Sales climbed in 2023, with a 25% increase over the previous year’s revenue.
Success Story
Prime in Pantry
Learn how Marché tackled New York City’s competitive market with its niche, concierge pantry service. A relentless focus on customer service, from product selection to breakroom design, sets this young company apart.
Features
OCS Update
Follow up: The difference maker that defines elite sales pros
While it is impossible to teach followup, a competent sales manager can put procedures in place to ensure that sales follow-up happens.
2024 40 Under 40 Awards
Automatic Merchandiser recognizes young leaders in the vending, micro market and o ce co ee service industry.
Coffee trends center on delivering the experiences that customers seek
As co ee service operators deal with lowered employee head counts, they are increasingly willing to add new services and add requested products to increase sales.
On the cover: Brandon Mandile (left) and Billy Mandile (right), co-founders of Marché
Visit vendingmarketwatch.com for more on hot topics in vending, micro markets and office coffee service
Interviews, Expert Insight & Tips
OCS Operator
Podcast: Pour on OCS sales effort and sweeten your pot
Bob Tullio
SINCE THE NAMA SHOW, WHILE SOME OPERATORS have been discouraged and are turning away from coffee service, Bob Tullio beats a constant drum, urging coffee service operators to ramp up their sales efforts. Selling OCS is the easiest way to get in front of a decision-maker. That’s reason enough to ramp up your office coffee service efforts. vendingmarketwatch.com/55134178
Management | Your convenience services company looks great, but is it a premium acquisition?
For operators, certain defining characteristics make a convenience services company a premium acquisition that will generate extreme interest from buyers and, ultimately, a higher selling price. vendingmarketwatch.com/55134277
Beverage | PepsiCo opens new distribution center in Tennessee
A new warehouse and distribution center opened by PepsiCo Beverages North America is the company’s largest in the Southeast and second largest nationwide. vendingmarketwatch.com/55134090
Office Coffee Service
Engaging with operators and finding solutions, Mickal
McMath loves his work
Fast-moving technology in the convenience services industry can be challenging for operators. Empathy and knowledge are a strong combination for this former operator, now a supplier. vendingmarketwatch.com/55132889
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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
September webinars on OCS and vending
TWO NEW WEBINARS IN SEPTEMBER OFFER YOU TWO chances to join us live, hear from your peers and industry stakeholders, and have your questions answered.
On September 17 at 1 p.m. ET, Bob Tullio will present findings from the Automatic Merchandiser’s State of the OCS Industry Report, sharing insights gleaned and emerging trends shaping the future of office coffee service.
Operators from around the country shared their take the OCS business in 2023. Turn to page 28 for a summary of those findings but expect to learn much more from Bob and our panel during our State of the OCS Industry webinar. Four seasoned operators will share their take on 2023 and offer their perspectives on the role of OCS in convenience services. Hear from Judson Kleinman, the founder and CEO of Corporate Essentials in New York, who has more than 28 years of experience; Arthur Siller of Evergreen Refreshments, who is the senior VP of the largest refreshment company in the Pacific Northwest; Kimberly Lenz, who is the director of sales for Associated Services in the San Francisco market, where she spearheaded the launch of their pantry division nearly 10 years ago; and Linda Saldana, who is CEO of Seventh Wave Refreshments in Atlanta, a company where she focuses on bringing joy to the workplace every day. This webinar is sponsored by Franke.
To register for the September 17 webinar on the state of the OCS industry, visit www.vendingmarketwatch.com/55133382.
On September 26 at 1 p.m. ET, Bob Tullio will host a webinar looking at the role of vending moving forward. “Vending — Still a major profit center” looks at the evolving role of vending in the convenience services industry as well as trends shaping the future of vending. Vending offers built-in theft mitigation for operators and remains a viable means of bringing products to market. Webinar sponsor Incredivend has reimagined vending as a creative solution that goes beyond traditional candy, snacks and soda. Their experience can serve as inspiration for other nontraditional vending approaches such as fresh and frozen foods, locally sourced products and even non-food products.
To register for the September 26 webinar on the state of the OCS industry, visit www.vendingmarketwatch.com/55134439. Registering in advance of the webinars provides access to the live events as well as the on-demand versions hosted on VendingMarketWatch.com for six months.
Linda Becker Editor-in-Chief lbecker@endeavorb2b.com
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Four seasoned operators share their take on 2023 and offer their perspectives on the state of OCS going forward.
NEWS
MANAGEMENT ]
Mars to Acquire Kellanova
Five Star Breaktime Solutions acquires Cajun Vending
MARS INC. HAS AGREED TO acquire Kellanova for $83.50 per share in cash, for a total consideration of $35.9 billion, including assumed net leverage. Combining two businesses with complementary portfolios of familiar brands will position Mars to shape the snack food industry, the company notes. Kellanova produces snacking brands such as Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and RxBar as well as food brands such as Kellogg’s, Eggo and MorningStar Farms. Kellanova’s portfolio complements the existing Mars portfolio, which includes billion-dollar snacking and confectionery brands like Snickers, M&M’s, Twix, Dove and Extra, as well as Kind bars and Nature’s Bakery. Mars also has 10 pet care brands with more than $1 billion in sales. vendingmarketwatch.com/55132953
Coffee, vending and micro market expertise wanted
THE NATIONAL AUTOMATIC MERCHANDISING Association is accepting presentation proposals focused on convenience services — including coffee services, vending, micro markets, kiosks, pantry services and self-service solutions — for the 2025 NAMA Show. Taking place May 7-9 in Las Vegas, the 2025 show allows speakers and attendees to connect in an engaging environment. The proposal deadline is November 14. vendingmarketwatch.com/55134708
Five Star Breaktime Solutions acquired Cajun Vending of Houma LLC. The deal will expand Five Star’s presence across Louisiana’s bayou country and extend its reach in the breakroom market, vending and office coffee service in the Gulf region. Cajun Vending, Houma, La., was founded in 1993 by Richard Franklin, a retired Shell Oil Co. employee. The company grew to more than 180 accounts offering vending and office coffee services.
The Fresh Perspectives microsite from Structural Concepts shares insights and advice on a customer-centric approach to product merchandising for micro markets, pantries and retail outlets. Best practices, merchandising tips, how-to videos and a series of guidelines on how to build consumer engagement are offered. Effective merchandising can help operators optimize sales, the company notes, and its self-service and service displays provide effective tools. vendingmarketwatch.com/55134677
Campbell sells Pop Secret business to Our Home
Our Home acquired Pop Secret from Campbell Soup Co. in a move it says significantly scales its “existing platform and footprint” nationally. Our Home markets brands such as Popchips, You Need This, Good Health Positively Snackable, and Real Food From the Ground Up. The Pop Secret business generated net sales of approximately $120 million in fiscal 2024.
vendingmarketwatch.com/55136025
The difference maker that defines elite sales pros
While it is impossible to teach follow-up, a competent sales manager can put procedures in place to ensure that sales follow-up happens. What can be taught are certain follow-up strategies that can lead to more appointments and increased selling success.
by Bob Tullio
I HAVE BEEN SPENDING SOME time recently working on various projects with a consultant named Gil Cargill. He is the guy who put on a standing-room-only presentation at the NAMA show in May. People were stacked up in the hallway trying to hear him speak. His session topic was using arti cial intelligence for lead generation. Gil has been around for a while, and he is the closest thing to a sales guru that I have met along the way.
• 48% of salespeople never follow-up with a prospect.
• 25% of salespeople make a second contact and stop.
One of the things we have been talking about is follow-up strategies — and the importance of them. Gil and I both agree that follow-up is something lacking in sales today. It is not a new issue.
HOW BAD IS IT?
