Bottled Water: An Untapped Opportunity
Pittsburgh-based Management Science Associates, Inc. is a leader in providing its clients with solutions that embody the expert knowledge of their industries. It has recently conducted a study, with compelling results, that draws the attention of vending industry operators towards the significance of bottled water in this channel.

While the bottled water craze has been ferociously spreading across retail channels, its opportunity in vending is still largely untapped. As the fastest growing segment of the beverage industry, bottled water satisfies the consumer's need for a low/zero calorie, natural beverage alternative. However, based on February 20, 2000 VendScape data, water is available only in approximately 15% of machines. This number has been on a rise as national carbonated soft-drink manufacturers have expanded into the bottled water segment, therefore, increasing product proliferation and acceptance.

There are some compelling facts that every vend operator should know when contemplating adding bottled water to his product assortment.

• In machines selling both 20oz carbonated soft drinks and 20oz water, water is the #1 ranked item 10% of the time and it is among the top 3 ranked items 41.5% of the time.
  
  
• Bottled water consistently outperforms bottled juices/juice drinks, sports drinks, and tea items when all of these items are present in the same machine.
  
  
  Source: VendScape Data, 12 weeks ending February 20, 2000
  
  
• Bottled water sales surpass most bottled non-cola soft-drink SKUs.
  
  
• At a total U.S. level across all beverage machines, Aquafina 20oz is the 13th ranked beverage item, with only 9.8% distribution and the 5th ranked among all 20oz items.

Source: VendScape Data, 12 weeks ending February 20, 2000

Additionally, it is in the best financial interest for any vend operator to increase machine penetration of bottled water. Not only will it sell more units than the #5 or #6 ranked soft drink or alternative beverage item, but it will also generate a higher profit per unit.

A vend operator can expect approximately 63.9% margin on an average 20oz bottle of water versus 52.6% on an average 20oz national label soda.

Seize the opportunity! Optimize your product assortment, satisfy your consumers and increase your profitability with adding a bottled water item to your 20oz menu.

Vendscape is a trademark of the Validata Computer and Reserach Corp.