For more than two decades, Coca-Cola has been a staple in Michigan State University dining halls, supplying the fountain drink machines that thousands of students use each semester. The "Mountain Berry" flavor of the company's Powerade brand, dubbed "Blue Pow" by some students, has been a particular favorite.
Earlier this year, it looked like that tradition would end. It was time for MSU to renew its contract for fountain drinks and vending services on campus and Coca-Cola's rival soda giant had entered the fray. After a competitive bidding process, MSU initially awarded the contract to Pepsi.
But the deal never made it to the finish line.
Exact details of how the agreement fizzled out are unclear. Associate Director of Culinary Services Stacey Dawson only said MSU and Pepsi were unable to come to an agreement on the terms of the contract during negotiations, leaving Coca-Cola in place.
MSU regularly reviews its large food and beverage contracts through a request-for-proposals (RFP) process, Dawson said.
Previously, MSU had two separate beverage contracts: Coca-Cola for fountain service in dining halls and retail units, and Pepsi for vending machines across campus. Dawson said that when both contracts expired around the same time, she decided to solicit a single RFP that "combined" both fountain service and vending machines to streamline negotiations and potentially secure a stronger overall deal for the university.
The combined RFP was awarded to Pepsi but Dawson noted the award is only a preliminary step. Once a company is selected, both sides must still negotiate the final contract. At that stage, the deal unravelled.
“We couldn’t come to an agreement on a contract with Pepsi, so that offer was rescinded,” Dawson said.
Coca-Cola and Pepsi did not return The State News' requests for comment.
Coca-Cola's continued presence won't significantly affect the day-to-day life of senior marketing major Drew Thacker.
“If anything were to impact my decision, especially when it comes to Pepsi and Coke, which are pretty similar, health would be my number one,” Thacker said. “I think that other students might share the same opinion.”
Even still, Dawson suggested Coca-Cola's historical popularity on campus factored into MSU's decision to keep it. The university looks closely at sales data and student feedback, she said, adding that it's "really, really important," and has already influenced vendor relationships on campus.
Senior advertising major Griffin Reis said he's content to defer to the university on whether Coca-Cola or Pepsi should be on campus, "because it's kind of a nonessential item."
“But I think it would be great if students voiced their opinions if they had strong beliefs over which one they’d rather have.”
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