Why you're seeing these London-made propane vending machines outside stores

As Canada heads into peak grilling season, a company is using made-in-London technology to offer a different way for customers buy and exchange the propane tanks that fuel barbecues and other equipment. 

In recent months, kiosks branded 'My Propane Buddy' have been popping up outside retailers in London and surrounding areas, from Chatham to Hamilton. 

Despite the retro feel to their graphics, the kiosks are high-tech vending machines that allow customers to buy a full propane tank or exchange an empty one without going inside a store. 

The My Propane Buddy brand was launched last year by Sleegers Engineered Products, a London company that has been selling the kiosks to U.S. propane vendors since 2009. 

Sleegers has sold more than 4,000 machines to U.S. customers who operate the machines under their own brand. Last year, they decided to create their own propane distribution brand using their own automated vending kiosks. 

"We've been doing this for a long time, but the difference here is that now we're doing it ourselves in Canada," said company president Dan Granger. 

Sleegers has been operating in London for more than 60 years. They manufacture farm equipment, air compressors and custom-made propane tanks for vehicles, including tanks used in Blue Bird school buses. 

For years, propane tanks had to be refilled manually by a trained employee at a gas station or propane dealer. 

In recent years, a significant chunk of the propane market has moved toward an exchange model, where the customer drops off an empty tank at retail store or gas station and leaves with a pre-filled tank. 

Outdoor storage is necessary because safety rules don't allow propane tanks to come inside.

Though it typically costs more than refilling, tank exchange has become popular because it saves time. 

Exchange tanks are stored in locked cages outside retail locations. Tank Traders, owned by Manitoba-based Vomar Industries, is the dominant player in the Canadian propane exchange tank market. They have a long list of distribution partners including Petro Canada gas stations, 7 Eleven convenience stores and big box store such as Home Depot and Canadian Tire. 

Granger said Tank Traders is more of a partner than a competitor. The company uses Sleegers' machines at some of its Walmart locations, though most of Tank Traders business happens through cage exchange.

He sees the automated propane vending kiosks — which Sleegers builds in London — as offering a different customer experience. The wording on Sleegers' distribution trucks says: "Turn the page, ditch the cage."