Pepsi and Ace Coffee Bar guarantee NIU big money in order to sell products on campus.

No matter how much money the vending machines bring in, NIU is guaranteed an amount of money.

NIU brings in about $500,000 per year in guaranteed contract money, said Mitch Kielb, acting director of the Holmes Student Center.

The $500,000 is divided across campus, he said.

Contracts based on percentages of sales generally do not add up to more than a contract with a guaranteed amount of money given, according to contracts NIU has had in the past, Kielb said.

The university is contracted with Pepsi for beverage vending machines and Ace Coffee Bar for snack vending machines through 2008. The machines are owned and operated by the vending companies and NIU is not responsible for any of the cost of the machines.

There will be a re-bid for the vending contracts after 2008.

“It’s hard to predict who will get the contracts,” Kielb said. “It always comes down to who has the best offer and the best offer gets chosen.”

Both NIU and the vending company decide what products are sold and the machines are placed around campus by demand, Kielb said.

Barsema and DuSable halls have the most-used areas, he said.

Pepsi also gives NIU $400,000 each year to be used for student-life enhancement. This money is distributed to various areas, including various scholarship funds, research and student-life initiatives.