Sorry, Coke fans. Penn State is sticking with Pepsi for at least another decade.
University officials said in a press release on Wednesday that they have notified PepsiCo of their intention to award the beverage company a new 10-year contract for exclusive pouring rights at all Penn State campuses. The contract, which is contingent on completion of a mutually acceptable agreement, comes after a six-month competitive process, during which a Coca-Cola truck was spotted on the University Park campus at least once.
At the end of the new deal, Pepsi will have been Penn State’s beverage supplier for 41 years. The partnership began in 1992 with a 10-year, $14 million deal under then university president Joab Thomas and has been amended and extended multiple times since. The last agreement, struck in 2012, expired in June 2022, but was renewed for another year while Penn State explored its options.
“When compared to competing vendors, Pepsi offered a more wholistic approach that closely aligns with University values and student-centric programs, according to Penn State leaders who reviewed the proposals,” a statement from the university on Wednesday said. “Pepsi’s 828-product portfolio also was a differentiator, as it included 400 more product offerings than the other competitor, which is expected to add to increased customer satisfaction.”
The statement noted that Pepsi’s options include a variety of soft drinks, as well as Aquafina water, Gatorade and Starbucks bottled beverages.
How much the contract is worth will likely remain a secret. Though the 1992 terms got out, Penn State has subsequently said the contract is not public record under Pennsylvania law and has declined to disclose the financial value. The university is largely exempt from Pennsylvania’s Open Records Law.
It certainly will be worth a lot more than that original deal three decades ago. Ohio State, for example, signed a 15-year deal with Coca-Cola in 2018 for a total of $84.7 million over the span of the term. That particular arrangement also included a handful of academic allocations as well.
Penn State noted that the new Pepsi deal is expected to include “additional monies to support student initiatives and strategic priorities, including scholarships, student projects, research, educational programs and sustainability goals, to name a few.”
Previous deals have provided revenue for facilities including construction of the Bryce Jordan Center, the University Libraries and the HUB-Robeson Center, as well as buildings at other campuses, according to the university. They have also included funds for scholarships and academic programs.
Ben Jones contributed to this report.
