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Illinois considering state drink

The Associated Press
Published September 13, 2004, 7:56 AM CDT

SPRINGFIELD, Ill. -- Illinois already has an
official state flower (the violet), a state tree
(the white oak), a state fish (the bluegill), a
state mineral (fluorite) and even a state fossil
(the Tully monster). Could it soon have an
official state beverage as well?

Under a proposal being studied by Gov. Rod
Blagojevich's administration, the state could
sell the rights to its name to a yet-unchosen
beverage company, which would then market a
nonalcoholic drink as the official state
beverage.

Although Florida promotes its orange juice,
California advertises its wines and Wisconsin
touts its dairy products, no other state has
contracted with a commercial drink maker to push
a trademarked beverage under the state banner.

Under the proposal, the company 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 could bring in millions of dollars to
Illinois' cash-strapped state budget, supporters
say.

"All of these beverage companies have pretty
significant corporate marketing budgets. They're
always looking for ways to get their names out to
the public," Blagojevich spokeswoman Abby
Ottenhoff told the St. Louis Post-Dispatch.

The idea has become a popular way to raise money
in some school districts and cities.
Administration officials point to the profit of
such agreements between major cities like 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 for the city.

"We've looked at what similar contracts have
generated for local governments. It could be
millions" for Illinois, Ottenhoff said.

But 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.

Much of the criticism has come from within the
beverage industry itself.

"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?"

Lockhart said his industry group hasn't
officially taken a position on the proposal, but
is expected to discuss it at a board meeting this
month.

One of the state's top soft-drink distributors,
Pepsi MidAmerica of Marion, has issued a written
statement questioning the proposal.

But Ottenhoff said such arguments are counter to
the concept of free trade.

"We live in a free-market society," she said.
"These companies already function in a market
driven by competition. Competition is a good
thing. In the end, it benefits consumers." 
Copyright � 2004, The Associated Press 



http://www.chicagotribune.com/news/local/chi-040913statedrink,1,783066.story?coll=chi-news-hed



                
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