A little online research will convince you that follow-up skills are even worse than you think. According to the National Sales Executives Association (NSEA):
• 12% of salespeople make three contacts and stop. ese statistics have been seen on LinkedIn, Facebook and built into sales materials from experts and even well-known keynote speakers. e problem is, the NSEA does not exist, and these stats are bogus. While it is safe to say that you should not believe everything you read on the internet, I would be willing to wager that those stats, if cut in half, would be pretty accurate. For anyone selling convenience services, “follow-up” is an important term. It can refer to at least four di erent activities and scenarios. is month in the Best of OCS, I will explore two situations that require follow-up, and I will look at a third follow-up scenario in our November issue. Over time, I will get to all four and take a deep dive into follow-up strategies.
SCENARIO 1: KEEPING A PROSPECT ENGAGED
Here is the rst scenario: Responding to a prospect who asked you to call them “in three months” — or any given period.
How did this happen? You successfully engaged with the prospect. en, a er getting shot down by the prospect, you did the right thing: You asked the question, “When would be a good time to follow up with you to see if your situation has changed?”
You received an answer, maybe “three months” or “six months.” Now, the next time you reach out to that prospect, it will not be a cold call. You are calling back at the time because they asked you to call back in three months or six months.
So here you are, three or six months later, following their instructions, trying to cash in on a little gem in your sales pipeline. is opportunity never happens unless you are organized enough to know that it is time to follow up, so hopefully, your company provides some sales oganizational so ware.
A SLIGHT EDGE, OR A FAVORABLE TWIST
You can now con dently call, ask for the prospect by name and inform the gatekeeper that he asked you to give him a call this week. is process has opened the door a little more for you, giving you an increased edge.
When you get the prospect on the phone, you need to remind them, “When we spoke back in July, I’m sure you remember that you were interested in our program but asked me to call back in 90 days so that we can set up a meeting. I have 2 p.m. on Tuesday
If you keep the prospect engaged, the next time you reach out to that prospect, it will not be a cold call. You are calling back at the time because they asked you to call back in three months or six months.
or Wednesday next week. Which is better for you?”
Here is a twist. Suppose the prospect you spoke to three months ago is no longer working at the company. is creates an even warmer opportunity when you speak to their replacement.
“I understand that you replaced Juan as the o ce manager. e last time I spoke to Juan, he had asked me to call him to schedule an appointment this week. I know a lot of people at your company liked the idea that we could improve your pantry service program and save you money. I have 2 p.m. on Tuesday or Wednesday next week. Which is better for you?”
Juan’s replacement may want to see you now or may want to see you in three months. If they put you o , the follow-up snowball continues, but when a sales rep has 50 of these scenarios cooking, appointments will happen.
SCENARIO 2: THE CALL IN
Make a connection with every hot prospect or warm lead from any source.
Because there is a cost to every sales lead, follow-up needs to occur ASAP. Your company deserves the maximum e ort by sales reps to close deals that are generated through paid business development.
Additionally, as a sales rep, you want to encourage the continuation of paid business development, so don’t let a lead like this go to waste.
Top performers stay connected all the time. at includes nights, days o and even vacations. All the relaxation gained during a break will vanish when a sales rep learns that a deal was lost because they were disconnected.
LISTEN FIRST
Once you qualify the account, the objective is to set up a meeting. When you speak to this warm prospect, gain an understanding of the opportunity and what they need, but don’t do too much selling over the phone or by email. Be an active listener. Too much selling at this pre-meeting stage can raise new and unnecessary objections from the prospect. Don’t kill the deal before it takes shape! ■
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.
when great meetings are powere by great coffee.
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The A300 Fresh Brew is a new compact, versatile coffee machine perfect for offices with limite space. It serves hot an ice coffee, offers two bean types, an two programme water options for tea an hot water. With its flexible configuration options, 120v connection an automate cleaning system, it’s great for any place space is limite – everyone gets the coffee they enjoy most. I eal for self-service formats, micro markets, offices, an anywhere great coffee is serve
At Franke, we’re not just in the business of selling coffee machines. We’re passionate about creating memorable coffee moments for your employees an guests. Our machines are the perfect solution for operators looking to elevate their coffee program an meet the evolving nee s of to ay’s workplace.
NEW! A300 Fresh Brew
Learn how Marché tackled New York City’s competitive market with its niche, concierge pantry service. A relentless focus on customer service, from product selection to breakroom design, sets this young company apart.
by Adrienne Klein
PRIME IN
Brandon Mandile (left) and Billy Mandile (right).
THERE ARE NUMEROUS
ways in which companies can measure growth. For New York City-based Marché, growth could be measured by its increase in employees — going from two employees in 2020 to 28 employees in 2024. Or perhaps the company could measure its growth by the increase in its operational equipment — expanding from two route trucks in 2022 to 16 trucks just two years later. Perhaps the biggest measurement of its success, however, is its 300% sales growth year-overyear — without a sales team.
Launched in 2020 by co-founders Billy Mandile and Brandon Mandile, Marché operates solely on highend pantry service, OCS and micro markets while focusing on its product o erings, breakroom aesthetics and customer service. Today, the company operates 130 locations in Manhattan with plans to expand to Boston by the end of the year.
FROM VENDING TO PANTRY
Marché co-founders Billy and Brandon are no strangers to the vending industry. e pair grew up working various positions at the family’s Brooklyn, N.Y.-based Champion Vending, a full-service vending and pantry company that was owned by their father, William Mandile, who is now the current business operations consultant for Marché. In 2016, a er
Client services manager Genecarlos Severino joins Billy Mandile and Brandon Mandile, the founders of Marché, at the company’s offices in Farmingdale, N.Y.
24 years of operating as a full-service vending operation, Champion Vending was acquired by a large national vending corporation.
A er working with the national chain, Billy and Brandon began to brainstorm ways in which they could take their combined vending experience, pantry service knowledge and customer-centric focus to t the New York City landscape. “Marché was formed by recognizing the need for a pantry and co ee service that would be a concierge-type service for our clients,” said William. “We manage our clients’ vast programs in-house while also managing the budget, product selections and any catering or o ce service they need.”
e Marché brand was launched in late 2019. e company, however,
encountered a major hurdle soon a er it started. In March 2020, a day a er the installation of Marché’s rst big account, New York City shut down due to COVID-19 restrictions. Despite the setback and uncertainty, the company’s co-founders strategized ways in which they could grow their business, including o ering snack boxes and dropping o iers at di erent locations. In 2021, as companies began requiring people to come back to the o ce, Marché began picking up traction.
EXCELLING IN CONCIERGE PANTRY SERVICE
Marché found early on that their concierge pantry service o erings were just what clients needed to incentivize their employees to come
PANTRY
back into the office. “When employees come back to the office, companies need things to ‘wow’ them,” said William. “So, our goal is to impress the employees with our product offerings, from snacks, to hot and cold beverages, to ancillary products.”
Many clients utilize the high-end snacks and beverages Marché provides as a “perk” to entice their teams to stay in the office. “Our clients would rather keep their employees in-house because they know they’ll be working,” William continued.
Operating a concierge pantry service means that Marché must understand the needs of its clients and execute these needs at the highest levels day in and day out. “This is not vending where you shut the door and
come back a week later,” said William. “We have an attendant model at some locations, so we have someone on our staff on location cleaning the machines, filling the product and maintaining an aesthetic. This helps us create a deeper relationship with our clients and the clients’ culture.”
In some locations, Marché will fill shelves three times a day — at 8 a.m., 11 a.m. and 1 p.m. — to ensure that the pantry is consistently full and so that the employees don’t feel a need to stockpile product early in the day for fear of it running out.
But, what makes their pantry service high level is the amount of care placed on the product offerings and how those products are displayed.
Marché emphasizes breakroom
aesthetics, working with each client’s overall office design. “We want to blend into the client’s office aesthetic so that there’s a natural flow,” said William. Marché will bring in wooden displays, specialized racks, bookshelves, modern baskets, custom billboards and bamboo utensils to match the office design. “From the displays to the coolers we use, we don’t want it to just be aesthetically pleasing. We want it to be efficient, too,” said Billy. “We will add pushers so that products move forward and shelves don’t look empty.”
