The 120-year-old battle between Pepsi and Coca-Cola is not just about personal choice, but about the dollars and merchandise that reaches into Johnson County schools.
When it comes to school districts, the two beverage giants compete to be served to students, their families and attendees of sporting events. In order to convince school districts to allow them to exclusively sell their products, the companies often offer a plethora of incentives, which include commissions and rebates, and may also include scholarships and equipment.
Whenever a contract expires, a school entertains bids from both companies, often with five-year deals on the line. At Center Grove, for example, a higher bid from Coke included higher amounts in marketing, commissions and rebates, and higher offers from Pepsi in free product and athletic supplies were not enough to make up the difference.
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For example, Clark-Pleasant schools is getting an estimated $470,000 in cash and in products from Coke over the course of its seven-year contract. Most school districts get about $15,000 per year in guaranteed income from the deals.
Coca-Cola owns, among others, Powerade, Dasani, and Nestea, while Pepsi affiliated beverages include Gatorade, Tropicana, and Aquafina. These brands are sold in Coke-sponsored districts under contract along with the sodas themselves.
When a beverage company has exclusive distribution rights in a district, they serve in all vending machines, concession stands, maintenance and transportation facilities, administrative facilities, and any other facilities, as well as school cafeterias. Five of the six Johnson County districts are currently contracted by Coca-Cola, with Greenwood picking Pepsi.
Center Grove
This fall, Center Grove made the transition to Coca-Cola after a five-year contract with Pepsi expired. The district made the decision after Coca-Cola offered $98,919 over a five-year period, with Pepsi coming in second with an $88,680 offer for the same time period.
Of the annual money from Coca-Cola, how the money is distributed in the district is based on five-year averages. An expected $55,000 will come from marketing and the district will receive $3,000 in athletic supplies, $4,950 in free product, $20,169 in commissions, $12,800 in rebates, and $3,000 in other miscellaneous benefits.
With the contract comes Coke signage on concession stands and vending machines around the district, along with exclusive beverage rights. For Center Grove, incentives aside from money are mainly centered on sporting events. Coca-Cola promises to provide drinks, coolers, cup and towels for middle and high school sporting events.
Center Grove Spokeswoman Stacy Conrad said the money received through the contract, along with commissions and rebates, goes towards staff and student recognition, such as the Teacher of the Year awards, the Legacy Awards and retirement dinners.
With the contract, Center-Grove is the biggest beneficiary in the county when it comes to money made off guaranteed funding from a beverage contract.
Clark-Pleasant
The Clark-Pleasant school district takes in $15,500 per year from Coke and is in the midst of a seven-year contract with the beverage giant. On top of the annual funding, the district also receives free product and sideline kits for sporting events. Typical sideline kits include bottles, cups, coolers, drink mix and towels. Coca-Cola estimated Clark-Pleasant would make $350,044 over the seven years off guaranteed funding, free product, rebates, and commissions. Out of that, $129,500 would be made off guaranteed funding, with another estimated $120,094 from commissions. Additionally, students at the district are eligible to apply for the Coca-Cola Scholars program.
The money is divided among the schools and spent on student activities, awards and incentives, Clark-Pleasant Director of Business Jay Staley said.
Greenwood
After Center Grove switched to Coke, Greenwood is now the only Johnson County district selling Pepsi products. Greenwood’s deal with Pepsi, which began in 2016 and expires in 2021, pays the district $16,500 per year in guaranteed money. Under the contract, the school receives athletic merchandise, commission from sales, Gatorade water coolers and water bottles.
The money from the contract and commissions goes to extracurricular accounts as well as staff training and professional development, Greenwood Assistant Superintendent Todd Pritchett said
Franklin
Franklin pulls in $10,500 of guaranteed funding from its contract with Coke, which is valid through 2019. Money from the contract is made not just from that guaranteed funding, but from commissions and rebates.
Edinburgh
Edinburgh takes home $4,000 in guaranteed revenue from Coke, far less than any other district in the county due to a smaller student enrollment. The contract with Coke is set to expire next year, but the district currently has no plans to switch providers. Much of that decision has to do with the proximity of the district to a Coke bottling location in Columbus, whereas the closest Pepsi bottling plant is in Indianapolis, Athletic Director David Walden said.
Money from the contract is used to bolster the athletic budget.
Indian Creek
Nineveh-Hensley-Jackson Schools collect $15,000 in guaranteed funding from Coke each year, and is in the midst of a contract that began in 2016 and will terminate in 2021.
The district receives guaranteed money as well as funds from commissions and rebates. Additionally, Coke provides towels, water bottles and coolers for the district.
