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RiversideCA.gov
Economic Development Committee August 20, 2026POURING RIGHTS PROPOSAL FROM PEPSI, INC., FOR THE CITY OF RIVERSIDE Office of the City Manager RiversideCA.gov2
BACKGROUND•May 5, 2020 the City Council approved a Citywide Partnership Policy. •On February 20, 2025, the Economic Development Committee approved the opportunity to explore “pouring rights” for City. “Pouring rights” are contracts that give a beverage company the right to sell, serve, and market their drinks in specific setting(s) such as a park, municipal building, airport, or other municipal facility.•In June of 2026 the City received a discussion proposal from Pepsi, Inc., to become the City’s main pouring rightspartner. Two rounds of discussions haveoccurred.
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•Generally, this proposal:•Is a medium-term (5-year) partner for pouring rights in facilities where these on-tap beverages are appropriate. •Beverages are non-alcoholic. •Pepsi, Inc., would enter into a contract with the City for 100% exclusive rights to sell/vend drinks at City facilities not covered under an existing lease or management agreement, and at City sponsored events.•Covers vending and bottle sales services.•Annually, the City and vendor would coordinate to review beverage sales and product availability at all City sites.•Covers peripheral items covered such as maintenance, restocking, etc. DISCUSSION RiversideCA.gov4
This Proposal Offers:•A full range of beverages from soda, to sports drinks, water, and tea/coffee.•Installation and maintenance of machines at no cost to the City.•Communication with partner and ability to modulate beverage offerings if needed.•A small annual marketing products budget.•Potential for snacks(but not part of this proposal).DISCUSSION
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Proposal Pricing: •$10,000 paid upfront; •Years 1-4: $10,000 paid for sales for the year indexed to 4,000 cases/gallons and $15,000 annually for 6000+ cases/gallons (no difference for 4000-5999 cases);•Rebates of $2.00 per 24pk case, $2.00 per 12pk case, and $1.00 per 12pk case for Aquifina water; •35% commission on vending. This commission could increase to 40% depending on agreed-upon sales prices for selected products; •$1,000 marketing fund in the form of umbrellas, banners, tumblers, etc. (at Pepsi’s discretion); and•Superlative Group gets 15% commission on first contract.DISCUSSION RiversideCA.gov6
That the Committee: 1. Consider a proposal and offer staff direction for a “pouring rights” proposal prepared by the Pepsi, Inc., as part of a larger pouring rights marketing initiative for the City; and2. Authorize negotiation of an agreement between Pepsi, Inc., and the City led by the Acting City Manager and adhering to the parameters in this report, and refer a pouring rights agreement with Pepsi, Inc., to the City Council for consideration at a future meeting.RECOMMENDATIONS