Snapple and Big Apple end vending deal
A Snapple contract to supply New York City’s municipal buildings with cold drinks is ending early due to slow sales, sources said.
Snapple had a six-year contract with the city that started in February 2004, the New York Post reported Wednesday.
The city expects to receive $17.7 in revenue and about $15 million worth of promotional value from the deal.
But, drink sales have been slow. An estimate of total revenues of $126 million was scaled back to $33 million two years ago.
Only 26 percent of anticipated sales were realized, the Post said.
In response, the company is hauling about 724 vending machines out of various city buildings.
I could probably count on one hand the number of times I’ve seen somebody at that machine in the years it’s been there, a municipal worker at a city building which had Snapple vending machines told the Post.