Some Operators Resist Change

There are some operators that claim cocoa and sugar costs have not been raised enough to justify the candy price increases. Prices at retail stores just keep lowering, meaning that other retail channels have not had to pay higher prices. Antares vending operators as well as other operators have simply opted to reduce candy bars to the top selling standbys in order to reduce costs. This raises questions about what to do with the remaining candy slots. Historically, operators bought a variety of candy SKUs (stock keeping units) whereby all the SKUs from a particular manufacturer would fall under one rebate program.

A number of Antares operators have reduced its candy bar offering to the main core sellers. They have decided not to raise prices on the top sellers, out of fear of being undersold by competitors, and rather to add more of the larger size offerings.

The larger size confections (LSC) have been slowly gaining acceptance in the last two years. Many of these offerings allow Antares operators to make an acceptable profit margin as $1. 00. Operators have found success with these larger size products unanimously agree that they use the larger size offerings in place of and not in addition to the regular size version. This is the same strategy that has proven effective for large size snacks. Some operators are even using king size bars, which cost more and usually require a selling price higher than $1. 00. This will allow an acceptable profit.

The LSC’s have sustained 100 percent of the regular size versions, where the king-size bars have delivered at 85 percent. All this will increase the Antares operations value to the customers as well as the consumers who are using the machines. It is not just a matter of price increases.

The fact that candy prices are rising is reason enough to try some of the larger size products. It is uncertain how much momentum there is behind the push to larger size candy. Some Antares operators pointed out that this movement is contrary to the consumer demand for healthier offerings in vending machines; larger size candy means more sugar and calories. Some operators think moving to larger size candy is compatible with their current emphasis on healthier eating.