The USP Distribution Ltd. as a part of the United Snack Points Group is one of the youngest company involved to the Russian vending market. Yet we already obtain the biggest park of the snack vending machines in this country. We control some 50% of the snack machines available in the two Russian capitals. Initially we entered this market just to promote the soft drinks we produce. Thus we meant to withstand the dictate of the local food retail fat cats. But for the time being vending has become a separate and quite perspective business for us.
As the leader of the Russian snack vending market we feel comfortable in making ambitious plans and using the advantages we already have. One of them is that both in Moscow and St. Petersburg we have no dominating companies and the greater part of the pie is shared by the multiple small vending companies. And they still believe that coffee machines are much more profitable. Quite a few Russian vending companies think different and so do we. The thing is that small companies here stake only on margin incomes and know nothing of the advertising and marketing payments enjoyed by the leaders of the market. Therefore food staff snack machines compose only average 15% of the parks the small companies operate while they make around 30-40% in the biggest Russian companies.
From the Western point of view the Russian vending market must look like a virgin land. Even in Moscow and St. Petersburg Regions where per capita incomes have reached a good European level ( without the Coca-Cola cold machines ) we have total 13 000 – 15 000 of the hot and snack machines. Really not much for some 25 000 000 of the population ! The lack of the long and cheap money has done the job and so we have what we do have. In the circumstances we offer our snack machines for rent and provide other services required for Russian vending companies. Without getting involved to the direct operating or ingredients and equipment supplying business we nevertheless became a factor forming the local vending market.
We see ourselves as a big trading company aimed at presenting new brands to the Russian market. And the snack machines we offer in a rent are just tools we use to reach the goal. Crane Snack Center 167 H equipped with intercoolers and payment systems compose some 90% of our park. Those are the most reliable and customer and operator friendly machines exploited for less than a year. The operators renting our machines are totally free in their choice but we motivate them to sell our products in the machines we offer. Thus they can lower the monthly payments while we gain much more as marketing and advertising incomes. The manufacturers and brand owners are also welcomed cause we offer them a good alternative to the expensive retail networks. We have neither loans nor bank credits and we need no outside money to develop our programs. What we are really lacking of is experience in marketing and branding. Also we believe we can be of use for Western companies interested in the Russian food market. We can provide them with an effective and comparatively inexpensive entrance where vending will be just one of the tools we offer. As a matter of fact we don’t mind contacts with foreign vending companies interested in Russia. So you are welcome !
