I was interested to read
recently that the state of Illinois is in the process of naming an
“Official Beverage of Illinois”. It seems that earlier this
year, Illinois Governor Rod Blagojevich teamed with Maryland-based Team Services LLC to market state property by selling
licensing rights for goods and services.
According to reports, the Land of Lincoln is now
soliciting information from the state’s bottlers and distributors to
determine an official beverage. The company that receives the title would
have exclusive rights to sell the beverage on all state-owned property,
including state fairs, road-side stops and office buildings.
Such contracts are becoming popular with state and
local governments, which are under tremendous pressure to find creative
ways to raise funding. New York City, for example, teamed with Snapple to
put its products in schools and city offices in exchange for program
Pepsi MidAmerica, Marion, Ill., one of the companies
considering a bid to be Illinois’ official beverage, has said it
believes the move could be bad for small businesses. The company says the
plan is detrimental to current business arrangements for special
organizations and communities such as vending operators for the visually
impaired, which distribute products at rest stops, and clubs and civic
groups that currently sell items at state functions.
“In addition, Pepsi Mid-America believes the
governor’s marketing plan is too intrusive because it takes away
local decision-making on beverage selections and vendors as well as other
products and services. The exclusivity of an ‘official’
beverage is impractical to bid since most beverage distributors in the
state have limited distribution territories. For instance, full-line
vending companies, soft drink distributors and franchise bottlers would
have to limit participation to its area of service,” the company said
in a statement.
There are clear logistical challenges to making such a
contract work, and as a Chicago resident for several years, it also seems a
little presumptuous to me to designate one beverage as the
“official” choice for an entire state, especially one with
populations as diverse as those in Illinois.
Am Ireally concerned about the types of beverages
available at state rest stops? No. I’m sure people who stop at them
are just happy to have a cold drink. But smaller beverage companies have a
hard enough time getting their products into sales and distribution
outlets. Adding yet another exclusive sales venue seems like one more way
to make it difficult for consumers to find variety and for those smaller,
breakthrough products to find their way to market.
I want to hear from you. Tell me how we can improve.
Beverage Industry’s November issue features our annual Craft Beer Report where we provide insight about how the craft beer segment is recovering after the onset of the pandemic halted many on-premise sales. Also in this issue we analyze the factions of the dairy drinks and dairy alternatives, the latest trends impacting the use of protein ingredients in beverages, the release of our annual Trucks Report with updates on 2021 releases, and much more!