Resolution 2022-32221 RESOLUTION NO. 2022-32221
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING RESOLUTION NO 2021-
31965, AND APPROVING THE NEGOTIATED TERMS OF THE CITY'S
AGREEMENT WITH RED BULL NORTH AMERICA, INC FOR THE
EXCLUSIVE ENERGY DRINK POURING RIGHTS CATEGORY, AND
FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO
EXECUTE THE FINAL AGREEMENT WITH RED BULL NORTH
AMERICA, CONSISTENT WITH THE TERMS SET FORTH HEREIN.
WHEREAS, the City of Miami Beach (the "City") entered into a sponsorship agreement,
dated March 14, 2012 (the "Agreement"), with Coca-Cola North America, a division of the Coca-
Cola Company, and Coca-Cola Refreshments USA, Inc. d/b/a Florida Coca-Cola Bottling
Company (the "Bottler") (collectively, "Coca-Cola") for a term beginning January 1, 2012 and
ending on December 31, 2021; and
WHEREAS, on March 1, 2017, the Mayor and City Commission adopted Resolution No.
2017-29774, approving the assignment of the Bottler's interest in the Agreement to Coca-Cola
Beverages Florida, LLC, as the successor Bottler, in connection with the sale of Bottler's assets
to the successor Bottler; and
WHEREAS,the parties executed an assignment and assumption agreement, dated March
29, 2017, assigning Bottler's interest in the Agreement to the successor Bottler; and
WHEREAS, on January 13, 2021, the Mayor and City Commission adopted Resolution
No. 2021-31541, approving an amendment to the Agreement ("Amendment No. 1"); said
Amendment removing the City's requirement to purchase a minimum of 22,500 cases of Coca-
Cola product per Agreement Year for the 2020 and 2021 Agreement Years; guaranteeing that the
City would receive the full Sponsorship Fee for the 2020 Agreement Year, in the amount of
$325,000.00; and reducing the Sponsorship Fee that Coca-Cola would have to pay the City for
the 2021 Agreement Year from $325,000.00 to $195,433.33; and
WHEREAS, the Agreement expired on December 31, 2021; and
WHEREAS, in order to explore all opportunities for a non-alcoholic pouring rights
partnership, while ensuring continuity of services and maintenance of existing equipment, the City
and Coca-Cola agreed to extend the Agreement, on a month to month basis, commencing on
January 1, 2022, for a period not to exceed six (6) months (June 30, 2022), and to remove the
energy beverage category from the scope of the Agreement; and
WHEREAS, Spectra Partnerships initiated a selection process to identify and recommend
an exclusive/official non-alcoholic beverage partner for the City, with the goal of identifying a
partner that would be interested in a brand affiliation relationship with the City, while removing all
plastics included in the proposals for the soda and water categories, and providing a marketing
benefit to both parties, as well as revenue generation for the City; and
WHEREAS, Spectra Partnerships initiated a process that involved the initial identification
of potential respondents; an invitation for those companies to submit proposals; and invited
entities in the nonalcoholic beverage category to submit "best and final" offers; and
WHEREAS, subsequent to their submission and presentation, Spectra Partnerships
recommended to the City the selection of Red Bull North America as the City's exclusive Energy
Drink beverage sponsor; and advised City staff that an agreement with Red Bull North America
would provide a financial, marketing and in-kind benefit of an approximate amount of
$1,275,000.00 to the City over the proposed five-year term of the partnership (cash and non-cash
value); and
WHEREAS, on December 8, 2021, the Mayor and City Commission adopted Resolution
No. 2021-31965, waiving, by 5/7th vote, the formal competitive bidding requirement, and
authorizing the City Manager to negotiate an agreement with Red Bull North America, for an
exclusive pouring rights energy drink category municipal marketing agreement, for vending and
dispensing on certain City-owned properties, based upon the following essential terms:
RED BULL
Product
YEAR Sponsorship Rebates Volume Bonus Commitment TOTAL
2022 S75.000 $20.000 S25.000 S135,000 S255.000
2023 S75.000 $20 000 S25.000 S135.000 S255.000
2024 S75.000 $20.000 S25,000 S135,000 S255.000
2025 S75.000 S20 000 S25.000 S135,000 S255.000
2026 S75.000 $20.000 S25,000 S135,000 S255.000
$375,000 $100,000 $125,000 $675,000 $1,275,000
(1) Term: 5 years;
(2) Sponsorship fee*: $75,000.00 per year, starting in 2022;
(3) Rebate Bonus-: $5/case or gallon purchased, paid quarterly;
(4) Volume Bonus: $25,000 paid at 10,000 cases purchased, and an additional
