The City of Miami Beach entered into a sponsorship agreement for the non-alcoholic pouring rights for pre determined Miami Beach owned venues, dated March 14, 2012, with Coca-Cola North America, a division of the Coca Cola Company, and Coca-Cola Refreshments USA, Inc. d/b/a Florida Coca-Cola Bottling Company ("Coke Florida"), for a term beginning January 1, 2012 and ending on December 31, 2021.
On March 1, 2017, the Mayor and City Commission adopted Resolution No. 2017-29774, approving the assignment of Coca-Cola North America's interest in the Agreement to Coca-Cola Beverages Florida, LLC in connection with the sale of Coca-Cola North America assets to Coke Florida. The parties executed an assignment and assumption agreement, dated March 29, 2017.
With the expiration of the City’s current agreement with Coke Florida as the non-alcoholic beverage partner on December 31, 2021, the City, through our Commission approved municipal sponsorship consultant, Spectra Partnerships, initiated a selection process for a new non-alcohol pouring rights partner and invited companies to submit 'best and final' proposals with a focus on business and financial terms, supported by a robust marketing initiative. Coke Florida and PepsiCo (Pepsi) submitted 10-year proposals for the non-alcoholic pouring rights category; Dr. Pepper did not submit a proposal, and Red Bull North America, Inc. (Red Bull) submitted a five-year proposal for the energy drink category only. All companies enjoy a strong brand presence, with existing partnerships that include professional sports and large events, as well as agreements with well-known venues.
Following Spectra Partnerships review of the initial proposals, which included a combination of an annual sponsorship fee, additional revenues to the City from sale of products (either vending or dispensed), and potential marketing opportunities. Spectra Partnerships evaluated the short and long-term benefits, both financial and intangible, and recommended that the City enter negotiations with Coke Florida and Red Bull as the City's official non-alcoholic beverage and energy drink partners.
Following this recommendation, and upon further review and consultation with community stakeholders and members of the Commission, the administration was made aware that the proposals should be more focused on sustainability and plastic free initiatives. With the newly provided information, the administration withdrew their recommendation as we felt it prudent to regroup and see if a more sustainable proposal could be achieved.
Following the December 8, 2021 Commission meeting, the administration began negotiations with various beverage suppliers including but not limited to Coke Florida, Dr Pepper and Pepsi for the non alcoholic pouring rights category, and with Open Water, Icelandic. Pathwater, Nestle USA (Perrier, San Pellegrino, Acqua Panna), and Mananalu in the Water Category, to put a larger focus on sustainability and plastic free initiatives in all proposals.
The administration currently has a month to month contract with Coke Florida that extends the current agreement for a period not to surpass 6 months, ending on June 30, 2022. Coke Florida also provides the City of Miami Beach with approximately $100,000 worth of vending equipment, as well as all inventory management and maintenance services for that equipment across City facilities. The month to month agreement was required to ensure no business / service interruption at our facilities. It is the expectation of the administration that any new pouring rights partner would need to supply the same level of vending service, inventory management and maintenance, as has been provided by Coke Florida for the last ten years so as not to affect the services currently provided in various city owned properties.
Prior to the administration making an official recommendation from the proposals received, we would like to discuss what the Commission would like to achieve with a pouring rights sponsor, to ensure that the final recommendation will reflect those desires.