When it comes to product offerings, Marché likes to work with smaller brands, including womenowned and minority-owned businesses. They also try to keep 20% of the products local to New York City. “It’s all about the product,” said William. “We are always looking for the latest and greatest products to offer our pantry clients, which fall into the 25- to 40-year-old age demographic.” He notes that the younger demographic prefers snacks that are flavorful, healthy and in single-portion sizes. “People like the minis or the single-portion product because then they can try a new snack out to see if they like it. And it stretches the clients’ budget a little more.”
Seasoned vending veterans: Business operations consultant William Mandile operated Champion Vending until it was acquired. Office manager Patti Mandile is a key part of the Marché team.
Brandon Mandile (left) and Billy Mandile (right) launched Marché in 2019 and have achieved 300% sales growth year-over-year without a sales team.
Brandon often travels to different shows across the country to find new products he thinks the New York clientele will enjoy and appreciate. “We set up tastings with contacts on site to see if they like the products and to see if the employees like it,” said Brandon. “If we don’t think it’s going to do well in the office, we’re not going to push it.”
“What our team tries to do is get that ‘wow’ factor from the client, and it’s all about the product,” said William. “We didn’t want to be the micro market or the pantry company that is going to serve what you’d see in a vending machine.” Marché will opt to give clients the best products within their budget, even if that means less variety. “Even if there is a smaller budget, we put care into each client’s product offerings,” said
OPERATION PROFILE
Marché
Founded: 2019
Headquarters: New York City
Number of employees: 28
Number of pantries: 130
Number of micro markets: 16
Number of routes: 16
William. “We will filter out and change it up as needed because, at the end of the day, no one wants to go to the office for three or four months and see the same product. We try to keep our customers engaged, whether it’s changing out
the flavors or the brand completely.”
Popular pantry items include prebiotic sodas, energy drinks, organic chips and popcorns, dried fruits and mini protein bars.
Marché uses technology to fill based on consumption. The company uses Parlevel, which uses algorithms, to help Marché anticipate a client’s breakroom needs and keep products in stock. Whether it is a micro market or a pantry, everything at Marché is data driven. “Every account gets a monthly invoice with a product report, and we can show them directly what’s moving and what’s not,” said William.
Today, the company is about 90 percent pantry service and 10 percent micro markets. Utilizing 365 Retail Markets, Marché’s largest micro market account is West
Point Military Academy in West Point, N.Y. Although the company operates micro markets, it hopes to focus more on pantry service going forward. “Pantry is what we do and where we want to grow,” said William. “And we do it to a tremendously high level.”
CUSTOMER-CENTRIC APPROACH
One of the ways in which Marché stands out from its competitors is its focus on the customer experience. This means placing new equipment and servicing it regularly. “You can have the best pantry set up in the world, but if somebody comes into work and their espresso machine is broken, they’re not going to care what your pantry looks like. They need their coffee,” said William.
The Marché team trains on-site pantry attendants and route drivers on how to service all machines, and they show on-site employees how the machines work, too. “It’s very important that we educate our employees and our clients how to use all machines, from a cold brew machine to an espresso machine,” said William. “We don’t install the machines and leave. We try to help
CREATING AN INCLUSIVE CULTURE
Over the last three years, Marché has had a 100% retention rate for employees. “We’ve been pretty blessed with a good team...a hungry team,” said Billy. “We want to see our employees succeed, and when we see that they can go out and buy a car or a house, we are proud of their success. We really like to take care of our team.”
As soon as the company began turning enough capital in the beginning, they reinvested it back into the employees. The employee-focused approach has seen results — the company hasn’t had a callout in two years. “I think people just want to come to work,” added William. “They want to participate and feel like they’re part of something.”
our clients understand how it works because if their experience is good, it makes it better for everyone.”
When the Marché team operated Champion Vending, they did not offer OCS because it seemed like something too difficult for them to do. Today, however, William believes that managed the right way, coffee service can be one of the biggest assets. Billy agrees. “Believe it or not, I believe coffee’s the easiest part of what we do,” he said. “As long as you have new machines that are maintained daily.”
The Marché team tries to make everything as efficient and easygoing for the customer as possible. “We want them to know that if we’re servicing their account, we have them covered,” said Billy. “The last
thing they’re worrying about are the snacks, beverages and coffee.” When it comes to customer service, Marché treats all clients with the same care, no matter the size or budget. “We have accounts that are $1 million accounts and others that are less than $1,000 a month, but if we decide to take them, they get the same service and the same look,” said William. The Marché team learned this lesson from servicing Facebook in its early days. “A company can go from small to big quickly,” said William. “So, we treat all our accounts the same, and if we take your account on, you’re going to get the same level of scrutiny and intensity and work that any other account gets.”
The Marché team has found that as they gain their clients’ trust and
Purchasing manager Dan Fertig (above) negotiates deals and manages vendors for Marché. Operations and lead services manager Elvis Roa (right) is a key part of the team ensuring an excellent customer experience.
confidence, those efforts have led to more business in terms of ancillary items as well. “We have a customercentric attitude and relationship,” said Billy. “We are very attentive to our customers because for us, it’s doing what we love to do.”
The Marché team is so committed to its customer service that they do not pin their clients down with contracts. If a customer isn’t happy, the Marché team will leave. “If we aren’t doing our job, shame on us,” said Billy. “That has yet to happen, though.”
So far, Marché has grown solely from word-of-mouth. “Right now, we feel that if we did hire salespeople, it might put a strain on us,” said William. “We want to be able to keep top-notch customer
service. We are not going to go out and just grab dollars. That Marché name is super important.”
In fact, Marché does not sub out any work in the areas it directly services. “This gives us the peace of mind that our clients only see Marché-based services and we never have to rely on someone else’s service,” said William.
A BRIGHT FUTURE
In the upcoming year and beyond, the Marché team intends to grow. That includes an expansion into the Boston area. “When we put the Marché name on something, it is going to be managed directly under us,” said William. “The leadership and service values will be the same in Boston as they are in New York City.”
The only planned difference between the two locations will be a small change in the Marché logo, with the Boston operation showcasing a four-leaf clover. “I think Boston will appreciate the level of service and offerings we will bring from New York,” William continued.
In Boston, the company’s goal is to have three routes operating by Q4 2024, growing to 12 routes by the end of 2025. In New York City, the Marché team hopes to double by the end of 2025, with a minimum of 30 routes.
“We don’t want to be the biggest... we don’t need to be the biggest...we just want to find that niche. We’re more of a concierge pantry company. That’s about the best way to describe what we do,” said William. ■
AWARDS
Automatic Merchandiser recognizes young leaders in the vending, micro market and o ce coffee service industry.
AGE IS JUST A NUMBER THEY SAY, AND FOR THESE MEMBERS OF THE CONVENIENCE services industry, age is no barrier to making a signi cant impact. Automatic Merchandiser is honored to present the 2024 40 Under 40 Award winners. is annual program recognizes outstanding individuals who demonstrate leadership and a commitment to advancing convenience services for vending, micro markets and o ce co ee service. Congratulations to the following award winners who have shown dedication to their companies, their customers and the industry.
MARIA AVALOS
Her peers nominated Maria Avalos for her role as president of Convenience Services Group, a convenience services operator providing office vending, micro markets and office coffee and water in northwest Indiana.
STEPHANIE BEERMAN
Stephanie Beerman is the western regional sales manager for Barcel USA. She has served the convenience services industry for almost 13 years as a leader and force behind numerous successful campaigns and initiatives. Beerman’s journey began at the Atnip Co. in 2011, where she gained experience developing the marketing department through the execution of sales strategies, marketing tactics and data analytics. Her passion for growing brands and helping customers led her to Barcel USA in 2023, where she transitioned to sales. The same enthusiasm for her work has been instrumental in forging lasting relationships and driving growth for her customers and team. Beerman embraces opportunities to learn from her peers and mentors to expand her knowledge. She sees each day as an opportunity to expand her skill set and deepen her understanding to grow and thrive in the ever-evolving convenience services industry.
