Channel Strategies

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When it comes to food and beverage pairings, many often think of wine, but as beer sales continue to grow and craft beer gains an even firmer foundation, consumers have gained interest in matching their beers with food.

Beverages, especially carbonated soft drinks (CSDs), are an essential part of the vending channel’s success. Although the vending industry faces challenges, like complying with new government regulations and trying to meet consumer health-and-wellness demands, industry experts say that the vending channel is poised for growth.

Novelist and playwright Oscar Wilde once said, “Everything in moderation, including moderation.” After challenging times as a result of the economic downturn, the on-premise channel has made gains through moderate year-by-year growth.

With more consumers using click-and-collect models and home delivery for prescription medications, eCommerce continued to drive double-digit growth in the non-traditional drug store channel, which generated $264.5 billion in sales, a $14.3 billion profit and a 1.4 percent growth rate from 2010-2015, according to IBISWorld’s December 2015 report titled “Pharmacies & Drug Stores in the US.”

Between 2010 and 2015, high unemployment, stagnant disposable income, volatile energy costs and a changing mass-market perception of dollar stores contributed to a 3.3 percent growth rate, $66.7 billion in revenue and a $2.6 billion profit for the channel, according to IBISWorld’s September 2015 report titled “Dollar & Variety Stores in the US.”