Blog: a web log
06/13/2003: "Jeffco Schools renegotiates Pepsi sponsorship agreement"
Jeffco Public Schools has renegotiated a new seven-year sponsorship agreement with Pepsi, the district’s current exclusive provider of carbonated beverages, juices, tea and water products.
The new agreement is effective July 1, 2003 and replaces the current agreement, negotiated in 1998 and set to expire in 2005.
Pepsi will pay an annual sponsorship fee of $250,000 to the district for each year of the agreement, In addition, average annual commissions from the sale of Pepsi products are estimated at $800,000. Each school receives roughly half of the money collected from the on-site soda and water machines. The new agreement also includes the addition of Gatorade products and machines.
Pepsi also agreed to continue its free product and promotional programs for students, including scholarships, that could amount to an additional $81,000 per year.
“These kinds of strategic partnerships between corporations and the school district ultimately provide more resources to our students,” said Ken Hoover, the district’s chief operating officer.