TAYLOR BIBIKAN
Taylor Bibikan has a skill set that encompasses operations, customer satisfaction, leadership and mentorship. With 13 years of industry experience, Bibikan utilizes her role within the WIN Advisory Board and Emerging Leaders to gain insights and bring her perspective and influence to the industry. She has grown her role from leading installations and implementation to building a complete lifecycle customer success model. This growth highlights her vision of building a best-in-class execution and customer satisfaction team. Bibikan is passionate about driving success and innovation internally and externally with a focus on achieving her and her company’s goals. Bibikan is excited about the future of the industry and appreciates the honor of being nominated for 40 under 40.
SARAH BLAINE
Sarah Blaine is a seasoned professional in the CPG industry, specializing in new product development and commercialization. With her experience in brand strategy and market entry, Sarah has successfully launched numerous products, drove their growth and enhanced brand visibility. Throughout her career, Blaine has demonstrated expertise in strategic product development and partnerships across the food and beverage industry and is known for her dynamic leadership and strategic vision. At Automated Retail Technologies LLC, dba Just Baked Smart Bistro, Blaine leads cross-functional teams to bring new food products from concept to market. She excels in identifying market opportunities, managing product lifecycles and executing strategic plans that align with business objectives. Her comprehensive approach ensures successful product launches, from initial development to full commercialization. During her tenure at ART LLC, she has worked collaboratively to 10x grow Just Baked Smart Bistro’s footprint, launch national distribution via a partnership with Vistar and partner with leaders in the industry such as Nestlé to bring their beloved brands to food deserts.
MAC BOLAK
Mac Bolak has been starting companies in the artificial intelligence space since he was a teenager, including a venture capital-backed company that used AI to edit basketball footage autonomously for basketball coaches. In 2019, he founded Panoptyc, a leading micro market theft detection and security company. In 2022, Panoptyc was a recipient of Automatic Merchandiser ’s Readers’ Choice Products of the Year Awards in the technology category. Panoptyc works with industry leaders and is in more than 6,000 micro markets across the United States, Canada and Europe. Panoptyc uses AI software and smart cameras to decrease theft in micro markets and save operators time reviewing footage. As a young and determined visionary, Bolak knows the industry inside-out and is continuously looking to improve Panoptyc’s services while also exploring new opportunities within the industry.
SHANE BURLEIGH
TIM COX
Shane Burleigh is a “people’s champion” with a tenacious commitment to growth and innovation. His passion for building and developing highly engaged teams that consistently deliver energizes him. Burleigh embraces opportunities to give back as an industry mentor, co-hosting education sessions for NAMA and serving a term on the CAMA board. Recently promoted to vice president of partner operations at Compass Group, he continues a 15+ year commitment to the industry. His experience includes vice president of Canteen Technology Canada, responsible for the team innovating foundational tech infrastructure supporting scalable growth; vice president of business solutions, offering leadership of strategic priorities, acquisitions and operational excellence; vice president of operations for GM City Coin Vending; and leadership roles at Coca-Cola. He is a proud graduate of the Bisset School of Business at MRU and the MSU-NAMA EDP program. His unwavering commitment continues to inspire and lead the industry toward further excellence.
Tim Cox is a seasoned food and beverage professional with more than 15 years of experience in the food service industry, specializing in coffee. His career has spanned roles in multi-unit retail management, restaurant ownership, equipment servicing and product development for one of the largest convenience store chains. Cox honed his expertise across multiple channels, including specialty coffee, quick-service restaurants and convenience. Throughout his career, he has amassed extensive knowledge and is dedicated to teaching others and advancing the industry by collaborating with industry partners. In 2023, Cox joined Franke Coffee Systems as marketing manager, where he led market research and coffee competency initiatives. He also serves on the National Coffee Association’s Next Generation council; was a panelist for VendingMarketWatch. com’s OCS SOI webinar in 2023; and presented at the National Coffee Association Convention in 2024. He also has contributed to several industry publications and podcasts.
RYAN CURTIS
Ryan Curtis is the chief operating officer at Pot O’ Gold Coffee Service, a familyowned company in the Puget Sound area. In his 2.5 years in this role, Curtis has improved operational efficiency and customer satisfaction. Working closely with Blake Jones, vice president for Pot O’ Gold Coffee Service, Curtis has helped uphold the company’s mission — established by founder Larry Jones in 1986 — of delivering excellent coffee, equipment and service to offices. Their leadership has made Pot O’ Gold the largest independent office coffee service in Washington State, providing a range of breakroom supplies, including carbonated water coolers and snacks. Curtis is committed to continuous improvement and technological advancement, driving the company’s growth and excellence. His focus on building strong relationships and offering personalized service has been key to the company’s success. Passionate about innovation, Curtis ensures Pot O’ Gold remains a leader in the industry.
ALI DAY
Ali Day has dedicated 16 years of hard work and commitment to the vending industry. Starting as an office administrator and route driver at S&L Vending, Day seized every opportunity for growth. Moving to BestFit Vending, she pursued her associate degree in management and accounting, eventually rising to the position of chief operating officer. Transitioning to Vistar, Day furthered her education, earning a bachelor’s degree in business management while excelling as a customer services manager. Now, as the administration and accounting manager at Vistar Phoenix, she looks forward to celebrating 10 years with Vistar in November 2024. Beyond her professional pursuits, she finds fulfillment as a devoted wife and mother of four. In her spare time, she serves as the president and coach of her local Little League, sharing her passion and expertise with the community.
RODRIGO DE AZAMBUJA
His peers nominated Rodrigo Wainer de Azambuja for his work as president of Beliv, leading a multi-milliondollar company with more than 10 brands present in nearly all states.
ROB DODY
Rob Dody is a senior engineering manager at Structural Concepts Corp., where he works in new product development and lifecycle management in the refrigeration and electrical engineering department. Dody leads a team of engineers to design cutting-edge refrigerated merchandisers. In his work, he developed the first open-air refrigerated merchandisers for micro-market applications. He also developed and the Autonomous Retail Merchandiser (ARM) refrigeration system.
BRENNAN DRUHOT
EMILY GALANT
Emily Galant is the senior customer manager at Mars Ice Cream US, where she leads the unattended retail business and drives strategic growth initiatives for the frozen category. With six years of experience at Mars, Emily has built strong relationships with operators, suppliers and the Mars Wrigley team. She is passionate about delivering exceptional service and innovative solutions, and her dynamic leadership style combines a results-driven approach with a deep commitment to her team and customers. Emily has pioneered new display vessels and merchandising strategies for frozen products in the micro market and office coffee service (OCS) spaces, enhancing product visibility and sales. Her expertise in product positioning and market expansion, particularly within the ice cream sector, has made her a key figure in the industry. Emily’s enthusiasm for the business and her innovative mindset continue to drive success for Mars Ice Cream in a competitive market.
Brennan Druhot is the purchasing manager at Maumee Valley Group in Defiance, Ohio. He graduated from the University of Toledo in 2021 with a degree in operations and supply chain management, and business law. His journey with Maumee Valley Group began during college when he worked in all areas of the business, and he developed a fascination for this diverse industry. Once Druhot graduated, he started as a purchasing manager, and he quickly gathered more hats to wear within the company. He highly enjoys helping the company push forward and helping to solve any problems that arise within the industry. He is eager to see what comes next.
JOSHUA GIAMBRA
Joshua Giambra, owner of Giambra Vending, has been serving the Florida panhandle since 2005. He focuses on providing excellent refreshment services while building meaningful, caring relationships with those in the community. Giambra takes pride in the company’s ability to offer a range of services to meet the needs of all customers. He partners with both national companies and locally owned and operated businesses to provide a unique array of products. Giambra is committed to his community and frequently supports local schools and other nonprofit organizations. It is because of these values and partnerships that Giambra and the company have received multiple national recognitions. Giambra’s ability to stand by his core values —integrity, versatility and excellence — has led his company to 30% revenue increases year over year for the past two years. He tirelessly works to develop bonds and continues to be innovative in vending, markets and pantry services.
