm these pick orders were delivered to the micro market, vending machine or office coffee/ pantry location.”

The third solution is what Gimme calls “better-than-dynamic” scheduling – a manual daily scheduling tool that allows the operator to add/remove stops from a route schedule based on key metrics. Some of those include current fill percentage, number of stockouts, estimated sales and the estimated pick order. “The user gets a quick glimpse at current inventory levels and the upcoming pick order and can make an informed decision on whether or not to keep or remove this stop from the schedule,” Jarecki said. “This is a tool primarily used to cut down on labor and increase cash collects; however, it can also help

avoid picking product unnecessarily for stops that can wait a few more days to be restocked.”

STREAMLINING OPERATIONS

365 Retail Markets also offers a VMS solution to streamline operations, cut down on waste and better monitor inventory. The VMS helps operators leverage tools for warehouse management, product spoilage and routing. Inventory costs can be cut by ordering precise amounts of product and tracking every product as it moves from warehouse, to truck, to machine.

365’s LightSpeed warehouse solutions, including its pick-to-light system, provide tools for operators to run an efficient operation, reduce labor costs and reduce mis-pick. LightSpeed Level is a software solution that can also help operators boost warehouse efficiency. Level helps consolidate information from around the warehouse to understand and optimize warehouse inventory and purchasing needs. With optimized inventory, operators can see on-hand product quantities at any time. It also uses sales data and current inventory levels to suggest optimal purchasing. ■

100% Dedicated to Convenience Services.

The NAMA Show offers tailored insights, innovative technology and equipment, new products and niche networking opportunities designed to advance your business and meet consumer demand.

Brewing Up Success

In a competitive Oregon market, Portland-based World Cup Co ee thrives with an emphasis on service, strategic partnerships and continuous innovation.

By Adrienne Klein, Contributing Editor

THE PACIFIC NORTHWEST IS AN AREA OF the U.S. known for its quality co ee. In a market that is co ee-centric, it takes a lot for an o ce co ee service (OCS) business to stand out, yet for nearly four decades, World Cup Co ee, based in Portland, Oregon, has been doing just that. Led by Dan Welch, World Cup Co ee has landed a name and a reputation for itself as a company that provides both unbeatable service and an incredibly good cup of co ee. Since 1985, World Cup Co ee has also proven that it’s not afraid of a challenge or change, from starting its

own roasting operation in 1993 to opening its rst micro markets in 2022. World Cup Co ee continues to thrive through its strategic industry partnerships, customerfocused innovations and service-centered values.

A FAMILY BUSINESS

e history of World Cup Co ee starts with Dan Welch’s dad, Don. With prior experience in the vending and OCS industry, Don purchased Diversi ed Refreshment Systems (now known as World Cup Co ee) in 1985. e company began with one OCS

The World Cup Coffee team, led by Dan Welch, includes experienced service technicians, office staff and account reps with a continued focus on service that has lasted throughout the company’s 40+ years.

All images

route, some vending machines and blood pressure machines. At the age of 15, Dan began doing odd jobs around the business for his dad, and when he could drive, he became a route driver. “It was good for me because I could do it after school, and that continued as I was going through college as a business student,” said Dan.

Putting his business knowledge to use, Dan started doing the books for his dad and learning the business side of the operation as well. “We were doing the pegboard method, and I would do accounts receivable and payable. It really gets you to understand the numbers of the industry.”

For many years, the company operated as a three-man team: Don as administrator, Dan as a route driver and Steve Williams as a service technician, albeit they wore many other hats, too.

World Cup Coffee

Founded: 1985

Headquarters: Portland, Oregon

Website: worldcupcoffee.com

Number of routes: 7

Number of employees: 16

Number of accounts: 500

“Steve was an instrumental part of our success,” said Dan. “He was a lifetime employee who served at the company from its start up until his retirement a year ago. When he retired, it was a big loss for the company.”