$25,000 each additional 5,000 cases
(5) Full-Service Vending Rebates - $5 / case for all cases sold through Red Bull's
third-party vending supplier;
(6) Sampling Product—$135,000 (retail value) in sampling product as mutually agreed
to between both parties so as not to affect existing product sales;
(7) Complimentary Product - up to 625 cases (15,000 x 8.4 oz cans) of free product
(not cash convertible);
(8) Value of sponsorship over term of the Agreement (for cash and non-cash), in the
amount of$1,275,000.00, inclusive of the annual sponsorship fees ($375,000.00);
can rebates ($100,000.00); volume bonus ($125,000.00); and sample /
complimentary product value ($675,000.00); and
WHEREAS, following the March 9, 2022 City Commission meeting, the City and Red Bull
North America entered into further negotiations, and agreed to additional essential business
terms, which include providing Red Bull North America with certain benefits in order to incentivize
Red Bull North America to bring large events, meetings and sampling activations to Miami Beach;
increase awareness of the partnership; increase brand awareness around both brands; and drive
sales, therefore increasing revenues for both the City and Red Bull North America; and
WHEREAS, in addition to the benefits outlined in their Proposal, the City and Red Bull
North America have agreed to the following additional essential business terms:
1. Waiver of Special Event Permit and/or Permit Application Fees. Red Bull North America
shall have the use for up to two (2) mutually agreed upon event(s) per year, based on
availability, for a value of up to a maximum of$25,000.00 per event, all in accordance with
the City Code, and will not include the waiver of any hard costs, all of which shall be the
responsibility of Red Bull North America; and
2. Two (2) Product Sampling Permits per Month. Red Bull North America shall have the right
to use a maximum of twenty four (24) product sampling permits per year, which will not
include all other fees and costs of production, including but not limited to taxes, police,
security, sanitation, etc., all of which shall be the responsibility of Red Bull North America;
said permit waivers having a value to Red Bull North America, in the amount not to exceed
$60,000.00, based upon 24 waivers per year (maximum two per month), with an
approximate value of$2,500.00 each; and
3. Vending Services and Rebates. Red Bull North America will contract with a third-party
vendor to execute city wide vending services. The City will receive a vending rebate of$5
/per case for each case sold in vending machines placed on City property or within City
venues; and
4. Advertising Benefits. Red Bull North America shall have the following advertising benefits,
which do not have an actual out-of-pocket expense to the City: (1) one (1) royalty free
advertisement in any City-produced event collateral as the "Official Energy Drink of Miami
Beach"; (2) one (1) royalty free Red Bull North America PSA or message per year to be
aired on MBTV; and (3) one (1) royalty free Red Bull North America PSA or message per
year to be aired on the Miami Beach trolley video screens, with above advertising benefits
having no additional costs to the City; and
WHEREAS, based upon the foregoing, the City Manager recommends approving the
additional essential business terms for the agreement with Red Bull North America.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby amend Resolution No. 2021-31965, and approve the negotiated
terms of the City's Agreement with Red Bull North America for the exclusive energy drink
pouring rights category; and further authorize the City Manager and City Clerk to execute
the final agreement with Red Bull North America, consistent with the terms set forth
herein.
PASSED and ADOPTED this .20 day of July 2022.
ATTEST: ,%12-2,,-1---_____
JUL 2 5 2022 Dan Gelber, Mayor
Raf el E. Granado, City Clerk
, �.1NCORP•ORATEDJ s APPROVED AS TO
.. .:,.. FORM,St LANGUAGE
':,,cH 26 FOR EXECUTION
"? U 1
— I - Z
City Attorney.910 Date
Resolutions -C7 J
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: July 20, 2022
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING RESOLUTION NO 2021-31965,
AND APPROVING THE NEGOTIATED TERMS OF THE CITY'S
AGREEMENT WITH RED BULL NORTH AMERICA, INC. FOR THE
EXCLUSIVE ENERGY DRINK POURING RIGHTS CATEGORY, AND
FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO
EXECUTE THE FINAL AGREEMENT WITH RED BULL NORTH AMERICA,
CONSISTENT WITH THE TERMS SET FORTH HEREIN.