If you would not be forgotten, as soon as you are dead and rotten, either write things worth reading, or do things worth the writing. — Benjamin Franklin
DETLEV GOEDBLOED
Detlev Goedbloed received his master’s degree in business administration in Europe before moving to Morocco to gain experience in the field. His success in Morocco led him to a job in China, where he oversaw sales in Asia-Pacific. During this time, he received his MBA from the UBC Sauder School of Business. In 2018, Goedbloed moved to Australia to work as a major accounts manager and management consultant and improved the logistics and operations of companies from all types of industries. Throughout the many countries he has worked in, Goedbloed noticed similarities in the inconvenient, inefficient and unsanitary methods that food was made available to the public. During his quest to solve these problems, he discovered food robotics in Europe and introduced this in North America. After a successful launch, Goedbloed joined Structural Concepts and oversees NPD and product lifecycle. Since he joined Structural Concepts, the company has successfully launched Autonomous Retail Merchandiser (ARM) autonomous vending solutions.
SAM HAGAN
Sam Hagan is the selfproclaimed business development manager at Quality Vending & Coffee Co., but his responsibilities reach far beyond that title. While a large part of his job is maintaining relationships with current clients and fostering new ones with prospects, his role also includes pioneering advancements in technology for the company, managing QVC’s website and social media presence, working with vendors and suppliers, and leading a team of more than 25 employees within the family’s business. With less than 10 years in the industry under his belt, Hagan has already made a lasting impact at Quality Vending & Coffee Co. and on the industry. This is reflected by his second 40 Under 40 recognition (2022, 2024) and being featured on Automatic Merchandiser ’s Vending & OCS Nation podcast. Quality Vending & Coffee Co. truly appreciates Sam’s contributions and looks forward to his, and the company’s, continued success.
Under Brandon’s guidance, the company has evolved into a regional powerhouse, setting new benchmarks in the vending industry. Under his leadership and strategic prowess, Innovative Vending has blossomed into a multi-million dollar operation and continues to push the boundaries for what is possible in
JUSTIN HAZELWOOD
His peers nominated Justin Hazelwood for his work as vice president of design and delivery, creating New Stand’s premium workplace solutions.
EVAN JARECKI
Evan Jarecki is a tech entrepreneur based in Atlanta, and the co-founder and chief executive officer of Gimme, a company launched in 2014 after he earned an electrical engineering degree from Georgia Tech. At Gimme, Jarecki develops software and hardware solutions for the unattended retail and traditional retail sectors. Gimme’s flagship product, Gimme VMS, enhances operational efficiency for vending, micro market and office coffee service operators. They also offer the Gimme Key Pro, a wireless DEX device that streamlines data transfer and invoice processing. Jarecki was named one of Automatic Merchandiser ’s Pros to Know in 2017 & 2019 and 40 Under 40 in 2021. During multiple years, he has spoken years at industry events such as the NAMA Show and SEVA, and he has attended the NAMA Fly-In as an industry advocate. Jarecki participates in numerous webinars and podcasts hosted by VendingMarketWatch.com.
BRIDGER KEALLY
Bridger Keally joined Panoptyc as sales director in 2021 with a strong sales background but little knowledge of the vending industry. After consulting with industry experts and operators, he quickly realized the stress that theft, outdated cameras and labor shortages were inflicting, and the lack of a solution. That knowledge compelled him to share Panoptyc’s theft detection and camera offerings with as many operators as possible. Keally focuses on understanding and addressing operators’ challenges such as inventory management, theft deterrence and client communication. He aims to build strong relationships and trust with customers. As new technologies emerge, he strives to integrate them seamlessly, maintaining Panoptyc’s core competencies in camera and data solutions so that operators can get back to focusing on growing their business. Keally graduated from the University of Colorado Boulder in 2021 with degrees in marketing, corporate strategy and entrepreneurship.
BRANDON KUSS
Brandon Kuss is the founder and president of Innovative Vending. He holds a master’s degree from the Eli Broad School of Business at Michigan State University and is a senior certified professional with the Society of Human Resource Management. With an extensive background as a human resources leader, Kuss is positioned to leverage his professional networks to expand the footprint of Innovative Vending. Kuss has been able to work directly with human resources professionals to showcase the impact bespoke vending solutions can have on the overall employee experience. Under his leadership, Innovative Vending has expanded into 10 states. Kuss’s commitment to vending extends beyond business growth. He is a dedicated coach and mentor to aspiring entrepreneurs eager to make their mark on the vending industry. His dedication to fostering innovation and nurturing new talent underscores his impact as a leader in the industry.
COREY LESTER
His peers nominated Corey Lester for his work in operations (vending, micro markets, coffee service, water service) and with the Tennessee Automatic Merchandising Association (TAMA).
KATIE MARINO
Katie Marino has worked for Red Bull for more than 14 years, eight of which have been in and around the vending channel. She has held numerous positions during this time such as regionally managing Compass Group/ Canteen; nationally managing Aramark and Sodexo; as the director of vending; and, most recently, as vice president of non-commercial key accounts. During her tenure, her team has won Vistar’s Marketing & Insights Partner of the year, OPCO President Award and Sales Team Excellence Award.
MOLLIE KRUPP
Mollie Krupp, chief of staff for 365 Retail Markets, works closely with all senior leaders in the organization. She drives alignment across strategic initiatives, inspires cross-functional teams and champions employee development. Her exceptional ability to connect with employees and her unwavering commitment to fostering a positive work environment have proven to inspire collaboration and innovation within the company. Beyond her professional accomplishments, Krupp is known for her mentorship and guidance, making her an invaluable asset to the 365 organization.
MATTHEW ANTHONY MASS
Matthew Mass built the Maka Mia Pizza robotic pizza company, with 45 locations throughout six states, in the last decade. Running a pizza vending business requires life over the road, a strong desire to win and a strong constitution. Mass went to work on the Mia V4.5 robotic pizza system two years ago. He built the nuanced Mia V4.5 system paired with a small footprint MMP location. The company’s pilot location is launching in the fall at Ball State University in Muncie, Ind. A native of North Bend, Ohio, Mass is married to an “amazing wife” and is a proud father of three children.
MARGARET NYAMUMBO
Margaret Nyamumbo is the founder and CEO of Kahawa 1893, the first nationally distributed Black and woman-owned coffee company in the United States. Nyamumbo is a graduate of Harvard Business School and Smith College. Kahawa 1893 sources specialty-grade coffee beans from woman-owned farming cooperatives in Africa and gives back to support them. Nyamumbo grew up on her grandfather’s coffee farm in Kenya and saw firsthand that women provided about 90% of the labor, but they were not always compensated. Kahawa 1893’s packaging contains a QR code that enables consumers to digitally tip the farmers, enabling them to invest in their businesses, families and community. Kahawa 1893 has been featured on Shark Tank and The Today Show, and the company’s products can be found in retailers like Target and Sprouts. Kahawa 1893’s compostable soft pods and frac packs are now available to OCS operators nationally through a partnership with Alliant Coffee Solutions.
A REVOLUTION IS BREWING
SCOTT PARKER
Scott Parker is no stranger to pushing the envelope and going big, with experience winning awards for the “Most Canadian Marketing Initiative” and helping design Canada’s largest vending machine. When offered the opportunity to work on Habco’s team leading the micro market segment, he accepted and credits the company’s history of innovating the cooler scene 50+ years ago with cassette technology — and the quality and reliability of Habco products — as reasons he said yes. Parker is working with the company on prototypes “to shake things up” in the micro market industry and has set a goal is to have a Habco smart cooler or micro market “on every corner, much like you see in Japan.” Parker acknowledges his life coach, Kmiller, for helping him grow this far.
Kahawa 1893 is the first Black and woman-owned coffee brand to be distributed nationally in the US bringing racial and gender equality to the coffee trade.
COMPOSTABLE SOFT COFFEE PODS | FRACS
Men make history and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.
