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The Charleston County, S.C. school board voted to negotiate a new contract with the Pepsi Bottling Group to be the exclusive provider of beverage products, according to The Post and Courier in Charleston, S.C. Pepsi's current 5-year contract expires this year. Pepsi will provide the district with new or like-new vending machines, and the machines' commission rate for schools will be 45 percent. Pepsi will give $10,000 to the district for scoreboard replacement, and each of the district's 11 high schools will receive $1,000 scholarships from the company.
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Editor's Insight: These incentives that cold drink companies offer big customers continue to hurt the vending industry's image, even when the company agrees to abide by stricter nutrition guidelines. In this case, the bottling company is offering 45 percent commission is providing additional money in incentives while at the same time meeting strict nutrition guidelines.
Any experienced vending operator knows that this agreement makes little business sense. Contracts like this make it harder for the vending industry to charge a fair price for its services. 07-30-07 by Elliot Maras
