AVA 2023 Review

PROMOTE • PROTECT • ENHANCE

2023 REVIEW

Concept House, Cromwell Office Park, York Road, Wetherby, Leeds LS22 7SU +44 (0)3300 883 267 info@the-ava.com www.the-ava.com

CONTENTS Page 3.

Message From Stuart Coutts, AVA Chair Update from David Llewellyn, AVA Chief Executive

4.

Treasurers Report: Graham Kingaby

5.

Have your Say! AVA Census AVA Members Survey

6.

Environment Committee Report: Adrian Pratt (with Mike Saltmarsh)

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Technical Committee Report: Mike Saltmarsh & David Bamford

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Commodities Committee Report: Matt Osborne AVA Futures: Jason Vincent

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Membership Benefits

12.

Business Support Service

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Communications & Press

A message from Stuart Coutts Connect Vending and Chair of the AVA As we enter 2024 it’s always refreshing to reflect on the year that has passed. Although Covid-19 lockdowns are a distant memory, economically the effects took a little longer for all of us to recover from, and I would say that volumes have pretty much returned to pre pandemic levels. Pre- and Post- Pandemic, the AVA has continued to advise, support and inform its members in best practice and of impending legislation. I take this opportunity to thank all the board members who give their time freely in support of our great industry. To each one of you, thank you.

Our industry continues to grow with over 463,000 machines in daily operation in the United Kingdom, our machines are no longer treated with suspicion and in the past decade the pain has been removed through the ever-increasing use of credit cards. Taking all this together, I genuinely believe we are in a golden age of vending. What better mindset could there be for an industry that simply plays to life on-the-go.

Particularly, when the great enabler of our time is technology. So, we can flourish and we are flourishing.

However, in many ways our issues are no different than any other industry the three Es: Equality, Employment and Environment. My answer as to how best to respond is to ask the next generation to create new opportunities, share new ideas and to be bold while we are ahead. For all the campaigning and lobbying I will endeavour to lead in this role, I hope that my greatest legacy will be to leave it to our young leaders of tomorrow.

After nearly four decades in the vending industry, I have learnt what really matters is, tomorrow, how we get there and in what shape.

Hoping you all have peace, health and happiness and prosperity in the year ahead.

An update from AVA Chief Executive, David Llewellyn 2023 has been a year of getting ‘back into the swing’ again. Like our members, the AVA has had a busy year with a number of re-introduced, and new, events, meetings and education sessions.

As we bid farewell to another transformative year, the vending & automated retail landscape stands as a testament to the resilience, adaptability, and innovative spirit of AVA members. In the ever-evolving tapestry of technological changes, market dynamics, and global challenges, 2023 has been a year of notable triumphs and formidable hurdles for our industry. Especially with the ever-changing roster of legislation and guidance coming from central Government and the Home Countries legislators – as well as new EU legislation which, despite Brexit, will always have an impact as our members operate across many borders.

Our aim, as always, is to provide guidance and information to our members – to make sense of the confusion and misinterpretations – to provide a clear voice and, for End Users Clients, a guarantee of a quality service from AVA members.

To stay informed about new legislation and industry events, make sure you subscribe to the AVA Monthly Newsletter.

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Graham Kingaby, AVA Treasurer I am very pleased to report that the financial position of the AVA continues to be satisfactory and that we have kept our costs and income close to our planned 2023 budget.

The challenge is always between ensuring value for the members, balanced with the fundamental purpose of the association. This purpose is to support the members of our industry in a variety of important ways, to be the voice for our industry when legislators, the media and others challenge what we do and ensure our staff are appropriately cared and provided for. I believe we have achieved that balance.

2024 is likely to be a year when the demands upon the association will require us to use more of our funds to meet some of these challenges. Especially in defending our position in the face of proposed legislation and in lobbying and communicating with influencers and lawmakers. Our budget for 2024 reflects that need and is largely neutral. I am confident that this will again provide value to the members.

In common with most, our experiences with investments have been underwhelming throughout 2023, so we have taken steps to try for an improvement in 2024.

This has been done following research and advice and in a low risk and secure manner. We are hopeful that this will provide additional funding for the association in the years ahead.

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HAVE YOUR SAY!

AVA Census – your chance to take part The Annual AVA Census provides vital data for our industry. It is regularly used as the basis for successful lobbying with Government, as a resource to members to help them benchmark performance against the overall industry and by potential investors to understand key trends and assess potential acquisitions.

Martin Colston will once again be carrying out the AVA Census this year and we hope that all members will find time to complete and return submissions. The 2023 Census will, yet again, be essential to gauge and report on vending businesses and the sector as a whole.