Steve shared his knowledge of troubleshooting and fixing

Number of coffee machines: 2000

Number of micro markets: 3

Technology/equipment providers: De Jong Duke, Borg & Overström, Oasis, Bunn, Curtis, Fetco, Keurig, 365 Retail Markets, Genesis Décor, Panoptyc, OptConnect

equipment with Dan. “A lot of what I learned from my dad and Steve about the service side of things is just try. That carries over into a lot of things. If you just try and if you’re not afraid to turn a screwdriver, you’re probably going to get it right,” he said. “Just make sure you turn the water off and unplug the machine.

From left to right, GM Mark Wilkerson, Dan Welch, OM Kevin Dibble and admin assistant Jessica Seo lead the micro market team.

VENDING AND MICRO MARKET

(Right:) Don Welch and Steve Williams erecting the sign at their first coffee shop in 1999.

(Far right:) In the early days, Don Welch and Steve Williams working the local trade shows for business while Dan serviced customers out in the field.

Everybody causes a ood and everybody gets electrocuted at one point in their career,” he added with a laugh.

From the very beginning, service has been one of the top values at the company and one thing Dan has striven to continue since taking the helm in 2012. In fact, he aims to meet service requests within an hour. “Service is everything,” he said.

Of the 16 employees now at World Cup Co ee, 25% are service technicians. e company operates six routes, going on seven. “We just got an account in Bend, 160 miles away, that is broadening our reach and service capabilities,” said Dan. “We have always prided ourselves

with our service capabilities, so we have expectations for how we respond to maintenance requests, and this is a new challenge that we are welcoming.”

e team’s deep commitment to service stems from the desire to meet customers’ needs and wants and to sell a quality product. And as they learned early on, being in such a competitive market, they weren’t afraid to try new things and pivot if something wasn’t working. “Back in the day, we did vending,” Dan said. “But [vending] was very challenging, and we got away from that, gladly.” In 1990, they decided they wanted to focus solely on OCS. “And we wanted to do it better than anybody else,” he added.

INNOVATION KEEPS THE WHEELS TURNING

In order to provide the best cup of co ee to their customers, Don, Dan and Steve decided to begin roasting their own co ee in the early 1990s. “We were always thinking of ways we could improve the company,” said Dan. “People were demanding higher quality co ee, and it was a trend we realized was not going away. Good co ee and good service breed more business, and that’s what we wanted to continue.”

World Cup’s coffee retail stores boost OCS exposure

It’s not often that an OCS operator also owns brick-and-mortar retail stores, but that was the case when World Cup Coffee opened its first coffee shop in 1999. Dan went through espresso training, and they eventually ended up with four retail locations over 20 years.

“Retail really helped us get a public face to the coffee,” said Dan. “We got good local press for the quality of our coffee, and folks in the office would recognize our coffee because they had visited one of our retail locations. It also helped because people in Portland really like to support local.”

ey attended the 1995 Specialty Co ee Association of America trade show and purchased roasting equipment. Dan began going to classes to learn how to roast and buy green co ee. Soon, they were fashioning their own blends. Today, their co ee is roasted fresh by Chris Phillips, their dedicated roaster, the day before it’s delivered to customers. e World Cup Blend and Vienna dark roast are their best-selling co ees.

However, the COVID-19 pandemic collapsed World Cup Coffee’s retail business, like many others. Rather than rebuild, Dan and his team focused their efforts and attention on areas in which he has seen better growth. “Retail operations have changed where you really have to have a food element, and I don’t want to be a cafe or a sit-down restaurant,” he said. “We are doing so well with OCS – better than ever – and with the growth of micro markets and pantry business there really isn’t an incentive to move back to retail.”

Roasting its own beans certainly is one big way World Cup Co ee stands out among the competition. “If you’re a roaster, you can walk the talk,” said Dan.

But it’s not just the high-quality roast that resonates with customers – it’s World Cup Co ee’s knowledge on the best ways to serve co ee, too. When airpot brewers rst came out, Dan noticed a functional change in

Nominations are now open for Automatic Merchandiser’s third annual awards recognizing the most influential women in the convenience services industry.

Women continue to gain ground as business owners, at the c-suite level, and other influential positions. The advancements as well as benefits of female leaders are especially evident in the vending, micro market and coffee service industry.

Nominate yourself or someone you know who is deserving of this award!

Deadline: April 5, 2024

Winners will be featured in the June/July 2024 issue.

