Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, June 21, 1994 TAG: 9407160003
SECTION: VIRGINIA PAGE: B3 EDITION: METRO
SOURCE: JOEL TURNER STAFF WRITER
DATELINE: LENGTH: Medium
They even go head-to-head in schools in the fight for customers.
The cola war has prompted Roanoke school administrators to consider a more formal approach in granting soft drink companies the right to put drink machines in schools.
The school system will seek proposals from companies for installing machines this summer.
In the past year, Pepsi paid $12,000 to city schools for the cost of teachers who staffed the homework-help hot line for students.
Pepsi also provided $9,000 to help pay for computer software for student-service programs, according to Lissy Runyon, community relations and public information officer for the school system.
In return, school administrators authorized Pepsi representatives to talk with school principals about putting machines in schools.
But Pepsi encountered trouble at Patrick Henry High School, where Coke had given a $15,000 baseball scoreboard to the school. Coke provided the scoreboard, installed it and advertises on it.
Under the agreement between Patrick Henry and Coke, the cola company received a five-year exclusive contract to sell its carbonated drinks on the Patrick Henry campus.
William Murray, director of business and finance for city schools, said the agreement does not include fruit drinks, iced tea and other noncarbonated drinks that could be sold by Coke's competitors. The School Board approved the agreement.
Pepsi also made a proposal for providing the baseball scoreboard, but a committee chose Coke's offer.
In allowing Pepsi to talk with school principals about installing machines, Runyon said school officials were ``not trying to bump out'' any other drink companies.
Tommy Brown, cold drink manager for Coke, said the company has arrangements similar to the Patrick Henry deal with Cave Spring High School in Roanoke County and some other schools.
Brown said the schools share in the profits from the sale of drinks on their campuses, but he would not discuss details.
``The schools make money on it,'' he said.
Meanwhile, Pepsi is aggressively seeking to put drink machines in all Roanoke schools with which Coke does not have a contract, according to Tony Chicarelli, marketing general manager in the Roanoke area.
Pepsi also may install machines with juices, tea and other noncarbonated drinks in schools where Coke has a franchise only on carbonated drinks, Chicarelli said.
``Where there is an opportunity, we are going to fight as hard as we can to get our machines in,'' he said. ``Our competitors have contracts in some areas, but we may be able to provide some types of drinks.''
In the past, each city school has made its own arrangement with soft drink companies for installing drink machines, Murray said.
Brown said Coke received requests from some other schools for scoreboards, but they still are being processed.
``We try to help and cooperate with our schools in any way that we can. We donate drinks sometimes for parties and other events,'' he said.
by CNB