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A whole new world for vending machines in 2014

  • Vending machines will display calorie counts in 2014 in order to abide by new FDA regulations that will be in place. Close to 5M machines will get a significant upgrade in order to post the information.
  • The cost will be high for vending machine operators to implement the changes, but the government has a bigger consideration. By the FDA's reckoning if only 0.2% of obese adults reduce their calorie intake by a moderate amount, then the program will save $24M a year in annual health care costs.
  • Candy sellers are expected to only see a minor impact from the new vending machine regulations, while soda sellers could face a bigger challenge.
  • Related stocks: KO, PEP, DPS, MDLZ, HSY, FLO, NSRGY, NSRGF, GIS, MNST.
Comments (29)
  • Regarded Solutions
    , contributor
    Comments (17552) | Send Message
     
    Wow, how many calories does a vending machine have? I've avoided eating these machines because of the lack of labeling. ;)
    31 Dec 2013, 08:51 AM Reply Like
  • Ruger454
    , contributor
    Comments (6) | Send Message
     
    A government big enough to give you everything you want will Take everything you have. Most government regulations infringe on our freedom and liberty. Unfortunately too many Americans are welcoming big daddy and mommy government to think for them. America is doomed to become a nation of walking dead zombies who worship the false idol called big government. Anyone willing to sacrifice liberty for government enslavement deserves to suffer.
    31 Dec 2013, 09:19 PM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (836) | Send Message
     
    "Unfortunately too many Americans are welcoming big daddy and mommy government to think for them."

     

    They are putting a key product feature - it's nutritional content - in a spot where it is visible to consumers BEFORE they make a purchase; you can then use the information as you please. How about they remove the price information as well, and give it to you AFTER you bought the product?

     

    Most Americans will likely continue to ignore it, and we'll continue to top the charts (although are friends in the south are putting up a strong fight) for obesity, diabetes, etc; FREEDOM AT WORK!!!!
    1 Jan 2014, 08:31 AM Reply Like
  • marloo
    , contributor
    Comments (17) | Send Message
     
    When I was a kid we had water fountains. 0 calories.
    31 Dec 2013, 08:56 AM Reply Like
  • tomlos
    , contributor
    Comments (1183) | Send Message
     
    You know what is so funny.. these central planners really think putting calorie counts on vending machines, the back of a soda can, the menu at McDonald's really makes ANY difference.. I've never seen anyone at a store look at a menu and go, oh boy I wanted a #1 but I think it's too much, maybe I'll get a yogurt.

     

    Why don't we start treating adults as adults and not like uneducated and stupid children. It's just burdens to business.
    31 Dec 2013, 08:56 AM Reply Like
  • BIG_BEN
    , contributor
    Comments (156) | Send Message
     
    You can read people's minds? I have avoided certain items because of the calorie counts. Some seemingly healthier choices have much higher calorie counts than you would expect. Although I do question the intelligence of people who pay the prices for those items in vending machines when you can buy them in the store for 75% less.
    31 Dec 2013, 09:07 AM Reply Like
  • tomlos
    , contributor
    Comments (1183) | Send Message
     
    I don't have to read people's minds, you can simply look at sales trends and how things have developed over time.
    31 Dec 2013, 09:16 AM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (836) | Send Message
     
    "You know what is so funny.. these central planners really think putting calorie counts on vending machines, the back of a soda can, the menu at McDonald's really makes ANY difference.. I've never seen anyone at a store look at a menu and go, oh boy I wanted a #1 but I think it's too much, maybe I'll get a yogurt."

     

    Maybe not a yogurt, but I think I've done that every single time I've gone to McDonald's since they added the calorie counts; I think your "scientific" analysis - look at people and know what they think - might be flawed...
    31 Dec 2013, 09:23 AM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (836) | Send Message
     
    " I don't have to read people's minds, you can simply look at sales trends and how things have developed over time."

