Food Stores Frequently Asked Questions
Coca-Cola Beverage Agreement
- 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 and may even guarantee a minimum commission per year. Frequently the company may offer other inducements in order to be selected, such as providing athletic equipment or other donations.
- With whom does Purdue have a Pouring Rights Contract?
- Coca-Cola, North America
- How long is our contract?
- 7 years. It is due to expire on June 30, 2020.
- Why was Coca-Cola picked?
- They were the only company who submitted a bid.
- What does Purdue University get out of it?
Purdue receives Royalty Fees in return for providing exclusive rights to Coca-Cola. These royalty fees fund numerous scholarships for students who may not be able to afford a Purdue degree otherwise. Coca-Cola pays Purdue commissions on vending machine sales as well as a rebate based upon the number of cases sold through vending. Coca-Cola is committed to sustainability. Coca-Cola utilizes a hybrid truck for deliveries on campus as well as providing their interactive recycling trailer for campus events.
- Are there any non-monetary benefits?
The Pouring Rights Agreement was negotiated to maximize revenue, therefore non-monetary benefits are minimal. Coca-Cola has donated products for some campus events such as the annual Taste of PMU. In addition, Coca-Cola brings their sampling teams to campus on a regular basis where products are sampled to students free of charge.
- What are our obligations?
All cold non-alcoholic beverages served, sold or sampled (distributed at no charge) on the West Lafayette Campus must be Coca-Cola brands. The only exceptions are:
- Freshly brewed on site, tea or coffee
- Freshly squeezed on site, juice
- Non-flavored, tap water.
In addition, Purdue University cannot promote or display a competitor's logo and Coca-Cola beverages should be served in their containers or approved cups. Approved cups are available from the Food Stores department.
- Where can I purchase Coca-Cola products?
You can purchase Coke products through our Office Coffee Program by emailing email@example.com for this service. Alternatively you can purchase directly from Coca-Cola:
- Call 800-647-2653 to place order at least 48 hours in advance. Or call 765-337-4023 to create a Coca-Cola account.
- If the order is below 10 cases there will be a $15 delivery charge
- Driver will deliver to your location and will need a signature upon delivery and leave an invoice.
- Payment is expected on the invoice price. A matching statement will also be mailed.
- How are beverages for an event obtained?
Contact the PMU Events Office at 765-494-8908.
- How far ahead of time should beverages be ordered?
- At least 2 weeks.
- What beverages can be sold at an event?
Only Coca-Cola beverages can be sold at an event held on the West Lafayette Campus. This includes canned and bottled soft drinks, as well as bottled water.
- Can I have any other beverages at a Purdue event?
- Other beverages cannot be served, sold or sampled on campus.
- Does Purdue University take a cut of the profits from beverages sold at an event?
- What if I have leftover product after an event?
Coca-Cola will take back any unused full cases or full tanks for full credit. They will not take back partially used tanks and cases. Please contact Food Shoppe to arrange for a product return.
- Does the Coke Agreement extend to beverages we use in research?
The preference is to use Coke products where they have a product available. For research purposes this can be difficult. If you are using a product that is not a Coke brand you need to notify the Strategic Sourcing Manager, Dan Crimmins of the product you are using, the quantity you expect to use, and how long the research program will last. Please contact Dan Crimmins, firstname.lastname@example.org or call 494-2017. An exception is usually granted for research purposes.
- I am using an external caterer that does not have Coke products. What should I do?
If the event is being held on the West Lafayette Campus and the caterer is being paid with University funds, Coke products must be served. You are required to request the caterer to supply coke products for your event. Alternatively, you can provide coke beverages yourself and exclude beverages from the caterers offering.
- What if I don't like Coke?
Students, employees and others are free to bring competitive products on campus grounds for personal consumption only. They cannot be resold on campus. Students, employees and others are also free to display competitors' logos on personal property (clothing, vehicles, etc.) There are a limited number of competitors’ beverages available in the Boiler Crossing, located in Meredith Hall, Boiler Junction, located in Tarkington Hall (cases only), or the Urban Market located in the Purdue Memorial Union, opposite Flatbreads.
- Are Student Groups exempt from the Agreement?
If the beverages are purchased with student organization and/or student club funds they are exempt. If they are purchased with University funds they have to abide by the terms of the contract.
- What if I get beverages donated?
All beverages must be Coca Cola brands. To request an exception please contact the Strategic Sourcing Manager of Food Stores, Dan Crimmins, You will need to provide the date and location of the event, the beverage, quantities that are being donated, and the number of people attending the event. Please note that exceptions are subject to pre-approval by Coca-Cola and may not be permitted.
- Can I apply for a grant from a competing beverage company?
The Pouring Rights Agreement only applies to beverage products. You can apply for and receive grants from competing companies as long as there is no provision to provide their beverages on campus as a condition of accepting the grant.
- Where does the money from vending sales go?
Self-supporting departments retain 100% of their vending commissions. The balance is split, with 2/3 going to the Universities General Fund, and 1/3 going to the Food Stores department to cover the cost of administering the Agreement on campus.
- Are other logos banned?
Students, employees, and others are free to display competitors' logos on personal property (clothing, vehicles, etc). Athletics have limited permitted exceptions to display/consume competitors’ logos and products.
- My group used to get money from a vending machine. How do I get my money now?
Vending Commissions will not be paid to groups or individuals.
- Who should I contact if I have problems with my vending machine?
Your building deputy should be your first point of call. Alternatively, you can call 42017 on campus for assistance, or send machine number, error with machine, building, and floor information to email@example.com.
- Red Bull have offered financial return for sampling Red Bull in my building. Can I accept this?
- No, this would be a breach of our Agreement with Coca–Cola.