Six-Year Beverage Deal With City Called Off
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After nearly five years, the city is losing its taste for Snapple.
Sales of the beverage company's drinks are so poor that city will remove all 724 of its machines from municipal buildings starting in April.
The move brings an early end to Mayor Bloomberg's exclusive six-year deal with Snapple to sell its drinks in city buildings.
The agreement took effect in February 2004, but has only yielded 26 percent of its anticipated sales.
In 2006, the original contract was revamped to cut estimated revenue from $126 million to $33 million.
City Comptroller Bill Thompson, an opponent of the Snapple deal, said the decision to remove the machines only makes sense.
"The Comptroller's Office was opposed to the Snapple deal from the beginning given the vendor selection process and the terms of the agreement. As evidenced by the amendment to the City's original agreement with Snapple, those concerns were well-founded," said Thompson.