     

    Would you mind enlightening us with the sales trend by product at MCD since these boards were introduced?
    31 Dec 2013, 09:24 AM Reply Like
  • BIG_BEN
    , contributor
    Comments (156) | Send Message
     
    Yeah I tried to find some vending machine sales data and couldn't come up with much. This is far from big brother limiting your food choices. It is simply giving you calorie counts. If you are upset about the cost to implement the change, perhaps the vending owners could simply load the items backwards and tie a magnifying glass to the machine so we can read the nutritional info. Sure there is a percentage of the population (maybe even a majority) that will eat what they want, calories be damned; however, there are people who value that information.
    31 Dec 2013, 09:38 AM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (836) | Send Message
     
    And here are some numbers for clarification:

     

    The new rules apply to ~10,000 companies that operate 20+ machines; at an estimated cost of $25 million, that is $2500 per company. If we assume all have 20 machines on the dot (naturally some have many, many more), that would be a cost of $125 per machine, or $0.34 per day. Assuming the average for those companies is 30 machines, the cost is less than a quarter a day.
    31 Dec 2013, 09:46 AM Reply Like
  • BlueOkie
    , contributor
    Comments (6439) | Send Message
     
    If you are counting calories you already have a weight problem
    31 Dec 2013, 11:01 AM Reply Like
  • BlueOkie
    , contributor
    Comments (6439) | Send Message
     
    Guess who going to pay for this??? Not the companies -
    31 Dec 2013, 11:02 AM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (836) | Send Message
     
    "If you are counting calories you already have a weight problem"

     

    What genius! That should be translated to finances as well: "Don't bother counting your expenses or worrying with financial planning, it won't matter anyways..."

     

    Maybe they should remove the cost of products as well from the vending machines and tell you after you pay? Everybody should have a rough idea anyways, right?
    31 Dec 2013, 11:06 AM Reply Like
  • Boomerdude
    , contributor
    Comments (105) | Send Message
     
    Okie;
    it is my experience that the thin are aware of the calorie content, at least relatively, of their food choices. They act upon that information. The more abundant among us have an inkling of the toll of calories, but choose to look the other way when "super-sizing". Still, information and social pressure are effective in gradual behavior change. Better that than re-education camps.
    Dude
    31 Dec 2013, 07:48 PM Reply Like
  • RJBroker
    , contributor
    Comment (1) | Send Message
     
    Where do you get the $25 million figure? I can tell you categorically that it isn't $125 cheap to retrofit these machines to provide this new data. The government "estimates" that if .02% of obese adults read the calorie info it will save $24 million in health costs! Wow...that's statistically significant. NOT! Maybe the better solution would be to just ban vending machines ala Michael Bloomberg. Then all the obese people won't be subjected to the rigors of choosing between Ruffles or Cheetos. Or, Big Brother could mandate refrigeration in the machines so they could dispense organic carrot sticks. This isn't about providing nutritional information it's about control and directing behaviors. This is Leviathan doing what it does best.
    1 Jan 2014, 02:30 AM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (836) | Send Message
     
    "Where do you get the $25 million figure?"

     

    The cost estimate comes from the FDA; this figure has nothing to do with the savings in health costs.

     

    Companies have a year to comply and can use electronic displays or simply stick signs to the machines; the math is actually 10,800 companies (I said 10,000) with 20+ machines, so you are right - it isn't $125 per machine; it's closer to $119 even assuming all have 20 on the dot (and under 100 if the average company has 25 machines). This measure is in-line with the estimates from the trade association NAMA.
    1 Jan 2014, 08:42 AM Reply Like
  • Regarded Solutions
    , contributor
    Comments (17552) | Send Message
     
    When 1/3 of Americans do not believe in evolution, we are fighting a losing battle against STUPID!
    31 Dec 2013, 09:11 AM Reply Like
  • slam stocks
    , contributor
    Comments (1381) | Send Message
     
    We're living in a society that cannot care for itself. There is always someone to blame. Adding calorie content can only help, but likely will be ignored until the next supposed brilliant idea. I was at a McDonalds last night watching a 6" - approx. 25 year white male weighing around 225 lbs eat 3 Big Macs with extra large Fries and Super Sized Drink. Not close to overweight and seemed fairly intelligent with his Laptop using the free WiFi.

