Concessions pulled from operator reportedly over Coke deal

Posted October 25, 2012

New Tecumseth recently terminated the contract for concessions operations at arenas in Beeton and Tottenham because the operator was not purchasing their Coca Cola products from the distributor, which reportedly is one of the conditions in the exclusive agreement the Town has with Coke.

Ron and Graciella Smith through their Ron-Mar Beverages of Beeton, have been operating concessions at the two arenas since September 2007. They were awarded the contract at the same Sept. 24, 2007 council meeting as councillor Richard Norcross secured his deal at the New Tecumseth Recreation Centre.

In exchange for Coca Cola paying for the score board at the NTRC, the Town agreed to provide Coke with exclusive rights to sell their product line in the recreation facilties. During the recent Hornet's Nest lease takeover debate, it was revealed that councillor Norcross is Coke's contact for the Town.

UPDATED (3:53 pm)Asked via email if Mr. Norcross is involved with the Coke contract in Beeton and Tottenham arenas, mayor Mike MacEachern confirmed that "Yes, he is the only one named in the contract and that Coke will allow to service the machines given the previous issues of product not being purchased from Coke directly. Coke paid the Town for exclusive rights and part of that was to buy the product directly from them. Coke finds out that this isn't being followed and says that we are not honouring our agreement therefore they won't pay us. Coke agrees to pay us only if we use the person that is honouring the agreement to service their machines. There is an amount paid for exclusivity to the Town and there is an amount paid to (Norcross to) service the machines on an ongoing basis."

Mayor MacEachern added that "Furthermore the term of the concession contract for Beeton and Tottenham ended and a new contract is required and that is why the contract is out for tender."

Also at this post, a phone message to the Smiths seeking comment, had not yet been returned.

Town issues new tender call for concessions

Posted October 25 - New Tecumseth is now accepting proposals for the operation of the concession booths at Beeton and Tottenham Community and Fitness Centre for a period of four years that would commence December 1, 2012. Bids are open until 2 pm (sharp) on Fri., Nov. 9.

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