ECU opens bids from soft-drink companies
(July 1, 1998)
East Carolina University today (July 1) opened bids from Coca-Cola and Pepsi-Cola, who are seeking exclusive rights to sell their products on the university campus.
Bid documents from the two companies indicate that Pepsi offered a total of $7 million and Coke offered $3.93 million for signing awards and exclusivity fees over a 10-year period.
Further analysis of pricing and commissions is required to determine the true value of these bids, university officials said.
Following State of North Carolina procedures, a university committee immediately began to analyze the bids submitted by both companies in thick, three-ring binders. The committee will present its analysis to university trustees to consider at their July 17 meeting. At that time, in consultation with the trustees, university officials will decide whether to enter into an exclusive arrangement with either company. The university has the option of rejecting both the proposals.
One task facing the committee is to determine how much of the bids represent funds above and beyond what the university would receive from its current soft drink contracts. At ECU, soft drinks are sold in university dining halls and snack bars, at athletic events and in vending machines.
Coke and Pepsi products are both sold on campus now. While no final decision has been reached, campus officials have suggested that if a contract is signed by the university, the proceeds could be used for purposes such as academic and athletic scholarship endowment funds and university programs or projects.