University of Saskatchewan
Cold Beverage Agreement
August 2011
The University of Saskatchewan is establishing a new five-year cold
beverage agreement with PepsiCo Beverages Canada to supply
cold beverages to most parts of campus. Revenues associated with
this agreement will be allocated to support student initiatives.
Following is an outline of the steps taken to establish this
agreement and some information about the new agreement.
Consultation with campus community
Following the conclusion of the university’s previous cold beverage agreement, we wanted to
hear what the campus community had to say about cold beverage agreements before making
any decisions. From April to September 2010, the campus community was encouraged to share its
views on cold beverage agreements by email, phone, an online feedback form, focus groups and
in-person meetings.
More than 400 faculty, staff and students shared their views on agreement options (exclusive vs.
non-exclusive agreements, use of local suppliers, etc.), social responsibility and supplier ethics,
sustainability (bottled versus tap water, the environment), nutrition and health, product pricing
and service, transparency, choice and the university relationships with corporations. There was
significant support from the campus community for some form of a cold beverage agreement:
45 per cent of comments expressed interest in exploring non-exclusive cold beverage agreement
options, while 28 per cent of comments supported another exclusive agreement.
Pursuing options
Taking into account campus community feedback, in March 2011 we issued a request for proposal
(RFP) for a new cold beverage agreement and received two submissions, including one from
PepsiCo Beverages Canada. One of the proposals provided only for an exclusive agreement.
Both submissions were thoroughly evaluated by the Cold Beverage Evaluation Committee which
included representatives from the Consumers Services Division, Financial Services Division, Huskie
Athletics, Student and Enrolment Services Division, University Advancement, the USSU,
the Sustainability Commitment and a graduate student.
The evaluation committee took into consideration feedback received during wide consultation
with the university community and a number of other factors, including: financial benefits,
transparency, sustainability, options and choices, nutrition and health. The committee found it
was effectively not possible to enter into a non-exclusive agreement since pursuing non-exclusive
agreements would entail additional cost and infrastructure (fountain machines, refrigerators, etc.
would need to be duplicated).
Cold beverage agreement |
August 2011 | University of Saskatchewan
New agreement
On July 21, the Board of Governors endorsed a five-year agreement (September 1, 2011 – August 31, 2016) with
PepsiCo Beverages Canada to supply cold beverages to most parts of campus.
While the board has endorsed an agreement with PepsiCo Beverages, some food outlets on campus which
are specifically excluded from this agreement offer alternative beverages (St. Thomas More College, Mac’s,
Campus Cove, Harvey’s, etc.), meaning there will not be an exclusive cold beverage environment on campus.
The summer will be used to make the transition to PepsiCo for the fall term 2011.
Highlights
The new agreement provides financial benefits to the University of Saskatchewan, including:
The agreement is conservatively expected to generate about $1.8 million over five years ($1.4
million in revenue and $0.4 million in kind support)
Revenues associated with the cold beverage agreement will be allocated to support student
initiatives, with the specific allocations to be approved by PCIP
Vending machine prices will be held steady for the five-year agreement period
There are no required sales targets in this new agreement
Energy efficient vending machines
A reduction of vending machines will result in an overall decrease in power use
Benefits
The new agreement also addresses what we heard during consultation with the university community, including:
The agreement with PepsiCo Beverages Canada does not create an exclusive environment on campus.
There will be a choice of alternative beverages on campus through food outlets such as St. Thomas More
College, Mac’s, Campus Cove, Harvey’s, etc.
The details of the financial benefits of the agreement will be shared with the campus community and a
report outlining the financial results of the agreement and allocation of revenues will be provided to the
campus community on an annual basis.
With the new agreement: there will be a phased reduction of bottled water on campus; the university
will introduce more water bottle filling stations on campus; some cold beverages will soon be available
in 100% plant-based and/or 100% recycled plastic packaging; vending machines will be energy-efficient;
and a reduction of vending machines will result in an overall decrease in power use
A wide range of beverage options will be available on campus, many of which prominently display
nutritional summaries and calorie counts for more informed choices.
Financial administration of the new agreement and
oversight of accountability requirements pertaining
to the agreement will be assumed by a Cold
Beverage Executive Committee comprised of:
Associate Vice-President Financial Services
Laura Kennedy;
For more information, visit
Director of Purchasing Services Gwen Toole
(Financial Services Division); and
www.usask.ca/coldbeverage
or call Joanne Borys, project administrator, purchasing
services, at 966-6713 or joanne.borys@usask.ca.
Director of Finance and Trusts Jim Traves
(University Advancement).
Cold beverage agreement |
August 2011 | University of Saskatchewan