How the Food Industry Influences Nutrition and Health (1 of 2)

Copyright © 2005, by Weight Loss Buddy Press, Joey Dweck

When was the last time you consumed soda? Most likely, it wasn't
that long ago. You may even drink several cans or bottles each
day. In the U.S, carbonated soft drinks are a huge business.
Every year, they generate more than $50 billion in annual sales.   

Two companies – Coca-Cola and PepsiCo -- dominate the soda
market. They are in a constant battle for the market share of the
product – a conflict known as the "Cola War." Hundreds of
millions of dollars are spent annually for advertising. Not
surprisingly, the companies are always looking for new markets.
And, increasingly, they are directing their attention to
adolescents and children.

For decades, schools have allowed soda to be sold in on-site
vending machines. So, generating income for schools from the sale
of soda is not a new policy.  However, in the early 1990s,
pouring-rights contracts emerged. These put a different spin on
the sale of soda in schools. And, over the years, they have
increasingly gained in popularity.

In return for the exclusive sale of one-company's product,
pouring-rights  contracts give school districts large lump-sum
payments and extra payments and/or gifts over a period of five or
10 years. The contracts provide additional incentives for
consumption levels that surpass quotas. So, they tend to
encourage the consumption of higher amounts of soda, even by the
youngest students. In one of the most extravagant contracts, a
53-school district in Colorado, gave up its Pepsi vending
machines and signed an $8 million, 10 year agreement with Coca-
Cola that included cash bonuses when sale targets were exceeded
and a new car for a senior with high grades and perfect
attendance. But, even the smaller contracts tend to be generous.
The goal is to create brand loyalty among young people – a
loyalty that could continue throughout their lives. Without a
doubt, administrators in cash-strapped school districts have a
litany of reasons to be enticed.  But, adherence to the contracts
may be taken to extremes. For example, a Georgia student was
suspended when he wore a shirt with a Pepsi logo to a student
government-sponsored "Coke Day" rally.

Tomorrow will continue..

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