Planet Antares

Inputs to make your vending business work. A special insight on Planet Antares Vending solutions

Thursday, October 05, 2006

Cashing In on PET Bottles

PET bottles have made the case for dedicated beverage routes stronger than ever. Investment can be simplified with a plan that phases in dedicated routes.

The introduction of larger-sized PET beverage bottles has complicated the life of the typical Antares vending operator. Plastic beverage bottles account for the majority of single service sales in supermarkets, while in full line vending they account for a smaller percentage. This shows that the Antares operator needs to offer customers the products that they have clearly demonstrated that they want.

PET bottles sell for much higher price points than 12 ounce cans. When operators refuse to offer these products, it means that they are depriving their companies of the higher gross profit dollars. They end up loosing sales by forcing their customers to purchase these products from c-stores and supermarkets.

Most operators have complained that PET bottles produce a lower gross profit percentage as compared to 12 ounce cans, and in addition to this, these bottles decrease space in their route vehicles.

Even if PET bottles produce a lower gross profit percentage, you need to keep in mind that you don’t take percentages to the bank; instead you take dollars to the bank.

Larger vehicles are available

Antares operators face a big hurdle in solving the space problem in their route trucks. Many operators replace route vehicles usually every 8 to 10 years. PET bottles have achieved a sizeable percentage of market penetration with full-line operators. This goes to show that many operators have solved the space problem by purchasing larger route vehicles.

The proliferation of brands in beverages and snacks has forced operators to purchase larger vehicles for mixed product routes. Running a dedicated beverage Antares route has a number of benefits. PET bottles are generally heavier than a case of cans, so it would be an added advantage for you to have a dedicated beverage truck where you can use a forklift to load or unload the cases.

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