Customer Marketing Agreement Vancleave School District

Customer Marketing
Agreement
Vancleave School District
Table of Contents
1 Company History………………………………………………………
Exclusivity
2 Services Provided………………………………………………………
Full Service Vending

Maintenance & Service

Custom Logo Work
Direct Deliveries
Marketing
3 Pricing…………………………………………………………………
Non-Vending Cost
Vending Cost
4 Contract Incentives…………………………………………………….
5 Custom Water Program...………………………………........................
6 Remarks/Thanks……………………………………………………….
1. History of Allen Beverages, Inc.
Allen Beverages, Inc., was founded in August 1947 by Cleve Allen
and began as Spur Bottling Company in Gulfport, Mississippi, with the
Canada Dry franchise for the six southernmost counties in Mississippi. The
first delivery was made in September 1947, just one day before the 1947
hurricane. The fleet consisted of one army surplus truck and was run by only
3 employees. In January 1948, Nesbitt Orange was added to our flavor
lineup. In 1955, Allen Beverages obtained the Pepsi-Cola franchise for the
southern six counties from the Pepsi-Cola Company. When Hurricane
Camille hit in 1969, it left the plant virtually unscathed, however a
disastrous fire completely destroyed the plant located on Hewes Avenue
across from the old airport terminal in 1972. The plant was rebuilt at that
same location. In 1975, his son, Drew Allen, joined Cleve Allen to carry on
the family business. Drew worked on route trucks in the beginning of his
time and then eventually became Vice President. In 1987, the plant moved
from Hewes Avenue to its present location on Dedeaux Road in Gulfport.
Drew Allen became President and CEO shortly before the death of his father
in July 1991. Late 1991, Allen Beverages, Inc acquires Seven-Up franchise,
which was then sold to RC Cola in 2007. Today Drew’s children Andrew
and Grace Allen, as well as his nephew Wesley Batson all work at the
company. Allen Beverages, Inc. is the ONLY locally-owned and operated
soft drink distributor on the Mississippi Gulf Coast. Being a local business
we strive to enrich and support the economy in our franchise area. It also
allows us to make decisions on a timelier basis without having to cut through
red tape of approval from other sources. We hope that you give us the
opportunity to show you that our service is next to none and we take care of
our customers.
Allen Beverages, Inc. is pleased to offer your school this
EXCLUSIVE bid for your business.
EXCLUSIVE being termed that all products: Soft Drinks, Water, Juice,
Isotonics (Gatorade) sold to Vancleave School District, i.e. all buildings
associated with the school system, all sporting events, and all school
functions shall be purchased directly from Allen Beverages, Inc.
2. Services Provided
Full Service Vending:
ABI will provide, service, and maintain all vending machines/coolers at no
cost to the customer. All vending equipment will have remote timers
installed to comply with the State Dept. Of Education and USDA Child
Nutrition Guidelines. All vending equipment will remain the property of
Allen Beverages, Inc.

Maintenance & Service
Allen Beverages maintains in-house service technicians that can respond to
any issue the customer may experience. All service/maintenance calls will
be responded to within a MAXIMUM of 24 hours; but most calls are
responded to within the same day. We take great pride in providing the best
service possible to our schools and will continue to do this at no expense to
our customers.

Custom Logo Work
ABI has the ability to create and apply custom logos for the needs of our
customers. Whether it is a banner for a fundraiser or the school’s logo on
the front of the vending machine, ABI is capable of doing it all when it
comes to customization of graphics. The fact that we do this in-house
allows us to have short turnarounds on projects that our customers need.
Direct Deliveries:
Due to the large are that Allen Beverages covers we have certain days that
we will be delivering to your school. The delivery schedule is normally
twice a week. This does not mean that if there is an emergency or a serious
need that we will not be able to deliver our products. If any school group or
organization needs products quickly, our staff has the ability to “hot shot”
drinks out whenever necessary. All special events normally require a 3-day
notice to deliver drinks.
Marketing:
Allen Beverages, Inc provides the schools we service will many different
types of assets to help make them successful. Here are a few of them:
 Programs, calendars, posters, & pocket cards for sporting events will be
provided yearly at a cost of $400 per year.
 Radio sponsorship will be provided for the broadcast of certain sports at a
cost of $625 per year.
 Digital Billboards are available for the schools use to promote events,
programs or achievements of the school system at a cost of $1,000 per
year.
 Facebook: Social Media is a HUGE deal in this day in age and ABI is
involved with as many social media as we can be involved with. We
recently staffed a new position here at Allen Beverages, whose sole
responsibility is too maintaining our social media. With the School
Boards permission we would love to add certain events (i.e. football
schedule) to our page to help create the maximum amount of awareness
around your school.
 TOTAL MARKETING ANNUALLY: $2,025.00
Non-Vending Pricing
1. Soft Drinks
Case Price
Rebate
 20oz Bottle, 24pk
$ 21.00
$3.00
2. Juice
Case Price
Rebate
 16oz bottles, 12pk
$ 15.16
$1.50
$ 21.00
$3.00
 20oz bottles, 24pk
$ 16.00
$3.00
 16 Kickstart, 12pk
$ 15.00
$3.00
 Muscle Milk, 12pk
$ 33.00
$3.00
 12 oz Cans, 24 pk
$11.70
$3.00
3. Gatorade
 20oz bottles, 24pk
4. Water & Other
Vending Pricing
PRODUCT
Vend Price
COMMISSION
 20oz Soft Drinks/Water
$1.00
$6.00 per case
 20oz Gatorade
$1.00
$6.00 per case
 16oz Juice
$1.25
$3.00 per case
Due to the increase in cost of goods Allen Beverages will have to increase
pricing by no more than 3% annually. This increase will only happen if our
COGS increase.
* All sporting events must use 20oz bottles per this agreement.
3. Contract Incentives
4-YEAR CONTRACT
Annual Sponsorship Payments
Allen Beverages, Inc. will provide an annual sponsorship payment in the
amount of $3,500 to Vancleave School District. This amount will be paid
every year during the duration of the contract. A Rebate of $3.00 will be
paid on all 24 pack cases. If a scoreboard is purchased to replace an existing
board no amendment to contract will be required. The scoreboards will
remain property of Allen Beverages INC..
TOTAL SPONSORSHIP: $17,500.00
Donations
 Free Goods

