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UPDATE: Pepsi To Replace Coke at UA Campus, Razorbacks Games

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The University of Arkansas is drawing up a final contract that will make PepsiCo the official soft drink vendor of the Fayetteville campus and Razorbacks athletics, according to an "intent to award" notice that has been posted on the university’s procurement website for more than two weeks.

For the next 10 years, Pepsi products (and Dr Pepper) will replace Coca-Cola in all campus soft drink fountains and will have the right to 80 percent of shelf space in convenience stores and similar outlets on campus.

In a news release on Thursday, the university said the deal "will be the largest beverage sponsorship agreement the [UA] has ever entered into." The original request for proposals for the "Sponsorship and Pouring Rights Agreement" estimated the value of the contract at $19 million.

"We expect that the final contract will have a final value very close to those original estimates," UA spokesman John Diamond told ArkansasBusiness.com on Wednesday.

The Deal

According to the university, the planned deal would cover a 10-year period and take effect July 1. The agreement will have an initial fixed-length term and a series of annual renewal options.

The would also feature "monetary benefits for the university as well as in-kind support for student-related programming and services, campus enhancements and environmental sustainability measures."

As part of the contract, a variety of PepsiCo beverages will be available on campus, including Pepsi, Mountain Dew, Sierra Mist, Lipton iced teas, SoBe, Aquafina, Tropicana and Gatorade.

Rockstar Energy Drink, Muscle Milk and fountain-dispensed Dr Pepper, distributed in the region by PepsiCo, will also be available, the UA said.

"The university welcomes the opportunity to partner with PepsiCo to bring a popular line of beverages to the university community and campus visitors," Donald O. Pederson, vice chancellor for finance and administration, said in a news release.

At the Stadium

Along with supplying campus dining facilities and vending machines, PepsiCo products will be served at Razorback athletics venues, the university said. As part of the agreement, the UA will recognize PepsiCo as the exclusive beverage sponsor at Donald W. Reynolds Razorback Stadium, Bud Walton Arena, Baum Stadium, Bogle Park (softball), Barnhill Arena (gymnastics and volleyball) and John McDonnell Field.

PepsiCo will have opportunities to showcase its brand on campus through sponsored events and initiatives.

PepsiCo will also work with the university to support initiatives of the University of Arkansas Associated Student Government, a variety of student oriented programs and activities, and fan promotions at Razorbacks events.

Under the agreement, PepsiCo also will provide " health and wellness promotions" on campus and offer  recycling and sustainability initiatives.

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