University of Saskatchewan Cold Beverage Agreement
Fact Sheet
In July 1998, the University of Saskatchewan (U of S) entered into a 10-year agreement for Coca-Cola
Bottling Ltd. to be the exclusive supplier of cold beverages (excluding dairy and alcohol products) on campus. The decision was made by the Board of Governors after consultation with the university community
and a comprehensive review of proposals from two leading cold beverage suppliers.
The agreement generated net revenues of about $200,000 per year, which were allocated by the Board of
Governors to support student services. Benefits for students were central to the decision to enter into a
long-term sponsorship agreement.
The original agreement, which expired June 30, 2008, was tied to sales volumes which were not achieved
over the 10-year period of the contract. As a result, the provisions of the contract called for the contract to
be extended to June 30, 2010.
The Original Agreement (1998-2008)
The U of S entered into the agreement with Coca-Cola as a means of enhancing the student experience
and on-campus services. The Board of Governors allocated revenue from the agreement to the following
campus initiatives and projects.
• Scholarships and bursaries
• New vending equipment
• Student services, in particular for students with
disabilities
• Updated equipment for Food Services
• Huskie Athletics
• Library acquisitions
• The USSU Housing Centre to help U of S
students find accommodations
• Lower product costs for beverages on campus
• Static product pricing for a minimum of three
years with static pricing of canned product for
the duration of the contract
• New score board and clock for Griffiths Stadium
• Part-time student employment opportunities
for students as Coca-Cola representatives at
university events
• Electronic message board (formerly on
College Drive)
• Support for various student and
university events
www.usask.ca
University of Saskatchewan Cold Beverage Agreement
Fact Sheet
Future Options
With the two-year extension ending in June 2010, the U of S Cold Beverage Steering Committee (CBSC) is
interested in hearing from the campus community to determine next steps. The CBSC is a committee with
broad representation from across the U of S campus that acts as an advisory board to senior administration
on issues relating to the financial and operational implications of the original, and any future, agreement
on cold beverage exclusivity. Your viewpoint is important and will assist the CBSC in providing a
recommendation to the Board of Governors which will in turn make a decision on future cold beverage
agreements at the U of S.
To ensure the campus community has sufficient time to comment, the university can temporarily extend
the current cold beverage agreement to ensure cold beverages continue to be offered on campus during
the consultation process. For the future, in order for the university to continue offering cold beverages
on campus, both through food outlets and vending machines, there are two viable options, which are
outlined below, along with expected outcomes.
EXPECTED OUTCOMES:
VIABLE OPTIONS:
Ability of colleges Access to
and units to
sponsorship funds
make individual
from the supplier
arrangements with
suppliers
Variety of cold
beverage options
on campus
Effect on the
retail price of cold
beverages on
campus
Ability to influence
provisions in
the contract
benefitting the
university
Pursue a new exclusive
agreement with one major
cold beverage supplier through
a competitive bid process
None
Maximum
availability
Limited choice
/ variety
Static, consistent
retail prices
Maximum
ability
Pursue agreements with
two cold beverage suppliers
through a competitive bid
process
None
Limited
availability
Maximum choice
/ variety
Unknown
Limited
ability
www.usask.ca
University of Saskatchewan Cold Beverage Agreement
Fact Sheet
Frequently Asked Questions
Are cold beverage agreements common
at other universities?
A 2009 survey conducted by the U of S of 16 other
universities in North America revealed that each had
some type of cold beverage agreement and most
agreements were exclusive.
How does the current sponsorship agreement
influence the sale of beverages on campus?
The agreement made Coca-Cola Bottling Ltd. the
exclusive supplier of cold beverages (excluding
dairy and alcohol) on the U of S campus. This
agreement extended to university functions where
cold beverages are served. Coca-Cola also received
exclusive access to all advertising opportunities for
cold beverages in campus publications.
When does the current agreement expire?
The original agreement expired on June 30, 2008.
However, because sales targets as set out in the
contract were not achieved, a provision in the
agreement called for a two-year extension, meaning
that the agreement actually ends on June 30, 2010.
The university can temporarily extend the current
cold beverage agreement to ensure cold beverages
continue to be offered on campus during the campus
consultation process.
Will the university simply renew the
agreement with Coca-Cola?
While the university can temporarily extend the
current cold beverage agreement to ensure cold
beverages continue to be offered on campus
during the campus consultation process, the current
agreement will not simply be renewed. The university
is committed to ensuring fair treatment of all potential
suppliers through a competitive bidding process.
However, before making any such decision, the
university wants to hear from students, faculty and
staff. Your viewpoint is important and will assist the
Board of Governors in making a decision on future
cold beverage agreements at the U of S.
Does the U of S need a sponsorship
agreement for cold beverages?
As a publicly funded institution, the U of S needs to
find innovative ways to complement funding from
the public sector. A sponsorship agreement for cold
beverages is one way for the university to diversify
revenues to further enhance the student experience.
What are the considerations of any
new agreement?
Before any decisions are made, several factors
must be considered including the views of the
campus community, product choices, sustainability
implications (both environmental and social), and
potential contract revenues and benefits.
Does the university need an agreement at all?
The university needs some type of agreement, but the
agreement does not necessarily need to be exclusive.
Not having any agreement in place could result in
the elimination of cold beverages being available
through vending machines on campus or might
require colleges and unit to coordinate individual
vending arrangements with suppliers. In addition,
without an agreement, an alternate revenue stream
dedicated to the student experience would be lost.
How can I provide my feedback?
Visit our website at www.usask.ca/coldbeverage
or call Cold Beverage Steering Committee
co-chairs Gwen Toole (966-6711) or Jim Traves
(966-1863) to speak to them on the phone or
arrange a meeting.
www.usask.ca