Shriners Hospital wasn't at all deterred by ethical concerns when it teamed up with The Coca-Cola Company last month. "We saw the immediate potential for patient recruitment," said Lewis Molnar, Shriners's executive VP and COO, of the non-financial partnership.
The 75-year-old hospital suffers relatively low awareness of its free medical services for specialized pediatric and burn medical care. The Coke deal - launched last month - will allow the organization's 22 hospitals to access the beverage manufacture's strong affiliation with the Boys & Girls Clubs of America (2.6 million children) and extensive network of bottlers throughout the country.
In fact, the Atlanta-based hospital network is more concerned with containing the reach (potentially millions of children) and having medical providers in place to handle the demand for medical services, than any image questions that could arise from the deal. And one question that immediately comes to mind is the deal's stipulation that only Coca-Cola products be made available in Shriners Hospitals (primarily the cafeterias and vending machines).
For Shriners, the product exclusivity requirement is a small price to pay for the enormous exposure it will receive via truck and vending machine decals, messages on Coke products, educational kits for schools and Boys & Girls Clubs screening programs.
"It's a two-fold objective, public service for Shriners and an additional business opportunity for Coke," said Sharon Belto, Coke's cold drink sales development manager.
(Shriners Hospital, 404/676-2793; Coca-Cola, 404/676-2793)