Rules and guidelines

• This award spotlights individual achievements by women who have made a positive impact on the convenience services industry and/or a company/ organization for which they work or own.

• Nominations can be made by the nominee themself or someone else. Multiple nominations for the same person are allowed.

• Nominations from all industry segments and allied markets are welcome.

These include operators, product and equipment distributors, product brokers, machine manufacturers, technology and payment system providers, CPG companies, and trade associations, among others.

• Nominations are allowed for previous award winners and will be considered with an updated nomination entry.

• Submitting party(ies) acknowledge that all information presented is truthful to the best of their knowledge.

• Submission forms must be completed. Incomplete and/or incorrect submissions cannot be considered.

brewing that would make a better cup of coffee, so World Cup was one of the first companies to adopt airpot brewers in the Portland market. “We bought the first Reynolds airpot brewers off their manufacturing line, which is fun to think about, looking back,” said Dan.

They kept looking forward to even better ways to get a cup of

quality coffee. “When National Vendors made a single-cup brewer called the Genesis, we got that because customers could make cappuccinos, lattes and mochas, which they loved.”

The company then began working with de Jong Duke, installing its Virtu machines. “The functionality [of the machines]

was amazing, and the reliability is fantastic,” said Dan. “The single-cup business has been fabulous for us, in terms of how much we’ve gotten out there. I didn’t think it would be that big.”

Some of the company’s best success stories have been placement in lobbies of apartment complexes. “It is something where if one apartment gets a Virtu, another one wants one. In terms of hospitality, it’s a small thing for their P&L.”

Dan stresses the importance of properly training as many of the onsite employees as possible to keep the equipment filled and cleaned daily. “If you don’t train onsite employees, you’re going to have too many service calls,” he advised.

PARTNERSHIPS AID DIVERSIFICATION

After COVID shut down the company’s retail stores (see sidebar on page 34) and its gross revenues plummeted 90-95%, Dan knew he

A supportive and diverse team of account reps work together to keep accounts clean, full and working. Every employee is instrumental to the success of World Cup.

Having a showroom with equipment helps World Cup’s potential clients touch and taste the quality of their equipment and products.

had to look at other ways to expand the business he already had. The team looked at locations they were servicing with OCS and how they could expand their footprint with existing accounts. They started pantry service and micro markets with a sense of urgency and focused on water filtration and carbonated water offerings.

“We are seeing sparkling water become a desirable thing to have in the office environment, as well as touchless dispensing,” said Dan. To provide these offerings to consumers, World Cup Coffee has begun partnering with Borg & Overström. “I think their equipment is beautiful, and their functionality is fantastic. They have a willingness to make it work for us,” he said. “Some companies don’t pay us much attention because we are considered a ‘small’ operation, but Borg & Overström doesn’t treat us that way.”

Strategic partnerships such as this is one thing Dan points to when he discusses the company’s success throughout the years. He notes that his partnership with 365 Retail Markets is a large reason his

micro market implementation has been successful.

World Cup Coffee opened its first micro market in 2022 after one of their OCS clients lost its micro market provider. “They asked if we could do it and that’s when we knew it was time to enter micro markets,” he said.

Although he had known about micro markets for about a decade before making the leap, Dan never felt like the time was right to open one until after the economy began improving after COVID-19.

“There was some fear and trepidation from some in the company as we got

Service manager

Steve Dutt keeps over 2,000 pieces of equipment working out in the field, including a full-service shop with backup equipment ready to go.

started, and that’s normal, but that’s when our general manager Mark Wilkerson and I said, ‘We’re doing this, and it’s going to be a success. This is who we are partnering with, and it’s going to go well because we have the same goal in mind.’”

World Cup Coffee began working with 365 Retail Markets after meeting at the NAMA Show. “They were very supportive right away, and they desired us to have success, and that came across when talking with them,” Dan said.

World Cup Coffee currently operates three micro markets, with plans on adding more. The biggest

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challenge faced so far has been the learning curve for the employees. “Our operations manager Kevin did a fabulous job organizing the current markets so that it’s affordable for the clients and profitable for us,” said Dan. “The biggest challenge is that we’re learning new procedures and backend software. We haven’t mastered micro markets yet, but we’ll get there. Jessica Seo in our office is making fabulous strides in programming and understanding the back end of the software.”

