Why Coke Is Not It For Dallas

By Robert Wilonsky Tue., Sep. 8 2009 at 11:57 AM

Categories: News

In September 2004, the Dallas City Council gave Dr Pepper an exclusive beverage vending contract -- meaning that at any city of Dallas venue, you had to be a Pepper or else till at last the fall of '09, since Dr Pepper was paying good money for the exclusive access via vending machine. But with the five-year deal set to fizzle out, in April the city told Coke and Pepsi that, hey, you're more than welcome to make yours the one and only vending machine at the Meyerson or Farmers Market or Love Field.

The city invited all three cola makers to pour a frosty proposal, and in May, Dr Pepper, Coke and Pepsi reps met with city officials at a so-called "pre-preposal conference," per tomorrow's city council meeting addendum. A month later, only Coke and Dr Pepper submitted bids; no word on what happened to Pepsi. At which point, Coke more or less tried to turn a five-year contract into a decade-long deal. Says Addendum Items No. 1 and 2:

The scope of work described in the proposal included the previous five-year sales history (approximately 140,000 cases) and made no guarantee of anticipated sales volume during the five-year term of the contract. Coke placed a stipulation in their proposal that the City must meet 285,405 case sales over the five years. If that volume is not achieved within the term of the agreement, the agreement would extend until that volume is met. Based on the historical sales, this stipulation would make the agreement a ten year term.

Which is why, on Wednesday, city council will stick with the Dr Pepper Bottling Company of Texas, which will pony up $2,200,000 -- not to mention "product donation valued at $25,000 annually" -- for the right to serve at city-run venues. But, see, whenever we go to Farmers Market, the kid demands a Mexican Coke -- because, look, that's the real thing. At least, until the guy at the elote stand starts selling Dublin Dr Pepper.

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