Bottles vs. Cans: Which is Better for Your Business?
In the competitive landscape of the vending industry, the choice between selling bottles and cans is a pivotal one. Soft drinks in aluminum cans have long been a symbol of refreshment and convenience, but traditional can vending equipment has been gradually on the decline. This is influenced by the suppliers involved, but also consumer changes in the Canadian marketplace. This article delves into the growing movement toward bottled formats and why it is important for your business.
There are many advantages and arguments to be presented in favour of bottled beverages. Let’s start with the most important: your revenue and profit opportunity. Whether you have a vending machine, micro market, or other retail concept you have limited space and unfortunately must make hard choices. Carbonated soft drink cans are widely believed to be cheaper products with a lower perceived value for consumers in addition to the cost / markup being generally lower. Bottles on the other hand are highly marketed by the big beverage companies and can command a higher selling price, boosting your margin and revenue. If you look at the math based on your product cost and have good guidance on the suggested retail price you will see the financial benefits immediately.
There are also a couple reasons why consumers may want to choose a bottle over a can. For example, many of the cold beverage innovations, new flavours, and line extensions are produced and promoted in a bottle format only; not always, but this is generally the case. With more selection to choose from it will be easier for your operation to keep up with trends and preferences of your region and target demographic. That way you can mix up your planogram to keep things exciting and modern. In addition, there’s the added bonus that bottles are resealable so they can be purchased for immediate consumption or enjoyed throughout the day. For micro market or retail locations this opens up more “day parts” and can help bring consumers into your location.
There can be some hesitation to support bottles in plastic packaging from an environmental perspective, however, sustainability in the beverage category has been steadily improving. It can be subjective on what packaging material is the “best” for the environment, but in general companies are getting more efficient and cleaner with their packaging. For example, many of the large beverage producers are shifting away from PET toward RPET (100% recycled plastic) and reducing our reliance on virgin plastic material. The key is having a strong recycling system and consistent supply of RPET across the supply chain.
When comparing bottled beverages versus cans, bottled beverages hold many benefits for vending and micro market operators in striking the balance between maximizing profits and meeting consumer needs without compromising on the quality of product. In closing when you are considering your options, we recommend you keep all of these factors in mind, ensure you have an optimized planogram, and understand what your customers are looking for and willing to pay.
About the Author:
Andrew Smith is the Procurement Director of Consumer-Packaged-Goods at Complete Purchasing Services Inc, a leading supply chain solutions provider for hospitality and non-commercial clients in Canada. Andrew has been in the foodservice industry for 9+ years with expertise on cold beverage strategy and CPG category development. Learn more about Complete Purchasing Services by visiting eCPS.ca.
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