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PepsiAmericas recently became the sole beverage supplier to more than 2,300 vending machines on Illinois' state property, according to Flexnews, a news service for the food industry. The 10-year deal includes rest stops, four state universities and several prisons. PepsiAmericas becomes the state's exclusive soft-drink vendor, and requires the company to pay Illinois around half of the price it receives for every drink sold at the designated sites.
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Editor's Insight: Based on this report, the vending operator will pay Illinois a commission rate of 50 percent of its sales.
Agreements such as this make it imperative for vending operators to educate customers about their operating cost structures. When customers learn about contracts such as this, they get the idea that vending operators are making exorbitant profits. 08-06-07 by Elliot Maras
