With a new semi-exclusive beverage contract, Dallas/Fort Worth Airport is about to get Pepsi-ized.
The Pepsi Bottling Group won semi-exclusive beverage rights at Dallas/Fort Worth Airport on Thursday that will allow the cola giant to dominate beverage marketing and promotion within the terminals and other airport buildings.
Pepsi is already the official cola of D/FW. But airport officials said it was the stunning extra perks that Pepsi threw in to this proposal that really sealed the deal, including:
- Six Pepsi/Lego/D/FW-themed kid play areas in the terminals
- "Taste it here first" product rollouts
- D/FW logos on Pepsi labels
- Passenger coupon offers
"Pepsi really went over the top with their proposal," said John White, D/FW vice president of procurement.
Over five years, Pepsi will pay D/FW $1.2 million to $1.3 million annually, plus cuts of other sales.
In exchange, Pepsi will have exclusive pouring rights for any food and retail operator at D/FW that does not have a pre-existing national contract.
Pepsi's minimum guaranteed sponsorship fee of $6.2 million far exceeded the $4.2 million bid from Coca-Cola Bottling Co., the only other bidder.
Kristin Holt, Pepsi Bottling Group's state director of food service, said the company views D/FW as a "prestige property," where their products can be positively exposed to millions of travelers headed all over the nation -- and the world.
A plan to kick off the Pepsi-izing of D/FW is expected by April 21, said Pat Gleason, D/FW vice president of revenue management.
Chief Executive Officer Jeff Fegan was instructed to reinstate pay increases for D/FW's senior staff members. The move also means that the pay for Fegan and airport auditor Rob Darby will be considered next month. The board froze their pay in December to allow staff members to assess finances as Delta Air Lines drastically reduced service at D/FW. Through the end of February, fiscal 2005 revenues have exceeded expenses by $13.1 million, compared with the airport's lowered forecast.
Lillie Biggins, vice president of operations for Harris Methodist Fort Worth hospital, has joined the airport board representing owner city Fort Worth. She replaces longtime board member Bob McAfee, whose term ended.
The board bade farewell to Claude Shaw, the deputy federal security director for the Transportation Security Administration at D/FW. Shaw has accepted a job as director of public safety -- overseeing police, fire and emergency services -- for the Commander, Navy Region Hawaii. He begins his new job May 1.
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Pepsi-Cola plans to install two children's play areas called the Pepsi Landing Zone in Terminals B and C at Dallas/Fort Worth Airport.
Board members, only too familiar with the financial reckoning at hand for Dallas/Fort Worth Airport, quickly passed a record $635.2 million fiscal 2006 operating budget Thursday.