School district's deal with Pepsi trades some pop for water, juice

NEW CASTLE, Pa. -- New Castle Area School District intends to cut back on the amount of soft drinks available to pupils in vending machines.
The school board last week renewed a 10-year agreement with Pepsi that allows the beverage company to continue distributing its products in six vending machines throughout the district.
But the school board made a revision to the agreement that calls for Pepsi to stock the vending machines with more flavored water and fruit juices.
Several vending machines are stocked with carbonated beverages only. The school district is to receive $6,500 a year plus a 35 percent commission on product sales from Pepsi. Through a previous pact that expired in August, Pepsi paid the school district $4,000 a year plus the 35 percent commission.
Board members previously asked for a limit on the amount of soft drinks available to pupils. Administrators said the school district may choose what beverages are available in the vending machines and if Pepsi were to oppose the district's decision, the pact could be nullified.
In other matters, the school board agreed to refinance a $1.6 million loan the school district obtained from Sky Bank in 2004. The loan was used to pay for renovations to the football stadium.
District business manager Joseph Ambrosini said Sky Bank submitted the lowest interest rate, 4.69 percent, fixed for seven years. He said the district has been paying a variable rate based on 75 percent of prime interest on the outstanding balance. The current interest is 5.1 percent.