The Center for Science in the Public Interest analyzed the economic impact of school vending machine contracts, investigated the problems associated with school fund-raisers involving low-nutrition foods and identified alternative fund-raising methods that do not compromise student health.

Key Findings

• Schools raised modest amounts of money from beverage contracts, with average revenue of $18 per student per year. That represents only one-quarter of 1 percent of the average cost of a student's education.
• The majority (67 percent) of the revenue collected from drink sales goes to beverage companies, not schools.
• Beverage contracts are less profitable to schools than are other forms of fund-raising.
• School beverage contracts often provide marketing benefits to beverage companies, such as signage and exclusivity arrangements.
• Some 85 percent of snacks and 75 percent of beverages in school vending machines are of poor nutritional quality.
• Cash-strapped schools can raise as much money with healthier fund-raising options, such as walk-a-thons and book fairs, as they can with those that rely on unhealthy foods and beverages.
• Bake sales are unhealthy and largely unprofitable, as parents pay twice: once for the ingredients and a second time to purchase the items.
• Som 80 percent of products eligible for label-redemption fund-raising programs are of poor nutritional quality.

Key Recommendations

• Communities should negotiate better contracts by becoming more informed of the finances, beverage options and promotional terms offered by vending contracts.
• Schools should avoid unhealthy fund-raising options, such as sales of junk food and fund-raisers at fast-food restaurants.

Funding
The Robert Wood Johnson Foundation (RWJF) provided a grant of $25,000 from December 2004 to January 2007 to support this project.