So far, Dan has been extremely happy with his partnership with 365. “They are very willing to help us get our feet off the ground and educate us,” he said.

Dan is cautiously optimistic with his current micro market success. “I don’t want to make too many mistakes,

but I know it’s going to take a couple of years to get ourselves in a good rhythm.” To curb potential loss, World Cup plans to add Panoptyc security systems, which combine machine learning and data analysis to catch theft.

“Along with Panoptyc, we have been talking with G & J Marketing and Sales on quality products and merchandising in a market. We’ll be attending the NAMA Show in May, and we have a meeting set with Translucent to get better education on how they can assist with market operations and design,” Dan said.

After leaving vending machines so long ago, Dan was also hesitant to get back into handling food again. When it comes to fresh foods, he once again looks to strategic partnerships for success. At first, when the company

To provide the best cup of coffee to their customers, Don, Dan and Steve began roasting their own coffee in the early 1990s. Today, World Cup Coffee’s dedicated roaster, Chris Phillips, checks every roast for the perfect roast level, and coffee is roasted fresh the day before it’s delivered to customers.

began offering fresh sandwiches in markets, he realized the presentation wasn’t up to par with his expectations.

“Plastic-wrapped sandwiches with a sticker might sell, but it doesn’t look good,” he said. “So, we realized we had to improve our product.” They began working with a local deli that has better presentation. Despite a higher price point, Dan believes it will pay off and is glad the local company is willing to work with World Cup as they grow their micro market business.

“Our presentation and diversity of our product will be some of our growing pains before we get good at micro markets,” he said. Dan’s advice to other operators hesitant to get into micro markets is to start getting educated. “There’s so much information out there. Start small and spend 15 minutes listening to the numerous podcasts available, like Automatic Merchandiser’s Vending & OCS Nation podcast hosted by Bob Tullio. You can also attend industry trade shows and education sessions.”

EXPERIENCE IS AN ASSET

Experience in the industry is one of World Cup Coffee’s biggest assets going forward. “I’ve learned along the way that mistakes will happen,” said Dan. “Owning a business is a stressful thing. We’re going to get accounts, and we’re going to lose accounts. Accounts are sometimes a revolving door, and we can’t control everything. Mistakes are opportunities to further succeed.”

Since the early days of the business, Dan has tried to differentiate the company from those operators focused solely on price. “We have defined ourselves by service, by being there within an hour and by keeping the equipment clean, full and working,” he said. “We have been doing the things that were not expected as an OCS company.”

This focus on service has lasted throughout the company’s 40 years. Although World Cup Coffee has innovated and diversified offerings, everything they do comes back to service. “If you’re not meeting and exceeding your customers’ needs, then you’re just another player in the game,” Dan concluded. ■

Jo Ann Lichtman

Manufacturer’s Representative for Vending, OCS and Micro-Market Products

2019 Forest Creek, Libertyville, Illinois 60048

(847) 680-4790 • 800-801-7453

(847) 680-4796 FAX

Email: joann@lichtmanandassociates.com

PRODUCT FOCUS

[ OFFICE COFFEE SERVICE ]

Marco ColdBRU

ColdBRU is a revolutionary coffee concentrate brewer that allows the user to enjoy a delicious cold brew in less than 3 hours. No pre-wetting or stirring is needed. Just add water and coffee grinds, choose the output volume and strength, and ColdBRU does the rest. ColdBRU extracts more coffee from the same amount of grinds, saving money and reducing waste. ColdBRU is compatible with the Pour’D Concentrate Dispense System for easy serving.

Marco Beverage Systems

JuLi beverage dispensing unit

The all-in-one JuLi beverage dispensing unit is an end-to-end healthy beverage solution. Serving up customizable drinks through the touch of a button, users enjoy sparkling or still vitamin-infused alkaline water, over 29 flavor options, cold brew, iced tea, lemonade and functional shots. The compact unit with self-contained chiller saves valuable space and reduces the need of plastic bottles.

