New contract sparks debate
St. Joe’s named PepsiCo the school’s new beverage distributor after the university’s contract with Coca-Cola expired earlier this year.
Last fall, representatives from Coca-Cola and PepsiCo each made formal presentations to a committee made up of students, staff and faculty members who ultimately recommended the university make the switch, said Tim McGuriman, associate vice president of Administrative Services.
“It was a collaborative effort,” McGuriman said.
McGuriman said he could not disclose specific details about the university’s new 10-year contract with Pepsi. Coke’s contract ended after five years. Prior to that, the university had a contract with Pepsi.
John Stanton, Ph.D., professor of food marketing, did not serve on the committee that made the decision but he said switches like these are common in the food industry.
“Coke and Pepsi are two competitors and what they do is they decide how much they think an account is worth,” Stanton said. “Then they both go at it tooth and nail to get the contract. Each company comes in and says ‘If you take us, here is what we will do for you.’ The client, in this case the university, looks at all of the things they will do for you and then they pick the one with the best choice.”
The benefits the company might offer can vary, Stanton said.
“Options include things like ‘We will replace all the machines for you, we will replace all the signing in the gym, we will do all these things,’” Stanton said. “Then they usually just give money to the school, cash payment.”
McGuriman confirmed that Pepsi provided new fountain equipment, two new ice machines in Campion Student Center and new vending machines throughout campus.
Like many students, Angela Nunno ’21 said she is not a fan of the switch.
“Coke is more widely known and more widely liked,” Nunno said.
Ken Nwele ’21 also said he wishes St. Joe’s would have renewed the contract with Coke.
“Now they don’t even have Sprite,” Nwele said. “The replacement is Sierra Mist. Sprite and Sierra Mist aren’t the same thing.”
In general, though, a 2015 study by the U.S. Centers for Disease Control and Prevention, found that teens are drinking less soda.
In fact, Joe Dougherty ’21 said he does not mind the switch to Pepsi because he does not drink much soda anyway.
“They provide us with other options that I can choose from,” Dougherty said.
In addition to Pepsi, Diet Pepsi, Sierra Mist and Mountain Dew, the vending machines on campus offer Ocean Spray juices and Lipton iced tea.
The switch has also brought the addition of fair-trade items to campus.
Whether it is a soda or an alternative beverage, the price of a drink from a vending machine on campus has gone up since the switch to Pepsi.
Prices range from $2 for a 20-ounce bottle of soda to $2.50 for a 20-ounce bottle of Gatorade. A 13.7-ounce bottle of chilled Starbucks Frappuccino costs $3.
McGuriman said the price increase is because some of the beverage bottles sizes are larger than the previous bottles sold in the machines. The Coke machines sold both 16-ounce and 20-ounce bottles, he said.
The costs of the products were reviewed by the committee, McGuriman said.
Stanton said the reaction to a switch like this one is typical.
“It’s not like they went from Coke to Dr. Pepper,” Stanton said. “They went from Coke to another giant that offers choices. Whenever that happens, someone will be unhappy.”
