PepsiCo Inc., which has a distribution center in Aberdeen, has multiyear contracts with the Aberdeen Catholic School System and Aberdeen Public School District.
Pouring rights contracts generally involve a soft-drink company giving schools resources in exchange for the right to sell their product exclusively in the schools.
"They pay you to be the exclusive vendor," said Aberdeen Catholic School System President Jim Hamburge.
Pepsi was a key contributor to the project that provided Aberdeen Central High School with a $500,000 scoreboard system.
"We're still the only high school in South Dakota that has a system that's similar to ours," said Aberdeen Central High School athletic director Gene Brownell.
When the concession stand is operated by Central athletic boosters, the parent-teacher association or the music boosters, only Pepsi products can be promoted. The exclusive agreement results in rebates being given back to the school for each unit sold, Brownell said.
"You make a profit from the selling of the product, but you also get a rebate at the end of the year for each case of soda or water that was delivered and sold," he said.
Hamburge said he's proud to be a Pepsi school.
"Pepsi has certainly been generous, and they have offered us very much support," he said.
The company donated funds to help cover the cost of new scoreboards being installed this school year at Roncalli High School.
The extra funds also go to support extracurriculars outside of athletics at Central.
"At any school, the profits from the concession stand go to the clubs," he said.
The support is two-fold, Brownell said. In addition to exclusive access to the concession stand, vending machines in the school are stocked with Pepsi products.
Like with the scoreboard project, Pepsi makes donations to the Aberdeen Public Schools Foundation.
"For the foundation to have a partner that is as strong as Pepsi is a great boon," Brownell said. "Otherwise, we would not have these benefits."
No one else bid for the pouring rights when the contract last expired, so Pepsi has remained the school's partner, he said.
"Pepsi has made a lot of donations in the way of product," Brownell said. "They've done a lot of things for us."
The coolers used in the concession stand for storage were also donated by the company.
Pepsi also provides the school with swag. For example, squeeze bottles used by athletes during games and matches are from Pepsi.
"It's really neat, and they bring us things like T-shirts and water bottles and support athletics," Hamburge said. "They're also overall supporters of the school, too."
It's not a wholly new thing for schools to sign agreements like this, but there can be issues for schools that are promoting healthy eating during lunchtime while at the same time promoting the products of a soft drink company.
That's not the case, though, Brownell said. Aberdeen public schools food service director Susan Nash said soft drinks have not been a part of the food service program for about 15 years.
She said federal regulations don't allow soda pop to be offered during lunch serving time.
As a result, the vending machines that contain soft drinks are put on a time-lock. The only drink vending machine that is a part of the food service program sells just milk.
Students are allowed to bring only water into the educational wing of the school. Nash said students mostly choose to drink water and sports drinks, including Aquafina bottled water and Propel Water, which are Pepsi products sold in the machines.
"We encourage that the students buy a lot of water," Brownell said. "It's really helped with the kids kind of changing their drinking habits through the day."