Smart Soda

Little Joe pod brewer

Little Joe is the newest pod brewer from Newco. Its small footprint and dual pourover or automatic modes make it ideal for office coffee locations that other brewers can’t accommodate. Brewing is easy with a full-color touchscreen offering drink selection, customization, and programming. Little Joe’s dropdown drive tray fits everything from travel mugs to espresso cups. It pioneers an auto/manual ejection system, depositing used pods in a 30-pod internal waste bin. Little Joe can also be calibrated for each pod’s unique flavor.

Newco

Cafection Symbol

The modular concept of the Symbol allows it to transform its composition to adapt to any user’s space and needs. The machine’s layout can be configured with up to two bean hoppers, two soluble ingredients and one ground coffee canister. A dedicated burr grinder for each hopper and coffee crafted with the renowned Platinum brew group guarantee the highquality taste signature of a Cafection brewer along with a high output of up to 60 drinks per hour. Users can even retrofit units in the field to easily adapt to their new locations.

Evoca North America

BEVERAGES ]

Chu-Chi juice

Push Beverages’ new line of Chu-Chi juices were formulated to help retailers and operators serve the growing Latin American community with familiar flavors they grew up drinking. The Chu-Chi 16.9oz cans feature five flavors: Mango, Passion Fruit, Pineapple, Watermelon and 100% coconut water. All items are not-from-concentrate, no high-fructose corn syrup and taste like fresh fruit. Push Beverages is developing a Pink Guava and Soursop (Guanabana) expected late in 2024.

Push Beverages Corporation

Rowdy Mermaid good mood soda

Rowdy Mermaid good mood soda is a refreshing functional soda designed to elevate mood and promote relaxation. The effervescent drink is infused with 200mg of ashwagandha, a powerful adaptogen known for its stress-reducing properties. It is caffeine-free and contains 4-5 grams of sugar per serving, making it a guilt-free indulgence that also supports mental well-being. Experience the nostalgia of soda while elevating spirits and good mood.

Rowdy Mermaid

Wildwonder’s Pineapple Paradise sparkling prebiotic + probiotic beverage

Wildwonder’s Pineapple Paradise is a mix of pineapple and tangerine juice, Szechuan peppercorn, and cinnamon, combining the founder’s Chinese heritage with the vibrant taste of a California produce stand. This effervescent beverage is a lightly carbonated remedy for gut and immune health, containing 1 billion live probiotics, 5 grams of prebiotic fiber, 6 grams of sugar, and 35 calories. Containing both prebiotics and probiotics, wildwonder is a healthy alternative to tropical sodas, bringing the benefits of Kombucha without the vinegary taste. It’s a staple at health-conscious Silicon Valley offices.

Wildwonder

C4 Ultimate Energy

C4 Ultimate Energy is formulated with caffeine, TeaCrine and Dynamine for a tri-stim energy experience and packed with 300mg of caffeine, with zero sugar or artificial dyes. C4 Ultimate Energy comes in Arctic Snow Cone, Fruit Punch, and Orange Cream flavors, as well as collaborative flavors with the WWE (Berry Powerbomb and Ruthless Raspberry) and Wounded Warrior Project (Freedom Ice).

Nutrabolt

SOCIAL HUBS

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Five Star Food Service celebrates milestone with the opening of 4,000th #micromarket. bit.ly/3NWT9X2

Everest Ice and Water Systems launches new, efficient ice and water #vending machine bit.ly/3vJ7aRJ

Franke Coffee Systems Americas opens new state-of-the-art showroom in Tennessee. #officecoffee #coffeeequipment bit.ly/3S1prBo

Morrison Healthcare announced Candler Hospital in Georgia to offer Amazon’s Just Walk Out technology with employee badge pay. bit.ly/48DqIFV #micromarket #technology #foodservice

Exploring the role of refrigeration in ready-toeat meals in micro markets. Ready-to-eat meals, unlike shelf-stable products, require controlled temperatures to maintain their quality, taste and safety, necessitating robust, reliable refrigeration solutions. #micromarket bit.ly/3vRTh3U

Load up on all the classic snacks and trending flavors your customers crave. Offering a variety of well-known brands, Hormel Foods Convenience is the perfect partner for stocking your automated merchandising spaces.