Makers of Soft Drinks Accept Ban in Schools

The nation’s largest soft drink makers, under pressure from parents and health advocates, agreed Wednesday to halt almost all sales in elementary and middle schools.

Coca-Cola Co., PepsiCo Inc. and Cadbury Schweppes will sell only water, juice, tea and low-calorie drinks in schools under a deal brokered by former President Clinton and the American Heart Assn. The companies will limit soda sales in high schools to diet drinks, Clinton said.

Parents and health organizations have blamed soft drinks for contributing to obesity in children and pushed soft drink makers to curtail sales in schools. The ban will affect 35 million children nationwide. Soda accounts for almost half of all beverages sold in schools.

“It’s clearly the biggest step we’ve seen from them by far,” said Richard Daynard, president of the Public Health Advocacy Institute, which has sought a policy such as this for several months. “It’s what we’ve advocated for.”

The deal also allows sports drinks, tea, flavored water and other low-calorie drinks to be sold in high schools. Beverages must be limited to 100 calories, with exceptions for some milks and juices with higher nutritional value. The policy will be fully implemented by the 2009-10 school year as schools unwind existing contracts.

Schools account for about $700 million in U.S. soft drink sales, less than 1% total revenue for Coca-Cola, PepsiCo and Cadbury.

Ten of the largest U.S. school districts already have removed soft drinks from vending machines, according to Ross Getman, a New York lawyer and activist for bans. States including California, Maine and Connecticut have also banned sugary soft drinks in schools.

Shares of Atlanta-based Coca-Cola fell 32 cents to $41.92, Purchase, N.Y.-based PepsiCo rose 50 cents to $58.45 and London-based Cadbury increased a dime to $40.68.