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 !
