New pop price pinches students

By Paul L. Mikolajczyk

Although drink prices at campus vending machines increased, NIU won’t receive any additional money.

This fall, bottled drinks were raised from $1 to $1.25 and canned drinks went from 65 cents to 75 cents.

The reason for the price increase is a rise in production costs at Pepsi, said Kathe Shinham, NIU’s associate vice president of finance and facilities.

According to the contract NIU agreed to, Pepsi can adjust its prices to account for an increase in bottling costs.

“We held off as long as we could,” she said, “but after four years it was in [Pepsi and NIU’s] best interest.”

NIU – which receives $800,000 annually from Pepsi – would only see a financial benefit based on the higher price if a year’s vending sales went more than $800,000. If that occurred, NIU would receive 50 percent of the sales. Currently, soda sales on campus have not surpassed $400,000.

The price increase took some students by surprise.

“I stuck in my dollar and the machine was not obeying my command for a Cherry Pepsi,” said junior communication major Kevin Quaid. “I was like, ‘What?’ and realized that it cost a quarter more.”

Other students found the extra charge to be inconvenient.

“I don’t need the extra change in my pocket,” said Stu Wrzesinski, a junior elementary education major. He plans on purchasing cans now instead of bottles so he won’t have to carry extra change.

Pepsi will make adjustments to the amount of can versus bottle machines on campus if it’s decided that’s what the students want, Shinham said.

Pepsi did not return phone calls made by the Northern Star.

“If cans are what the students want, Pepsi could fix that,” Shinham said. “However, we don’t think [the price increase] will drive students away.”

Shinham said, the $800,000 received from Pepsi last year is split into two categories: Vending commissions and what she called “incentive support.”

A minimum of $400,000 comes from Pepsi as the vending commission, even if sales do not exceed $400,000. The largest portion, $300,000, goes to the facilities that have vending machines. The shares are divided based on sales. The remaining $100,000 is split three ways between five groups: NIU’s Residence Hall Association, the SWAN Group, the Holmes Student Center Board, NIU Athletics and the Student Association.

The remaining money received from Pepsi is referred to as “incentive support,” which is broken up into two portions. The most money, $300,000, is split with half going toward scholarships for students and half going toward SOAR awards. The Facility Development and Design Center, Student Association and Athletics share the remaining $100,000.

The “incentive support” money will remain the same for the length of the contract; only the vending commission can change.