Brand name bombardment

There are days when a Coke just doesn't cut it. You want something sweeter, something less classic, something endorsed by Britney Spears.\nBut students can search all around the campus for a Pepsi and won't find one. In fact, students can search all eight IU campuses, and they will come to the realization that IU is part of a strange world where only Coca-Cola products exist.\nCoca-Cola has a contract with all eight of the IU campuses for exclusive rights in beverage sales. In return, IU receives significant discounts on these products, as well as $1.7 million in cash incentives each year. \nIU and Coca-Cola have maintained this relationship for more than 10 years. Lorelei Meeker, acting director of the Purchasing Department, said the arrangement is unusual in comparison to other universities.\n"It is not the traditional arrangement that many universities have, called a 'pouring right,' to dispense certain beverages only at athletic events," she said. "Our model expands upon that and consequently allows us to get extraordinarily deep discounts."\nThe $1.7 million is distributed among the eight campuses and is used in various areas of the budget. Meeker said more universities have recently adopted contracts similar to IU's model, either with Coke or Pepsi. \nAccording to Coca-Cola Public Relations in St. Louis, the negotiation process starts with the University, not the company. IU first approached Coca-Cola with a request for a proposal and outlined the terms of agreement. \nMeeker believes the absence of Pepsi products on campus is not an issue about consumer rights.\n"We always have to balance the issue of choice," she said. "For students, they are certainly able to purchase whatever they wish in stores outside of campus. The issue of whatever is available on campus does help decrease the University's overall costs, which in turn benefits the students."\nStarting fall semester of this academic year, Adidas also obtained an exclusive rights contract to all 24 varsity sports on the Bloomington campus. As a sponsor, Adidas provides apparel and equipment at no cost to the University up to a certain budget. No comment was made on the possibility of cash incentives for the University.\nEric Holmes, licensed property manger for Adidas at IU, said Adidas is looking to build a relationship with IU because of the University's strong reputation in college sports.\n"For us, it was just the fact that we've been with the soccer team forever," he said. "A lot of it just comes from our relationship over the years with championship Indiana soccer. We'd like to see the basketball team win us a championship as well."\nAdidas has similar deals with other universities with a strong presence in college sports, including UCLA, Nebraska, Wisconsin, Notre Dame, Tennessee, Arkansas, Pittsburgh, North Carolina State and Mississippi State. \nOther brand names prevalent on campus include Dell computers, Microsoft software and Marriott food services. Many of these have contracts with IU, but only Coca-Cola and Adidas have exclusive contracts.\nFor the most part, students do not seem to mind the absence of brand choice on campus. Junior Michael Choi said he has even developed a preference for Coca-Cola as a result of its singular availability.\n"Freshman year, man, cause that's all they have," he said. "With all those meal points, you pretty much drink what you can get on them."\n-- Contact Staff Writer Lydia Song at lsong@indiana.edu.