Kincardine council

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Pepsi has won the challenge in Kincardine and its products will be sold in the vending machines at the Davidson Centre for the next decade.

In committee-of-the-whole last night (May 11), recreation director Karen Kieffer told council that the soft drink provider agreement has expired and a request for proposals was advertised. Pepsi and Coca-Cola both submitted proposals and Pepsi won, she said.

Pepsi proposed $6,914 per year in product costs for a total of $69,140 over 10 years, said Kieffer. It included $4,000 per year in marketing revenue to the municipality, for a total of $40,000 over 10 years. The net cost to the municipality would be $2,914 per year or $29,140 over 10 years.

Coke's proposal was $6,352 per year in product costs for a total of $63,520 over 10 years; plus, $1,000 per year in marketing revenue to the municipality, for a total of $10,000 over 10 years. The net cost to the municipality would be $5,352 per year or $53,520.

Kieffer noted that the Pepsi proposal includes the provision of soft drinks, energy drinks, Aquafina water, and Gatorade, while Coke's proposal included soft drinks, Fuze, Dasani water, and Powerade.

Based on the comparison between the two proposals, the marketing support and the estimated product costs over 10 years, Kieffer recommended going with Pepsi.

In response to questions, Kieffer said the estimated profit for pop, water and Gatorade with Pepsi is about $4,753 per year, while the estimated profit for pop, water and Powerade with Coke would be $3,710.

Committee-of-the-whole agreed to go with Pepsi. Final approval will come forward at the May 18 council meeting.

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Wednesday, May 11, 2011