New Deal Ahead? Penn State-Pepsi Agreement a Week from Expiring

Penn State and Pepsi are just a week away from the expiration of their current partnership with the agreement “under review,” according to university documentation.

The partnership, which began in 1992 started with a 10-year $14 million deal under then university president Joab Thomas. The current agreement, which was struck in 2012, will expire — if not renewed — next Thursday (June 30).

According to the agreement terms the deal covers both carbonated beverages as well as Pepsi food products on campus in addition to various food service items. The deal was revised several times prior to its eventual renewal in 2012 as a continuation of the original 1992 agreement. Penn State has previously said the current contract is not public record under Pennsylvania law and has declined to disclose the financial value.

How much money is at stake in the new contract is to be determined if a deal has not yet already been struck. Ohio State recently signed a 15-year deal with Coca-Cola in 2018 for a total of $84.7 million over the span of the term. That particular arrangement also included a handful of academic allocations as well.

Globally Pepsi continues to be a leading brand in the marketplace as it pertains to overall revenues and profits boasting just over $76 billion in profits while Coca-Cola has netted *just* $36 billion in profits according to recent data. Coca-Cola however remains the primary beverage sponsor for the NCAA at-large.

Whatever shakes out of the negotiation bottle, it’s safe to assume the number will be higher than the original $14 million, and with plenty of ad space at all your favorite Penn State sporting events.