     

    What right do we have to tell him to stop eating? The calories are clearly listed, some states ie New York limits drink size, but soda machines allow unlimited refills. I don't consider society as being dumb, just ignorant of the risks. If adding calories into vending machines saves just a few people that might avoid an unhealthy diet, then this is a fantastic idea.
    31 Dec 2013, 09:55 AM Reply Like
  • CassandraSees
    , contributor
    Comments (392) | Send Message
     
    My father used to say that laws, regulations are used to reduce everyone to the lowest common denominator - - So everyone, welcome to the land of the 60 (or perhaps lower number?) IQ - - - -
    31 Dec 2013, 10:26 AM Reply Like
  • Umm...
    , contributor
    Comment (1) | Send Message
     
    Maybe we should start labeling every tree in the country with a sign that reads, "TREE: Do Not Walk Into Me." It will cost us $4 trillion, but think of how many lives could be saved if people only read the sign rather than walking or skiing into the tree, riding their dirt bikes into it, etc.

     

    Think of the health care savings over time. I mean, we're bound to have AT LEAST a 0.025% ROI on this investment. Plus, the jobs this initiative will provide might be enough to bolster our economy!
    31 Dec 2013, 10:49 AM Reply Like
  • BlueOkie
    , contributor
    Comments (6439) | Send Message
     
    Let's take vending machines out of schools.
    31 Dec 2013, 11:03 AM Reply Like
  • NYCTEXASBANKER
    , contributor
    Comments (2656) | Send Message
     
    According to an SA article on Coke in the last two weeks
    sales in NYC are down for soda and juices while up for milk and water.
    the statement was based on Nanny Bloomberg's campaign against sugar.
    31 Dec 2013, 12:11 PM Reply Like
  • luckymulloy
    , contributor
    Comments (124) | Send Message
     
    FYI: " is the symbol for inches.

     

    LM
    31 Dec 2013, 03:10 PM Reply Like
  • siempre1
    , contributor
    Comments (27) | Send Message
     
    I'm not following why the machines need an upgrade. The calories don't change do they? Just put the number of calories on the buttons with the soda name. Heck, you could just create a sticker with a list and paste it to the machine. Or, is this what they plan to do and are just using verbiage that suggests something more extensive?
    31 Dec 2013, 06:13 PM Reply Like
  • JD in NJ
    , contributor
    Comments (1262) | Send Message
     
    If you don't make it sound horribly onerous and expensive it's harder to get anyone worked up into enough of a frenzy to complain about it.
    1 Jan 2014, 02:26 PM Reply Like
  • siempre1
    , contributor
    Comments (27) | Send Message
     
    I doubt they will see a change for the better in regards to people drinking less soda. Anyone that drinks it already knows the calories are high. If anything people will probably start drinking more. People react to info in crazy ways. For example, every time a story comes out on security in this or that store the number of shoplifting cases goes up significantly. Heck, you tell the shoplifters that the security has been increased significantly and they try shoplifting even more stuff than normal.

     

    Like shoplifting, drinking soda is a kind of addiction imo. You remind people of it and they will just do it more. Yes, they will try to stop but in the end they will just rebound and be twice as bad. That's my guess anyway.
    31 Dec 2013, 09:15 PM Reply Like
  • Phr3d
    , contributor
    Comments (290) | Send Message
     
    Perhaps mirrors would be a better solution -
    message stating 'back up until you cannot read this text, do you still fit in the mirror? go ahead and enjoy 10-15% of your daily total calorie intake in one handy bottle.'
    1 Jan 2014, 02:31 PM Reply Like
  • Ucatfan54
    , contributor
    Comments (11) | Send Message
     
    I'm all for giving people more information when making purchases, but not by government compulsion. Besides, no one is buying a coke because they think it is good for them.
    1 Jan 2014, 05:58 PM Reply Like
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