To raise funds, Illinois may pick official drink

By Kevin McDermott
St. Louis Post-Dispatch

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Or "The Prairie State" become "The Pepsi State"?

Gov. Rod Blagojevich's administration is considering selling, to a yet-unchosen beverage company, the rights to Illinois' name. No other state has ever done it.

The concept of designating an "official state beverage" could bring in millions of dollars to the state's cash-strapped budget, as soft-drink companies compete — and pay — for the right to hawk their soda, juice or other beverage under Illinois' state banner.

Alcohol has been ruled out, said Abby Ottenhoff, a spokeswoman for Blagojevich, but all other beverages are on the table.

The idea isn't going down too well with some critics, who worry that Illinois will be taking sides in the fiercely competitive soft-drink industry.

The concept is different from that of industries that market themselves with the states where they're based — Florida orange juice, for example, or Wisconsin dairy products. The Illinois proposal would entail a contract with one specific beverage company, which would pay the state for the privilege of calling itself the "official" state beverage — and selling its products in about 1,300 vending machine at roughly 100 Illinois state parks, rest stops, offices and other government facilities.

The concept has become a popular way to raise money in some school districts and cities. Administration officials point to the profit of agreements such as those between Houston and Dr Pepper ($5.3 million for the city over 10 years), or San Diego and Pepsi ($6.6 million to $23.6 million over 12 years). The example most often cited by proponents is that of New York City, which signed an "official beverage" agreement with Snapple last year worth $126 million over five years.

Those within the beverage industry itself have been critical.

"An 'official state beverage' — does that imply that all other soft-drink companies are inferior?" asked Richard Lockhart of the Illinois Soft Drink Association. "Is the state going to be intruding into the proprietary activities of the soft-drink company?"

The state already has sent "request for information" documents to 19 beverage distributors and bottlers around Illinois. The administration hopes to have a contract in place by the beginning of next year.
 
Larry Briggs, an associate professor of advertising at Southern Illinois University Carbondale, said there is little doubt such agreements benefit taxpayers.

"These companies pay big bucks ... for the bragging rights," he said. "It's like having a stadium named after you."

But he added: "It limits the choices [for consumers] ... [and] you're kind of selling out to the corporations. There's always a fine line there, anyway."