Coke - Ethical Issues

Exclusive School Contracts Contd...

Health experts expressed concerns about the increase in consumption of soft drinks by young people consume, and the consequent harm to their health (Exhibit II). In less than 30 years, the annual consumption of soda per person had more than doubled from 22.4 gallons in 1970 to 56.1 gallons in 1998⁶. The Post reported that Coke's exclusive contract with the District of Columbia's public schools allowed for nearly twice as many beverage vending machines in high schools, middle schools and elementary schools as were there before the contract.

According to Troiano, overweight children tend to consume more calories from soda than those who were not. Childhood obesity rates in the US had increased by 100 percent in the past 20 years. Studies had also shown the negative effect of caffeine⁹ on children, an additive present in most of the cola drinks. Analysts¹⁰ concluded that soft drink makers were encouraging teenagers to consume more drinks, which would cause serious health problems for a whole generation.

Another analyst¹¹ suggested, "If the schools must have vending machines, they should concentrate on healthy choices, like bottled water." However, the exclusive contracts put pressure on schools to increase the number of vending machines to increase sales of soft drinks. Post reported that prior to signing an exclusive contract with Coke, few schools had vending machines. After signing the contract, most high schools had four machines, middle schools had three, and elementary schools one. Another study¹² said that in the last 20 years in the US, school enrolment had increased 6.8 percent, while participation in school meal programs had surprisingly declined by 1.2 percent.

One major factor was that vending machines filled mostly with junk food competed with school meal programs. The school meal program provided nutritious meals for nearly 27 million children in US schools. The US government had allocated $5.46 billion in 1999 for the school meal programs. A traditional school meal included two ounces of protein, three-fourths cup of fruit and vegetables, approximately two servings of grain products and a half-a-pint of milk.

In 2000, the American Federation of Teachers denounced the sale of competitive foods,¹³ calling them detrimental to students' health and development of sound eating habits. The Seattle Education Association adopted similar resolutions against commercialization in Seattle's public schools.

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6] According to the statistics from the Beverage Marketing Corporation in the US.
7] Report by Michael F. Jacobson, executive director, Center for Science in the Public Interest, a non-profit consumer-advocacy organization that focuses on food safety and nutrition in the US.
8] A senior scientist at the National Cancer Institute in the US.
9] Caffeine is an addictive drug. Regular users often develop a strong attachment to it and they may suffer withdrawal symptoms, including headache, drowsiness, and irritability, if they do not consume it for a long time.
10] According to freelance journalist Helen Cordes in The Nation, dated April 27, 1998.
11] William Dietz, director of the nutrition division at the US Center for Disease Control and Prevention.
12] Study conducted by the US Department of Agriculture (USDA).
13] Competitive foods are defined by the USDA as any food or drink offered at schools, other than meals served through the USDA school meal programs.