Guide to Food and Beverage Vending

Food and beverage vending machines can be a convenient and profitable business add-on

By Marianne Cotter

Action Steps
The best contacts and resources to help you get it done

Choose the right vending equipment

Are your vending machine needs restricted to soft drinks and snacks or do you want to offer a range of meals options? Snacks and beverages can be dispensed with separate soda vending machines and snack vending machines or with a combo unit. If you want to offers meals, you may need a vending machine that can manage sandwiches, fruit, and frozen and microwavable food.

I recommend: To save time researching vendors, Vending Assistance offers free recommendations of vending equipment companies and services it has screened. Vending Solutions offers a full service vending machine management program and is particularly useful for businesses with multiple locations.  Vencoa sells vending machines that can handle fresh and frozen foods. Business.com's food and beverage vending machines page lists a wide range of resources to help you get started.

Expenses for food and beverage vending machines

Beverage and food vending machines can be bought, rented or supplied as part of a complete vending service. Your initial investment depends on which way you decide to go. Used vending machines can minimize your start-up costs. Ongoing expenses associated with vending equipment include maintenance, repairs and electricity. And don't forget the time commitment - it takes time to reorder and restock the vending machines as well as to collect the money.

I recommend: USEDVending.com sells refurbished and used vending machines from a database that can be searched by state. Triple A Services offers a complete vending machine service with a service plan for easy outsourcing.

Generating revenue with your vending machine business

Some of the major soft drink distributors like Coca-Cola will install soda vending machines, stock them and service them at no charge and then pay you a commission on the drinks sold. Starting a vending machine business in which you place and maintain vending equipment in other people's businesses is another way to go.

I recommend: US Vending places soda vending machines for the Coca-Cola bottling system in small and medium sized businesses. Products range from soda and diet soda to iced tea, fruit drinks and water. No contract is required, just 30-days notice to remove the beverage vending machines. Hershey's Vending has a category management methodology to help assure that snack vending machines have the right product mix to yield optimal profits.

Sourcing foods for your food vending machines

Options for your food vending machines go beyond the standard chips, candy and gum. In fact, you can fill food vending machines with microwavable meals, fresh sandwiches, individual pizzas and other healthy food choices.

I recommend: The Vending Yellow pages has links to suppliers of fresh deli foods as well as healthy food choices for food vending machines. Aramarks' Just4U offers snacks for snack vending machines that have been approved by the American Diabetic Association.

Helpful advice for making the most of this Guide

• •  Query employees to find out what snacks, foods and beverages they want in a vending machine.
• •  Track which items are selling well in your snack vending machines and add new items until you achieve the mix that best appeals to your customers.
• •  Monitor expiration dates on fresh food items in food vending machines and replace as necessary.
• •  Appoint a staffer and a backup person to be responsible for maintaining the vending machines, reordering food and restocking the machines.
• •  Have a maintenance program in place to respond quickly to vending machines that are not operating properly.
• •  Have a maintenance program in place to respond quickly to vending machines that are not operating properly.

Action Steps
The best contacts and resources to help you get it done

Propose a toast to profit as beverage importers

The market to import beverages is wide open. Alcoholic beverages like beer and wine involve more stringent import requirements than non-alcoholic beverages like tea and soft drinks. However, there are suppliers that can provide you with any type of coffee, tea, juice, milk, alcohol or soft drink you want to market.

I recommend: Algart International carries a line of organic energy teas made in Canada. These healthy alternatives to coffee are available in four flavors and packaged in tea bags or blends. Canadian Cola Corporation is looking for importers for their line of soft drinks. They are a young company with the goal of becoming a world leader in convenience beverages.

Satisfy a sweet tooth as a food importer of chocolate

Food importers and distributors know a good thing when they see it. Chocolate has universal appeal and growth trends continue to exceed expectations. The demand for chocolate hits an all-time high during gift giving seasons, so there is still potential in this sweet market.

I recommend: Don Veitia is a manufacturer of gourmet chocolate made from pure Creole Cocoa from Venezuela. Their select ingredients along with the handmade technique gives them global appeal. Chocolates Haas manufactures a gourmet line of chocolates with no sugar. Their goal? Pleasure without guilt.

