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California Automatic Vending Council Testifies In Sacramento On Sales Tax Equity Bill

"As vending machine operators in the State of California, we are seeking parity with other retailers in the state that do not pay sales tax on food products" Tullio testified. "Due to the disparity in the law, vending machine operators are forced to either absorb the sales tax or pass it on to consumers. Should this measure become law, our industry would have the means to reinvest in our businesses in the form of jobs, technology improvements to our equipment, all contributing to increased sales. "This reinvestment in business and economic activity will undoubtedly have a positive impact on the state."

The bill had a fiscal price tag, which sent it to the Suspense file, where it was ultimately held by the Chair, Assembly Member Phil Ting (Dist. 19-San Francisco).

Registration Opens For Coffee, Tea & Water ShowThe National Automatic Merchandising Association's 2014 Coffee, Tea & Water Show takes place Nov. 11 to 13 at the Hyatt Regency Dallas. - See more at:
 Pharmabox new "Pharmacy at your fingertips" is one of the most innovative systems of the year.

We may be only half way into 2015, but we think we've already spotted a potential winner for the most innovative machine of the year.

The Pharmabox is a wonderful self-service kiosk that carries over 140 items typically found in a local pharmacy, Target, CVS, Walgreen’s or Rite Aid-type store. The company says their system is unique due to its fun appearance that generates interest and attention, and also because it carries hundreds of items that are used everyday by virtually every segment of the population.

Pharmabox company Founder and CEO Alejandro Rodríguez, wanted to find a way to get top name brand products into communities and areas that are not well-served by traditional brick and mortar stores. After 2 years of research and development, the Pharmabox was born.

The system carries the best personal care and OTC merchandise from brands that include: Tylenol, Bayer, Vicks, Advil, Motrin, Ben Gay, Pepto Bismol, Alka Seltzer, Tums, DuraCell, Trojan, Listerine, Colgate, Gillette, Tampax, Band-Aid, Neosporin, Excedrin, Zantac, Unisom, Blistex, Purell, Afrin, Visine, Benadryl, Venus, Secret, Nivea, and many others.

Pharmabox also has a commitment to the community, and donates 1 meal for each 10 items sold through The Homeless Voice – a nonprofit organization that provides over 45,000 meals every month.

“I came from very humble beginnings,” Espinoza commented. “I created this system and our Give-Back program because I believe that when you help others, you create a better world,” he said. “The Pharmabox not only helps people get the products they need, but also gives businesses and select locations the ability to participate in the rapidly growing automated retailing market.”

The Pharmabox system is designed to be placed anywhere people live, work, play or congregate, including airports, business centers, transportation hubs, apartment complexes, colleges and dormitories, fitness centers, hospitals, sports stadiums, and retail stores.

The company is now accepting inquiries for placements from location owners and managers.

For more information, visit:

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Looking Deeper

Why Health, Fitness and Nutrition are the Hot Sectors

According to industry experts, the hottest sectors in the vending and automated retailing industry are in the fitness, health and nutrition sectors. Rarely a day goes by when we don't hear about another big order placed with a prominent manufacturer for systems to dispense foods, beverages and merchandise in these market niches.

From protein drinks to workout gear, vitamin supplements to shampoos for the shower, the big thing is supplying America's millions of health club and gym members.

No wonder why. The global fitness and health club industry generates more than 75 billion U.S. dollars in revenue according to the 2013 IHRSA Global Report, which deals with the state of the health club industry.

Gym membership has grown rapidly in the past five years as consumers have become increasingly health conscious, bolstering revenue for the Gym, Health and Fitness Clubs industry.

However, the emergence of budget-conscious gym members has transformed the industry's landscape, and the provision of low-cost, contract-free memberships has hampered profitability among gyms unable to maintain high customer retention rates.

Accordingly, owners of these facilities are looking at new ways to keep customers happy and loyal. Automated retailing is part of that solution.

"Give the members what they want, where they want, in a convenient manner," one health club manager told us. "We want to provide everything that goes with the health club experience, in one place, at one time."

Over the next five years, demographic changes are expected to expand the industry's potential market, and increased consumer spending will boost sales of higher-value services. As a result, industry revenue growth is projected to accelerate through 2020

Members of the California Automatic Vending Council on May 18 testified before California's Assembly Revenue and Tax Committee on AB 155.

The bill supported by CAVC would remove the partial tax on food products sold through vending machines in California.

Assembly member Matt Dababneh introduced the bill and stressed that the bill was about remedying an inequity in California's tax law regarding the taxation of items sold through vending machines.

Pete Tullio, National Automatic Merchandising Association (NAMA) board chair and president and CEO of Gourmet Coffee Service and World Wide Vending (Van Nuys, CA), testified on behalf of CAVC.