ASU has dropped Coca-Cola for Pepsi as the official soft drink of campus vending machines.
The decision, effective July 1, allowed Pepsi to replace Coke machines on all ASU campuses, and changes are expected to be complete by Aug. 17. Pepsi and Coca-Cola were the only companies to bid for the five-year contract.
Both ASU's Director of Purchasing and Business Services John Riley and Senior Buyer Lorie Sheppard said when it came down to granting the final contract award, the competition wasn't even close.
"Pepsi was quite a ways ahead," Sheppard said.
Riley and Sheppard oversaw the bidding process and approved the final decision to grant Pepsi the contract after the Auxiliary Business Services' Evaluation Committee looked over the bids.
The evaluation criteria, as stated in the purchasing contract, outlined five criteria listed in order of importance.
They were, respectively: compliance with agreement terms, percentage commission offered to the University, quality and quantity of provided equipment, quality and brand of products, and similar service experience.
Not included as an evaluating factor was students' preference, although granting multiple awards was a possibility.
"The University may consider [granting multiple awards] if it determines that it is in the interest of our students and the overall financial interest of the University," the purchasing agreement stated.
Sam Wheeler, ASU's director of Auxiliary Business Services, said the clause on multiple bids was put in the contract to encourage other companies like Canteen Vending Company, who contracts through multiple refreshment brands, to bid. But in the end, only Coca-Cola and Pepsi submitted final bids.
"The market (for Coke or Pepsi) is about fifty-fifty in the Valley," Wheeler said. He later added that Pepsi winning this bid was part of a five-year cycle.
"Coke won last time, Pepsi this time," he said.
"Seems like the history on our campus."
Riley said comparing students' preferences with the evaluation criteria was "like comparing apples and oranges."
"Both competing bids were based on single-award contracts," Riley said. "If multiple awards were given, the University would have to live with substantially less money."
Pepsi offered a payable monthly commission that equated to $800,000 in an annual minimum guaranteed commission to ASU. Coca-Cola's guaranteed annual minimum commission was $540,000 - nearly one-third less than their offer six years ago that won them the bid.
Under the previous contract, signed in October 2000, Coca-Cola had offered a guaranteed annual minimum commission of $796,500 payable to ASU in advance.
Darcy Pompa, key account manager for Coca-Cola, declined to discuss specific information regarding the bid, including why Coca-Cola bid significantly less this time. However, Pompa said the company was "disappointed" to have lost the bid.
"But we've been very fortunate to have worked with Arizona State, and we still maintain a great relationship with the athletic department, the Memorial Union and the Fraternity Council, so we'll still be on campus," Pompa said.
Coca-Cola currently sponsors ASU athletic programs, contracts through Sodexho to provide food at the Memorial Union and has a seat on the Fraternity Council.
Pompa also declined to comment on whether Coca-Cola had made a profit in the previous contract.
Meanwhile, Coca-Cola lovers around campus were also disappointed to hear the news.
"That totally sucks," Charlie Jensen, program manager for the Piper Center of Creative Writing, said as he grabbed a Coke out of a remaining Coca-Cola vending machine at the Social Sciences building. He said he prefers Coke to Pepsi because Coke has more sugar, and he needs his caffeine and sugar in the morning.
When asked if he'd ever just grab a Pepsi instead for his morning routine, Jensen said, "Only if I were desperate."
Reach the reporter at lily.yan@asu.edu.
