Jenna Little
Staff Reporter
On the first day of classes, many students walked into the dining room, got into the beverage line and were about to fill their cups with a refreshing Coca-Cola when they were met with an array of Pepsi products instead. What happened?
McDaniel College’s five-year contract with Coke ended, and the college decided to switch to a Pepsi contract, according to Ethan Seidel, vice president of Administration & Finance.
The college made the switch soon after graduation to avoid as much disruption as possible to students’ daily routine. The transition from Coke to Pepsi products was not a simple bottom-line budget decision, Seidel explained.
Seidel opted not to disclose the actual costs linked to the college’s contracts with either business, noting that he didn’t want the companies to have the opportunity to know the specifics of the competition.
Additionally, the contract is not based on simple monetary differences but a variety of factors behind the scenes. For example, Seidel explained, the contract includes such financial benefits as support for academic departments. The companies also donate cups, beverage dispensers, and beverages to the athletic teams.
The contract also includes marketing support such as promotions that could be used throughout locations on campus like Englar Dining Hall. The Pepsi recycling containers found throughout campus were part of the current contract and were donated to the college by Pepsi as part of an environmental program.
The contract also makes available future funding for different programs including scholarship donations made to the college, Seidel explained.
Students have had mixed opinions about the change.
“I’m not a soda fanatic, really, so simply changing the brand wasn’t a big deal to me,” said sophomore Leanna Webb. “Sure, some of the Coke products are great, but Pepsi’s are, too,” she added.
“I was never able to muster much passion for either brand,” said sophomore Masha Makhlyagina .
Sophomore David Habel had a stronger reaction: “I was really upset. When I suddenly saw that my good buddy Coke was no longer present at McDaniel, my line of orbit was completely thrown out of whack. Although I learned to accept it and over time have even come to enjoy the alternative Pepsi products.”
Administrators charted and compared qualities of both products. Seidel said, “You have to dig below the surface; everyone has a preference of Coke or Pepsi but you have to ask what else you get with that company? We felt the Pepsi product mix was at least as good as Coke.”
The past two beverage contracts have been for five years, and each has been with Coke. At the end of the last Coke contract, both Pepsi and Coke offered a contract to the college.
McDaniel always considers both companies’ offers in order to ensure good competition between the companies, Seidel explained. Both companies agreed to give the college a percentage of their sales, called profit sharing. McDaniel then considered sales potential for both products. The numbers were close.
“There was no huge money difference between the two contracts. When you added up all the money; it was almost dead even,” Seidel said. “It was extremely close and a lot had to do with talking to our sister colleges. There were rave reviews of Pepsi and what tipped the balance was the strength of satisfaction with the service of Pepsi.” Pepsi included incentives similar to Coke’s previous contract and promised timely service and quality products.
“This time around, everything considered, Pepsi deserved a chance at it,” Seidel said. “And I hope they prove that.”
David Castle, president of Student Government Assembly, said that the contract came down to incentives for the college; and he is happy with the decision because of Pepsi’s product package.
“I like having the option of Mountain Dew, Dr. Pepper, Mug Root Beer, and Swasha,” Castle said.
“Pepsi and Coke bid against each other constantly,” Seidel said. “And it really comes down to their recent track record of service. It seemed Pepsi was going to be aggressive in providing good service and products and it was worth giving Pepsi a try.”