You gotta pay to play in school....
Schools become a battleground for the soft drink companies
HOT SPRINGS, Ark. (AP) - Soft drink companies are throwing money at schools in
Garland County.
Large companies like Coca-Cola and Pepsi are doling out the bucks for the school
districts to spend as they please and the schools pay a minimal price in return.
The catch is not much of a catch at all. A soft drink company will pay the school
district a set amount of money, usually on a per student basis, if the school district signs
an agreement to sell the company's product exclusively in its vending machines and
concession stands. It is a contract that school districts sign for a period of years, usually
five or 10.
Both parties benefit from the agreements.
The company benefits because it creates a monopoly in the schools.
School districts can use the soft drink money, which can be substantial, any way they
choose - for academics, athletics, band, cheerleaders, etc. Most agreements provide the
school districts a large sum of money up front and pay the rest out over the years agreed
on by contract.
"As far as qualification, all you have to be is a school," Ron Koller of Delta Beverage
said.
Delta Beverage is the Pepsi bottler in Hot Springs. The company has a business
agreement with Fountain Lake and Jessieville school districts and is negotiating with Hot
Springs.
Coca-Cola just won the bid at Lake Hamilton School District.
The final decision on bids usually is made by the respective school boards. Those bids
are based on enrollment.
The Lake Hamilton School District will receive more than $180,000 from Coca-Cola
during the next five years. Included is $50,000 as an up-front signing bonus, a
guaranteed $25,000 per year commission and five $1,000 scholarships.
Jessieville will receive an estimated $200,000 in cash and incentives from Pepsi during
the next 10 years, with a signing bonus of $40,000.
Along with the money, districts will receive special incentives offered by the
companies.
"We have a lot to offer," Koller said. "We provide career computer software for
students to use to get information on a future career. On top of that, we sponsor
motivational media where we bring in a professional group to speak to kids about drugs
and alcohol."
"We provide a scholarship fund for students who attend schools we sponsor," Bruce
Fikes of Coca-Cola said. "With that, and the commission checks from product sales, it
gives schools a great opportunity."
"I haven't found any bad points," Lake Hamilton Superintendent Don Henson. "This
provides money we can put into the school without drawing from school funds."
(Transcript taken from the Jonesboro Sun 8-30-98)
Keith |
