UNIVERSITY PARK, Pa. — After a six-month-long competitive process to decide who will have exclusive beverage pouring rights on Penn State campuses, the University has notified Pepsi of its intention to award a new contract, contingent on completion of a mutually acceptable agreement. When finalized, the new agreement would result in an extension of Pepsi’s current relationship with the University through the fiscal year 2033.
A new 10-year pouring rights contract would designate PepsiCo as the supplier of beverages on all campuses of Penn State, while also providing funds for a variety of University efforts. The new agreement is expected to provide additional monies to support student initiatives and strategic priorities, including scholarships, student projects, research, educational programs and sustainability goals, to name a few. The current pouring rights agreement with Pepsi expires on June 30, 2023.
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. 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. PepsiCo products include a variety of soft drinks, including low- and no-calorie options, as well as Aquafina water, Gatorade and Starbucks bottled beverages.
Penn State’s partnership with Pepsi began in 1992 with a 10-year agreement signed under then-University President Joab Thomas. The agreement, renegotiated numerous times, has provided revenue for student facilities, such as construction of the Bryce Jordan Center, the University Libraries and the HUB-Robeson Center, as well as other facilities on campuses outside of University Park. Additional funds also were earmarked for student scholarships and academic programs.