— Harry S. Truman
Kahawa 1893’s compostable soft pods and frac packs are now available to OCS operators nationally through a partnership with Alliant Coffee Solutions.
Leadership is not just one quality but rather a blend of many qualities. And while no one individual possesses all of the talents that are needed for leadership, each man can develop a combination that can make him a leader. — Vince Lombardi
JOSH PENA
Josh Pena is the category manager for frozen/ refrigerated/fresh/bakery suppliers within Vistar. During his time in the dynamic vend/micro market space, he began at Vistar on the procurement side of the business four years ago and transitioned into his current categorymanagement role two years later. Pena’s category generates more than $600 million in sales within the vend/micro market/OCS space, marking a remarkable growth of more than $40 million year-over-year. Pena credits the trajectory to the Vistar team’s relentless pursuit of innovation as they continuously bring in and champion new and inventive suppliers. At the heart of success lies the genuine relationships that the company cultivates with its suppliers, customers and associates, and a culture of diversity and collaboration. Vistar’s dedication to these values propels the company forward, driving its continuous improvement and sustained success in the industry.
ERIC ROCHON LARSON
SAVANNAH ROSIER
Savannah Rosier is cofounder of Mr. Munch Box Vending, a new women-owned startup serving Albany, New York’s capital region. She has demonstrated a capacity to rapidly scale and grow her mother/daughter family vending services business. She is dedicated to learning and mastering all aspects of this exciting and thriving industry. She operates with a high level of integrity and enthusiasm for the vending industry. She is honored to provide vending services to businesses in the community in which she serves.
RICHARD RUSSELL
Richard Russell is the southeast regional sales manager for Holiday House Distributing and has been with the company for more than eight years. As a member of NAMA’s Emerging Leaders Network, Russell has been greatly involved with networking and always staying connected to the office coffee industry.
Eric Rochon Larson is the “go-to guy” for the education department at NAMA. As senior manager of education, he is responsible for the development and execution of a variety of programming, including webcasts, online courses and educational sessions at the NAMA Show and CTW. Through collaboration with volunteer speakers, Rochon Larson has prepared hundreds of in-person and virtual learning opportunities for NAMA’s members. In addition, highlights of Rochon Larson’s responsibilities include preparing and managing the NAMA Show’s call for speakers; reviewing supplemental learning materials; working with member committees; and preparing cross-industry educational collaboration. Rochon Larson will always be thankful for the collaborative spirit of the countless leaders who have volunteered their expertise in NAMA’s educational programming. In 2022, Eric was recognized by Automatic Merchandiser as a Pro to Know. He graduated from George Mason University in 2015 with a bachelor of science degree in psychology and a minor in business.
Congratulations Devin Smith
Devin continues to be the catalyst that pushes All Star Services to be an industry leader by managing new technology and technology
ELIJAH C. SCHMUNK
Elijah C. Schmunk began his career in the vending industry in the Pacific Northwest with Royal Refresh in 2020. As a recent college graduate, he was excited to join a company focused on growth and technology. During his tenure as operations manager, Royal Refresh took its place on the Inc. 5000’s list of the fastest-growing companies in the United States; made the Portland Business Journal’s Top 100 Fastest Growing Companies in Oregon; and navigated a successful rebrand. In 2023, in a search for more sunshine, Schmunk joined Moran Refreshments in Tyler, Texas, where he leads a team of people on a quest to refresh East Texas. In the first half of 2024, his team has installed 40 micro markets. As a “typical Portlander,” he has focused heavily on expanding healthful options in the Texas markets in 2024 and has had success scaling the company’s healthy subsidy program in efforts.
HEATHER SCOTT
Heather Scott took on the role of national sales director of the Southeastern division at the Ellis Coffee Co. almost three years ago. Her background in education provided a solid foundation for her success in the refreshment services industry. In her position, she is responsible for driving new business and maintaining existing accounts in the Southeast. Scott’s dedication to excellent customer service and her servantlike approach have been instrumental in propelling the region’s growth. Her meticulous attention to detail and assertiveness with her customers truly set her apart.
MICHAEL SHEEHAN
Michael Sheehan graduated from the University of Dayton in 2016. He joined Sheehan Brothers in 2019 as an operations manager. Sheehan Brothers has proudly served customers since 1956 when it was founded by his grandfather and great uncle. In 2022, his father Dan Sheehan retired, and Michael and his brother Patrick took over. Michael is currently the vice president of Sheehan Brothers focusing on the day-to-day operations. Since joining the company, Michael Sheehan has helped grow the company exponentially. This year, Sheehan Brothers opened its first branch in northern Kentucky. Sheehan Brothers plans on continued growth, and they are excited for the future.
DEVIN SMITH
Devin Smith grew up working summers at his family-owned and -operated business in southeastern Michigan. After graduating from the University of Michigan in 2008, Smith went back to Port Huron and accepted the position of purchasing manager at the family business. Having always been interested in technology, Smith pushed to have All Star Services as one of the initial companies to integrate micro market kiosks into vending management software. Currently, as vice president of technology, Devin leads the service and maintenance departments at All Star. Smith continues to be a catalyst that pushes All Star to be an industry leader. The industry values his input on development and often reaches out to him for feedback on new and emerging technologies. Smith and his wife Ashley have nine-year-old twins. When not at work, Smith enjoys teaching and playing golf with his family. He has coached youth hockey and helps out with youth soccer and basketball.
JOHN STONER
His peers nominated John Stoner for his work as director of sales for Over Easy Foods, a manufacturer of bars free from dairy, soy and gluten as well as artificial flavors, colors and preservatives.
SUSANNA TWAROG
Susanna Twarog is a co-founder of SOS, a beauty and wellness products vending company, and has helped build a network of vending machines in iconic locations such as Ulta Beauty, Fenway Park, T-Mobile Arena and Rockefeller Center. Each SOS machine contains up to 10 premium beauty and wellness products from best-in-category brands as well as complementary period care items. SOS machines deliver the reach and effectiveness of outof-home advertising with the data-driven interactivity of e-commerce, and the convenience of traditional vending machines. SOS successfully combines technological innovation, machine design and a modern customer experience, creating a unique way for brands to connect with today’s consumers. Recently, SOS won Best of Boston in the service category and continues to expand, providing exceptional service to both brand partners and customers.
ALESSANDRO URSINO
His peers nominated Alessandro Ursino for his work as chief operations officer for Vado SRL, a technology startup that connects third-party delivery platforms and vending machines in Turin, Italy.
ROBINA VERBEEK
Robina Verbeek is a co-founder of SOS, a beauty and wellness products vending company. She has helped build a network of vending machines in iconic locations such as Ulta Beauty, Fenway Park, T-Mobile Arena and Rockefeller Center. Each SOS machine contains up to 10 premium beauty and wellness products from best-in-category brands as well as complementary period care items. SOS machines deliver the reach and effectiveness of out-of-home advertising with the data-driven interactivity of e-commerce, and the convenience of traditional vending machines. SOS successfully combines technological innovation, machine design and a modern customer experience, creating a unique way for brands to connect with today’s consumers. Recently, SOS won Best of Boston in the service category and continues to expand, providing exceptional service to both brand partners and customers.
MAX WEISBROD
Max Weisbrod is the vice president of product for Panoptyc, which he joined in 2022. He has worked to reinforce the company’s position as a leader for unattended retail loss prevention technology ever since. Panoptyc’s suite of tools provides a solution to theft, labor shortage and tech fragmentation with an integrated suite of cloud services and storage, remote-controlled cameras, and a mix of AI and human monitoring. Max is described by his colleagues as an intense and exacting leader. A graduate of Cornell University, he has 12 years of progressive experience working on digital transformation and data warehousing projects across national politics, advertising and technology. As Panoptyc’s technology leader, Max has guided the technical organization through tremendous growth as it continues to enter thousands of markets at an increasing pace. Max uses advanced statistical methods and artificial intelligence.