RECOMMENDATION
The Administration recommends that the Mayor and Commission adopt the Resolution.
BACKGROUND/HISTORY
On December 8, 2021 the Mayor and Commission approved Resolution 2021-31965
(attached), waiving, by 5/7th vote, the formal competitive bidding requirement, finding such
waiver to be in the best interest of the city, and authorizing the City Manager to negotiate an
agreement with Red Bull North America, for an exclusive municipal marketing pouring rights
agreement in the energy drink category for vending and dispensing on certain city-owned
properties, based upon the essential terms set forth in the city commission memorandum
accompanying the item resolution, for a term of five (5) years; further, authorizing the City
Manager to finalize and execute the agreements, subject to form approval by the City Attorney.
The Administration and Red Bull North America began contract negotiations and in addition to
the agreed upon terms set forth in the December 8, 2021 agenda item, the Administration
agreed to include additional benefits to Red Bull North America, as it was deemed to be
favorable to both entities in terms of financial impact and brand awareness.
ANALYSIS
In addition to the business terms outlined in the December 8, 2021 Commission Agenda, the
Administration would like to add the following items to the final agreement, which having a
financial component, require approval from the Mayor and Commission:
Advertising & Sponsorship Rights
Page 279 of 1502
1. Special Event Permit Fee Waiver - waiver of any Special Event Permit and/or
Permit Application Fees for Red Bull North America's use for two (2) mutually agreed
upon event(s) per Year, based on availability and meeting all approvals as set forth in the
City's Special Event Permit approval process. For purposes of the Special Event
Permit and / or Permit Application Fee waiver, these Facilities shall include public
beachfront areas, and Parks and Recreation facilities where Special Events are
permitted. The City shall only waive fees up to a maximum of $25,000 per event, and
solely for permit or square footage fees for which the city has no hard cost. All other
costs and ancillary fees including but not limited to production, taxes, security,
audio/visual, decoration, parking or food and beverage shall be the responsibility of Red
Bull North America. Rights may not be transferred or assigned and do not carry over into
future Years.
The Administration is in support of this benefit as Red Bull North America is globally
recognized as producing some of the top events and brand activations, and this will
incentivize them to bring those events to Miami Beach.
2. Product Sampling - Up to two (2) royalty free Product Sampling permits per month
(up to $2,500 per permit per month, and up to $60,000 per Agreement Year), to a
maximum of twenty-four (24) permits per Year. Permit waiver shall only cover permit fee
costs for which the City has no hard cost. If Red Bull North America does not use all
twenty-four (24) permits by the end of the Year, any remaining permits will not roll-over to
the following Year and will be forfeited. All other fees and costs of production, including
but not limited to taxes, security, audio/visual, decoration or food and beverage shall be
the responsibility of Red Bull North America. Rights may not be transferred or assigned
and do not carry over into future Years.
The Administration is in support of this benefit as Red Bull North America sampling
activations are highly engaging and recognizable and will not only bring awareness to our
new partnership, but will bring brand awareness to the Red Bull North America brand with
the intent of driving sales at City owned venues, resulting in higher consumption and
financial rebates back to the City.
3. Vending Sales Rebates — Red Bull North America will contract with a third-party
vendor to execute city wide vending services. The City will receive a vending rebate of
$5 /per case for each case sold in vending machines placed on City property or within
City venues.
The Administration is in support of this benefit as it was not included as part of the initial
agreement and will further increase revenues to the City by allocating $5 from every case
of Red Bull sold in vending machines, back to the City in the form of a rebate.
4. Advertising Benefits. Red Bull North America shall have the following advertising
benefits, which do not have an actual out-of-pocket expense to the City: (1) one (1)
royalty free advertisement in any City-produced event collateral as the "Official Energy
Drink of Miami Beach"; (2) one (1) royalty free Red Bull North America PSA or message
per year to be aired on MBTV; and (3)one (1) royalty free Red Bull North America PSA
or message per year to be aired on the Miami Beach trolley video screens, with above
advertising benefits having no additional costs to the City; and
Page 280 of 1502
The Administration is in support of all of the above-mentioned advertising benefits as
they will draw attention to our new partnership, while elevating the Miami Beach brand and
driving consumption and sales, resulting in higher revenues for the City.
