Talks of a single-beverage cola contract for Iowa State is currently being considered by the university.

A final decision will be made by late fall or early winter, said Warren Madden, vice president for Business and Finance.

A single-beverage contract is being explored by the University Purchasing Department and operators of the ISU facilities, in conjunction with administration and faculty.

Cola companies being considered for the single-beverage contract include Coca-Cola, Pepsi and Royal Crown.

The single-beverage contract would last about five to 10 years, Madden said.

“So far, Coca-Cola has provided the best bid in the four-single contracts by offering services in maintaining and providing new vending machines, including some with an Iowa State card slot,” Madden said. “This is another reason why Coca-Cola is the predominant beverage offered on campus.”

Madden said the two dominate cola companies currently in the market are Pepsi and Coca-Cola, and according to surveys conducted a couple of years ago in the Memorial Union and the Hub, Coca-Cola was the preferred soft drink on campus.

Currently, there are four major soft drink contracts at ISU.

There is campus vending, which is under contract with the Memorial Union. The Union is under contract with the Coca-Cola company, with the exception of Onion’s convenience store and the individual franchisees in the MU Food Court.

Coca-Cola also has obtained a contract with the residence halls, the Iowa State Center and the athletic program.

“What the proposed idea of the cola contract would do is combine the four contracts under one contract with a selected cola company,” Madden said. “If this single contract were to happen, Iowa State would obtain a premium up front for allowing the cola company to be the singular cola.”

Madden said the premium that ISU would receive would be around several hundred million dollars. Besides the premium, an additional commission will be obtained from the cola sold, he said.

As of now, the four contracts generate a commission which adds up to about $300,000 to $400,000 per year, including the candy and food sold with the cola.

Three out of the four soft drink contract operations at ISU are renewed every three to five years, Madden said. The dining centers in the residence halls are the only ones that bid for a contract annually.

The major incentive for the university, Madden said, is to receive a premium and the commission from the cola sold.

“If a can of cola is sold for $1, then 23 cents of this revenue would go back to the school as commission,” Madden said.

This commission is then distributed to various departments on campus. The money is divided based on the number of students registered in these departments.

“What the departments do with the revenue they receive is entirely up to them,” Madden said. “Some departments provide scholarships or sometimes the revenue reduces the traveling rate, if the students have to travel for the class.”

Madden said Penn State, the University of Missouri and the University of Nebraska possess an exclusive contract with soft drink companies already, and prices of the cola drink have not risen since the contract.