For more information – contact the AVA office or Martin Colston on: martin@colstonconsultants.com UK Industry & Operator Snapshotʇ Based on Census Questionnaires KEY METRICS

OPERATOR REVENUE

• Product revenue up 17%

• Up 16% vs 2021

• Number of vends up 10%

• Expect +11% in 2023

• Machine base unchanged

INDUSTRY BY SECTOR

TOTAL REVENUE SPLIT

• B&I has 60% share

• 65% Beverage & Snack

• Leisure has 9% share

• 18% Machine sales

• Shift away from B&I to mitigate hybrid working

• 11% Technical Service • 4% Food

Sources: Census questionnaires February to April 2023, EVMMA data on new machine sales, AVA Census history, inputs from operators and suppliers, CCL analysis

2023 Members Survey It is vital that we can understand what our members need, as well as how they feel about the services and support that the AVA offers. This also helps us to ensure we can remain focused on what matters to you.

With that in mind, please take a little time (about 5 minutes) out of your day to complete our Annual Member Survey: https://www.surveymonkey.com/r/83LJCW5 2022

On a scale from 1 (Strongly Disagree) to 5 (Strongly Agree), please rate your agreement with the following statements:

5 4.5

Weighted Average

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3.5 3 2.5 2 1.5

1 0.5 0 I am satisfied with my membership of the AVA

I plan on keeping my membership for the foreseeable future

I feel the AVA supports it members Weighted Average 2021

I feel like my membership helps make an impact

I feel like I am kept up to date with all things that concern me

I am comfortable with how my membership money is being spent

Weighted Average 2022

Overall Net Promotor Score = 74.8%

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Committee Reports: Environment Committee: Adrian Pratt (with Mike Saltmarsh) 2023 has seen a series of consultations from all five jurisdictions to which the Environmental Committee has responded. Unfortunately, the direction of travel in the UK has been generally backward. An example of this is the cancellation of the Deposit Return Scheme (DRS) in Scotland and the delay in the introduction of most aspects of Extended Producer Responsibility (EPR). A particular disappointment was the postponement of the introduction of Mandatory Cup Takeback. However, the committee has been communicating with the authorities of all five home nations and Ireland, leading to a greater understanding of the industry reflected in proposed legislation. The Environmental Newsletter has provided updates for members throughout the year.

These are still available in the member’s area of the AVA website.

The committee provided a briefing on the data reporting requirements of Extended Producer Responsibility which came into force on 1 January 2023; all other aspects being deferred until 2025.

Mandatory Cup Takeback has also been delayed but increasing the proportion of cups that are recycled is critical for the industry. The committee has been active in encouraging operator engagement with cup takeback in preparation for the imposition of the obligation.

A critical aspect of the introduction of EPR will be the mechanism of the assessment of the recyclability of materials which will determine the allocation of costs to be borne by materials and whether they can carry the “recycle” rather than “do not recycle” logo. The committee has joined with other trade associations in working with Defra to ensure that vending cups are assessed as recyclable and carry the “recycle” logo.

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The well publicised delay in the introduction of a DRS in the UK means that, should it eventually be introduced, it will be consistent across the country. A DRS will go live in Ireland in February 2024. The AVA has established a working relationship with the authorities in Ireland and has ensured that unattended vending will not have to provide a return point. The improved understanding of the vending industry has also meant that the cup levy that is currently planned for next year would not be paid on free vend sites.

Currently there are no plans to introduce similar cup levies in the home nations. This decision has been influenced by the increased understanding of the industry by the authorities as a result of extensive discussions with the AVA. The UK government finally published its response to the Consultation on consistent waste collection of 2021 in the Autumn as Simpler Recycling. The few substantial changes to the original plans involved a delay to the proposed introduction date and a softening of the requirement for all Local Authorities to abide by the mandated list of materials to be collected in segregated waste streams. However, an issue of concern is that it appears that laminated paper and board, which has previously been widely collected, may now be excluded from collections creating wide ranging concerns. The committee will be working with Defra to clarify the implications of this proposal.

In Wales, consistent business waste collections begin in April next year collecting the same key six waste streams in domestic collections.

In England and Wales bans on single use plastic products became effective in the Autumn. The AVA assisted Defra in understanding the terms relating to polystyrene and it is important to note that there are no restrictions on the use of polystyrene vending cups.

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Technical Committee: Mike Saltmarsh & David Bamford ENGINEERS’ TRAINING PROGRAM

The major event of 2023 was the restarting of the highly successful engineers’ electrical training programme with a new tutor, David Watts. The basic course is now entirely online. Progress has been made on completing the portfolio of on-the-job training and we still need to extend participation in the advanced (Part 2) course, but over 150 engineers have now received training to ensure they and customers are safe when they are working on machines.

