UVM Receives First Payment From Coca-Cola Agreement
Release Date: 09-05-2003
Contact: University Communications Staff
Phone: (802) 656-2005 FAX: (802) 656-3203
The University of Vermont has received its first payment on a sponsorship agreement formed with Coca-Cola last year.
The agreement gives Coca-Cola “near-exclusive” rights to beverages on campus and will result in a value to UVM of $4.3 million. The university will use much of the funding for financial aid, student programs and athletics.
“Money was the determining factor in choosing Coke as a sponsor,” said David Martin, director of UVM’s purchasing department. “Coke offered $4.3 million, while Pepsi was at $4 million.” He added that, “We’ve made just over $1 million in the last ten years.”
The 10-year agreement runs from July 1, 2002 to June 30, 2012. UVM officially signed on the agreement this past July once legal terms had been negotiated.
Coca-Cola’s near-exclusive rights translate to exclusive beverage vending, exclusive beverage providing in dining facilities operated by Sodexho, and 80 percent of the cooler and shelf space in university convenience stores and the University Bookstore. Sodexho will determine the make-up of the remaining 20 percent. The exclusivity does not apply to fresh brewed coffee and tea, cider, milk, freshly blended smoothies and fresh squeezed juices.
As a result of the agreement, Coca-Cola will have sponsorship acknowledgement in athletic programs and exclusive beverage sponsorship acknowledgement in UVM athletic facilities. No competitive beverage trademarks will be displayed on campus. This also means no competitive beverages may be served at university sponsored events.