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
The contained items will have the following financial impact:
Special Event Permit - up to $25,000 per permit x 2 permits = $50,000 in fee waivers per
Contract Year. This benefit has no negative financial impact, as these waived fees would be
unrecognized revenues. These waivers cannot be used for any hard costs or where the City
has an expense to be paid.
Sampling Permits - up to $2,500 per permit x 24 permits = $60,000 in waived fees per Contract
Year. This benefit has no negative financial impact.
Vending Rebates — the City will receive a cash rebate of $5 /case sold in every Red Bull North
American vending machine placed throughout the City and City venues.
Advertising Benefits - $0.00 - the City has no costs associated with these benefits and this
benefit will only increase brand awareness, which in tum can help increase sales of Red Bull
North America product, resulting in higher revenues due to the City under the agreement.
CONCLUSION
The Administration recommends amending Resolution 2021-31965, approving the final
essential negotiated terms of the City's agreement with Red Bull North America Inc., for the
exclusive Energy Drink category, and further, to authorize the City Manager and City Clerk to
execute the final agreement, consistent with the terms set forth herein.
Applicable Area
Citywide
Is this a "Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
No No
Legislative Tracking
Marketing and Communications
Sponsor
Commissioner Alex Fernandez
ATTACHMENTS:
Description
o Resolution 2021-31965
Page 281 of 1502
RESOLUTION NO. 2021-31965
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7TH VOTE, THE FORMAL
COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO
BE IN THE BEST INTEREST OF THE CITY, AND AUTHORIZING THE
CITY MANAGER TO NEGOTIATE AN AGREEMENT WITH RED BULL
NORTH AMERICA, INC. (RED BULL), AS THE EXCLUSIVE ENERGY
DRINK SPONSOR, TO INCLUDE POURING RIGHTS, MUNICIPAL
MARKETING, VENDING AND DISPENSING ON CERTAIN CITY-OWNED
PROPERTIES, BASED UPON THE ESSENTIAL TERMS SET FORTH IN
THE CITY COMMISSION MEMORANDUM ACCOMPANYING THIS
RESOLUTION, FOR A TERM OF FIVE (5) YEARS; AND FURTHER
AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE
THE AGREEMENT, SUBJECT TO FORM APPROVAL BY THE CITY
ATTORNEY.
WHEREAS, the City's municipal sponsorship agency, Global Spectrum L.P. ("Spectra
Partnerships"), worked with City staff to identify priorities for their efforts in securing municipal
marketing partners, and identified non-alcoholic beverage partnerships as a target category,
and;
WHEREAS, Spectra Partnerships initiated a selection process to identify and
recommend an exclusive / official non-alcoholic beverage partner for the City, with the goal of
identifying a partner that would be interested in a brand affiliation relationship with the City, and
providing a marketing benefit to both parties, as well as revenue generation for the City; and
WHEREAS, Spectra Partnerships initiated a process that involved the initial
identification of potential respondents; an invitation for those companies to submit proposals;
the selection of the best potential partnership offers for the submission of a "best and final" offer;
and the recommendation of a final offer for the City to consider; and
WHEREAS, Spectra Partnerships invited the top three (3) national entities in the non-
alcoholic beverage category to submit "best and final" offers and, subsequent to their
submission and presentation, recommended to the City the selection Red Bull North America,
Inc. (Red Bull) as the City's exclusive energy drink sponsor to include pouring rights, municipal
marketing, vending and dispensing rights on certain city-owned properties, based upon the
essential terms set forth in their proposal, attached as Exhibit "A" to the City Commission
Memorandum accompanying this Resolution (the "Proposal"); and
WHEREAS, Spectra Partnerships analyzed the Proposal and advised City staff that an
agreement with Red Bull would provide a financial and marketing benefit of more than
$1,275,000 to the City over the proposed five-year term of the partnership (cash and non - cash
value); and
WHEREAS, based upon the foregoing, the City Manager recommends waiving, by 5/7t
vote, the formal competitive bidding requirement, as permitted in Section 2-367(e) of the City
Code, and authorizing the City Administration to negotiate an agreement with Red Bull for a
term of five (5) years, based upon the essential terms set forth in the City Commission
Memorandum accompanying this Resolution.
