Multi-state analysis charges majority of revenue from school beverage contracts goes to beverage firms and not schools

The Center for Science in the Public Interest (CSPI) and the Public Health Advocacy Institute (PHAI) have released a multi-state analysis charging the majority of the revenue from U.S. school beverage contracts goes to beverage firms and not schools. The report claims that its findings should encourage school officials to replace sodas with healthier drinks. The study analyzed 120 contracts in 16 states. Out of these, 64 were with PepsiCo, 53 with Coca-Cola, and 3 with smaller regional manufacturers. Ninety-three percent of the contacts were exclusive. According to CSPI/PHAI, these deals were generally not very beneficial for schools, raising an average of only $18 per student per year, with some schools clearly getting better deals than others. "Selling sugary drinks in vending machines and elsewhere in schools doesn't pump money into the community, it drains it," says CSPI nutrition policy director Margo Wootan. "It's not philanthropic behavior on the part of soft drink companies, it's predatory." She adds, "When a kid puts a dollar in a soft drink vending machine, the school is lucky to keep 33 cents. And the money comes from parents' and kids' pocketbooks."

The America Beverage Association (ABA), which represents soft drink industry, characterizes the report as "outdated," "inaccurate," and "uninformed." "The fact is the beverage industry has stepped up and led on school wellness, as the first industry to adjust what it sells in schools," says Susan Neely, president and chief executive officer of the ABA. "Our efforts to strengthen schools have been recognized by the American Heart Association, the Clinton Foundation, school officials and an array of health and nutrition advocacy groups. And we're providing schools with a revenue stream to invest in underfunded academic programs and health and fitness activities for students." While CSPI concedes the voluntary guidelines announced in May by former President Clinton, the ABA, the American Heart Association, and leading soda firms are aimed to reduce portion sizes and restrict soda sales in schools over the next three years, it claims schools are not party to that agreement, and "it remains to be seen if schools will comply with the guidelines."

FoodUSA Navigator.com
By Lorraine Heller
[Full story]

[Editor’s Note: The report is posted below. In addition to the ABA’s criticism, Vending MarketWatch.com, a vending industry online newsletter, attacks the report’s use of facts and figures in an article at the second link. Background on the agreement brokered by former President Clinton is posted at the third link. A report released last month by Arizona State University’s Commercialism in Education Research Unit concludes that, despite that agreement and the fact that commercialism in schools is "increasingly controversial," in 2006 the "overall legitimacy of marketing in schools remained largely unchallenged and showed little sign of abating." The last two links are to articles available to COSA members on negotiating vendor contracts.]
[CSPI/PHAI report on school beverage contracts]

Vending MarketWatch.com
[Full story]

[NSBA School Law pages on vending machine agreement]
[Report on Schoolhouse Commercialism Trends]

Inquiry & Analysis
By Lisa Soronen
[Full article]

School Law in Review
By Benjamin J. Ferrara
[Full article]