Research Studies
Candy/Snack Product Profit Analysis
The Research Findings
Handling costs are substantially lower for small sprial product
Small spirals deliver more profit than large spirals
True profit - Considering machine space required.
Small spiral products have a 2-for-1 footprint versus large spiral products. Operators must consider the profit contribution of two small products against each individual large spiral product when comparing profit levels.
Products must deliver profit based upon machine shelf space used
A full-sized glass front merchandiser actually has 65 product positions - 60 potential small spirals (10 per shelf, 6 shelves) and 5 gum and mint positions. Considering only the 60 spiral product opportunities:
- Small spiral products require only one product "position," or 1.67% of the machine
- Large spiral products require two product "positions," or 3.33% of the machine
Every snack product must deliver total profit based upon the percentage of the machine space it requires. Due to their double space requirement, large spiral products must generate twice the profit of small spiral products to optimize machine profits.
Source: Vend operator/ Candy/Snack Category Profit Analysis, Bachtelle and Associates, Spring, 1998.
