CBD Products Offer High Margins in Vending Space 

Today’s progressive vending operators are seeking non-traditional, high margin vending product to beef up sales at select locations.  One such non-traditional product is CBD, which many claim addresses anxiety, insomnia and chronic pain.  CBD is the non-psychoactive ingredient in marijuana.  CBD has been federally legal since late 2018, however individual states may have their own regulations. 

While research by Stastia says CBD is currently sold through dispensaries (40%), retail stores (30%), online (27%) and other (12%), one product manufacturer sees vending as a growth opportunity for CBD because of the category’s unattended retail capabilities. 

“Traditional retail requires CBD, to be kept in a secure location,” explained Alan Shetzer, co-owner of AnytimeCBD.  Anytime manufactures a US-produced, carbon dioxide processed line of THC-free CBD tinctures, salves, drops, rubs and roll-ons which are certified by independent labs to be 99.8% pure prior to packaging.  He added a traditional retail clerk who opens a CBD case at a convenience store may not be able to close the sale because he or she may not have product knowledge to answer a consumer’s questions.   

Without the proper knowledge, Shetzer said a traditional retailer may lose a high margin sale.   

Not so for vending, he said.  Unattended machines can verify a consumer’s age, provide product education, legally handle CBD transactions, and deliver product securely.  Depending upon product and location, Shetzer said the typical CBD vending sale ranges from $20 to $40 per product compared to a much lower price for snack foods.  An operator’s revenue is based on gross sales. 

The retail CBD market is projected to reach $7.38 billion this year, up from a mere $620 million two years ago according to Stastia.  The research predicts the market will reach $23.7 billion by 2023.  Gallup indicates the largest demographic of purchasers of CBD product are the 18-29 year-olds (20%) followed by 30-49 (16%), 50-64 (11%) and 65+ (8%). 

AnytimeCBD also manufactures two small-footprint vending machines which have touchscreen displays which show the product and can play video to answer consumer questions.  Touchless machines are on the way.  Machines are manufactured in the USA and were designed following a four-year relationship with a 16-year vending industry veteran.

Shetzer says the small machine footprint of AnytimeCBD’s two machines enables placement in compact spaces vending operators may normally overlook, earning the operator more revenue per square foot.   The small machine, which can handle 14 SKUs, measures 2 feet by 2 feet, while the large machine, which can handle up to 28 SKUs, adds six inches to each dimension.   He said the space is roughly equal to the floor space taken up by freestanding ATMs, such as the ones frequently seen c-stores.

Machine security includes video cameras, conveyor delivery, door security and age verification.  Machines also have real-time reporting capability. 

Video capability opens another potential revenue stream for operators.   Shetzer said advertising, such as what is seen on many self-service gas pumps, can be placed on the machines.  Ads can be a point-of-sale promotion for CBD in the machine, or perhaps an ad could promote a snack which is available in an adjacent machine which the consumer might not otherwise have considered. 

AnytimeCBD currently has machines in national c-stores as well as a major presence in California, the largest market for CBD.  Stastia reports California’s sales alone total $730 million, way ahead of Florida with $290 million and New York with $215 million.  The company believes key locations operators should seek for in machine placements are; health and fitness clubs, major universities, malls, airports, physician and veterinarian clinics and apartment complexes, to name a few.

Machines can be wrapped to match any operator’s marketing theme, so that all machines in a particular location have uniform display.

Based upon the operator’s location, AnytimeCBD will recommend product for the machine.  Operators can customize the product assortment any way they desire.  Depending upon local regulations, machines can also dispense other controlled substances.  

For more information, visit anytimecbd.com or call 800-729-1223, info@anytimecbd.com

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