From the Sun-Times:

Blagojevich planning snack attack
Hopes to raise millions through vending deal

December 16, 2006
BY DAVE MCKINNEY Sun-Times Springfield Bureau Chief

SPRINGFIELD -- Selling soda pop, bottled water and coffee at state parks, rest areas, office buildings and university campuses could yield big bucks for the state if Gov. Blagojevich's administration gets its wish.

Millions of dollars could be derived from the deal, and a Blagojevich donor that specializes in corporate sponsorships and marketing deals figures to get a percentage of the cut.

The state is looking for a single company to take over nearly 2,400 vending machines in state facilities and be the exclusive provider of non-alcoholic drinks at University of Illinois sporting events on its three campuses and at the Illinois State Fair.

'A revenue raiser'
The deal, which represents the first time Illinois has packaged the sale of beverages in this way, would allow the winning company to have its name used on signs and other promotional activities tied to the sports and fair.
"The intent is if you lump everything together, throw this out there, will someone want this enough to pay a significant amount of money to the state?" said Mike Klemens, a spokesman for the state Revenue Department, which is overseeing the initiative. "It's a revenue raiser."

Terrific exposure
Klemens said similar deals yielded $60 million for New York City and $8 million for Houston's city government, and he predicted Illinois' take could fall somewhere in the middle.
"These kinds of deals can really be mutually beneficial," said John Sicher, editor and publisher of Beverage Digest, a leading industry publication based in New York.

"For the beverage companies, not only does it involve the sale of product but also terrific exposure and visibility for the brands. For a government entity, it involves usually financial support at a time when taxpayers have a diminished interest in paying higher taxes," Sicher said.

Founder gave money to gov
A Maryland firm, Team Services LLC, will reap a 15-percent commission off the drink deal under terms of an agreement in place from earlier this year.
A Team Services founder donated $4,000 to the governor and had a past business relationship with Blagojevich's former chief of staff, Lon Monk, before he joined the administration in 2003.

The administration credits Team Services with helping generate $3.7 million for the state through private sponsorship deals. The state has paid the firm $300,000 for its services.

Last year, Team Services was cited in a harsh state audit for helping shape the state contract proposal it later wound up winning.

The drink deal should be finalized by April.