ROSS WINSTON
Ross Winston is Panoptyc’s vice president of operations and serves as the senior connector between Panoptyc’s product, engineering, sales, finance and support organizations. Under his leadership, Panoptyc identifies hundreds of thousands of unattended retail thefts annually and deters countless more. Joining the team in 2023, Winston made an early and sizable impact and was the driving force behind Panoptyc’s soon-to-be-announced theft deterrence solution. Winston overhauled Panoptyc’s finance department, reducing invoicing and other finance errors that hyper-growth companies often experience. At Panoptyc, Winston has a primary focus: delivering unparalleled value to customers. An avid pilot, Winston enjoys traveling the country to visit clients and colleagues, logging 150 hours in the cockpit annually. Winston is an Eagle Scout and Duke University alumnus.
Congrats Mollie Krupp on being named one of Automatic Merchandiser’s 40 under 40
Mollie’s dedication to people and expertise in navigating various teams, overseeing cross-functional initiatives, and facilitating professional advancement have made 365 Retail Markets one of the top places to work!
Despite inflation-driven headwinds,
the
OCS market grows again
Sales climbed in 2023, with a 25% increase over the previous year’s revenue.
by Linda Becker
IN SOME WAYS, THE COVID-19 pandemic seems a distant memory: everyday life has returned to normal, with crowded airports and other transportation venues, full
classrooms and sold-out social and sporting events. Yet in the workplace, work-from-home shi s triggered by the pandemic have yielded permanent change. According to the Bureau of Labor Statistics,
nearly 20% of workers performed their roles remotely or via telework in 2023. What’s more, demand for remote work remains high, with 98% of respondents to a Bu er survey saying they would like to work remotely at least some of the time.
Does this mean that opportunities for building an exceptional o ce co ee service business are a thing of the past? Of course not! As the pandemic receded, many companies — more than 50%, according to a study by Resume Builder — had already instituted return-to-o ce plans by the end of 2023, and nearly 40% planned to put such policies in place in 2024.
CHART 3A: Composite green coffee prices, 2018 to July 2024
CHART 3B: How rising costs are being handled
● Raising prices
● Absorbing
● Combination
● Adjusting product mix
● Selling additional services
● Changing workforce
● Divesting business
● Other
CHART 5B: % OCS
CHART 5C:
of respondents reporting that they added staff in 2023.
RISING COSTS REFLECT IN NET REVENUE
The costs of goods and labor were top of mind for many. Green coffee prices climbed steadily after stabilizing somewhat in 2022 and 2023, topping the 10-year high set in late 2021. OCS operators continued to face challenges of inflation, transportation costs, products, supplies and labor.
The cost of both coffee and supplies cut into revenue gains per cup (chart 5). Respondents employed multiple techniques to deal with rising costs in 2023, with the largest share (66%) both absorbing some costs while passing others on to their customers. Other respondents exclusively passed on the increases to customers (33%) or absorbed the costs (14%).
To make up for gaps on the balance sheet, operators turned to multiple techniques, including adjusting the product mix (51%), selling additional services (43%), changing their workforce (19%) and divesting businesses (14%).
Among the new services offered by some to pad the
CHART 6: Plumbed-in,
CHART 5D: OCS product
CHART 7: Estimated market share of single-cup brewer placements in the U.S., 5-year review
bottom line, pantry service (28%) was added most o en. Other respondents added micro markets (19%), water services (14%) and even janitorial services (14%). Still, nearly 40% did not o er any
new services and looked to other strategies.
With rising costs, some respondents reported turning a critical eye on the account size, with no respondents reporting they serviced accounts with fewer than 10 employees. e majority (60%) had typical account populations of 30 to 75 employees, with another 20% serving accounts with more than 75.
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CHART 9: Accounts by type, 5-year review
CHART 10: New services added in 2023
CHART 11: Company currently offers online
CHART 12: Most popular
Congratulations Emily Galant
LOCAL COFFEE BRANDS GAIN WIDER ACCEPTANCE
In 2023, a preference for local brands came to the fore. Local coffee brands known to the consumer edged out whole bean and national coffee brands as the topselling OCS product. Whole-bean varieties decreased from making up 39% of OCS sales to 13% while local brands nabbed 33%. Private label claimed 20% of the share for top-selling products from our respondents. OCS still remains largely a coffee-driven service with 40% of sales credited to coffee. Other well-selling products include non-coffee hot beverages (10.8%), water filtration services (10.2%), pantry service (8.2%) and tableware supplies (7.7%).
COFFEE STILL ACCOUNTS FOR MOST GROWTH
When asked to rank their fastest-growing service categories, respondents reflected the variations among markets by ranking five out of six categories equally important: non-single-cut coffee service, single-cup coffee service, tea, water service and pantry or delivery services. Only janitorial or office supplies ranked noticeably behind, perhaps reflecting operators’ willingness to consider such services as well as their markets’ willingness to add those services from their OCS providers. ■
accompanied by the launch month/year and a 100-word description to editor@VendingMarketWatch.com with subject line: POTY 2025 submission | Company Name, no later than January 6, 2025. If you have any questions, please call Linda Becker, editor, at (262) 203-9924.
Please
COFFEE TRENDS
OCS trends center on delivering the experiences that customers seek
DAN WELCH, A VETERAN OPERATOR AND owner of World Cup Co ee in Portland, Ore., thinks the term “OCS” might be obsolete. “ e abbreviation for o ce co ee service, in my 40 years, has always been OCS. at abbreviation should include a lot more letters because the business has changed dramatically in a short period of time,” he said.
“It should include a W for water, and an I for ice, a P for pantry service and an M for micro market. ere are many reasons for that. Part of it is to replace lost income you had before the remote workforce happened,” he said.
“You need to add pantry items and snacks and other foods whenever you can, even laundry soap if they ask for it. You are now selling more SKUs than you ever had before just to replace that lost income from accounts that had 300 people but now work comfortably with 100 people in the o ce. OCS is a lot more than it was ve years ago,” Welch added.
Moving into new channels of convenience services such as micro markets, however, can be challenging for an OCS operator, he acknowledged.
As coffee service operators deal with lowered employee head counts, they are increasingly willing to add new services and add requested products to increase sales.
by Bob Tullio
Kim Lenz of Associated Services in the San Francisco market said she has seen a lot of change to what she knew as OCS. “ ere is a lot more crossover today than there ever was. I think when I started in the industry almost 15 years ago, a customer was either vending, pantry or OCS. And you had some customers that did OCS and maybe some pantry service. at was really your crossover. Now, it seems like almost every single OCS customer is a potential pantry customer,” she said. “ ese new services create some routing and service challenges.”
TRENDING: COLD BREW
e expansion of services by OCS operators comes at a time when current product trends and customer requests are requiring them to venture outside the traditional co ee service operator role. Fabian Campos, business development executive at InReach, said cold brew is the hottest trending item his company is seeing right now. at can mean dealing with kegs, carbon dioxide tanks, ice and cooling systems.
“It’s massive for us — but you’ll see di erent stats from di erent reports. At least from Starbucks, 60% plus of the
drinks ordered today are cold drinks. The same thing we are seeing in the consumer space, we are seeing in the office space as well. Customers want that special type of experience in the office for their employees. It’s one small perk — having the same experience in the office that you would normally have to go out for, and people appreciate it. Cold brew, hands down, is the number one trend we are seeing now,” Campos said. Linda Saldana, CEO of Seventh Wave Refreshments in Atlanta, said her company is focused on serving customers and understands that it means keeping an open mind. “Anything that helps us make money, we absolutely look at it. Water, ice and all the other products that clients are asking for — we want to
make sure that if we are serving an account, we are doing absolutely everything we can for the client,” Saldana said. “Seasonally, cold beverages are big in the summer — I mean cold brew kegs in particular — and we are having some fun with ColdSnap, the ice cream machine.”
TRENDING: PRIVATE LABEL AND SUSTAINABILITY
A more traditional interest trending among Saldana’s clients is in high quality private-label coffee, which has led to the launch of Galia Coffee, Seventh Wave’s newest offering. “Galia looks like a wave on fire,” said Saldana. “When I think of Galia, I think of passion and that extra caffeine you need to go conquer things.”
