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Campus signs letter of intent for new Pepsi beverage contract

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AUGUST 21, 2011

Though negotiations have yet to be finalized for a 10-year beverage contract, UC Berkeley signed a letter of intent Friday with PepsiCo Inc., establishing a framework under which the two parties will operate until a final contract is signed.

The letter of intent states that major terms of the contract have been agreed upon but that more minor details are being worked out, according to Beverage Alliance Chair Kurt Libby.

The contract’s stakeholders are composed of representatives from the four-unit campus beverage contract consortium — the Department of Intercollegiate Athletics, the ASUC Auxiliary, Residential and Student Service Programs and the Recreational Sports Facility.

The campus released a request for proposal in May, roughly three months before the expiration of its previous beverage contract, stating the minimum requirements necessary for beverage companies to bid for a contract. Pepsi was the only responder, and the campus’s previous 10-year beverage contract with Coca-Cola Co. expired Aug. 3.

Among the requirements Pepsi agreed to are an annual $1.3 million sponsorship fee that will be paid to campus stakeholders, $40,000 in product donations, $15,000 for sustainability program support and $235,000 in marketing and promotion funds.

As a result of the agreement, Pepsi products will be located in over 200 on-campus vending machines and at all on-campus retail outlets and athletic venues. Additionally, the company will work with students on environmental sustainability projects and offer grants to support student-driven causes and campus events, according to representatives from Pepsi.

Contact Allie Bidwell at 


AUGUST 22, 2011