**History and Origin of Coin-Operated Automatic Coffee Machines/Drink Vending Machines**
-------- **Vending Machines**
Shang Nong Coffee Report : Broadly speaking, vending machines are mechanical devices that sell goods after receiving coins, paper money, credit cards, etc. Narrowly defined, they are machines that automatically sell products. From the perspective of supply conditions, vending machines can effectively supplement the shortage of human resources, adapt to changes in consumption environments and patterns, and operate a 24-hour unmanned sales system that is labor-saving, requires less capital and space, has an inherent ability to attract consumer curiosity, and can solve the problem of rising labor costs, among other advantages.
From the development trend of vending machines, their emergence is a result of the transformation from labor-intensive industrial structures to technology-intensive societies. Mass production, mass consumption, as well as changes in consumption patterns and sales environments, have called for new distribution channels. On the other hand, the rise of supermarkets and department stores as new distribution channels has also led to increasing labor costs. In addition, limitations on space and the convenience of shopping have constrained traditional retail models, leading to the inevitable rise of unmanned vending machines.
It is said that the world's earliest vending machine appeared in the 3rd century BCE—it was a coin-operated holy water dispenser in Egyptian temples. In the 17th century, cigarette vending machines were installed in small bars in Britain. In the long history of vending machines, Japan developed practical vending machines in the early 20th century. Japan's first vending machine, the "Stamp and Postcard Vending Machine," debuted in 1904. It combined the sale of stamps and postcards with a mailbox for letter deposits. The true widespread adoption of vending machines occurred after World War II. In the 1950s, "spray-type juice vending machines" became very popular, dispensing juice into paper cups. Later, with the entry of major American beverage companies into the Japanese market, a revolution in the distribution sector centered around vending machines took place in 1962. In 1967, all currency units below 100 yen were converted to coins, which further promoted the development of the vending machine industry.
Nowadays, the vending machine industry is moving towards informatization and further rationalization. For example, online systems transmit inventory information from vending machines via telephone lines to computers at business locations, ensuring smooth delivery, replenishment, and product selection. Additionally, to prevent global warming, the development of vending machines focuses on energy conservation, making energy-efficient cold drink vending machines the mainstream of the industry. During summer electricity consumption peaks, these models can maintain low temperatures even with the cooler turned off, saving 10-15% more electricity compared to traditional vending machines. Entering the 21st century, vending machines will continue to develop in the direction of resource and energy conservation as well as high functionality.
**Current Status of Coin-Operated Automatic Coffee Machines/Drink Vending Machines Industry**
In the United States, there are approximately 5.7 million automatic coffee vending machines. Annual sales exceed $40 billion. Hot drinks increased by 3.2% compared to 2001, reaching $2.95 billion. Cold drink sales, however, decreased from $2.24 billion in 2001 to $2.01 billion.
Due to the slow economic recovery, society has become more concerned about expanding employment and welfare programs providing tea and beverages in workplaces. Vending machines not only ensure pleasant work breaks but are also the most cost-effective means of improving employee productivity. Especially in 24/7 working environments, the use of charming mini drink-dispensing machines solves the problem of continuous coffee service, accelerating the integration of vending machines and coffee services. The merger of the National Automatic Merchandising Association (NAMA) and the National Coffee Service Association (NCSDA) in 1999 vividly demonstrated this integration.
Japan and South Korea are paradises for vending machines. Besides eggs and rice, newspapers, magazines, disposable cameras, dry batteries, tapes, razors, socks, flowers, and pet food are sold through vending machines. Even American tourists familiar with vending machines are amazed when they see rows of ten vending machines in Japan, often taking photos as souvenirs. Apart from ATMs and other self-service machines, there are over 7.5 million pure vending machines across Japan. In the fiscal year 2000, vending machine sales reached 7.1 trillion yen, far exceeding the 6.3 trillion yen in sales from convenience stores that same year, making Japan a country where vending machines serve as the primary distribution channel. The most numerous vending machines are coin-operated automatic coffee machines/drink vending machines, accounting for 47% of the total number of vending machines. Vending machine sales of cold drinks account for more than 50% of the total sales of such beverages. Cigarette vending machines rank second, making up 11% of the total.
South Korea has approximately 780,000 vending machines, making it one of the countries with the highest number of vending machines outside of Japan, the United States, and the UK. Among different types, coffee and tea vending machines account for more than 40% of all vending machines. Additionally, there are cold drink vending machines, canned drink vending machines, office coffee vending machines, photo sticker vending machines, ticket vending machines, mobile phone charging vending machines, adult product vending machines, daily necessities vending machines, cigarette vending machines, instant noodle vending machines, and more. Major installation sites include schools, buildings, public agencies, subways, bus stops, parks, stadiums, exhibition venues, factories, and more. Nationwide, there are about 800 companies operating the vending machine industry, while companies involved in vending machine raw material sales, product distribution, and machinery sales number approximately 1,150.
**China’s Boundless Coin-Operated Automatic Coffee Machines/Drink Vending Machines Industry**
Vending machines originally emerged as a response to rising labor costs. Now, in China's major cities, the cost of labor is also significantly increasing, and changes in building space utilization and surrounding environments are occurring rapidly. With the hosting of large international events like the Olympics, the environment within buildings in major cities will increasingly focus on convenience. Since vending machines can sell a wide variety of goods, this aligns perfectly with China's national conditions, so it is estimated that the demand for vending machines in China will be enormous. Furthermore, as individual entrepreneurs and small and medium-sized enterprises expand their vending machine operations, it is expected that the circulation of vending machine goods will experience rapid growth.
Based on foreign development experiences, the China Vending Machine Professional Committee predicts that during the initial stage, at least 100,000 vending machines should be deployed in mainland China, generating an annual gross output value of 1 billion RMB. During the development phase, at least 500,000 vending machines should be deployed, with an annual gross output value reaching 10 billion RMB. By the mature phase, the number of vending machines will reach 3 million, generating an annual gross output value of 60 billion RMB. At that time, China's vending machine industry will have developed into a massive sector. The committee also predicts that after 2004, China's vending machine industry will achieve rapid growth. Initially, it is estimated that the annual deployment of vending machines will reach 100,000 to 200,000 units, with an annual output value increase of 2 to 4 billion RMB. Following this pace, China's vending machine market is expected to enter the development phase after 2009.
Currently, Wuhan Shang Nong leverages its unique innovative research and development capabilities in coin-operated automatic coffee machines/drink vending machines, collaborating with Korean high-tech enterprises to establish a robust R&D and manufacturing base. They have launched a series of quality products that suit China's national conditions and possess vending machine functions, suitable for offices, homes, and various public places. These machines not only feature traditional water purification, heating, and ice-making capabilities but also innovatively integrate Eastern tea culture and Western coffee culture. They offer a variety of hot and cold beverages, including multiple types of coffee, nutritious Korean milk tea, lemon tea, sweet orange, milk, lemonade, chocolate milkshakes, and more. Unique designs such as dual-cup holders, cup dispensers, automatic cup drop systems, warm voice prompts, counterfeit currency recognition, and return systems provide users with unlimited choices and convenience, pioneering and leading the present and future of China's automatic drink vending industry. This coin-operated automatic coffee machine project is characterized by low investment, fast and stable returns, minimal risk, and has been recommended by relevant government authorities to citizens.
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