Also trending in Saldana’s market
— a movement that continues to grow — is sustainability. “It is always going to be a conversation for the workplace. When I mean sustainability in our channel, I mean things like Bevi. Any way to reduce plastics is a big conversation for us. Even going from bottles to cans when it comes to sodas, I think that has been a big push for our clients,” she said. “The compostable goods are in demand. We used to say it was a trend, and it used to be a really expensive thing to do, but now, most companies have to do it.”
An interest in sustainability and a desire to reduce costs is helping coffee pods to gain momentum.
Shawn Vargo, president of 3rd Coast Coffee in Ohio, said his largely bluecollar customer base is often torn
between offering quality refreshment amenities, being sustainable and saving money.
For those who are willing to spend, Vargo said flavored sparkling water units and cold brew kegs are trending in an upward direction. For those who favor sustainability and savings, coffee pods are growing fast. “My pod business is huge now compared to other single-cup options. Bean to cup is still big, but pods are a cost-saving product, environmentally friendly and an excellent cup of coffee,” said Vargo, who noted that the addition of Peet’s Coffee pods is a big change that he hopes will be a new trend — elite roasters offering coffee pods.
TRENDING: LOCAL PRODUCTS
The demand for local products is an ongoing trend that shows no sign of letting up soon. Saldana at Seventh Wave said that her company’s move into private label is partly a reflection of her client’s desire to buy and support local brands. Lenz at Associated said that local roaster requests are an ongoing trend. “We have a lot of requests right now for roasters that we’ve never even heard of. There are so many roasters throughout the Bay Area and Northern California and
the Pacific Northwest, that I have three requests in my inbox right now. I think there is a shift going on, back to that local third-wave coffee roaster,” she said.
Lenz decides whether to accommodate the specific coffee requests based on the expected usage.
“Volume is a really a big driver, so when we have some customers that only go through a few pounds, that makes it hard for us,” Lenz said. “But if we have some key accounts that are driving that request, that will generate large volume, it allows us to establish that roaster within our warehouse, and then we can offer it to other customers.”
TRENDING: COFFEE TASTINGS
According to Lenz, another trend has emerged relating to the way her company sells coffee. Customers had been reluctant to grant site visits since the pandemic, but increasingly, her sales reps are being given a chance to conduct a coffee tasting on-site. “That has made a comeback for sure. We did a lot of coffee tastings pre-pandemic. I would say up until about six months ago, we really didn’t have any, and now we’re starting to see a lot of requests. More engaging activity is starting to happen again, which is great, especially when you are selling coffee.” ■ Booth #9 Booth
The reimagined CTW creates a collaborative learning environment – that connects you with people and companies who understand the challenges your OCS/Pantry business is facing.
IDEATE DELIVER
Discover ideas that generate alternative solutions
ENVISION
Look to the future of OCS/pantry and design with deliberate consideration, reflection and discussion
Explore topics on how to execute and achieve results that are promised, expected or desired
ShapeShifting
NAMA CTW:
A transformed experience offering participants the value of deeper knowledge and relationships to shape the workplace of the future.
Your client needs help.
Businesses in every sector are working hard to recruit and retain talent in an environment that continues to shift with evolving workplace trends. Many strategies—like increasing compensation, benefits, and workstyle flexibility—have become the norm and are less compelling in distinguishing value and satisfaction.
So, what do employees want? An improved workplace experience!
When do they want it? Now!
Employers seeking eager, energized and loyal employees need to focus on offering a different kind of workplace experience and they are looking to you for ideas and solutions. The new CTW is designed to help you create them.
Imagine an event where operators and suppliers come together as partners through relaxed but purposeful conversations to consider the opportunities of the evolving workplace, and how to solve for it.
Leveraging their respective expertise, participants design new approaches for providing a portfolio of curated products and offerings that help clients deliver a one-of-a-kind workplace experience.
Met the Reimagined CTW 2024
This will be a different CTW for a different time—a time of evolution. CTW 2024 has been designed specifically for operators and suppliers to collaborate on how to elevate OCS and Pantry offerings and evolve the client relationship, moving beyond trusted service provider to essential business partner.
For example, office amenity culture is evolving from the practical aspects of better products and brands to a greater interest in product sourcing, social causes and the human connection derived from the experience. Consumers – employees – want more than they did yesterday. And delivering an added-value experience requires knowledgeable partners on physical space and amenity design, as well as
product selection and provisioning. Those kinds of partnerships are what you can develop at the new CTW.
“Now when employees are on premise, they want and expect an experience that is much more connected to mission, their colleagues, and even the products and brands they encounter,” said Linda Saldana, Seventh Wave Refreshments, chair of the stakeholder task force that reimagined the new CTW. “We’re designing CTW to bring operators and suppliers together to use their combined creativity to address these evolving priorities, shape the workplace of the future, and grow their businesses in the process.”
The payoff for businesses that can meet the challenge of improving the employee experience can be substantial. According to Harvard Business Review, one study found that a company could increase revenues up to 50% by improving the employee experience. And this is where OCS and Pantry operators have the opportunity to excel—helping their clients thrive and growing their business in the process.
Content is King
CTW 2024 emphasizes education, enrichment, and strategic dialogue to help operators navigate and shape the evolving marketplace. The event focuses on innovative technology use and comprehensive worker experiences, aiming to align client business goals with operator growth. Designed for sophisticated, in-depth learning, CTW’s discussions and roundtables encourage operators and suppliers to engage as partners in designing and applying new solutions. The value participants derive will largely depend on their active engagement and expertise, fostering a collaborative environment for industry advancement.
Relationships that Matter
New in 2024, the Connection Hub signifies a shift from a traditional exhibit hall to a reimagined networking space that fosters deeper conversation and collaboration. Located centrally, it encourages spontaneous interactions during breaks, meals and while enjoying
a cocktail. The Connection Hub prioritizes knowledge sharing, structured networking, and meaningful dialogue between operators and suppliers, moving beyond the typical exhibitor-attendee dynamic of past events.
No event focused on improving employee experiences would be complete without some firsthand experiences for participants. CTW attendees will have the option of participating in a “coffee crawl” to roasters in New Orleans. The Big Easy is rated as one of the best coffee cities in America and is reputed to be home to the original coffee break. The “coffee crawl” will be a great way to get the creative juices— and caffeine—flowing.
CTW 2024 is a different event experience for a different time, focused squarely on the needs of the tried-and-true members of NAMA’s OCS and Pantry community and promoting its success. We look forward to seeing you there.
SOCIAL HUBS
@PepsiCo and @FritoLay launched special Doritos Cool Ranch Zero Gravity chips into space with the crew of Polaris Dawn. The collaborators seek to raise funds for childhood cancer research and treatment at St. Jude’s Children’s Research Hospital. #snackfood #goodstuff #vending
Our Home acquired Pop Secret from Campbell Soup Co. in a move it says significantly scales its “existing platform and footprint” nationally. Other Our Home brands include Popchips, You Need This, Good Health Positively Snackable, and Real Food From the Ground Up. #popcorn #breakrooms #vending #micromarkets #pantryservice
Follow us on social Facebook/ VendingMarket @VendingMagazine linkedin.com/ company/2233840 Jo Ann Lichtman
Manufacturer’s Representative for Vending, OCS and Micro-Market Products
A young #beverage #entrepreneur: With the help of Google, his parents’ financial backing and a beverage development assist from @FlavRman, 12-year-old Joey DiRocco of Dunstable, Mass., has developed Sparklytes, a line of flavored hydration beverages. #sparklingwater #readytodrink
Pudding is really popular, with nearly half of all households purchasing.1 It pays to offer single-serve Snack Pack puddings in your micromarket to meet the craving. Now labeled and bar-coded for individual sale, they’re shelf-stable, compact and stackable to maximize shelf efficiency. Great as a treat or dessert — Snack Pack puddings are ready to grab, go and gratify!