USU, Pepsi contract to end in 2024
Blue is a dominant color on campus, but it isn’t just because of Utah State University’s school colors. The color is also associated with Pepsi, which has been at USU for the last nine and a half years.
The $3.5 million contract between USU and PepsiCo Inc., which started in December 2013 and ends in June 2024, is what allows USU to sell Pepsi products, in vending machines and at every dining location on campus.
Such products include Mountain Dew, Aquafina, Gatorade and Sierra Mist.
But there was a time when red dominated USU. Before Pepsi, the university had a 12-year contract with Coca-Cola. However, that contract differed from the current one.
According to a previous Statesman article, the Coca-Cola contract offered USU less money, and didn’t provide any money towards scholarships.
Ultimately, Pepsi had more to offer USU.
The current contract requires USU to exclusively sell Pepsi products at the university, including the Quickstop. Andersen said they aren’t even allowed to give away any non-Pepsi products.
In return, Pepsi funds the Aggie Smart Start scholarship program for first-year college students at USU and the Aggies Thrive scholarship program for sophomores.
The student success program coordinator, Allison Beck, explained this program helps students financially, but also provides experiences and a mentor along the way.
“Some of the money goes to scholarships, and then the other money goes to the experiences we provide,” Beck said. “We’ve taken students to Bear Lake, we’ve taken them axe throwing, we’ve taken them to go ice skating, to do Sk80s, the ropes course.”
Each year, Pepsi pays $50,000 to go towards the experiences they provide and the scholarship money for each student.
And with Pepsi being the only source of funding for the program, Beck said she doesn’t know what would happen if things change when the contract ends in 2024, but she does hope the program stays for a long time.
“We feel that the impact of the program goes way beyond just the scholarship money itself,” she said.
However, Andersen explained no matter what company the university signs a new contract with, it will be written in the contract that the brand must provide funds for the program before the bidding even begins.
“If you think about it, it’s a really good plan,” Andersen said. “Pepsi is putting money towards a scholarship for students that are going to drink Pepsi and so it’s a win-win.”
But USU doesn’t have to sign a contract with anyone.
In fact, the Deseret News reported in 1996 USU decided against an exclusive contract with either brand and agreed to a $327,000 deal that gave Pepsi vending machine-only rights.
And much like how Andersen is choosing to include funding the Aggie Smart Start scholarship in USU’s contract, other colleges in Utah can tailor their contracts too.
Brigham Young University began selling soda products in 2017 with a contract with Coca-Cola. However, in a BYU News Q&A, it said the university would not sell energy drinks or any hot beverages, regardless of whether Coca-Cola owned them or not.
The University of Utah has had a contract with Pepsi since 2017. According to an article from the University of Utah, when going over the contract, the university negotiated for a logo without the color blue, which represents BYU, their rivals.
Other Utah universities, such as Weber State University, Dixie State University and Utah Valley University, don’t have a contract with any brand.
And although USU’s contract doesn’t end for a little over two years, Andersen says he will start preparing for the bidding next summer.
“Anybody can bid on it, but really Pepsi and Coca-Cola are the only players in the market,” he said.
After the request for a proposal has been sent out, they wait for a response and once given one, will then evaluate with a committee the total value to the university.
Some students are hoping when the bidding does come around again, USU will make a change.
“I prefer Coke, 100 percent. Not only is there a giant difference in taste, quality but also it comes down to just, well, preference. But Coke is obviously superior and we should be a Coke school,” USU student Zac Bradley said.
This isn’t the first time there have been complaints.
Some turned to usufans.com to share their opinions when the original switch was made back in 2013.
“I’ll never get my wife to a game if she can’t get a Diet Coke,” a user under the name brownjeans wrote. “I’m serious. We have a deal; I don’t make her go places that don’t serve Diet Coke and she doesn’t make me go to parades.”
After creating my own poll on Instagram, the results reflected a majority of Coca-Cola fans. Out of 153 college students who voted, 50% prefer Coca-Cola, 16% prefer Pepsi and 35% don’t have a preference or don’t drink soda.
But, when deciding on what brand will be the best fit for the university, Andersen said unfortunately students’ preferences don’t have any sway over the decision.
“Bottom line, if Coke gets it, a lot of Mountain Dew people are mad. If Pepsi gets it, all the Diet Coke people are mad,” he said.
However, there is hope for the Coca-Cola fans.
As reported in the previous Statesman article, the last Coca-Cola contract allowed the Quickstop to sell both brands. And although the current deal doesn’t give that leniency, Andersen said they are still considering it for the next contract.
-Jacee.Caldwell@usu.edu
Featured photo illustration by: Paige Johnson