ASHLAND — It will be out with the old and in with the new — out with Coca-Cola and in with Pepsi, that is — for Ashland City Schools starting in July.
The board of education approved a five-year contract with Pepsi at its Monday meeting. That means the district will now be selling and distributing Pepsi products to its students and in its vending machines, rather than Coca-Cola products.
According to Supt. Steve Paramore, the district had a 10-year contract with Coca-Cola that concluded this year. It put the contract out to bid.
Paramore explained the district receives a “kickback” from the companies each year for selling their products at Ashland City Schools.
Pepsi offered the district a higher dollar amount than Coca-Cola did when the district put the contract out to bid, Paramore said.
“What I would tell you is we have nothing bad to say about Coca-Cola, and that does not rule out Coca-Cola when this five-year contract is up,” Paramore said. “Both are obviously Fortune 500 companies, so they know what they’re doing.”
Contract contents
The 10-year Coca-Cola contract, which ended this year, stated the company would provide the district with “Sponsorship Funding.” That funding consisted of $100,000, to be doled out to the district in 10 increments of $10,000 from 2014-2024.
The contract, obtained by Ashland Source via a public records request, also stated the beverage provider would give the district a one-time T-shirt fund of $10,000. It also outlined rebates and a commission the district would earn from selling Coca-Cola products.
The funds, according to the Coca-Cola contract, were to be spent on:
- Academic enrichment and scholarships
- Improvement of technology at the schools
- Additional or improved educational materials
- School and Campus improvements
- Student extra-curricular activities
- Educator and Student reward and recognition programs
- Physical fitness and nutrition education programs
- Teaching kids to consume a balanced diet and to be physically active
According to Kyle Klingler, the district treasurer, when the contract was out to bid this year, Coca-Cola stated the contract would be similar, but with a reduction in commissions from $10,000 per year to $5,000.
The new Pepsi contract, which the board approved at its Monday meeting, goes into effect July 1 and remains through June 30, 2029.
(Below is a PDF of the Pepsi contract the board approved Monday.)
That contract’s text states Pepsi will pay an “annual support fund” of $6,500 to the district over the next five years. It outlines a commission the district will receive for sales of Pepsi products, too.
It also stipulates that no competitive products “shall be sampled, sold, served, or dispensed anywhere at the facilities.”
Pepsi will provide the equipment for its products to be dispensed, according to the contract.
Paramore added both the city of Ashland and Ashland University contract with Pepsi, too.
“So, once again, as we look at our synergy with the rest of the community … Pepsi’s a company that’s familiar with our area,” he said.
Permitted products
Both Pepsi and Coca-Cola had to follow state and federal laws and guidelines regarding products the companies could sell to students.
Those regulations say elementary and middle school students can only be sold caffeine free beverages during school hours, according to the U.S. Department of Agriculture’s Smart Snacks guide.
(Below is a PDF of the USDA’s Smart Snacks guide.)
High school students can purchase low-or-no calorie beverages, carbonated or un-carbonated, during the school day.
Those rules don’t apply in staff-only areas of schools. They also don’t apply at school-related events where parents are part of an audience, or for fundraisers, according to the text of the district’s contract with Pepsi.