MARK Molnar makes no apologies as he serves a fresh cup of cappuccino from a machine. Then again, as managing director of vending specialists VMI, you would hardly expect him to criticise his own product.

Since he took over the reins at the Blackburn-based business, he has become something of an evangelist about the merits of coffee from a machine..

"With the technology that is available today, it can be every bit as good as a cup of coffee you pay £2 for on the High Street," he said. "You don't have to say 'sorry, it's only from a machine' any more."

VMI has come a long way since it was established in 1969 as a local vending company. From its custom-designed Castle Street base, it is now one of the largest operators in the North West, selling 20 million cups of coffee every year.

It has built up a customer base of more than 700 offices and manufacturing sites throughout the region and, as well as hot drinks, it also supplies and services machines that dispense snacks, soft drinks and even fresh meals.

VMI is now part of the Vendia group, a business that was set up in 1999 to create a chain of vending suppliers in the UK and France.

"Being part of Vendia, it's great to feel that we are part of a growing group that is building a strong reputation in the UK and beyond," said Mark.

"Like our sister businesses in the group, we aim to combine the best of both worlds - being part of a nationwide operation, offering efficiency and high standards, plus the familiarity of local teams, operators and engineers who take a pride in their job.

"What we do best is service. We recognise that customers have bigger things to worry about than the office drinks and snacks machine. So we sit down with our customers to understand their needs and then recommend the most suitable machine, ingredients and service package for them. This personal touch is being well-received and building us some strong customer loyalty."

Mark, who comes from a finance background, took over as managing director 12 months ago after spending a year working for Dowe Chemicals on an e-business start up in Michigan, based just outside of Detroit.

One of the first changes he made was to improve the skill base of the team at the head office. Through their neighbours, Training 2000, staff completed their European Computer Driving Licence and VMI was one of the first vending operators to achieve the new ISO standard.

According to Mark, the industry is changing. The hot drinks market - which accounts for around half of all sales - has been hit by the growing popularity of water dispensers. Sales of snacks and soft drinks, however, are increasing and Mark said the market for fresh food had more than doubled over the past year.

As companies strive to cut overheads, some are closing down canteens and replacing them with vending machines. VMI recently secured a big account with a local plastics manufacturer to install a battery of machines that serve fresh food as well as drinks and snacks.

Wherever possible, Mark uses local suppliers. Fresh food comes from Rumbletums in Great Harwood, pies from Hollands and cakes from Sandersons bakery.

"Everything we can buy locally we do," he said. "It helps us to offer better quality, better prices and a better service."