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Item No: 9E <br />Meeting Date: February 9,1004 <br />Type of Business: CB <br />Administrator Review: _____ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Mary Burg, Manager <br />Item Title/Subject: Resolution 6192 Approving a Soft Drink Supplier <br />Agreement for the Bridges Golf Course <br /> <br />Introduction: <br /> <br />The five-year contract with Midwest Coca Cola Bottling Company for exclusive sale of <br />products at all City of Mounds View locations is expired. The five-year contract included <br />vending machines at the City Hall, Mounds View Community Center, Park Shelter Buildings, <br />and all non-alcoholic beverages at The Bridges Golf Course. <br /> <br />Staff contacted Midwest Coca-Cola Bottling Company and The Pepsi Bottling Group <br />for proposals. <br /> <br />Discussion: <br /> <br />Midwest Coca-Cola Bottling Company and The Pepsi Bottling Group each submitted <br />exceptionally competitive proposals to The City of Mounds View. <br /> <br />Review of the proposals reveals the values are very similar. Each proposal offers new <br />state of the art equipment, full service venders for the City Hall and Community Center, <br />35% and 25% commissions on full service venders. The product price equal and the <br />annual increase of price are equal. <br /> <br />The Midwest Coca-Cola Bottling Company is offering the City of Mounds View a total of <br />$22,000 in cash, $400 in product, six umbrellas, and hosting a golf tournament at The <br />Bridges Golf Course to partner in beverage sales. The Pepsi Bottling Group is offering <br />$13,000 in cash, $10,050 in product, and 30 umbrellas, for partnership. <br /> <br />The Midwest Coca-Cola Bottling Company proposal requires the City to install cages for <br />all exterior vending machines. The cost per cage approximately $900, plus installation. <br /> <br />A very important consideration is market share information. Coke enjoys the status of <br />number one in market overall. Pepsi has the top flavors in every beverage choice with the <br />exception of Diet Cola. Coke is number one in over all sales due to its fast food segment. <br />Coke holds 25.4% of market over all in the 20 ounce market. <br /> <br />The Pepsi Bottling Group holds 63.5% of the market for 20 ounce bottles. This is