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Cash is no longer king in vending machines’ future

Cash is no longer king in vending machines’ future
Students queue up to get a drink from a low-energy vending machine during an event at UNLV hosted by the National Automatic Merchandising Association Tuesday, April 24, 2012.

The basic concept behind vending machines has remained relatively unchanged for decades. Money goes in and a snack — be it a candy bar, can of soda or bag of chips — comes out.

But a new generation of machines that was on display Tuesday at UNLV is looking to bring vending technology into the 21st century by adding interactive, environmentally friendly and social features.

The Gratitude Tour made a stop at UNLV’s campus as part of a cross-country trip promoting the latest in vending technology.

“It’s a celebration of what we are and where we’re going,” said Carla Balakgie, president and CEO of the National Automatic Merchandising Association, which hosted the event. The trade group represents and promotes the food and beverage vending industry.

The tour’s target audience is younger consumers, generally ages 18-29, and the new features incorporated into the vending machines on display catered to a tech-savvy crowd.

Gone were traditional bill and coin receptacles, replaced with credit card scanners and technology that allows users to pay for snacks using their smartphones.

Shifting consumer tastes and the convergence of new technologies, cashless payments and interactive features are forcing vendors to provide new ways to offer quick and convenient services, Balakgie said.

New technology being developed by Kraft Foods incorporates three large touch-screen panels into the vending machine, which not only help people buy snacks but can also be used to play videos or interactive games.

Dentyne gum vending machine with the touch-screen technology also used facial recognition software that allows the machine to play different advertisements based on a customer’s age and gender.

A new Pepsi machine allows users to buy a drink for a friend anywhere in the world and then send them a coupon code on their phone, which can be redeemed at a nearby vending machine.

“This is about reaching out and touching someone who’s far away and saying, ‘Have a Pepsi on me,’” said Steven Headen, a PepsiCo engineer.

The modernization of vending machines also extends to the products they carry, as new options ranging from organic trail mixes to fresh-spun cotton candy become available at the press of a button. Vending machines are also beginning to carry nonfood products like DVDs or iPods in an attempt to appeal to a broader audience of consumers, said Dan Matthews, NAMA’s chief operating officer.

“Our research shows Generation Y prefers vending machines,” he said. “We’re trying to make them more like convenience stores by adding more options and more convenience.”

By www.lasvegassun.com

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