1. EUROPEAN VENDING MARKET TRENDS VENDEXPO MOSCOW 2012 Catherine Piana Director General

2. 2008 EVA Market Surveys and 2009 Update – First Survey – European summary +21 countries including Russia – Market + Consumer 2010 – 2011: new EVA Update – Publication in the Spring 2012 – Free for EVA Members! EVA market intelligence

3. Drivers and barriers – Macro-economic – Consumers – Industry Some facts and figures about the market Some facts and figures about consumers Overall recommendations My agenda today

4. Drivers – Snack culture, meal-time fragmentation – Regulation on shop trading hours – Openness to market development – Longer working hours and rising demand – Connectivity and technological advances Barriers – Recession and uncertainty – Trading restrictions – Health movement in vending – Regulation on the environment >< industry development Drivers and Barriers – macro-economic

5. Drivers – Convenience – Meal-time fragmentation – Indulgence – Energy boost Barriers – Value for money – Limited product choice – Lack of trust in vending machines – Quality – Hygiene – Visual appearance Drivers and barriers – Consumer’s perspective

6. Drivers – Access to products 24/7 – Demand for a low cost to serve – Create a better experience in the workplace Barriers – Competition from other channels – Limited product range and premium offering – Limited knowledge of end consumer – Lack of convenient payment systems. Drivers and barriers – the Industry

7. Strength of barriers is particularly strong in the area of consumers and the industry By using the opportunity that each of the barrier contains, vending in Europe can achieve significant growth in the long term Conclusion barriers and drivers

8. Consumer Insights

9. Main locations for vending consumption are – Workplace - office floor: 25% – Workplace – canteen: 14% – Hospitals and clinics: 12% – College & university campus: 9% – Train and metro stations: 8% – Retail outlet / shopping mall: 7% Consumers insights and locations

10. Eastern Europeans – More engaged with the vending experience More confident in the quality of vending – Image and visual appearance are an important driver – Convenient and easier payment options are crucial – Ask for more information from vending products Regional variations

11. Put a food machine next to every drinks machines! « Tell a story » to the consumer Missed meal opportunity: – 14% of Europeans don’t have breakfast every day! – 76% of Europeans who miss breakfast eat a morning snack most days (European Breakfast Cereal Association) Converting non-users by: – Placing more machines +30% business opportunity – Accept more payment options +25% business opportunity – Improved quality: +30% business opportunity – Increase variety: + 51% business opportunity Opportunities from consumer insights

12. Turnover: €12 billion in 2009 (down from 13 in 2008) 3.77 million machines – 1.2 million are freestanding – 2 million are located in the workplace 10,000 operators – 69% are small companies running less than 100 machines – The top five operators cumulate 15% of the industry value – In Russia, top five operators = 44% of market shares 85,500 people employed The Vending Market

13. Technology – Vending can benefit from the high mobile phone penetration rate (>120% in UK, Italy and Germany) – To change consumer perceptions of the vending channel – Digital screens = consumer interaction – New payment systems – Anti-vandalism – Telemetry How to make barriers become opportunities?

14. Vending has to move to the next level All vending activities are linked – Operators and machine manufacturers: improve maintenance and respond to consumers’ needs – Telemetry and operators: cooperate to collect consumer information Current thoughts in associations: – How to promote vending to consumers? – How to communicate positively to Authorities? The development of vending is only at the beginning... Final message

15. Join our social media community The Vending Group @VendingEurope

16. Thank you for your attention Questions are welcome! Catherine Piana Tel +32 475 54 32 98 cp@vending-europe.eu