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PepsiCo Selected as CSUSM Exclusive Beverage Provider
California State University San Marcos has partnered with PepsiCo as our exclusive beverage provider. Beverage brands include: Pepsi, Mountain Dew, Sierra Mist, Aquafina, Gatorade, SoBe, Lipton and Amp Energy. Pepsi Beverage Company also manufactures and distributes third-party brands such as Dr. Pepper, Crush, Rockstar and many other products. These products will be available at The Market (The C-Store), The Bistro (Dining Services), Campus Coffee, University Catering, and all vending machines.
PepsiCo was selected as the exclusive beverage provider following a competitive Request For Proposal (RFP) process. In exchange for the exclusive beverage rights, CSUSM will receive funds to support identified programmatic needs.
More than half of the campuses within the CSU system have exclusive beverage agreements. The University Auxiliary and Research Services Corporation (UARSC) will be the contract manager. Please direct any questions or comments regarding the contract to UARSC at 760-750-4700.
Frequently Asked Questions
What is a Pouring Rights Contract?
A Pouring Rights contract is an agreement between a beverage company and an organization that allows the company to be the only one providing beverages to their organization. The beverage company generally also requires that the organization does not endorse a competitor’s product through the posting of logos or advertising. In return, the company pays a commission on each sale to the organization.
This includes the sale of packaged and fountain beverages i.e., carbonated and non-carbonated, non-alcoholic drinks, including but not limited to: 1) colas and other flavored carbonated drinks, 2) fruit juice, fruit juice containing and fruit flavored drinks, 3) chilled coffee drinks, 4) chilled tea products, 5) hypertonic, isotonic and hypotonic drinks (sports drinks, energy and fluid replacements), bottle or canned water whether carbonated or still (spring, mineral or purified).
This does not include milk, flavored milk, beer (alcoholic and non-alcoholic), hot coffee, hot teas, or hot chocolate.
CSUSM retained the right to market and dispense our own bottled Cougar Water (sold in The Market).
Who was the successful vendor in CSUSM’s Request for Proposal (RFP) process?
The successful vendor was PepsiCo. Only two proposals were submitted Coca Cola and PepsiCo. The two largest distributors and manufacturers world-wide.
How long is the exclusive pouring rights contract?
This is a ten year contract, which is an industry standard.
What does CSUSM get out of the contract?
CSUSM will receive funds to support identified programmatic needs.
CSUSM will receive commissions on vending machine sales as well as rebates based on the number of cases sold through vending.
CSUSM will have a beverage provider that is committed to sustainability. PepsiCo has Three Focus Areas: Water, Energy, Packaging & Solid Waste, and their Sustainability Targets in these 3 areas will be met in 2015.
What are the University’s obligations?
All cold non-alcoholic beverages served, sold, or sampled (distributed at no charge) on the University must be PepsiCo products. For further information refer back to Response #1.
Where can faculty, staff, students, and visitors purchase PepsiCo products?
The Market (C-Store), The Bistro (Dome Dining), Campus Coffee, and all vending machines.
How are beverages for an event obtained?
By calling University Catering, 760-750-3131.
What beverages can be sold at an event?
Only PepsiCo products can be sold at an event held on campus. This includes canned and bottled soft drinks.
What happens when an external caterer does not use Pepsi products?
As the event organizer, planner, coordinator you must inform the external caterer to supply PepsiCo products only for the event.
What if I don’t like Pepsi?
Students, faculty, staff, visitors, and others are welcome to bring competitive products on campus for personal consumption only. They cannot be resold on campus.
Students, faculty, staff, visitors, and others are also welcome to display competitor’s logos on personal property (clothing, vehicles, etc).
Please call UARSC 760.750.4700 for any questions, comments, or concerns.