Dan DaranciangA 2001 Washington University contract making the Coca-Cola Company the exclusive distributor of soft-drink products on campus is hampering EnCouncil’s efforts to provide low-cost lunch.
Originally, Cheap Lunch bought Coke products from the grocery store, where a 24-pack of 12 oz. cans could cost as little as $5.50.
But sophomore Frank Beling, who is in charge of Cheap Lunch, says that plan was foiled after a chat with the student services chair. “He said we have no choice but to buy Coke directly from the distributor” because of the contract, recalls Beling. “I think it is absurd.”
Through the University’s distributor, a 24-pack of 12 oz. cans goes for $8.25.
As a result, Cheap Lunch, which sells pizza, soda and chips once a week for two or three dollars to students from all University schools, brings in virtually no revenue.
“It’s going to raise our costs each Lunch,” Beling said. “Sometimes we break even, but even a difference this small, it’s going to make a big difference with our overall budget.”
Just how did Coke products become the exclusive drinks on campus?
“We went through a competitive process, with the big-name drink companies, mainly Coke and Pepsi,” said Alan Kuebler, the University’s executive director for resource management. “We invited both to propose to us, and Coke’s proposal was way more advantageous to the University, much more so than Pepsi’s.”
For the exclusive “pouring rights,” the University receives money from Coke, said Kuebler. The University also doesn’t have to pay for any of the vending machines around campus.
“We don’t have to pay for electricity, the product that goes in them, to service them, to refill them, or to get the money out of them,” said Kuebler. The University then splits the earnings from the 105 vending machines on campus with Coke.
Bon App‚tit is not so lucky. It still has to pay for the bottled soda and the syrup to put into its fountains.
“We are limited in what we can purchase to bring on campus, and as far as Bon App‚tit [is concerned], it hasn’t really hindered direction. The only concern we have is that the students can’t get some of the products they ask for,” said Kathy Carmody, general manager of Bon App‚tit.
Some students don’t like the limited soft-drink options on campus. Freshman Leah Bressler said, “I like Pepsi products better than Coke products. We need more variety.”