Soda-makers say school sales plummet

It's not often that Coca-Cola and its rivals brag about how many drinks they didn't sell. But they did Monday, as the soft drinks industry said a 4-year-old program aimed at fighting obesity has slashed consumption of full-calorie sodas in schools across America.

The American Beverage Association, which represents Coca-Cola, PepsiCo, Dr Pepper Snapple Group and others, said the industry has made large progress on a promise to remove regular soft drinks from schools. That commitment was part of a 2006 deal with the Alliance for a Healthier Generation, a joint initiative of the American Heart Association and the William J. Clinton Foundation.

Beverage companies, blamed by some for contributing to childhood obesity, responded with a program to pull some of their main brands from schools. In recent months, the industry also has touted a partnership with First Lady Michelle Obama to make calorie counts more obvious on labels.

Shipments of full-calorie soft drinks to schools declined 95 percent between 2004 and the first half of the 2009-2010 school year, as beverage companies pushed the new guidelines into schools. The number of calories shipped to schools in the form of beverages -- including diet brands -- dropped 88 percent in that time.

Standard sodas have largely been replaced with lower-calorie beverages such as teas and waters, in smaller portions. Full-calorie sodas accounted for about 30 percent of beverages sold in schools in the 2006-2007 school year. At the start of this school year, those beverages represented 6.8 percent of the total. The industry has not hit its goal of bringing that number to zero, because a small percentage of schools have not reworked their vending contracts to bring themselves into compliance with the program.

Under the industry's self-enforced guidelines, 100 percent juice, low-fat milk and bottled water are allowed in elementary and middle schools. In high schools, students can get diet sodas and some calorie-capped sports drinks, flavored waters and teas.

At the beginning of the 2009-10 school year, 98.8 percent of schools and school districts were covered by the new practices. Local school policies and tougher state laws may also have contributed to the shipment drop-off, which has spread even to other beverages. Teas and diet sodas are down in schools, as are water and 100 percent juice.

"Coca-Cola recognizes that the world is changing and that Americans are increasingly looking for ways to lead balanced, active lifestyles," Steve Cahillane, president of the North American business unit at bottler Coca-Cola Enterprises, said in a statement.

"Making better beverage choices available to America’s school children is a common sense solution that can make a real difference in helping address the complex challenge of childhood obesity," said PepsiCo spokesman Peter Land.

Several metro Atlanta districts, including the city of Atlanta, were not able to provide district-wide information on soda sales by press time Monday. But several others said they limit soda sales in schools.

DeKalb County said no soda or carbonated drinks are sold to students during the school day. Fulton County said it sells only Gatorade, bottled water, juice and milk in its cafeterias; Fulton high schools have vending machines but they are not permitted to sell items during the hours Fulton provides meals to students. Forsyth County public schools don't sell sodas during the school day, although they are available in vending machines after-hours in middle and high schools.

Cobb County said its soft drink vending contracts are school-specific, and that the district does not collect sales data district-wide.

The school market is about 1 percent of the overall beverage industry, so the drop in shipments didn't involve substantial slices of beverage companies' business. "The beverage companies still have ample marketing opportunities to build their brands with advertisements to young adults," said John Sicher, editor of Beverage Digest.

Industry consultant Tom Pirko said a reduction in soda sales at convenience stores and fast-food restaurants would do more to combat obesity. "Are they really pulling out of the market," Pirko said, "or are those drinks just going to be consumed somewhere else?"

The industry says it is taking steps to be seen as part of a wide-ranging solution to childhood obesity. It is essentially giving up venues -- schools -- that once were important in forming early loyalties to soda brands.

"Schools are special places," Susan Neely, president of the ABA, said in an interview. "So, the commitment was important. We're walking the talk. Our position is that obesity is a real challenge in this country but the only way we're going to tackle it is with comprehensive solutions."

"We congratulate the beverage industry for working to remove sugary sodas from schools," said Margo G. Wootan, nutrition policy director at the Center for Science in the Public Interest. The Washington, D.C.-based group has sued Coca-Cola over labeling issues.