By Rachael Myer
Arizona Daily Wildcat
April 7, 1998

Soda contract could be costly for UA students, employees

UA employees may lose their jobs, residence halls may lose money and students may lose soft-drink freedom if a new beverage contract goes into effect this year.

The pending contract would mark the first time in about 25 years that a vendor is given exclusive rights to market and sell soft drinks at soda fountains and vending machines on the University of Arizona campus.

The UA has a preexisting contract with Coca Cola for "pouring rights" - at restaurant and concession fountains - that ends June 30. Coke has had the contract with the UA for about the last five years, said Dan Adams, director of the Memorial Student Union.

Coke, Pepsi and Kalil Bottling Co. currently split the rights to single-unit sales and the UA's vending machines, said Jeff Garmon, route supervisor for UA Vending Services.

But according to the request for proposals, "Successful proposer(s) shall have the exclusive right to provide beverages for sale on campus."

The UA's beverage contract proposal request, written last July, states that a contract will be awarded to the most "advantageous" soft-drink vendor.

That means Coke could continue to reign in the Student Union, Pepsi could take over, or another company, such as Kalil, may make an appearance.

UA officials, however, have been tight-lipped about their plans, saying they cannot talk about contract negotiations or bids until officials from both sides sign on the dotted line. Officials have been unclear about when that will occur.

UA vending could be disbanded

The 19 employees who stock the campus' vending machines fear they will be left by the wayside if the university commits to a beverage company for the next five to 10 years.

Tim Wagner, a UA vending route driver, said Adams told Vending Department employees in a March 20 meeting that they could be laid off July 1 if a new company takes over.

Wagner said he was told at the meeting that the company that gets the UA contract could take over all the UA's vending routes if it chooses to do so.

Adams, however, refused to confirm what was discussed at the meeting.

"There was a meeting, but I am not going to get into an issue of personnel issues," he said.

Wagner's concern is what the vending employees will do if they lose their jobs.

"There are people who have been there for 17 to 18 years and know nothing else," he said. "They are 48 years old, and to change their jobs would be very difficult."

In addition to possibly losing their jobs, many of them of are also UA students and could lose their employee tuition waivers. For many of the employees, the waivers are their last opportunity to get a college education, said Charles Martin, another route driver.

"I am going to put college on the side burner," said Martin, who was considering enrolling at the UA. "The priority is living. We are being forgotten for greed."

Recycling programs in limbo

UA recycling advocates are also concerned that the impending contract could complicate campus recycling efforts.

Under the terms of the UA's request for proposal, vendors could chose to stock vending machines with plastic bottles instead of aluminum cans, which are easier to recycle and are lucrative for campus groups who exchange the cans for cash.

Last year, the UA sold about 4 tons of aluminum and earned about $4,000, said Richard Garb, the university's recycling coordinator. Those figures exclude residence hall recycling efforts, which serve as a source of income for hall activities.

Residence Life made a total of $2,893.48 last year for the student governments of the UA's 17 residence halls, said Phoebe Hunter, recycling coordinator for the Department of Residence Life.

Manzanita-Mohave Residence Hall earned $80 from recycling last semester, said Jamie Allen, recycling chairwoman for the dorm. The money was used for improvements and program funding, she said.

"The reason why I am concerned about this is because we make money off aluminum cans," said Allen, who had to stop her dorm's plastic recycling program because there is no way to recycle plastic through the UA. "If this contract is signed, the aluminum cans will be gone and we would no longer have the significant money maker for our halls."

"The biggest problem is plastic is worth a fraction of what aluminum is worth, from the standpoint of a recycler," Garb said. "The switch (selling plastic instead of aluminum) will really impact Residence Life because they recycle aluminum."

Mary Dunkel, marketing director for Pepsi, said she had no information about whether plastic bottles would be used if Pepsi gets the UA contract.

"I don't have any information for you at this point," she said.

Contract is big business

The UA is enticing bidders with a projected food and beverage revenue total in the neighborhood of $12 million for the 1997-98 fiscal year. That includes all retail outlets in the Memorial Student Union and Student Union satellite facilities, as well as income from beverage vending machines and concessions at UA sporting events.

Depending on the contract eventually hashed out between vendors and the university, Coke, Pepsi or Kalil could choose to sell their products in some or all of four different areas: Dining Services, Athletic Concessions, Vending or Spring Fling.

The vendor would be responsible for the sale, distribution, merchandising and also be required to provide products, equipment, service, technology and marketing.

The vendor selected would need to conform to UA vending standards including making the machines compatible for CatCard use.

If a vendor should be awarded the exclusive right to sell beverages on campus, they could have the right to create "naming" opportunities with the proposed renovation of the Memorial Student Union, as stated in the UA Request for Proposal.

This means a portion or section of the Student Union could be named after the particular company.

ASU's soda choice has some upset

Arizona State University has three beverage contracts: vending with Pepsi since 1995, fountain rights with Pepsi since 1996 and sponsorship with Coke since 1995, said John Riley, associate director of purchasing at ASU.

About $980,000 per year of Pepsi is sold at ASU as opposed to $693,000 of Coke, he said.

"Ninety-five percent of the people couldn't care," said Riley. "Two-point-five percent are Pepsi fans and 2.5 percent are Coke. There doesn't appear to be a groundswell of concern one way or the other."

But 500 to 600 ASU students disagree. They signed a petition, organized by ASU computer information systems sophomore Travis Newman, stating they would like Coke more accessible on campus.

ASU's contract with Pepsi requires 10 percent of marketing space to be given to competing products.

"The Coke that is accessible (at ASU) is located in corner of stores and some place in the bookstore I can't find," Newman said. "I suggest (to the UA) stating students' opinions now before the contracts are signed because once it is signed it will last for 10 years."

Newman, who has set up tables on ASU's Tempe campus to sell Coke products, has since applied to be a campus representative for Coke.

UA students wanting choice can choose Circle K

UA students appear to have mixed feelings about the proposal.

"It would bother me, because it wouldn't give people a choice and corporation rule is bad," said anthropology junior Thomas Firmage.

"I am not picky about my soda," said biology sophomore Dan Kemper. "I probably wouldn't even notice."

Daniel Manzo, sales manager for Circle K Corp., which operates hundreds of convenience stores in Arizona, said Circle K stores previously sold only Coke in their fountains, but they now make a variety of drinks available to please customers.

"They (customers) yelled and screamed they wanted a choice," Manzo said. "So we have a whole array of items for them. We figured it was more profitable, to us, to break that (previous) contract with Coke and offer the customer what they were asking for all along."

When Adams was asked if a contract that included a variety of soft drinks from more than one company would be feasible, he said, "I cannot get information about that contract."

Officials couldn't say when a contract would be signed. Dave Hall, assistant director of purchasing for UA Procurement and Contracting Services, came closest, saying the deal should be finalized "soon."