The vending machine, initially invented in the first century C.E. by Heron of Alexandria to dispense holy water, has evolved into a digital frontier, especially with companies like Coca-Cola leading the charge. In an era dominated by digital convenience, Coca-Cola has been aggressively looking for ways to create more interest and attachment to its iconic products, even as soda consumption slumps as more consumers flock toward waters, teas, and flavored drinks. The beverage giant has released a new Fanta bottle that looks as if it's been twisted by hand and continues with its popular summer promotion of putting names on bottles. The company has also developed digital signage for grocery endcaps that use a mix of Google Cloud technologies to deliver branded video and e-coupons. The technology tailors messages to passing shoppers based on the data on their smartphones, offering brand campaigns, store-specific promotions, or app-guided shopping lists depending on the individual.
Coca-Cola's approach to vending machine technology showcases how companies are digitizing their supply chains by making use of smart, connected devices. These innovations not only enhance the consumer experience but also provide valuable data and insights to the company.
Coca-Cola Freestyle: A Touchscreen Revolution
Coca-Cola Freestyle is a touch screen soda fountain distributed and run by The Coca-Cola Company. First launched in 2009, the machine features over 165 different Coca-Cola drink products, as well as custom flavors, allowing users to select from mixtures of flavors of Coca-Cola branded products which are then individually dispensed. The technologies involved include microdispensing technology and proprietary PurePour technology. Both technologies were originally developed to deliver precise doses of drugs. One Freestyle unit with a similar footprint to a current vending machine can dispense 126 kinds of carbonated and non-carbonated beverages. Microdosing blends one or more concentrated ingredients stored in 46 US fl oz (1.36 L) packets with water and sweetener at the point where the beverage is dispensed, thus avoiding the use of traditional 5 US gal (18.9 L) boxes of syrup (also known as a bag-in-a-box). Cartridges store concentrated ingredients in the dispenser cabinet and are RFID enabled.
Deployment and Expansion
Coca-Cola deployed the machines to 500 more locations in the United States in June 2010, followed by deployment to some universities in the United States. Deployment has continued in select locations of restaurant chains such as Wingstop, Zaxby's, Wawa, Taco Time Northwest, Togo's, Roy Rogers, Davanni's, PDQ Dairy Queen, Fuddruckers, Five Guys, Kelly's Roast Beef, Firehouse Subs, Wendy's, Jack in the Box, Zaxby's, Carl's Jr./Hardee's, Beef O'Brady's, Miami Grill, Hess Express, Jason's Deli, White Castle, Moe's Southwest Grill, Noodles & Company, Popeyes, Raising Cane's, Steak 'n Shake, Captain D's, Chili's, AMC Theatres, Cracker Barrel, Six Flags, Blaze Pizza, McDonald's and BurgerFi. The company have also launched and deployed Coca-Cola Freestyle machines in many other countries, mainly in Europe. However, the selection of brands available may differ, and they may include real sugar unlike their US versions which use high-fructose corn syrup. Freestyle launched in a limited trial in June 2012 in Great Britain, in association with Burger King. In Germany it began limited trials in 2015 and rolled out further by 2020. It launched in France in July 2016, in association with Five Guys. It was launched in Singapore in September 2017 the first one in a retail store in Our Tampines Hub. They launched in Denmark in February 2020. In 2021 Coca-Cola Europacific Partners trialled a new Compact Freestyle machine, initially in France and Belgium and later in Great Britain. Customers choose a base product, which they can supplement with additional flavoring. Diet and Zero products remain low or no calories even with flavorings added. Machines at Wendy's locations have many unique and exclusive beverages. Since 2018, machines at select Burger King franchisees have Surge as an available option. Machines in the University of South Florida campus added an exclusive Fanta variety called "Rocky's Refresher" in 2023.
The Internet of Things and Smart Vending Machines
A key trend is “The Internet of Things.” The “Things” are products embedded with computers and connected to the internet. As a result, Coca-Cola is better at managing inventory, forecasting demand, and performing machine maintenance. The smart machines control temperature, keep a history of past transactions, and allow for dynamic pricing. Running low on Cokes in Tuscaloosa? Coca-Cola receives a low inventory warning which prompts restocking orders. Shipping and transport are optimized to get to the neediest machines using the most efficient route. Not selling enough Powerade in Tallahassee? Coca-Cola drops prices to move older items off the shelf. It deploys promotional videos and ads on the vending machine screens to catch the attention of the thirsty passerby. A machine in Talladega is breaking down? Signals are sent back to Coca-Cola when a machine is in need of repair so the team can fix or replace it.
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Not only is Coca-Cola reaping the benefits, but the smart vending machines are also good for vendors and customers. Vendors get access to the supply chain information through an online portal. The portal shares new product updates, customer targeting research, pricing suggestions, and shelf optimization recommendations. Customers get convenience, reliability, and availability. Touch screens allow for easier ordering, and can pay with their mobile phone. Coca-Cola even offers a program called “My Coke Rewards” that provides loyalty points.
Future Innovations: AI and Personalization
In the medium term, Coca-Cola is working on next-generation features powered by artificial intelligence. A chatbot will be installed in the machine, acting as both an order management service and customer support. It will send customer feedback and preferences back to Coca-Cola. Customers will be able to order ahead and then pick up the item from their chosen location. There are plans for facial recognition software that tracks the customer expression, age, and gender to give the company more consumer insights for customized product recommendations and targeted ads.
Concerns and Considerations
As Coca-Cola ventures into AI and facial recognition, it is crucial to address potential concerns. Chatbots can easily be annoying to customers, and privacy issues need to be addressed seriously. Cyber security will be critical. No doubt a temple visitor back in the day tried to hack the first vending machine for some extra coins and holy water.
