Incentives and penalties tied to sales volume in contracts between beverage companies and public universities in the United States

Abstract

Objective

To assess whether and how beverage companies incentivize universities to maximize sugar-sweetened beverage (SSB) sales through pouring rights contracts.

Methods

Cross-sectional study of contracts between beverage companies and public U.S. universities with 20,000 or more students active in 2018 or 2019. We requested contracts from 143 universities. The primary measures were presence of financial incentives and penalties tied to sales volume.

Results

124 universities (87%) provided 131 unique contracts (64 Coca-Cola, 67 Pepsi). 125 contracts (95%) included at least one provision tying payments to sales volume. The most common incentive type was commissions, found in 104 contracts (79%). Nineteen contracts (15%) provided higher commissions or rebates for carbonated soft drinks compared to bottled water.

Conclusions

Most contracts between universities and beverage companies incentivized universities to market and sell bottled beverages, particularly SSBs. Given the health risks associated with consumption of SSBs, universities should consider their role in promoting them.

Keywords:

• Sugar-sweetened beverages
• pouring rights
• university
• food marketing

Conflict of interest disclosure

The authors have no conflicts of interest to report. The authors confirm that the research presented in this article met the ethical guidelines, including adherence to the legal requirements of the United States and was deemed exempt by the Johns Hopkins Bloomberg School of Public Health Institutional Review Board.

Additional information

Funding

Center for Science in the Public Interest’s work on university pouring rights is funded through grants from Bloomberg Philanthropies (www.bloomberg.org) and the From Now On Fund at Tides (www.tides.org).