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New £1 coin – impact on vending industry

new £1 coin
As part of this week’s budget, the Chancellor announced the introduction of a new £1 coin, which will be in circulation from 2017. Set to replace the current £1 coin, which has been in circulation since 1983, the new 12-sided coin – based on the design of the old threepenny bit – is intended to combat forgery.
Currently it is estimated that around 30% of £1 coins are counterfeit, amounting to around 45 million forgeries currently in circulation. Whilst there is agreement that new measures must be taken to reduce the number of forged coins, there is much concern about the financial implications of the new initiative, especially for small businesses.
As far as the vending industry is concerned, it may mean that vending machines need to be adapted to accept the new coins.  Speaking to the BBC, Andrew Mills of the Royal Mint, said that it was “a likelihood” that the new coin would not be compatible with existing machines. It’s estimated by the Automatic Vending Association that around 450,000 machines will need to be replaced. At this stage figures vary widely about the cost of refitting the machines but the reality is that it will be vending machine owners paying for any changes.
The government has announced a public consultation to discuss the introduction of the new coin. The Automatic Vending Association (AVA) represents about 200 companies and will be involved in the consultation. Jonathan Hilder, CEO of the AVA has also raised the question of whether a 12-sided coin will roll; a vital issue when dealing with vending machines. The organisation does recognise the need to take measures to deal with the problem of counterfeit coins and hopes that a low-cost solution for its members will be found.
One thing is for certain, we’re going to be hearing a lot more about this issue and its bearing on the vending industry in the near future. 
For more information about our Vetail™ Revolution at Livewell Vending Ltd, please contact Aaron Prout MD on 07817 892 830 or email Liz Hines, Business Manager on liz@livewellvending.co.uk.


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