Octagon Reaps Snapple Fees, Bidders’ Ire

NEW YORK In questioning last week by the City Council on New York’s proposed $166 million, five-year vending deal with Snapple Beverage Group, city officials said that Interpublic Group’s Octagon, the marketing agency that brokered the pact, would earn nearly $14 million in commissions.

Octagon in New York would earn $8 million for the contract covering the city schools and $6 million for the public buildings’ portion.

Snapple rivals Pepsi-Cola, VeryFine and Apple & Eve have alleged that Octagon gave Snapple unfair advantage in the bidding process. Executives from those beverage companies testified they would have revised their offerings if told of the potential for a citywide contract.

The school pact went into effect in September; the city portion, due to begin Jan. 1, is slated to be voted on this week by the city’s Franchise and Concession Review Committee.

Brandweek staff