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* The setup…
Fairgoers looking for a cold Pepsi to wash down that corn dog will be out of luck at this years Illinois State Fair. Fair officials have reached an agreement with Coca-Cola Enterprises for Coke products to be the official soda of the August event in Springfield.
Coke, promising the state $10,000 up front and a percentage of all sales, beat Pepsi in the bidding. Pepsi had the fair contract last year, and Coke’s new deal could last as long as three years. […]
The deal means that even independent vendors have to sell Coke products, including the company’s bottled water, at the fair. No Pepsi products will be allowed.
* The Question: Is $10,000 and a cut of the sales enough to justify this exclusive contract for a soft drink company? Explain.
posted by Rich Miller
Friday, Jun 11, 10 @ 12:12 pm
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This is one way in which to increase the revenues generated by the State Fair without raising entry fees or vendor rental fees, etc.
Apparently, Coke outbid Pepsi so this is the deal designed to generate the most money.
Seems reasonable to me. Now if, on the other hand, they cut a deal with Miller and all we can drink at the beer tents is Miller Lite . . . .
Comment by Just the Facts Friday, Jun 11, 10 @ 12:20 pm
*wakes up and raises ears* What? Miller is buying “all we can drink beer” for us at the tents during the Fair?
Comment by The REAL Anonymous fka Anonymous Friday, Jun 11, 10 @ 12:24 pm
NOT!
There should be no “official” soda. The state should not be involved in any implied endorsements of health degrading products.
The people who wish to drink soft drinks should have a choice of their favorite flavored sugar or corn syrup water.
Comment by Vole Friday, Jun 11, 10 @ 12:26 pm
$10K seems kind of light to me. Heck, I thought it might cost more than that to sponsor the grandstand. Coke will probably spend more than $10K to print signs for the fair.
Is there an overall “presenting sponsor” for the Fair? As in “Welcome to the Illinois State Fair, Sponsored by Company XYZ?” If so, how much does that go for?
If there isn’t a presenting sponsor, why not?
Comment by 47th Ward Friday, Jun 11, 10 @ 12:27 pm
Heck, I’ll bring my own Pepsi and Mountain Dew.
Comment by Northside Bunker Friday, Jun 11, 10 @ 12:38 pm
This whole thing stinks!
The purpose of these fairs to to judge the best products among one another. How can you do that if you only allow one official sponsor?
Does Coke want us to drink their swill? Then they should be trying to compete with their competition for our dollars without having a government official making the call for all of us.
I hate Monopolies, “As Appointed by Her Majesty” products, and “Official Sponsors”. They mock the purpose of having fairs as well as the spirit of freedom in our markets.
Comment by VanillaMan Friday, Jun 11, 10 @ 12:41 pm
How can fair officials dictate what anyone can sell?
Comment by Segatari Friday, Jun 11, 10 @ 12:41 pm
As long as Pepsi, RC, and whatever other drink companies all had the opportunity to bid on the contract, and the RFP allowed exclusivity contracts, I see no problem with it. If the amount the state receives is too small, then Pepsi, RC, and the like should have ponied up more.
Comment by South Side Mike Friday, Jun 11, 10 @ 12:42 pm
“No Fries, Chips ….”
I find it a bit disturbing that the state of Illinois is finding its “payoff pricing” so easily, and sadly so readily to just “well, we nned the cash, so why not…”
It’s worth what someone will pay, I just hope that the state was not low-balled just to get some quick early cash ….
It only bothers me if the dollar amount was just decided and agreed to without looking at the value…
Comment by Oswego Willy Friday, Jun 11, 10 @ 12:44 pm
I wonder how much Coke they will sell in the grandstands during “wagerless” horse racing. In the end, Pepsi’s underbidding may prove them the winner. Besides, provided the contract RFP and subsequent bids were on the level, what’s the problem? Bidness is bidness.
Comment by Bird Man Friday, Jun 11, 10 @ 12:45 pm
===They mock the purpose of having fairs as well as the spirit of freedom in our markets.===
Since when is selling to the highest bidder mocking free markets?
Comment by 47th Ward Friday, Jun 11, 10 @ 12:46 pm
Too much caffeine for the VMan this morning? I’m in favor of as many sponsorships and naming rights deals as is possible. They should auction off space on Sam Madonia’s shirt like they do at NASCAR.
Perhaps if they bring in enough revenue from these various gimmicks they can get some decent grandstand entertainment in future years - they have a Kiss cover band for one night for pete’s sake. Original Kiss would be bad enough, but a cover band?
I’m beginning to long for the “good old days” when they had Willie Nelson and the Beach Boys. (snark)
Comment by Just the Facts Friday, Jun 11, 10 @ 12:54 pm
Does anyone remember the scheme to sell naming rights to state parks and official soft drinks of Illinois. This was a hot proposition about 4-5 years ago. I wonder how much the disgraced former governor reaped from the company assigned to sign those deals. Seems like they had a mil$ contract.
Comment by exstateemployee Friday, Jun 11, 10 @ 12:56 pm
Some people like Coke. Some prefer Pepsi. Seems to me fairgoers should have the opportunity to consume what they want to on a hot day at the fair–and not have the decision dictated for them by the state because of a paltry ten thousand dollars.
Comment by Responsa Friday, Jun 11, 10 @ 12:57 pm
Name a park? Pfft, he wanted to close them, fact mine came within all but packing the bags up.
