By Joyce Kryszak
Buffalo, NY – Nutrition advocates cheered an agreement reached last week with the country's leading beverage companies. A new policy will go into effect by 2008 that takes sweetened and carbonated drinks out of schools.
Many local schools somewhat limit soda access. But most still make the old favorites available -- at least during limited times. Part of that is to meet demand. But part of it is to help meet the bottomline. About a dozen local school districts have exclusive pouring rights deals with the two major bottlers. And, collectively, the deals bring in more than $6 million over the life of the contracts.
Kelly McAndrew, director of public relations for Pepsi, says those districts are not obligated to adhere to the new policy.
"The new agreement that was announced becomes immediately effective for all new and renewing contracts," McAndrew said. "However, if there is an existing contract in place, that is a legal contract. We will certainly fulfill our obligations under that contract."
That means soda could still be made available in schools, even beyond the 2008 implementation date, if contracts extend beyond that. McAndrew says schools could voluntarily open up contracts and limit the beverages. But no one seems to know what impact that would have on proceeds. Bruce Inglis, superintendent for Cleveland Hill Schools, says they depend on the $25,000 their deal brings in each year.
"Obviously, schools are strapped for revenues," Inglis said. "This was one of the very few commercial relationships with school districts that the State Education Department allows."
And he says districts use the money to help blunt taxes or supplement programming. Pete Benzino, general manager for Coca Cola Bottling Company of Buffalo, admits it's hard to tell with the new policy if the pouring rights deals with schools will pay off in the future.
"They'll still be looked from a business decision standpoint," Benzino said. "What it will look like, I couldn't tell you."
Beverage companies say they hope new products will prove more healthy, just as appealing -- and profitable for them and schools.