In the past we have always helped our schools with special events and
fundraisers by providing free goods. It is our desire to make sure that we
handle every need in this manner as long as the product is to be given
away and not sold for profit. It is to be negotiated upon with only a phone
call.
 Special Event Trailers: Allen Beverages intends to allow Vancleave
School District to use our concession trailers at no charge when they are
available. This represents a $200 per 2-day event value. Our other
schools normally use these trailers an estimated 8 times per year for
weekly and even bi-weekly events held at the schools.
TOTAL ESTIMATED VALUE: $1,600.00
 Banners & Custom Signs: Allen Beverages provides all of our school
customers with custom made banners at no charge as well. ABI will
provide up to 40 banners at approximately $50 per banner to VSD at no
charge. This number again is not a limit, but merely an estimate of the
usage our other schools have used in the past. Our banners will be
provided as needed to VSD to allow them to promote upcoming events,
fundraisers, or to communicate a message to the faculty, students, or
parents.
TOTAL ESTIMATED VALUE: $2,000.00
 Gatorade Sideline Packages: Allen Beverages will provide VSD with 4
Gatorade Sideline packages (see attached form) totaling in $900.00. The
sideline packages have a retail value of $1,115. These packages include
everything your athletic teams need like squeeze bottles, ice chests,
towels, coolers and more.
TOTAL VALUE: $3,600.00 per year
 Truckload Sales: Allen Beverages will partner with Vancleave School
District to conduct Truckload Fundraisers. These sales are a useful tool to
help clubs and other organizations raise extra money for group trips,
equipment, etc. We have had some successes in the past when this is
properly executed. The rebates per case also apply to these sales so not
only is the school going to make profit for the event they will also be
awarded a check for the rebates. Other incentives are available as well
like door prize, bicycles, etc.
 Scoreboards: Allen Beverages is and has always been willing to
purchase scoreboards for our exclusive schools. The purchase of any new
scoreboards is always on the table. We will furnish and maintain all
scoreboards. The school will be responsible for installation. All in all we
will work with Vancleave School District to provide everything they
need to continue their athletic excellence. All scoreboards will remain the
property of Allen Beverages INC. .
 Ice makers:
We will maintain, service, or replace all Ice makers in VSD as needed.
The Ice Makers will remain the property of Allen Beverages INC. .
4. Custom Water Program
Creating an Atmosphere: There is just something about being at an
organized athletic event that brings up a storm of emotions. Excitement,
anxiety, there are a huge range of emotions that we all feel when our home
team is about to take the field. It is what is great about sports in general,
especially when it’s at home. What could possibly increase the feeling of
school spirit not only at the game but, in the community surrounding the
stadium? Allen Beverages has come up with something, a bottle of water
that has your schools logo on the label. These bottles will have the logo of
your choice and we think will be the perfect tool to provide a direct
approach to get the schools name entrenched in the minds and hearts of the
community. Think about it, at your home games every bottle of water sold
will have the Vancleave Bulldogs logo on it. This is including the bottles
that your visiting teams purchase from your concession stands. It is a great
thought.
Expanding your School Spirit: To make this promotion even bigger is that
we are going to use our channels of distribution to sell these custom logoed
waters into local gas stations, convenience stores, and grocery stores. This
will get your schools logo out into the community like never before and we
are going to use a portion of the proceeds from these sales to fund the
program of your choice. An example could be every case sold into the
market Vancleave School District will receive $1 to help fund their athletic
programs.
Water Quality: The water that we propose using is a brand called
Klarbrunn. It is basically a private label version of our Pepsi Corporate water
Aquafina. It tastes the same and still goes through all of the rigorous
purification processes that Aquafina does, but is not a corporate brand so this
allows us to brand it with your school’s logo.
TOTAL AVAILABLE FUNDING:
$63,625.00
PROGRAMS
YEARLY
5 YEARS
MARKETING FUNDS
$2,025.00
$10,125.00
SPONSORSHIP FUNDS
$3,500.00
$17,500.00
CONTRACT
INCENTIVES
$7,200.00
$36,000.00
TOTALS
$12,725.00
$63,625.00
THANK YOU FOR YOUR TIME AND
CONSIDERATION!
X___________________
X____________________
Name:_______________
Name:_______________
Date:_________06/13/16