Cornell University is negotiating with PepsiCo to replace Coca-Cola as the predominant beverage provider on campus, including Cornell Dining facilities and vending machines, according to LeNorman J. Strong, assistant vice president for student and academic services.

The partnership being negotiated with Pepsi is not an exclusive one, so if the deal is finalized, retail and vending locations still will offer other products, such as Coke, Snapple and fruit juices, in addition to Pepsi products- Mountain Dew, Pepsi and Slice.

Coca-Cola's purchasing agreement with the Department of Campus Life and University Purchasing expired Dec. 31, 1998. University officials began the process of developing a new beverage purchasing agreement last spring.

A Cornell Beverage Initiative Team was formed to review university beverage business agreements and to explore opportunities for service and cost improvements. A team priority was to reduce the cost of beverage products and achieve price stability over the longest possible length of time. Units represented on the Beverage Initiative Team were Alumni Affairs, Athletics, Campus Life and the School of Hotel Administration (Statler Hotel). Negotiations currently are under way to develop a "predominance" partnership with Pepsi Cola Bottling Co.

"The beverage companies were very carefully evaluated to determine which one could provide Cornell with the best prices, service and support for other university activities and priorities," Strong said.

While details of the partnership have not been finalized, Strong said Pepsi offered significant service and financial incentives not available elsewhere.

"Ultimately we will have a beverage program that will cost Cornell Dining less and that will enable the university to keep dining prices stable," Strong said. "In addition, Pepsi has agreed to provide direct funding to Cornell to support student programs. And they have agreed to work with the Residence Hall Association and other student groups on initiatives such as recycling and similar projects which are important to our student community."

Strong also anticipates that there will be significant improvement in vending operations, including the installation of new and additional machines, debit card access and new products. He said the changes in vending will eliminate operating deficits that had exceeded acceptable limits and were threatening to cause price increases throughout Cornell Dining.

"The reorganization of Cornell Vending will allow the university to focus on improving services and facilities in Cornell Dining units rather than on funding deficit operations," Strong said.

He added that while the partnership involves vending operations, Cornell Vending will continue to exist. Day-to-day operations will be handled by Full Service Vending, a unit of the local Pepsi bottling company's operations, with oversight by the Cornell Vending administrator. Current negotiations include the continued serving of food prepared by Cornell Dining's commissary. Cornell Vending will work with Pepsi to ensure high quality service and product innovation for the Cornell community.

In addition, Strong said, the university is seeking other campus positions for any displaced Cornell Vending employees, either in Campus Life or another area of the university.

"Every effort is being made to accommodate each Cornell Vending employee through this transition," Strong said. "Every vacant position in Campus Life and elsewhere on campus will be reviewed. Campus Life and Human Resources staffs are working with employees to ensure that every consideration for placement is made."

Strong said there are no plans to outsource food service and that the pending consultant study of Cornell Dining is simply a market assessment and operational review. The study is intended to generate information for the development of a strategic plan to improve the services, facilities and programs offered by Cornell Dining. A universitywide advisory committee comprised of students, faculty and staff, including members of the United Auto Workers Local 2300, will work with the consultants in developing recommendations.

Fountain service in Cornell Dining units will begin to change from Coca-Cola to Pepsi starting Friday, Feb. 12. The transition of fountain service and vending machines is expected to take several weeks. During that time, questions about beverage service should be directed to Peggy Beach, Campus Life Marketing and Support Services, at (607) 255-5511.