Rising Prices Threatening Drink Vending Machines in Japan

Tokyo, April 7 (Jiji Press)--Rising prices and labor costs are threatening drink vending machines in Japan, which beverage makers have considered to be cash cows because the machines sell products at their suggested retail prices.

According to Tokyo-based research firm Inryo Soken, vending machines used to be the largest sales channel for beverages but have been overtaken by supermarkets, which sell such products at lower prices, and then by convenience stores in 2024.

As beverage makers raise their suggested retail prices, consumers increasingly feel that products sold at vending machines are relatively expensive.

The number of soft drink vending machines nationwide has declined from 2.47 million in 2014 to 2.04 million. "The profitability (of vending machines) continues to worsen," an Inryo Soken official said.

Among major beverage makers, Sapporo Holdings Ltd. on March 5 announced its withdrawal from vending machine operations, selling off the business, including about 40,000 vending machines, to Lifedrink Co.

[Copyright The Jiji Press, Ltd.]