26-09-2006 - Think again on healthy brands in schools
Vending and health - not a naturally harmonious pair of concepts. In fact, over the last year, as we all know, vending has come under extreme criticism from all quarters, with stringent new restrictions in schools already having an impact - more than a whole year before they actually come into force under the law.
So, what is there for the commercially viable future of vending in schools: can we contemplate the feasibility of offering a responsible vending service that also conforms to the Government's demands? Can we survive in the face of a ban that will simply force children to choose an alternative supplier of bagged snacks and chocolate bars from retailers on their route to school or from the rapidly-increasing number of mobile vans?
For the past 18-months, we at Integer, as part of the Vendia Group, have been quick to act and to pre-empt the new healthy eating focus in schools. We have concentrated on developing and promoting our Healthy Options Range: a range of 30 healthy alternatives to fizzy drinks, crisps and chocolate, such as water, fruit juices, milk products, dried fruit, low-fat crisps, and cereal bars.
The first area where the Vendia Group rolled out the Healthy Options Range was in Central London where our sister company, Simply Drinks, already have a strong customer base - predominantly in large blue-chip companies. In several of these companies, Steve Allanson and his colleagues at Simply Drinks installed a total of 173 branded Healthy Options Machines.
The best selling product turned out to be Orange Juice - producing 80% of the margin generated by Coca Cola in the same time period. The best selling cereal bars were Seeds of Change and Go Ahead fruit slices. In fact Seeds of Change produced 40% of the margin generated by Kit Kat in the same time.
During the trial period with the Healthy Options Range in Central London, the total sales of the range was about 15% of the total sales of all confectionery, cans and snacks. However, our experience outside of Central London offices did not match our success in the city! While the prices and margins were similar, the volumes of Healthy Options sold were much lower. For example, over the same 18 month period, our North West England sister company, VMI, experienced only 2.7% of total sales on their Healthy Options Range. We are not sure of the reasons for this strong variation in results, but perhaps the socio-economic profile of the customer base - more industrial locations, more male consumers, less wealthy consumers - was playing a role, as many other variables were constant.
Vendia's experience supports the view that selling Healthy Options is nowhere near as easy as some commentators would have us believe. Some consumers will choose healthy products voluntarily but others will clearly need educating over a longer period of time if habits are to change. This is going to take years and will demand overall social change, way beyond the school gates.
Undeterred, from September this year, Integer will be mounting a major trial of "healthy-only" machines in two large secondary schools of around 1600 pupils - one in Milton Keynes and the other in Northampton. Our hopes are not high but we will see how sales develop over the first school term and analyse buying patterns to ascertain the most popular lines.
It is this idea of "popularity", however, that is the key here. Vending suppliers can only sell what brand manufacturers develop. The healthy alternatives are fighting for attention on two fronts: not only are they perceived to be not as indulgent and tasty as the fatty, sugary and salty snacks, but they do not have the brand cache. Unless there is a radical change in the degree to which the manufacturers are willing to invest in the brand development of healthier options - in their advertising and packaging - then there won't be a chance that kids will choose them instead of picking up a chocolate bar on the way into school.
It's not just education. It's marketing too. It's about using branding and marketing to promote the healthier alternatives - not just as the worthy choice but as the fashionable and fun choice.
Vendia has worked particularly closely with the Automatic Vending Association (AVA) and the Foods Standards Agency to help develop the "Educated Choice Initiative", a three-point plan for AVA operator members to ensure vending plays a positive role in providing educated choice in food and drink vending in secondary schools. Our hands are still partially tied, however. It would be marvellous if we felt that we could operate in true commercial collaboration with the manufacturers who would be willing to diversify from chocolate to fruit and nut bars and turn them into equally enticing impulse purchases. Let's see how this develops - where there's a legislator there's a way.
Vendia UK Ltd is one of the largest beverage and snack vending companies in the UK. It is part of the international Vendia Group which is based in Holland and also has vending operations in France.
Vendia’s unique strength is its network of strong local operating companies and management teams, who leverage their regional knowledge and experience to deliver better products and services, whatever the required vending package. Vendia companies have particularly strong knowledge and experience in five market sectors: Leisure, Business, Education, Public Service and Retail.
The company is based at:
17 Rufus Business Centre
Ravensbury Terrace
London
SW18 4RL
United Kingdom
T : +44 (0) 20 8879 8354
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www.vendia-group.com
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