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Pepsi gets 10-year pouring rights at UNK

Pepsi gets 10-year pouring rights at UNK

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KEARNEY — The University of Nebraska at Kearney entered a 10-year contract with Pepsi for pouring rights on campus.

The University of Nebraska Board of Regents voted Friday to grant the exclusive license to pouring and vending rights at UNK to Pepsi Bottling Group.

Pouring rights allow a beverage manufacturer to control beverage distribution at a venue.

In exchange for pouring rights, UNK will receive a minimum of $85,000 each year of the contract and commission equal to 20 percent to 40 percent of annual sales. Overall, the university will receive $1.6 million.

The funds UNK receives from beverage sales are distributed across the campus.

Pepsi has been UNK’s beverage distributor for the past 10 years.

Under the former contract, UNK received $1.8 million. The new contract is less than the former contract because the campus will have fewer soda machines and the university chose not to increase the cost of products for the first year of the contract.

For the past 10 years, UNK received $75,000 each year of the contract, but received commission equal to 50 percent of annual sales of soft drinks and 20 percent to 25 percent of annual sales for non-soft drinks.

The commission negotiated is different because of the volume of sales and the cost to consumers.

Pepsi also will provide UNK $5,000 a year for academic scholarships.

As part of the agreement, Pepsi will provide vending, fountain and retail cooler equipment and be responsible for all equipment service and maintenance.

All Pepsi-owned equipment on campus will also be Energy Star rated.

Pepsi has agreed to maintain current vending prices for the first year of the agreement. Price increases in the remaining years of the contract are limited by changes in the beverage component of the Consumer Price Index.

A copy of the agreement is available at the Office of the University Corporation Secretary at 3835 Holdrege St. in Lincoln.

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