Pepsi school
January 31, 2003
If you’re looking to find Coke products on campus, you won’t have an easy time finding any.
Kathe Shinham, the associate vice president of financial affairs, a division of finance and facilities, said NIU developed a 10-year contract with Pepsi in August 1998.
The stipulation of the contract is that no competing products of Pepsi can be sold at NIU, but Shinham said she doesn’t think students mind.
“Apparently Pepsi products are the soda pop of choice in the Northern Illinois region,” she said.
Shinham said originally NIU was throwing around its two top offers from Coke and Pepsi, and Pepsi offered the best one.
Bob Albanese, the associate vice president of finance and facilities, said NIU reaps the benefits of the contract.
“The university derives so many benefits in terms of scholarships and dollars flowing through the university,” he said.
According to the contract, no matter how much the university sells in Pepsi products, Pepsi guarantees $400,000 in payments to NIU.
Pepsi then donates an additional $400,000, and this donation also is outlined in the contract, Shinham said.
Shinham said she enjoys working with Pepsi.
“They’re really great,” she said. “They work with us to make sure we have what we need to sell their product.”
Shinham added that many universities have contracts with companies like the one NIU has with Pepsi.
“When we’re able to get revenue, that means we can provide services to our students without charging them for it,” she said.
Cathy Simmons, a graduate student majoring in early childhood development, said she prefers Pepsi over Coke.
“I guess [the contract’s] OK with me because I like Pepsi,” she said. “It kind of takes away a person’s ability to choose because some people actually do like Coke.”
Satish Potluri, a biology graduate student, agreed.
“It really doesn’t matter to me for the most part,” he said. “I think people should have both options.”
Shinham said she would consider a contract with Coke when the Pepsi one is up, but she believes Pepsi is more popular.
“I think our students have been very happy overall with our contract with Pepsi,” she said. “I think if we had the contract with Coke, I don’t think it would’ve been as popular given where our students come from.”