Following are excerpts from the Texas Department of Agriculture web site at: http://agr.state.tx.us/foodnutrition/survey/ntn_survey.htm

	Clearly, it’s time for school districts to re-examine their dependence on these types of contracts and the shortsightedness of choosing fat profits over healthy kids. Susan Combs, Commissioner, Texas Department of Agriculture; leader of a statewide obesity-prevention crusade, Dallas Morning News, September 6, 2003

The Numbers

Districts surveyed: 1,256; responding: 932. Of these:

	487 (54.3%) have exclusive vending contracts
	307 (63%) of the districts contract with Coca-Cola
	75 (15%) of the districts contract with Pepsi
	66 (14%) contract with Dr Pepper
	39 (8%) contract with other companies

71% of districts with 1,000+ students have vending contracts, with some requiring the installation of multiple vending machines in all schools, including elementary schools. 

The Dollars

	Very large districts (100,000+ students) receive an average of $2.7 million per year from their vending contract operations
	Large districts (40,000-100,000 students) receive an average of almost $1 million per year
	Medium-sized districts (20,000-40,000) receive an average of $500,000 per year
	Districts of 5,000-20,000 students receive up to $150,000 per year
	Even small districts with <5,000 students may receive $25,000 per year

These amounts represent cash receipts and the value of non-cash benefits annualized over the terms of the contracts. 

Non-cash benefits include funds for scoreboards and marquees with annual maintenance (as much as $500,000 for one district), scholarships, software, merchandise (shirts, school supplies, book covers, sports bags, sunglasses, etc.), soft drinks and pre-mix for soft drinks, cups, coolers, equipment for booster clubs, movie tickets, sponsorship of athletic events and tournaments, fountain drink dispensers, etc. – all prominently branded with company logos. 

It is widely acknowledged that the true purpose of these contracts is “to develop brand loyalty in students at an early age.”

Mostly 20 ounce containers are sold, except in the teacher’s lounge, where 12 oz. products are allowed.  (20 ounces = 2.5 servings, or about 280 calories).

Vending machines to be located in high student traffic areas.

Highest commissions are for 20 ounce carbonated products.

If the contract is breached or terminated for any reason, the school must reimburse the bottler for lost revenues. 

No other beverage products are allowed anywhere on school premises including athletic events, school carnivals, etc.

Financial terms vary greatly from school to school, with some schools receiving as much as $20 per student in cash ($1 million per year) and other districts receiving both cash and non-cash benefits.

The Texas Comptroller’s office estimated that there may be between 26,000 and 29,000 vending machines operating in Texas schools. Actual sales are unknown but estimated to generate “considerably more than the $54 million reported in this survey.”

The study estimates that Texas food service operations potentially lose $60 million per year to competitive food sales.

The loss of federal meal reimbursement ($2.14 average per participating student, per day) resulting from substituting colas and snacks for a school meal isn’t known, but the true net loss to school food services operations would be much higher.  (NOTE: Investigation continues on this front.)

During the 2001 school year, school food service operations in 738 of the 1,256 school districts operated at a deficit. The total deficit was $23.7 million and these funds had to be subsidized from other district sources.