Go organic with food importers and distributors

As more and more Americans focus on healthy living, food importers also begin to focus on bringing more organic foods to the table. Food grown without conventional pesticides and processed without food additives is a commodity that appeals to an ever-increasing range of consumers.

I recommend: Miltop Exports specializes in organic spice products. Their product line includes black and white pepper, sesame seeds, brown mustard and an extensive list of other spices. Leading Star Trading Co. has been exporting certified organic food since 1983. Their organic line includes peanut, pine nut and pumpkin seed kernels, as well as dried fruit and wild mushrooms.

Helpful advice for making the most of this Guide

• •  PIERS Global Intelligence Solutions has the most comprehensive program for entering into the international trade industry. Their database will help you find suppliers if you import beverages, food or export.

Action Steps
The best contacts and resources to help you get it done

Find out more about the legal aspects of food importers and distributors

Food importers are the 'middlemen.' Importers of food buy from suppliers and sell to the retailers. The trade rules of each country are enforced. The US has commercial trade agreements with some countries, and additional rules and regulations can apply.

I recommend: The US Customs website gives you basic information on trade rules and regulations. Its download section lists all the forms and requirements a food importer needs. Beverage importers need to work with the Bureau of Alcohol, Tobacco, Firearms and Explosives if you wish to import beverages made with alcohol.

Look into the details of food exporters

Exporting food requires more planning and analyzing markets. If you are importing, the assumption is that you already know who or where your market is. But, exporting requires finding buyers or markets that want your products. Some producers who wish to export their food or beverages hire companies to find these markets for them.

I recommend: The Cheese Exchange (cheese exporters), gives a good example of the market forces they face -- even though cheese exports have gone up 40%. You will have to do the same kind of analysis for your products. World Export & Import Link is a company that finds markets for food exporters and their products. It will also provide marketing plans for your products -- all at a price.

Increase your knowledge of the world of food importers and distributors

If you are thinking of importing or exporting, the industry itself can provide you with help in setting up your business.

I recommend: US Food Export Showcase is a great opportunity to see the food export work at large. You can make connections with other exporters and talk shop. If you are interested in exporting organic food, the Organic Trade Association directory can lead you to the right connections. Food importers can get information by joining the Association of Food Industries. To import beverages you can refer to the Alcohol and Tobacco Tax and Trade Bureau.

Helpful advice for making the most of this Guide

• •  Food and beverage importers and exporters basics means getting all your ducks lined up before you invest in importing or exporting your product.

Action Steps
The best contacts and resources to help you get it done

PIERS Global Intelligence Service

The Port Import Export Reporting Service, or PIERS, is a global database that monitors the goods that come through various world ports. The raw data that the company provides allows import and export companies to improve their businesses.

I recommend: Learn more about the PIERS Global Intelligence Service through its website.

Bureau of Alcohol, Tobacco, Firearms and Explosives

Food importers must work with the Bureau of Alcohol, Tobacco, Firearms and Explosives if they wish to import alcoholic products. The ATF regulates the industry to ensure the safety of American citizens.

I recommend: The ATF includes much information on its website about what the division aims to do.

Toxic Substances Control Act (TSCA)

The Toxic Substances Control Act is a law that prevents the import of certain unknown chemicals. If a food company is trying to export its food to the United States, it must ensure that all chemicals within the food, or used to treat the food, are included on the list of approved chemicals.

I recommend: Learn more about the TSCA through the Environmental Protection Agency.

International Beverage Network

The International Beverage Network is a way for alcohol importers and exporters to connect. Companies are able to list their contact information on the site.

I recommend: Learn more about the International Beverage Network and browse Worldwide Marketplace for new types of alcohol to offer in your store.

Customs regulations

Each country has its own customs laws, which regulate the import and export business. Goods that you can export to one country may not be acceptable to another.

I recommend: You can see customs regulations at U.S. Customs and Border Protection. For other foreign countries, you may want to contact their embassies before you attempt to import or export goods.

Export license

Some types of shipments require an export license, and it's important to know whether you need this to operate your business.

I recommend: Find out whether your company is shipping the type of goods that require an export license from Bureau of Industry and Security.