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
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