Look out below. The real damage hasn't even hit the books yet. The first wave, 11K connections, is only 4% of sales so there is plenty of bad news to come.
As Michael pointed out, Coke/Pepsi control some of the best vending locations. These dropped connections average out to $228/connection ($62,8M sales x .04 / 11K) quarterly since the CFO said the 11K connection account for 4% of sales and the customer accounts for 11% of sales for all of their connections. If anyone heard differently let me know.
This is interesting since the overall average sales per connection was $293/connection. So, the machines moving to the "home grown" solution vastly underperform the USAT average connection. This doesn't sound like it would be Coke franchise machines. This could mean they truly have lost a very big non-Coke customer. This would be very bad news if Coke has yet to pull their connections.
I am going to replay the WebEx to verify what I heard.
Could it be Canteen??? They are the largest vending operator in the US operating over 200,000 vending machines. Anyone know how many they had with USAT? Foxy? I know this was one of your favorites.They would certainly be a candidate for a home grown solution. Just the annual savings in network fees alone would pay for the development. Their website indicates that they have developed a touch screen application in addition to a VMS solution. The picture on their home page shows a traditional card swipe attached to a machine...NOT AN ePORT!!
Incidentally, I just found an article that said Coke is still test marketing their new touch screen machines in the Austin Texas market with plans to rollout in the future.