Transy switches from Coke to Pepsi Contract

One of the new PepsiCo vending machines on campus. Photo by Ashleigh King.

When students returned to campus at the start of the new semester, they were met with a new partner: PepsiCo.

As of Jan. 1, 2019, Transylvania partnered with the soda giant and began the sale of their products at dining facilities and vending machines across campus. The switch comes after seven years of partnering with Coca-Cola, the major competitor of Pepsi.

Transy partners with hundreds of vendors to provide products for the community. Contracts with vendors are rebid when a customer, Transy for example, listens to a company’s pitch for a specific product. The agreement with Coke lasted seven years, which is a longer contract than most according to University Vice President of Finance and Business, Marc Mathews. Unlike many contracts the school enters, the bidding pool for this particular contract is low: just Pepsi and Coke. Both companies bid on the contract.

According to Mathews, the items factoring into the consideration of bids include:

“1. Service – primarily accessibility, responsiveness and on-time delivery of fountain service (Jazzman’s and the Raf) and vending machines.

2. Coverage – willingness to locate beverage service in many locations to provide hospitality on campus.

3. $$$$$$$$$”

Specific details of the offers from both vendors are confidential, but Mathews affirms “that Pepsi’s offer was the best for the institution” when weighing the three factors.

The bid with Pepsi will last five years but can be canceled during the contract period for poor performance. The contract is able to be renewed for five one-year terms.

After switching to Pepsi products, Transy now offers Rockstar energy drinks, Starbucks coffee, Pepsi, Mountain Dew, Dr. Pepper, Aquafina, and others.