In the fall of 2011, the university renewed its contract with the Pepsi Beverage Company for the next 10 years, during which Pepsi has agreed to donate $200,000 in unrestricted giving to the university.
MidAmerica Nazarene University’s previous contract with Pepsi had expired, and the university submitted RFPs, requests for proposals, to both Pepsi and Coca-Cola to bid on. Pepsi accepted the term length and offered a philanthropic gift and vending incentives. Coca-Cola’s offer was approximately a third of what Pepsi agreed upon in the final contract.
“We previously approached both Coke and Pepsi and found Pepsi’s contract terms to be the most beneficial to the university from a bottom-line financial perspective,” said Kevin Gilmore, vice president for finance.
The nearest Pepsi distributor is in Olathe, making the contract even more beneficial to both parties. MNU signed the contract, agreeing to purchase a certain amount of Pepsi products for a fixed price and agreeing that they would only sell Pepsi products on campus. In exchange, Pepsi pays the university annual sponsorship fees for these exclusive rights and campus advertisement. They also offer vending incentives when the amount is surpassed.
“Pepsi has proven that they really value MNU,” said Todd Garrett, director of development. “They have the opportunity to deal with a lot of major colleges, but they still care enough to work with us. We are very pleased.”
Pepsi also showed their support of the university by agreeing to give a gift in kind, which consists of some of their own products. Pepsi does this by figuring how much they will make based on how much the university uses, and then it gives some of the money back as a donation.
The specific use for the funds has not been established yet, but they will likely go toward supporting the scholarship programs. Some of the current athletic scoreboards were Pepsi’s donation to the university from the previous contract.
“It is clear that Pepsi was the right company to go with,” Garrett said.