A concern which is on the horizon but is undoubtedly going to be an issue for the industry, is the proposed ban on compounds that contain fluorine. The compounds, known as PFAS, are not broken down in the environment and are becoming known as ‘forever chemicals’. They are suspected of contributing to a number of illnesses and the European Commission has announced plans to ban them. There are thousands of them and many are used in the vending industry. The industry is investing in identifying exactly which compounds are used in which components of machines and which could be replaced if necessary. The committee received regular updates on this work and publishes them in the technical newsletters.

The Guide to Good Hygiene Practice in the Vending and dispensing Industry is now over 15 years old.

Much has changed in that time and it is important to update it.

The Guide provides the basis for Environmental Health Officers inspecting operators and is recognised as authoritative by the Food Standards Agency for its guidance on issues, such as water quality, when it could be used in court if necessary.

A draft of the revised guide has been prepared and is available to anyone who would like to contribute to the revision.

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HEALTH & HYGIENE COURSE

FOOD SAFETY AND HEALTH & SAFETY TRAINING FOR VENDING OPERATORS

To become an AVA member, companies are required to hold accreditation to the AVA Quality System or through prior accreditation of ISO 9000:2015. Since 2007, it has been a requirement of the AVA Quality Accreditation that all route operators receive basic health and hygiene training (in accordance with the requirements of the Food Hygiene Regulations), as should engineers. To support members meeting these requirements, the AVA relaunched its training course in 2023, as a cost-effective solution.

The course has been designed to provide basic Hygiene and Health & Safety training with certificates (valid for 3 years) to those who have completed the training and passed the test papers. There is a modest charge for the course, test papers, marking and certificate and it is recommended that all personnel repeat the course at three-year intervals to renew their knowledge. To find out more about this training course, head to the AVA members area

FOOD, SAFETY AND HEALTH & SAFETY TRAINING FOR VENDING OPERATORS Technical Newsletter A library of Committee Newsletter can be found HERE September 2024: AVA Technical & Operations Webinar The committee arranged a well-attended webinar covering a range of topics – this can still be viewed (in useful bitesize pieces!) on the AVA YouTube Channel.

We will be holding another Technical & Operations webinar in September 2024 – keep an eye out for detail.

Quality Audits / ISO Accreditation

Many members agreed that the reassurance for customers and clients provided by AVA Quality Accreditation is one of the most important elements of membership. Increasingly, AVA members are wanting to take this further.

Many use outside auditors to achieve ISO 9001:2015 accreditation, but recently a number of members have moved across to AVA ISO accreditation and auditing. Not only are AVA audits tailored specifically to the vending industry and its operations – but they are less expensive too!

Find out more here: Quality Assurance – AVA (the-ava.com) 9

Commodities Committee Matt Osborne (Masteroast) Whilst there has been no specific legislation introduced in 2023, there has been a continued move towards ‘better for you’ product offering through vending, micromarkets and smart fridges. Healthy snacking remains a steadfast trend, propelled by a global shift towards healthier lifestyles and increased awareness of nutrition. People continue to seek convenient, nutritious snacks that align with their dietary preferences and health goals, despite a cost-of-living crisis having a firm grip over consumer spending.

This is reflected in the recent AVA census, which found that 80% of pre-packaged cold drinks in vending machines contain less than 5g of added sugar per 100ml, compared to 44% in 2017. Similarly, 79% of confectionery and sweet products now have under 250kcal, a notable increase from 35% in 2017.

Furthermore, the proportion of sandwiches and pre-packaged meals with under 400kcal and 5g of saturated fat per 100g has risen to 17% from 10% in 2018.

AVA FUTURES Committee Commodities Jason Vincent (Aeguana) Matthew Osborne (Masteroast) The AVA FUTURES Group aims to unite forward-thinking stakeholders.

Looking at potential future progress in the vending & automated retail market; likely developments and ways of working and the workplace; changing consumer preferences and client demands.

The Next Generation Vending Industry Group envisions a future where vending machines embrace cutting-edge technology, sustainability, and enhance consumer experiences. Objectives include fostering innovation, promoting collaboration among industry stakeholders, championing sustainability, and enhancing consumer interactions through emerging technologies. The group focuses on technology integration, product diversity, digitalisation, sustainability, and data-driven decision-making.

The AVA FUTURES Group aspires to create a collaborative platform fostering innovation, sustainability, and enriched consumer experiences in the vending industry. Through meetings, seminars, and engagement with external groups, the group aims to shape the industry’s future, ensuring its competitiveness in the evolving retail landscape.

Communication to the wider AVA membership will be facilitated through partnerships with other relevant AVA committees.

