Successful contract renegotiation and sponsored mural upgrade.
Location: Port Elizabeth, South Africa
Client: Bayworld Aquarium
Project Value: R2 811 800
In the 1990s Coca-Cola developed a relationship with the Bayworld Aquarium in Port Elizabeth to provide a sponsored mural on their exterior street facing wall. The initial relationship was mutually beneficial as it allowed Bayworld to have an eye-catching well-painted wall and Coca-Cola had the opportunity of displaying their brand at this popular and visible location. However over time the mural required repainting and Coca Cola were benefiting from the exposure without reasonable consideration to Bayworld.
Through our experience of the signage and outdoor advertising industry, the Second Harvest team saw the value in the mural for both Bayworld and Coca Cola and the opportunity for improvement. The team approached Bayworld’s management and offered to act on their behalf in brokering a new agreement with Coca-Cola.
With the assistance of an independent outdoor media company the site was re-sold to Coca-Cola at a fair monthly market rate in February 2009 for a period of 3 years escalating at 10% annually. The production costs of to improve and re-paint the mural artwork and insurance costs of 2% of the value of the contract for repairs and maintenance were also included in the terms of the sale to Coca-Cola.
Second Harvest’s involvement in the site has allowed for a fair market value transaction to take place between Coca-Cola and Bayworld. The opportunity identified by Second Harvest has resulted in significant additional revenue being earned by Bayworld to assist with their operational costs, and a greatly improved facade that promotes their business.
