Compass Group Inks Marketing-Vending Deal With San Diego

Posted On: 3/8/2017

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TAGS: San Diego Compass corporate sponsorship deal, Compass Group USA, Canteen Vending, San Diego City Council micro markets

SAN DIEGO -- The city of San Diego has reportedly reached a five-year corporate sponsorship deal with Compass Group USA. Compass, which owns the Canteen vending brand, will operate 238 machines located at city recreation centers, office buildings, libraries, police stations, beaches and parks. The deal is said to be valued at more than $530,000.

The San Diego City Council approved the new deal on March 7, the San Diego Union Tribune reported. The council's budget committee unanimously approved it last month.

The marketing program has reportedly generated more than $20 million for the city since it was created in 1999. Toyota, California Coast Credit Union and Zipcar are current partners. EA Sports, Ford Motor Co., Verizon and Sprint were previous partners.

Charlotte, NC-based Compass Group became San Diego's vending partner in 2011 when it bought Rainbow Vending, the city's previous partner. The original five-year deal, which expired in December, reportedly generated $434,720 for the city in revenue sharing. The new deal includes a minimum payout of least $530,000, which will increase if sales snack or beverage sales reach certain annual targets.

As part of the deal, Compass agrees to provide the city 500 free cases of bottled water, and allow the city to place ads on vending machines for a small fee, according to the newspaper. Additionally, the machine menus must meet state nutrition standards that require at least half of the snacks in each to be classified as "healthy." The contract also specifies that the city can request that Compass Group install micromarkets, and it would receive 10% of all sales, the paper reported.