US: Nor-Cal sells vending assets for US$2.8m

By | 8 December 2006

Nor-Cal Beverage Co. has agreed to sell a substantial portion of its vending route assets to 24seven Vending for around US$2.8m.

Nor-Cal, a packer of chilled juices and hot fill beverages based on the West Coast of the US, will manage the day-to-day operations of the 24seven franchisees involved. The company said it would also provide fee-based services through a separate agreement, the company said.

Shannon Deary-Bell, vice president of Nor-Cal, said, "Under our agreement, Nor-Cal will manage routes located in a northern California territory ranging from Fresno to Redding. We will continue to be actively involved in customer relations, and intend to obtain new customers and build additional routes for subsequent sale to 24seven."
 
Nor-Cal said that rather than running vending routes, its business strategy is to now focus on providing services to customers and route operators.

"In addition to route management, we plan to sell services to franchisees that include vendor refurbishing and repair, product storage, equipment moving, and cash counting. Nor-Cal will be a supplier of vending consumables as well. We also plan to expand and enhance this service model to other vending operators," Deary-Bell added.

VTL Group Limited subsidiary 24seven has been selling vending route franchises in California since July 2003.

Sectors: Soft drinks

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US: Nor-Cal sells vending assets for US$2.8m

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