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May 29, 1998
Purdue approves $12 million, 10-year deal
with Coca-Cola
FORT WAYNE, Ind. ‹ A soft drink contract approved by Purdue University's Board of Trustees today (Friday, 5/29) will pay off for students in the form of scholarships and will help fund campus facilities, including a planned aquatics center and renovations to the Memorial Union.
The 10-year contract, valued at $12 million in fees and other payments, will give
Coca-Cola exclusive rights to sell soft drinks on most of the West Lafayette campus.
The contract also locks vending machine prices at their present, 60-cent level for
at least three years, after which prices will be re-evaluated.
"We are particularly pleased that this contract will fund new initiatives having direct
benefit for students," said Kenneth P. Burns, vice president for business services
and assistant treasurer.
Coca-Cola vending machines will replace Pepsi's beginning July 1 in residence halls.
Coca-Cola also will have the contract for Mackey Arena when the current Pepsi contract
expires in the fall of 2000. Coca-Cola already is the beverage provider for Ross-Ade Stadium, the Purdue Memorial Union, residence hall dining facilities and most academic
buildings.
Coca-Cola will pay the university $600,000 a year for distribution rights on the West
Lafayette campus, provide $100,000 a year in sponsorship fees for intercollegiate
athletics and another $75,000 a year for student scholarships, Burns said.
In addition to the annual payments, Coca-Cola will make a $4.5 million one-year payment.
From the combined first-year payments, Purdue President Steven C. Beering has allocated
$2 million for the planned aquatics center; $1 million toward the renovation of the Purdue Memorial Union; and $1.6 million to establish a merit scholarship endowment
for Purdue students.
Although Coca-Cola products will be sold at most campus locations, beverages from
other companies still can be purchased at the mini-markets located in several residence
halls and snack counters in Stewart Center and the Purdue Memorial Union, said Steve
Eberly, director of food stores.
Sources: Kenneth P. Burns, (765) 494-9706; e-mail, kpburns@vpbs.purdue.edu
Steve Eberly, (765) 494-2017; e-mail, sceberly@fsb.physfac.purdue.edu
Writer: J. Michael Willis, (765) 494-0371; e-mail, mike_willis@purdue.edu
Purdue News Service: (765) 494-2096; e-mail, purduenews@purdue.edu
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