Page 283 of 1502
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby
waive, by 5/7th vote, the formal competitive bidding requirement, finding such waiver to be in the
best interest of the City, and authorize the City Manager to negotiate an agreement with Red
Bull North America, Inc. (Red Bull), as the exclusive energy drink sponsor, to include pouring
rights, municipal marketing, vending and dispensing rights on in certain city-owned properties,
based upon the essential terms set forth in the City Commission Memorandum accompanying
this Resolution, for a term of five (5) years; and further authorize the City Manager and City
Clerk to execute the agreement, subject to form approval by the City Attorney.
PASSED and ADOPTED this 8th day of December 2021.
ATTEST:
f: 4 : Dan Gelber, Mayor
Raf I . anado, City Clerk
DEC 1 3 2021
APPPOVLD AS TO
FORM & LANGUAGE
& FOR EXECUTION
Page 284 of 1502 `1oeCity Attorney �'�'<-
Resolutions - R7 AB
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Nina T. Hudak, City Manager
DATE: December 8, 2021
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7TH VOTE, THE FORMAL
COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE
IN THE BEST INTEREST OF THE CITY, AND AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AN AGREEMENT WITH RED BULL NORTH
AMERICA, INC. (RED BULL), AS THE EXCLUSIVE ENERGY DRINK
SPONSOR, TO INCLUDE POURING RIGHTS, MUNICIPAL MARKETING,
VENDING AND DISPENSING ON CERTAIN CITY-OWNED PROPERTIES,
BASED UPON THE ESSENTIAL TERMS SET FORTH IN THE CITY
COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION,
FOR A TERM OF FIVE (5) YEARS; AND FURTHER AUTHORIZING THE
CITY MANAGER AND CITY CLERK TO EXECUTE THE AGREEMENT,
SUBJECT TO FORM APPROVAL BY THE CITY ATTORNEY.
RECOMMENDATION
The administration recommends waiving, by 5/7t vote, the formal competitive bidding
requirement, as permitted in Section 2-367(e) of the City Code, and authorizing the City
Administration to negotiate an agreement with Red Bull for a term of five (5)years, based upon
the essential terms set forth in the City Commission Memorandum accompanying this
Resolution.
BACKGROUND/HISTORY
The City has an agreement for pouring rights with Coke Florida as the non-alcoholic beverage
partner. Pouring rights refers to dispensed non-alcohol beverages or beverages sold via
concession, as compared to those being sold through a vending machine. This agreement was
approved by the Commission on March 14, 2012 and is set to expire on December 31, 2021.
The City's municipal sponsorship consultant, Spectra Partnerships, initiated a selection process
for new non-alcoholic beverage partnership opportunities for the City. Spectra Partnerships has
developed and cultivated successful non-alcoholic beverage partnerships for 150+ clients
across North America and has identified multiple opportunities to grow the financial, brand,
product, and sustainability contributions for both the City and its residents and visitors.
Current Opportunities:
Comparable to the previous partnership, the selected entity would have exclusive category
i e2Ef20fdf5ft04
vending and pouring rights at all pre-determined City owned facilities, including those currently
managed by third parties, including, but not limited to the Miami Beach Convention Center, the
North Beach Bandshell and Flamingo Park Tennis Center as examples.
The management or contracted companies for these respective City facilities will be required to
comply with any of the City's selected category sponsors, with all revenues relating to
sponsorship and commissions, as well as marketing support, to benefit the City directly.
Process:
Spectra Partnerships managed the process relating to the exclusive beverage partner program
on behalf of the City, beginning with initial identification of potential respondents; an invitation for
those companies to submit proposals; the selection of the best potential partnership offers for
the submission of a"best and final" offer, and the recommendation of a final offer for the City to
consider_
Spectra Partnerships' involvement has included being the day to day contact for proposers as
well as facilitating all administrative functions, analysis of comparable partnerships, negotiation
on sponsorship deal points, and providing these potential partners with information relating to the
City and opportunities. Spectra Partnerships also gathered information on current venues,
volumes, and deal structures.
Proposal Components:
Spectra Partnerships advised prospective proposers of the City's interest in an energy drink
partner and the availability of opportunities from this partnership. Spectra Partnerships also
advised the prospective proposers of the City's interest in securing a partner that provided an
annual sponsorship fee, a comprehensive marketing plan, and a sustainability and recycling
strategy to enhance the presence of both the partner brand and the Miami Beach brand to
ensure the executed agreement was a 360 degree integrated plan, and not simply an exchange
of money. Red Bull North America, Inc. (Red Bull) submitted a five-year proposal.
