Candy, Snacks and Confections Growth

In 2005, candy, snacks and confections sustained the improvement they had posted in 2004. This means that Antares vending operators experienced revenue gain, since they vend candy, snacks and confections. There was a 2.8 point revenue gain in this segment that almost kept pace with the overall industry growth rate. Most operators reported higher cost increases in 2005 than in 2004. This means that the segment was more challenged from a profitability standpoint.

The price increases were noticeable in the candy category, since this was the largest segment in the candy/snack category. One way Antares operators were able to raise prices, was to replace traditional size candy bars with large size bars. These were introduced in 2004.

The top selling candy/snack/confection products that were sold by Antares vending operators as well as other operators did not change significantly in 2005. This information was based on data provided by Management Science Associates, which tracks machine level sales. However many operators reported changing suppliers in order to minimize their exposure to higher prices.

Many operators noticed that requests for healthier products in vending machines had increased in 2005. While most operators did not find any significant difference in the type of products purchased, they gave manufacturers high marks for improving both the variety and quality of health oriented products in 2005.

The number of candy/snack product introductions jumped close to 30 % for the second consecutive year in 2006. This has been a plus point for Antares vending operators. These are one of the reasons why vending operators have opted to vend snacks and candy. They have remained the most popular with Americans till date.

Meat snacks posted a double digit sales increase in 2005. This is the third consecutive year that this category has increased sales. The growth for this product has been attributed to the popularity of low carbohydrate diets.