News Release

CHAPEL HILL – Pepsi Bottling Ventures LLC has been awarded the University of North Carolina at Chapel Hill’s preferred vendor contract for soft drink services through a competitive proposal process.

As part of its proposal, Pepsi became the largest donor to support the university’s groundbreaking Carolina Covenant initiative benefiting low-income students by pledging a $1.5 million gift.

Earlier this month, Pepsi assumed campuswide beverage vending rights for most university facilities through that five-year, $5.25 million contract. (The terms of that contract are similar to one that had been held for nearly a decade by another vendor.) Pepsi committed the gift to support student scholarship programs, and university officials then designated the Carolina Covenant program as the recipient.

The Carolina Covenant makes a Chapel Hill education possible debt-free for academically qualified low-income students. Carolina became the first major U.S. university to announce plans for such a program last October. Since then, several public and private campuses nationwide, including Harvard University and the University of Virginia, have created similar programs.

Beginning this fall, eligible incoming freshmen who qualify for the Carolina Covenant can graduate without borrowing if they work on campus 10 to 12 hours weekly in a federal work-study job. Carolina will meet the rest of those students’ needs through a combination of private gifts such as Pepsi’s, as well as federal, state, university and other privately funded grants and scholarships.

"We thank Pepsi Bottling Ventures for this generous gift to help support the Carolina Covenant and to provide life-changing opportunities to deserving students seeking a Carolina degree," said Chancellor James Moeser. "We have been heartened by widespread interest in this program. Prospective students and parents have heard our message about accessibility. And supporters such as Pepsi Bottling Ventures will ensure the Carolina Covenant helps students and families from North Carolina and beyond for the long term."

Said Keith Reimer, president and chief executive officer of Pepsi Bottling Ventures LLC, "Pepsi is pleased to be a partner with the university and to be associated with an innovative initiative like the Carolina Covenant. This program is making a college education at one of the nation’s leading universities possible for talented students."

Under the new contract, Pepsi agreed to provide fountain, can and bottled beverage products on campus. The contract covers beverage vending machines and fountain drink machines across the campus, and some bottled and canned products in convenience stores and snack bars. The contract also covers vending machines in athletic facilities, but not game-day concessions in athletic venues.

Pepsi’s gift counts toward the university’s Carolina First campaign goal of $1.8 billion. Carolina First is a comprehensive, multi-year private fund-raising effort to support Carolina’s vision of becoming the nation’s leading public university.

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UNC contact: Mike McFarland, (919) 962-2093, mike_mcfarland@unc.edu

Pepsi Bottling Ventures contact: George Suddath, (919) 865-2359, George.Suddath@PBVLLC.com