CCE » Topics » 1. Beverage Coolers

This excerpt taken from the CCE 8-K filed Jun 22, 2005.

1. Beverage Coolers

 

The Companies’ policies for the placement of Beverage Coolers will be based on the following principles:

 

    Rent-Free Placement. Where a Company provides a Beverage Cooler on a rent-free basis, a customer may be required to stock that Beverage Cooler only with beverages distributed by the Company placing the equipment, provided the customer has other installed chilled beverage capacity in the outlet to which the consumer has direct access and which is suitable for stocking CSDs other than those of the Company. Where a Beverage Cooler is provided on a rent-free basis and the customer does not have other installed chilled beverage capacity in the outlet to which the consumer has direct access and which is suitable for stocking CSDs other than those of the Company, the customer will be free to use at least 20% of that Beverage Cooler’s capacity for any products of its choosing.

 

    Rental Placement. Where a Company provides a Beverage Cooler in exchange for rental payments, a customer will be free to stock any products of its choosing in at least 20% of the capacity of the rented Beverage Cooler.

 

    Purchase Placement. Where a customer purchases a Beverage Cooler from a Company or a cooler manufacturer to which a Company refers the customer, that customer will be free to stock the purchased Beverage Cooler with any products of its choosing.

 

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