School soda deals on the rise as cans turn into cash

In the middle of a state budget crisis and an atmosphere of belt-tightening, some Lake County high school officials are finding there's extra cash in soda cans.

Not in collecting and recycling them, but in lucrative deals that allow companies like Pepsi and Coca-Cola to place their pop machines inside school buildings.

School district soda deals are nothing new. Companies and schools have been linked for more than 50 years, according to the National Soft Drink Association. What's changed is the amount of money they generate.

For example, Warren Township High School in Gurnee and Round Lake High School each signed contracts with soft-drink companies this year that will pay them $120,000 over five years. Stevenson High School in Lincolnshire will receive a whopping $850,000 from its new five-year deal.

The result, proponents say, is extra cash for schools without leaning on taxpayers or pushing student-operated fund-raisers.

However, not everyone is happy. Critics say the exclusive deals might not be the healthiest choice for children.

That very debate is surfacing in California, where the state Senate education committee meets Wednesday to discuss whether to ban public schools from selling carbonated beverages to students.

Under that proposed legislation, schools and soft-drink companies would be allowed to enter the exclusive contracts if only bottled water and 100 percent fruit juices are sold in vending machines.

Here in Illinois, the soda deals have not been criticized from a health standpoint, but they are being noticed within education circles for the dollars involved.

Stevenson High School District 125 is believed to have the most lucrative deal in Lake County for its new contract with PepsiAmericas of Rolling Meadows.

District 125's deal, which won the school board's blessing last month, will bring in a $60,000 annual marketing fee. Stevenson also stands to collect $110,000 in annual commissions based on a 15,000-case volume.

By comparison, Stevenson's last contract with Coca-Cola provided a $10,000 marketing fee and commissions.

Round Lake Area Unit District 118 is in the first year of a $120,000 deal with Coca-Cola Bottling Co. of Chicago. The district got a one-time $5,000 payment as part of the five-year contract.

Gurnee-based Warren Township High School District 121 also has a five-year, $120,000 pact with Coca-Cola. Warren received a $20,000 bonus as part of the new contract.

All three negotiated deals pay more than the ones that expired. Officials at the districts said the soda cash will be used for student programs, activities and equipment that otherwise might not have a funding source.

For example, District 121 business manager Michael Zelek said the Coca-Cola pact also resulted in two new scoreboards at a softball and baseball diamond. Warren's scoreboards likely would not have been purchased with district funds.

"We would have had to purchase those (scoreboards) with our operating funds," Zelek said. "Instead, they were donated."

It appears unlikely California's movement to eliminate school soda sales will be duplicated in Illinois. State board of education officials and legislators said those kinds of decisions should be made by individual districts.

Democratic state Rep. Susan Garrett of Lake Forest, who's on the House education committee, said the money from soda deals goes to worthwhile student endeavors. She'd expect complaints from school districts if state lawmakers tried to pull the plug on soda.

"Schools are forced to reach out to get additional dollars," Garrett said.

In California, Democratic state Sen. Deborah Ortiz said the fact 30 percent of her state's children are considered overweight or obese was reason enough for her to introduce the proposal that would ban soda sales in schools. Similar statistics were unavailable for Illinois children.

"Although many foods sold in our public schools are less than healthy and contribute to unnecessary weight gain, soda is the only one, with so many calories, that has virtually no nutritional value," Ortiz said.

Koula Kanne, a registered dietician with the Lake County Health Department, said she favors the California idea of banning soda from public schools. She said it would be better if children do not have easy access to soda at school or home.

"I feel parents and schools should be good role models," Kanne said. "I'll just leave it at that."

Children too often substitute soda for milk, water and other healthy drinks, she said. That's causing a trend of children not having good bone density, she added.

The National Soft Drink Association contends scientific evidence shows soda does not cause obesity, dental cavities or other health problems often cited by opponents.

At the 4,200-student Stevenson High, officials said the commissions the district receives through its PepsiAmericas deal do not entirely hinge on pop sales.

Jim Hintz, Stevenson's associate superintendent for business, said it's estimated water is half of Stevenson's 15,000-case volume. Most of the soda machines are near the performing arts center and athletics department, so visitors also account for purchases.

Gail French, a Warren board member, said she does not have a problem with the 3,400-student district collecting the soda money because it's directed to good uses, such as student activities.

French said she would not favor eliminating soft-drink machines at Warren. As the mother of teenagers who can dig into the refrigerator at home, she said, a lack of machines at Warren would not keep them away from pop.

"They'd probably stick it in their pockets and take it to school with them," French said.

It's estimated "tens of millions" of dollars go from soft-drink companies to America's schools through various deals, according to the National Soft Drink Association. Sean McBride, an association spokesman, said 62 percent of principals at schools across the country report having a business relationship with a soda company.

Wall Street analysts who cover the soft-drink industry said exclusive deals with schools are valuable because a soda company can more easily reach a young demographic and build brand loyalty.

Stevenson, Round Lake and Warren mirror the rest of the country when it comes to spending the soda cash. The soft-drink association said sports equipment, after-school student activities, field trips and fine arts programs are among the typical uses.

In some cases, Stevenson officials said, PepsiAmericas' $850,000 will relieve students from having to work on bake sales and other fund-raisers.

"I remember when the door bell used to ring three times every weekend when some Stevenson group was selling something," said District 125 board member Merv Roberts, a backer of the PepsiAmericas deal.

HOME