Cafeteria Lines

Those ladies in hairnets are getting elbowed out by beverage marketers eager to boost brand loyalty among schoolkids.

Coca-Cola, Dairy Management Inc. (DMI), and the National Dairy Council and MilkPEP tap the cafeteria crowd this fall with in-school promos and, for Coke, a pilot loyalty card program that could eventually go national.

The campaigns come as some school districts aggressively court corporate sponsorships to supplement shrinking budgets. That’s got watchdog groups anxiously protecting schools as non-commercial zones.

San Francisco’s school board this spring banned textbooks that gratuitously mention brand names, exclusive contracts with soft drink and snack marketers, and sale of products made by tobacco company subsidiaries such as Kraft Foods (owned by Philip Morris).

The National Association of Elementary School Principals (NAESP) urges its 28,000 members to weigh educational benefits against blatant commercialism. The Alexandria, VA-based association “firmly supports” partnerships between private-sector business and public schools, but urges principals to “use extreme caution . . . in maintaining a distinct separation between commercial advertising . . . and learning programs in their schools.”

“There’s a captive audience out there, and principals need to serve as gatekeepers,” says NAESP executive director Vincent Ferrandino. He suggests school districts develop guidelines that reflect the community’s tolerance for marketing. “It’s a local question,” Ferrandino says. “Some schools need funding help. There shouldn’t be a federal ban on corporate sponsorships.”

States are beginning to step in as marketers get more aggressive and local school districts weather controversy. There are no statewide or federal restrictions on in-school marketing (see sidebar). The U.S. Senate is considering a bill introduced in May by Sen. Patrick Leahy (D-VT) to ban softdrink giveaways in schools. The Better Nutrition for School Children Act, now in committee, would close the loophole that lets companies donate foods “of minimum nutritional value” that can’t be sold during meals.

Existing nutrition law prohibits schools from selling soft drinks during lunch, but marketers have stepped up free sampling, even paying schools for boosting student consumption.

Cafeterias are more tightly regulated than school halls, because federal nutrition guidelines limit what can be served. Coca-Cola Bottling Hawaii has pegged its pilot loyalty program to juice and bottled water. The program, set to begin in at least one private high school by March, gives kids points for buying lunch – and Coke products – in the cafeteria. Points are stored on a smart card, then redeemed at local businesses. The bottling group is negotiating with two video arcades, a local fast-food chain, and a surf store to redeem points. Pathways Group, Woodinville, WA, handles the program.

A year-long elementary school test proved the kids were too young to handle the cards. Teachers passed them out right before lunch, then collected them right after – a waste of smart-card technology, says Joe Schuler, Pathways senior vp-sales and marketing. Public high schools hesitated to admit the program, so Coca-Cola turned to private schools. “At first, some parents were concerned we’d be selling kids Coke,” Schuler says. Also, some schools were considering contracts with Pepsi as it battles Coke for exclusive school deals. That pushed back the smart card launch.

TOP OF THE FOOD PYRAMID

Cafeteria promos are open to fewer players, but they can be tied to consumption. School lunches are a $15 billion business, and cafeteria promos can help suppliers grab a bigger bite of that.

The “Milk Mustache” folks at MilkPEP (run by the International Dairy Foods Association) and the National Dairy Council teamed for an October-November drink-a-thon, the fourth annual Cartons for Computers campaign. Two schools nationally with the biggest increase in milk consumption (over the previous month) win $10,000 worth of computer equipment and $2,000 in foodservice gear. Contests in 25 regions award $2,000 in computers and $500 in foodservice goods. Every school that increases consumption by at least 10 percent gets a one-year subscription to an educational magazine.

MilkPEP and the Dairy Council leave in-school promotion up to kids, offering $1,000 in computers to the school that promotes the contest most creatively. Last year, kids built flying machines from milk cartons and held cow-kissing contests.

MilkPEP taps local dairy council reps to sell the promo to foodservice directors. (Local councils act primarily as marketing groups; schools buy milk from processors, not councils.) Foodservice directors get a promotion kit with posters and guidelines for executing the campaign. At least 5,000 schools participated, more than double last year. BSMG Worldwide, the Chicago-based p.r. arm of MilkPEP’s ad agency Bozell, New York City, handles the in-school campaign.

At the same time, DMI is revamping its Drink, Learn, and Earn program that lets schools earn computer equipment based on student consumption. DMI will launch an expanded program for the 2000-2001 school year, with a broader prize structure, via McCracken Brooks Maier, Minneapolis.

Then there’s Cool School Cafe, a shared continuity program funded by 30 foodservice and national brands including M&M/Mars, Dole, and Heinz. Foodservice directors earn points for buying participating brands; brands kick in funds to help directors spice up their marketing. “Foodservice directors don’t have a marketing line item, but they have to compete with cold lunches and restaurants,” says Matt Maier, who founded Cool School CafA six years ago. Cafeterias can use the money however they choose; marketers get near-national reach in Cool School’s 6,000 school districts serving 60 percent to 65 percent of all U.S. students.

Some promos ride on the tray. Sony Pictures Entertainment teamed with foodservice giant Pierre Foods for a sweepstakes touting three TV series. Themed meals named after Big Guy and Rusty the Boy Robot, Godzilla: The Series, and Jumanji came with sweeps entry blanks to win hats, T-shirts, and posters. The six-week promo targeted 3.5 million kids in 3,500 elementary schools nationally. The sweeps boosts awareness for Sony, and gives Pierre added value for its meals.

The campaign is a first for Sony’s kids TV properties, says vp-marketing David Palmer. “It’s a great way to reach kids. It’s very targeted, so we know exactly who we’re reaching.” Pierre, which approached Sony’s new Family Entertainment Group, handled everything, including prizes and trayliners, menu boards, and posters. The creative “wasn’t consistent with what we’d do” because it mixed properties too much, Palmer says. “If we did it again, we’d improve on that, but otherwise, it was a strong promotion.”

There’s always next semester.