Coke Revises School Contracts

Posted on by Chief Marketer Staff

Some things, apparently, go better without Coke — like fourth-period algebra.

Coca-Cola, Atlanta, has promised to scale back in-school marketing by revamping its contracts with about 200 schools. New contracts allow a wider product mix beyond carbonated soft drinks, and lets schools replace brand signage on vending machines with non-commercial graphics of student activities.

Coke backed off exclusivity demands that kept competing beverages — including juice and water — out of school vending machines. Now contracts allow juice, water, and sugar-free, caffeine-free drinks as well as vitamin and calcium-rich products, based on the discretion of school districts. Bottlers also will let schools limit beverage sales at certain times or campus locations.

“We will not allow our school beverage programs to commercialize the teaching and learning process. This means no advertising in the classroom, and no mention of Coca-Cola in curriculum materials,” Coke’s guidelines read in part.

The new strategy, announced in March, includes formation of an Education Advisory Council to include experts in education, business, public policy, and nutrition, including former U.S. Secretary of Education Richard Riley and National Association for Sport and Physical Education Executive Director Judith Young. The council will set guidelines for best practices in public/private partnerships.

The change comes on the heels of Coke’s joint venture plans with Procter & Gamble (April PROMO), the goals of which include expanded distribution of non-carbonated drinks including P&G’s Sunny Delight and development of new healthful beverages.


Milk It

Schools across the U.S. may get milk vending machines after testing this spring in high schools and middle schools in Austin, TX, Boston, Miami, and Southern California. In-school machines have done a brisk business so far, selling chocolate, strawberry, and coffee-flavored milk for $1 per single-serve bottle. Machines are branded with Got Milk? signage and celebs from the high-profile print campaign begun by the California Milk Advisory Board, Sacramento, and run nationally by Rosemont, IL-based Dairy Management, Inc.

COKE REVISES SCHOOL CONTRACTS

Posted on by Chief Marketer Staff

Coca-Cola, Atlanta, is revamping marketing deals with about 200 schools to back away from exclusivity requirements that kept competing beverages — including juice and water — out of vending machines.

New contracts allow school districts to contract for juice, water, and sugar-free, caffeine-free, or vitamin- and calcium-rich products. They also let schools limit beverage sales at certain times of day or campus locations, and replace brand signage on machines with non-commercial graphics of student activities.

“We will not allow our school beverage programs to commercialize the teaching and learning process. This means no advertising in the classroom, and no mention of Coca-Cola in curriculum materials,” Coke’s guidelines read in part. The company has been roundly criticized in the past for pushing the in-school envelope a little too far.

The new strategy also includes formation of an Education Advisory Council featuring experts in education, business, public policy, and nutrition. The council will set guidelines for best practices in public/private partnerships.

The change comes on the heels of Coke’s joint venture plans with Procter & Gamble (XTRA!, Feb. 27), which include plans to expand distribution of non-carbonated drinks and develop new healthful beverages. At the same time, the U.S. Department of Agriculture is lobbying Congress for the authority to regulate what food and drinks can be sold to school kids.

Separately, Coke tapped Turner Broadcasting president Steven Heyer as president of its Ventures unit, which oversees the company’s efforts with P&G and Nestle. Heyer’s resume’ includes stints as president of Young & Rubicam (president) and senior vp-managing partner at Booz Allen & Hamilton.

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