ANALYSIS
Best and Final Offers:
Based on Spectra Partnerships review, Red Bull presented a proposal that provided a
combination of an annual "sponsorship" fee, commissions on sales, and a rebate program. Red
Bull also provided preferred product pricing, as it was essential that proposed pricing be
competitive with current pricing in the overall market and at City of Miami Beach venues. The
proposal also delineated potential marketing opportunities from the partnership.
Below are the major components of the proposal:
Term:
• 5 years
Sponsorship fee:
• $75,000 per month paid within 30 days of contract execution.
Commissions / Pricing / Rebates:
Rebate Bonus: $5 per case purchased, paid quarterly.
Volume Bonus: $25,000 paid at 10,000 cases, additional $25,000 for each
additional 5,000 cases.
• Pricing -$36/case for 24 x 8.4 oz cans
• Sample Product— 15,000 cans at$3/can for CMB employees, and 30,000 cans
at$3/can at mutually agreed upon occasions.
mfatS4
Sustainability:
- 80% renewable energy in the manufacturing process.
• Red Bull cans are made of up to 100% recycled aluminum.
• Red Bull cans are 100% recyclable.
Secondary packaging (carton and foil) is made up of up to 100% recycled
material and is 100% recyclable.
Marketing_:
Red Bull offers some of the world's most recognizable branded events and
marketing efforts and will look to partner with the City across multiple activations which
could include F 1, athlete collaborations, and the Red Bull Air Force. Red Bull is
committed to exploring all activations with the City as they are currently building out
their 2022 and beyond activation strategy.
PROPOSAL:
Exhibit A outlines the sponsorship proposal submitted by Red Bull. The proposal delineates
the general responsibilities of each party during the term of the Agreement. As noted, several
points remained under discussion at the time this agenda item went to print, pending further
clarification and agreement by Red Bull's and the City's legal teams on proposed language
submitted by all parties and to be confirmed in the verbiage included in the final contract. The
final contract will also include all confirmed locations of potential vending equipment.
Estimated Total Value:
Red Bull was founded in 1984 and controls the largest share of the energy drink category in the
global beverage industry with over 7.9 billion cans sold in 2020. As reflected in the attached
proposal, the estimated total value of the proposed energy drink sponsorship partnership with
Red Bull over the term of the agreement is approximately $1,275,000, inclusive of the annual
sponsorship fees ($375,000); can rebate ($100,000), volume bonus ($125,000) and sample
product value ($675,000).
The following charts provide a breakdown of the value of the proposed partnership between the
City of Miami Beach and Red Bull (cash and non-cash):
+.- }���?,py[�@�: .Y v9. "f' -. rl s .,:���'�r•a t� � s� ,i it
YEAR
2022 $75,000 $20,000 $25,000 $135,000 $255,000
2023
2024 $75,000 $20,000 $25,000 $135,000 $255,000
2025
2026 $75,000 $20,000 $25,000 $135,000 $255,000
Requirements of City:
Pagge 2 N:A 30254
As is common in these types of partnerships, there are certain expectations with regards to the
non-alcoholic beverage partners role. In addition to supporting the efforts of expanding the
sales of the products through city-owned vending locations and venues, support will include:
recognition of the partnership as the official energy drink of Miami Beach; exclusive sampling
rights on public rights of way, with a waiver of certain permit and application fees for a limited
number of sampling events on public property (mutually agreed upon and to be determined in
the final contract); recognition of the integrated logo, with a right to use the logo; City use of only
Red Bull energy drink products at City events (the agreement negotiated will be subject to any
existing contractual rights that the city has with other parties, and will allow the City a certain
number of waivers per year.
Spectra Partnerships, in conjunction with the administration, recommends that the City enter
negotiations with Red Bull as the City's official energy drink partner, pursuant to the proposal in
Exhibit A.
SUPPORTING SURVEY DATA
N/A
Applicable Area
Citywide
Is this a"Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
No No
Strategic Connection
Non-Applicable
Legislative Tracking
Marketing and Communications
ATTACHMENTS:
Description
❑ Exhibit A- Red Bull Proposal
❑ Resolution
e212281 f51A64