UNC Charlotte Beverage Rights and Vending Agreement

UNC Charlotte Beverage Rights and Vending Agreement

Date Originally Published:
Monday, May 14, 2012

UNC Charlotte has negotiated new contracts with Coca-Cola Consolidated, Pepsi Beverage Products and Canteen Vending to provide beverages and vended snacks to the campus community. The agreements are unique in that they provide the financial benefit of exclusive beverage rights while maintaining the product choice for customers.

Coke will be the official beverage of Charlotte 49er Athletics

Coca-Cola products will be served exclusively in all athletic practice and competition facilities. Coke’s beverage rights and vending exclusivity in all athletics venues is a sponsorship agreement, providing funds that will support the Charlotte 49ers NCAA athletic program. In addition to the financial provision, Athletics will also benefit from beverage and product support (e.g., beverages for hospitality functions, hydrating drinks for players and coaches during games and practices, coolers, cups, etc.). In exchange, Coke receives sole marketing rights to beverage brands that can be advertised (such as outfield signage and scoreboards), promoted, or product sampling at all athletic venues and is allowed to represent Coca-Cola Consolidated brands as “The Official Drink of Charlotte 49ers Athletics.”

Pepsi will be the exclusive beverage provider for all UNC Charlotte dining venues

All dining halls and retail food outlets will only serve products from the Pepsi beverage line. This arrangement benefits the University with additional dollars to enhance campus life.

Convenience stores and vending machines arrangement

Pepsi products will get 60% shelf space preference in the four campus Outtakes stores. Coke products and other brands will occupy the remaining 40%. This is a merchandising understanding; consumers should not notice any difference in brand choice offerings.

Beverage vending machines will remain non-exclusive, dispensing Coke and Pepsi products 50%-50% as before, but service will be increased with new machines and additional vending sites. Snack vending will continue to be provided by Canteen Vending. Expect new locations and expanded product offerings with increased emphasis on healthier options. Machine debit/credit card readers will be introduced.

10-year agreement offers financial benefits of exclusivity without single-provider product limitations

The new beverage and vending contracts were reached after a rigorous, competitive Request for Proposal (RFP) process and review. Evaluation Committee members were from Athletics, Auxiliary Services, Business Affairs and Student Affairs.

“This agreement was in the best interest of the University as a whole,” said Rick Torres, Business Services Program Manager for Reprographics, Vending and ATMs. “It gives UNC Charlotte additional resources without significantly limiting product choice.” Torres explains, “At other schools with exclusivity contracts, competing products are all but eliminated. Our contracts allow more freedom for consumer preference.”

Torres sites Main Street Market in the Cone University Center as an example. The food service pods in Main Street will have Pepsi brands in the fountains and bottled drink coolers but there will be vending machines offering Coke products a few steps away. “It’s a good agreement,” adds Torres. “No one will have to go without the brands they love.”

For questions and more information, contact Rick Torres.