The controversial deal between Cadbury Schweppes and the City of New York that saw the soft drinks brand Snapple named as the official drink of New York is under fresh pressure.

According to a report in the UK newspaper The Daily Telegraph, the deal is being reworked after it became clear it would bring in only US$60m for the city rather than the US$160m that was expected.

The newspaper report said New York mayor Michael Bloomberg was still insisting the deal was working but that it may not be as great as the most optimistic estimates.

The report said part of the problem had been delays in installing Snapple vending machines in municipal buildings.

The Cadbury-Schweppes subsidiary Snapple Beverage Group signed a deal to make it the official drink of New York City in September 2003. The move saw Snapple as the exclusive provider of drinks in the city's 1,200 schools and also saw the brand being sold in city facilities, including its parks and public services buildings.

However, the deal came under almost immediate attack from critics.

New York City comptroller William Thompson tried to block the Mayor Bloomberg administration's deal, arguing that the city gave Snapple special preference in the bidding process by allowing the company to be the only contender to bid higher after making a sub-par bid.

In July 2004, State Supreme Court Justice Richard Braun said the Snapple contract violated the City Charter because the mayor did not certify it at all and the city corporation counsel did not certify it properly. However, he said it was of great benefit to the City and he would allow the 3,500 Snapple vending machines to remain in place in city-owned areas.