Slender Vender: Diet Coke's Space-Saving Innovation
Diet Coke fits beautifully into one's lifestyle -- and so does its Slender Vender: The thinnest vending machine in the world. It fits where others can't and may show up in a place you'd least expect.
Other Vending Machine Technologies and Options
Snack and Drink Combination Vending Machines
The Seaga Envision ENV5C Refrigerated Snack and Drink Combination Vending machine holds a total of 375 snacks and drinks. The AMS 35 Snack and Drink Combo features 26 selections so you can vend a wide variety of items with a smaller footprint.
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Beverage Vending Machines
The AMS 39 Bottle and Can Vending Machine features 29 selections so you can vend a wide variety of drinks in a full sized glass front machine. The Seaga Envision ENV5B Beverage Vending Machine holds a total of 240 bottles and cans. The Prosper Seaga 18 selection Beverage Vending Machine holds a total of 300 bottles and cans. This beverage vending machine holds a total of 200 bottles and cans.
Snack Vending Machines
The AMS Slim Gem Snack Machine features 24 selections so you can vend a wide variety of items with a super small footprint. The AMS 39 Snack and Candy Vending Machine features 41 selections so you can vend a wide variety of items in a full-sized glass front machine. The Seaga Envision ENV5S Snack Vending Machine holds a total of 547 Snacks. The Seaga Envision ENV4S Snack Vending Machine holds a total of 468 Snacks. Our Snack Vending Machine 23 Selection is the perfect solution for any waiting area, lobby, break room, or vending route operator.
Specialty Vending Machines
This medical Vending Machine is designed vend over-the-counter (non-prescription) medical products such as pain relievers, condoms wipes, first aid kit, or sanitary hygiene products. This rugged medical vending machine mounts on the wall and its streamlined design blends well with any decor. The Envision 5-Wide Laundry Machine is the perfect solution for providing convenience and accessibility to laundry essentials. The Envision 4-Wide Laundry Machine is the perfect solution for providing convenience and accessibility to laundry essentials.
AI Smart Vending Fridges
Smart Cooler 1200 - AI Smart Vending FridgeUltra-capacity. Fully intelligent. The Smart Cooler 1200 is the largest and most advanced model in the Smart Cooler lineup. Smart Cooler 550 - AI Smart Vending FridgeMaximum capacity. Maximum performance. Smart Cooler 542 - AI Smart Vending FridgePremium capacity. Intelligent retail. The Smart Cooler 542 is a high-capacity, AI-powered vending solution designed for peak performance in demanding retail spaces. The Smart Cooler 440 is engineered for businesses that demand efficiency, intelligence, and seamless customer experiences.
AMS vs. Seaga: A Comparison of Vending Machine Manufacturers
Among the leaders in this industry are AMS and Seaga, each boasting its unique features and specializations.
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AMS
With a focus on maintaining optimal freshness, AMS machines employ advanced refrigeration technology and sensors. AMS showcases a broad spectrum of drink vending machines that can accommodate bottles, cans, and even tetra packs. AMS combo machines are renowned for their versatility. AMS is often recognized for its high-capacity machines and technological prowess
Seaga
Seaga, on the other hand, emphasizes compact design without compromising on variety. Seaga’s cold food machines are energy-efficient and designed for longevity. Seaga’s drink vending machines are built with user-friendly interfaces and compact designs. Seaga’s approach to combo machines is to provide a balance between design and functionality. Seaga stands out with its efficient designs and adaptability.
Pepsi Vending Machines
Pepsi vending machines have long been a staple of the beverage industry, renowned for their reliability and brand recognition. As one of the most popular soda vending systems worldwide, these machines have made their mark across over 150 countries, making them a familiar sight in public spaces, businesses, schools, and more. According to “Beverage Digest,” Pepsi currently holds the second position in the global soda market, trailing only behind the iconic Coke Classic and surpassing Diet Coke. This ranking underscores the ongoing demand for Pepsi products, evident even in the used vending machine market. While health concerns regarding sugar intake and weight management have led to a dip in carbonated soda sales overall, the sale and acquisition of used Pepsi vending machines remain strong.
PepsiCo's Social Vending System
In 2011, PepsiCo revolutionized the vending experience by introducing its Social Vending System. This innovative, networked vending machine employs full touchscreen technology, allowing users to interact with brands directly at the point of purchase. One of the standout features of this system is the ability to send drinks as gifts. When the recipient redeems the gift, they are prompted to either thank the sender or pay it forward by gifting another beverage. This unique feature encourages interaction and creates a sense of community around the Pepsi brand. Pepsi branded drink machines are uniquely designed soda/vending cabinets that showcase authentic Pepsi graphics. Each unit undergoes a thorough refurbishment process, including cleaning, pressure washing, and the rebuilding of critical components such as coin mechanisms and validators. Pepsi vending machines are designed to support seamless transactions through their rebuilt coin and bill validators.
Vending Machines as an Investment
Investing in a vending machine presents a unique opportunity for generating a secondary income stream. These machines can serve as an excellent source of residual income with minimal ongoing effort. While some maintenance may be required from time to time-such as fixing a jammed dispenser or replacing a worn-out part-these issues are typically manageable and can often be resolved by a professional in your area at an affordable cost. A key factor to financial success with vending machines lies in selecting the right location. We recommend focusing on busy areas such as schools, hospitals, office complexes, and entertainment venues where foot traffic is consistently high.
Key Operational Steps
- Regular Stocking: Ensure that your machine is always stocked with popular items.
- Payment Systems: Familiarize yourself with the machine’s payment options.
- Maintenance: Schedule regular maintenance checks to keep your machine in optimal condition.
- Customer Service: Keep a line of communication open with your customers.
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