The first step will be a ‘Vending Futures’ conference to be held at VENDEX Milton Keynes in March. Watch out for AVA Newsletters with more details!

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AVA MEMBERSHIP BENEFITS The AVA (Vending & Automated Retail Association)

AVA members benefit from technical support on

logo signifies a commitment to quality and adherence

various matters, such as HACCP, COSHH, and food

to a strict code of conduct and standards. Achieving

safety. The association offers training, including

AVA Quality Accreditation communicates to potential

health and hygiene for staff, adherence to quality

customers that a company follows quality guidelines,

standards, and specialised electrical training for

maintains trading standards, and is a trustworthy and

engineers. The AVA serves as a valuable knowledge

credible business. The accreditation enhances

source, providing industry statistics, technical advice,

company standing, adds weight to sales

and information on legislative changes, Additionally,

presentations, and provides a competitive edge when

the AVA represents the vending industry’s voice,

tendering for new business. Being part of the AVA also

influencing legislation, protecting businesses from

means access to a range of business support

negative press or harmful regulations, and fostering

services, including legal guidance, health and safety

networking opportunities to facilitate connections

assistance, and expert advice, all included in the

within the industry

membership fee.

AVA: The Vending & Automated Retail Association is a trade body of the vending industry in the UK which represents all sectors of the industry, manufacturers, distributors, commodity, suppliers and operators

NETWORKING

Many networking opportunities through regional meetings, events, and social functions

RECOGNITION

Our reputation in the industry gives recognition, and the AVA logo is a guarantee of quality so customers have more confidence in vending service suppliers, knowing they are accredited AVA members

LOBBYING

AVA represents the voice of the industry to the government and opinion leaders lobbying on key issue to protect member’s interests and raising standards

INFORMATION

The AVA provides legislative technical and legal advice, as well as sharing key data from the vending census exclusively to members.

We also have technical experts who can share their knowledge and provide leading training courses

Learn more by visiting www.the-ava.com/joining-the-ava/ 11

AVA BUSINESS SUPPORT SERVICE Free advice & guidance • The Tax Service:

• Advice line to Tax & VAT advisors

• The HR Service:

• Unlimited advice line • 400 free, downloadable employment documents

• The Health & Safety Service::

• In addition to Membership Services Manager • Advice line H&S specialists • Over 100 free, downloadable documents

• The Legal Service:

• Unlimited advice line to legal advisors • 200 free, downloadable documents

Members have unlimited access to the AVA Business Support Service, an essential service that is designed to support and protect your business.

That’s the good news… the even better news is the service is FREE for members to access.

The AVA Business Support Service – What Is It? Advice Line – unlimited access to experienced advisors offering practical advice on HR, employment law, health & safety, legal issues plus tax and VAT matters, Website – access to over 700 template documents covering HR, employment law, health and safety and legal matters. The website also includes an HR and H&S Health Check.

How Do I Access the Service?

Advice Line – call 0116 243 7589. You will be asked for your name and company name.

Website - LINK Log in to the AVA Members’ Area of the AVA website Go to the Membership Benefits / AVA Business Support Service page Click on the website link the text Login to the Business Support Service page.

What Can I Use the service for?

To help you resolve any issues you have with HR and employment law, health & safety, legal or tax .

You don’t have to wait until you have an issue or a serious problem before you call. The advice line will help answer any questions you may have.

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AVA COMMUNICATION & PRESS The AVA works with PR agency Definition, to help raise awareness of the organisation and how the AVA supports its members and the wider vending industry. As part of its work, Definition supports with drafting external communications including press releases, the monthly newsletter and pitching for additional media opportunities for CEO, David Llewellyn, to share his perspectives on issues affecting the sector.

While from a media perspective, this year has been more challenging due to unprecedented events, Definition has helped to achieve more than 500,000 opportunities to see, hear or read about the AVA in 2023. In addition to securing media hits, Definition also supports with monitoring the media landscape, building relationships with the relevant trade and national media, and supporting on an advisory basis regarding external communications.

In the news throughout 2023: • Automatic advancements – Facilities Management Journal • How Micro-markets and vending machines are WOWing the workplace - FMUK • The Future of Vending – Vending International • UK Perspective: Resilience amidst a challenging environment – Vending Times • What the rest of the world can teach us about DRS – The Grocer

The AVA hosts a wide array of events throughout the year.

This includes training and education courses, regional meetings under the AVA Live: On-the-Road banner, as well as some amazing social and networking opportunities. Here are details of upcoming events to mark in your diary.

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KEEP IN TOUCH WITH ALL THE AVA AND INDUSTRY EVENTS CHECK FOR UPDATES AND NEW ADDITIONS IN OUR CALENDAR

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General News

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