After almost a year and a half of negotiations, meetings and contract proposals, Ohio State has received a large sum of money from Coca-Cola.
As a result of the contract recently signed between OSU and Coke, the university received two checks totaling more than $19 million over the past month.
According to Joanne Markiewicz, director of purchasing, receiving and stores, on Nov. 12, a $6 million check was given to the university. A second check for $12,587,287.27 was deposited on Nov. 17. This is in addition to the $880,000 that the university received prior to the signing of the contract, which totals more than $20 million.
In exchange for the contract, worth an estimated $30 million over the next 10 years, Coke has gained the right to be the exclusive beverage supplier of OSU’s main campus. Coke also has been granted rights to use OSU logos and licensed trademarks to advertise and market around the Columbus area.
Now the question becomes, where does all the money go?
Right now, most of the money sits in an interest-bearing account, yet to be distributed to the university departments that will ultimately receive the funds, said Eric Busch, assistant vice president for student affairs.
“We hope to have the decisions made before much longer,” Busch said.
The $20 million received by OSU in November is designed to last the entire term of the contract. OSU will receive an additional $6.5 million, but it will be spread over the next nine years.
Some departments that are sure to receive money are those who received money from vending machines of all brands prior to the contract, Busch said. These departments include Housing Food Services and Event Centers (includes residence halls), Recreational Sports, the medical center and the university general funds, he said.
“It is worth noting that the majority of the flow of these (the above-mentioned) vending funds goes back to support the university general funds, as very many of the machine placements are in general fund buildings,” Busch said.
The creation of the Beverage Marketing Committee will help determine what will be done with the $150,000 earmarked for beverage marketing for student organizations.
“This committee will be establishing guidelines for requests by student organizations and will determine how the availability of funds should be publicized to student groups on campus,” he said.
This group, which consists of a representative from each of the three student governments, Coke representatives and university administrators, will meet on Dec. 7 to begin the process of determining how these funds will be distributed.
“We hope to soon have some written guidelines for receiving Coke products available for student organizations,” Busch said
Currently, student organizations that want to have Coke products at an event must fill out a two-page application at least two weeks in advance of the event.
David Williams II, vice president of student affairs, makes the decision as to who gets products. Generally, student groups are offered one portion per person based on the reasonable expected attendance, Busch said. Also taken into consideration is the type of event and if it is targeted to a large percent of the student population, he said.
Product donations play such a large role in the marketing money is because of the value.
“One reason product donations are emphasized with these funds is that a benefit at retail value can be delivered to students at a wholesale cost to the fund” Busch said. “This is another way of saying we can deliver more `bang for the buck,` similar to the way any business makes a donation of products to any group.”
The committee will also set guidelines for money that Coke will use to help promote certain student activities. Coke is looking for larger student events to support by paying for advertising in the Lantern and by creating promotional banners, both of which would promote Coke as a sponsor as well as the event itself.
“These beverage marketing funds are to support the marketing of Coca-Cola products on campus in one fashion or another, and are not just to support student organizations as a philanthropy” Busch said.
To some students, all of this money does not seem to make up for the lack of choices now available to OSU students.
Lisa Yonka, a senior microbiology major, is a Mountain Dew fan. As a result of the Coke contract, she can no longer find the drink on campus.
“I’m a big Mountain Dew drinker, which is a Pepsi product. I can’t get a Mountain Dew on campus anymore,” Yonka said. “I understand that the Coke is doing a great service to the university, but students should be able to choose.”
Yonka did put the situation is perspective. “The decision to make an exclusive agreement was in the hands of the `higher-ups.`”
Now, she just brings her favorite non-Coke product to campus with her. “It is an inconvenience, but it isn’t the end of the world. And Coke is helping the university,” she said.
