Coke to Replace Pepsi in Ann Arbor Parks

Coke will be replacing Pepsi at the city’s parks facilities, if the city council acts on a recommendation by the Ann Arbor park advisory commission. At their April 16, 2013 meeting, park commissioners unanimously recommended approval of a five-year contract with Coca-Cola Refreshments for cold beverage concessions.

A 10-year contract with Pepsi Bottling Group of Michigan is set to expire in June of 2013. In vying for the new contract, only two companies responded to a request for proposals (RFP). According to a staff memo, the other bidder was disqualified after failing to meet the bid deadline. The memo did not name that company, but deputy parks and recreation manager Jeff Straw told commissioners that Pepsi had missed the deadline.

The new contract will cost the city an estimated $25,000 annually for non-vending items, but the city expects to generate $47,500 in revenues from the beverage sales. In addition, Coca-Cola Refreshments will provide an annual sponsorship fee of $10,000 to the parks and recreation unit, and give a 96-cents-per-case rebate on each case that’s sold. These funds will be used to provide scholarships to low-income kids for parks and recreation programs. The case rebate is estimated to bring in $700 to $1,000 each year for scholarships, according to Straw.

The company also will provide 50 cases of free product each year for public special events, and will sponsor four special events annually with product sampling and free giveaways. The firm also will provide recycling containers with credit for returnables.

Concessions and vending are located at Leslie Park Golf Course, Huron Hills Golf Course, Veterans Memorial Park, Buhr Park Pool and Ice Rink, Fuller Park Pool, Mack Indoor Pool, Gallup Park Canoe Livery and Argo Canoe Livery.

The recommendation will be forwarded to the city council for consideration.

This brief was filed from the second-floor council chambers at city hall, located at 301 E. Huron. A more detailed report will follow: [link]