Anyway, as a Dr, Pepper drinker, Pepsi or Coke makes no difference to me. If Pepsi had it last year and Coke out bid them this year, works for me. I’m sure I’ll find something cold and refreshing to tend to my thirst needs even if it’s not what I necessarily wanted. I’ll think of it this way…I’ll swing by the closest place after exiting my visiting fair to hunt down my Dr. Pepper fix and spend additional money in the area.
Comment by Cindy Lou Friday, Jun 11, 10 @ 1:13 pm
“Seems to me fairgoers should have the opportunity to consume what they want”
Of course they want the drinks cheap and god forbid you raise the gate admission by a dollar! A perfect example of how people view government services — “I pay my taxes so I should get something for nothing!”
Comment by bcross Friday, Jun 11, 10 @ 1:15 pm
It is fine. This is the way businessed are run. Seems kind or low, but the true value will be unknown until the % of sales comes in.
PS> I’d rather drink the “Water” on the ground outside the portapotties than drink Dasani Water.
Comment by Wumpus Friday, Jun 11, 10 @ 1:18 pm
I withhold judgement untill knowing what the cut is. Right now the state needs to figure out a way to help the state fair pay more for itself. I dodn’t think this thing needs to turn a profit, but the facility’s need upgraded bad and if this helps pay for it (which I”m sure it won’t) I’m all for it.
Comment by Ahoy Friday, Jun 11, 10 @ 1:24 pm
Did you see on the front page of the SJ-R that the State Fair may cancel Harness Racing? The winning horses from last year’s fair are just now starting to receive their prize money. The article says they may have the races - but may exclude betting.
Comment by Speaking of the State Fair... Friday, Jun 11, 10 @ 1:26 pm
As long as the bidding process wasn’t rigged, this would just be business. And as a Pepsi drinker, when all a place has to offer me is Coke, I opt for some other beverage.
Comment by cynically anonymous Friday, Jun 11, 10 @ 1:29 pm
Taste of Chicago has had Pepsi for as long as I can remember, I don’t know what the deal is there, but if it offsets the cost of the fair and less money for taxpayers, I say whomever had the best bid wins. So Coke at the State Fair, ok, fine, so what they won the bid, hopefully fair and square.
Comment by Third Generation Chicago Native Friday, Jun 11, 10 @ 1:31 pm
35 years ago you could get the directorship of a small state agency for a contribution of that amount. Now all it gets you is an opportunity to try to sell your product.
Is $10K enough to pay off last year’s award winners?
Comment by Retired Non-Union Guy Friday, Jun 11, 10 @ 1:34 pm
I have been going to the Fair since Dan Walker was Governor. When did they start selling soft drinks?
Comment by BigTwich Friday, Jun 11, 10 @ 1:34 pm
The State Fair is just like many other entertainment properties that have “exclusive” beverage rights. When you go to the movies you don’t have a choice, when you go to McDonald’s it’s Coke products, when you go to Hardee’s it’s Pepsi products, when you go to any Disney World it’s Coke products…..so this shouldn’t be a big deal…..now I want to know who is sponsoring the official State Fair Vodka and Lemonade???
Comment by Are Ya Kiddin' Me? Friday, Jun 11, 10 @ 2:06 pm
I HATE exclusive franchises, but that’s the way the world works; I won’t drink Pepsi, and sometimes make restaurant choices based on that. The idea of buying water is silly, when most public events have free ice water somewhere, even if you have to look at the politicians’ propaganda. At fairs and celebrations, my drink of choice is the lemon-orange shakeups…
Comment by Downstate Commissioner Friday, Jun 11, 10 @ 2:20 pm
So does this mean Pepsi bigwig and political powerbroker Harry Crisp has lost clout in this state? Or just under a D administration?
About Harry: http://www.beverageworld.com/index.php?option=com_content&view=article&id=32943:local-legends&catid=32&Itemid=140
Comment by just sayin' Friday, Jun 11, 10 @ 2:30 pm
Coke is better anyway. Could have been worse, they could have signed with RC Cola.
Comment by Pickles!! Friday, Jun 11, 10 @ 2:43 pm
Guess i’ll stick to beer.
Comment by Belle Friday, Jun 11, 10 @ 2:48 pm
Perhaps an interesting question would be “What kind of deal did Indiana cut with Pepsi or Coke for their Indiana State Fair?” Hmmm? Wouldn’t it “curl Illinois toenails” if Illinois taxpayers had heard that Indiana has cut a much sweeter deal for $100,000 up front and a larger percentage of sales than we got? Ouch!
Maybe Governor Quinn should have sought out Rod for one last time to shake down these soft drink vendors in another of his “Pay To Play” scams? After all, Illinois now has a national image to maintain. Saturday Night Live writers will soon have a skit on Pepsi failing “The Pepsi Challenge”, at least down in Springfield.
Comment by Festus Hagen Friday, Jun 11, 10 @ 2:54 pm
Depends on what the cut is. With exclusive rights that could be some cash. Some high schools do a better deal then that but I think there are some marketing reasons for that formula.
Comment by frustrated GOP Friday, Jun 11, 10 @ 2:59 pm
Absolutely…..why not?
Comment by downhereforyears Friday, Jun 11, 10 @ 3:45 pm
If you think that a soda exclusive is bad, some fairs have one supplier for all concessionsaires. They have a wholesaler set up a commissary to sell all of the supplies [meat, soda, water, bread, chips] to the venders. They have no other option.
Comment by West Central Friday, Jun 11, 10 @ 7:30 pm
Just carry in your own drinks. I am Pepsi, myself. But, I don’t like to pay $2.00 a cup.
Comment by PPHS Friday, Jun 11, 10 @ 7:40 pm