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NewsJuly 21, 1999

Harry and Rosemary Crisp and their Marion, Ill., Pepsi-Cola Bottling Co. over the years have donated more than $1 million to Southeast Missouri State University in property and financial gifts. But their largess hasn't bought them an exclusive contract with the Cape Girardeau school. The university continues to split its soft-drink business between Crisp's company and Central States Coca-Cola in Jackson...

Harry and Rosemary Crisp and their Marion, Ill., Pepsi-Cola Bottling Co. over the years have donated more than $1 million to Southeast Missouri State University in property and financial gifts.

But their largess hasn't bought them an exclusive contract with the Cape Girardeau school. The university continues to split its soft-drink business between Crisp's company and Central States Coca-Cola in Jackson.

"When it comes to beverages, people have different tastes," said Bill Duffy, vice president for finances at Southeast.

Both soft-drink distributing companies have vending machines on campus. Both Pepsi and Coke products are sold at football and basketball games. The Show Me Center sells both Coke and Pepsi products at its concession stands.

The Crisp firm has been criticized for securing long-term exclusive distribution contracts with three Illinois public colleges in exchange for six-figure cash gifts to the schools. Marion Pepsi-Cola Bottling Co. has exclusive rights to sell its products at Southern Illinois University-Carbondale, John A. Logan College at Carterville and Eastern Illinois University at Charleston.

The three pouring-rights agreements were contingent upon Crisp's company making major monetary contributions to the schools. The SIU agreement includes at least $500,000 over five years for SIU's athletics department to buy a new basketball floor. Illinois Gov. George Ryan is considering signing legislation that would outlaw such deals.

Southeast doesn't have such a deal with Crisp and his bottling company.

"As a practice here, we do not consider donations as being the basis of any kind of purchase award or contract to be issued," said Duffy.

Crisp does have exclusive rights to sell soft drinks at the Bootheel Education Center at Malden. The center is housed in a former Pepsi-Cola bottling plant.

Crisp donated the 100,000-square-foot building to the Southeast Missouri University Foundation in August 1987. The Pepsi-products stipulation was a condition of the donation.

"There is absolutely nothing illegal or wrong with that transaction," said Duffy. "Any donor who wanted to make a gift to the foundation can put restrictions on that gift."

Neither Crisp nor Marion Pepsi-Cola spokesman John Rains returned a reporter's telephone calls Tuesday.

Both Crisp's firm and Central States Coca-Cola have vending machines on the Southeast campus under a five-year contract subject to annual renewal. The university is entering the fourth year of the contract, which expires June 30, 2001.

Southeast solicited bids for the service with the 50-50 split between Coke and Pepsi vending machines.

When vending machines are added, the university tries to install both Coke and Pepsi machines. If there is room for only one vending machine, the university alternates between Pepsi and Coke machines.

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Southeast currently has 43 Coke machines and 44 Pepsi machines. Coke will install the next single vending machine.

Gil Seres, director of business operations at Southeast, said Central States Coca-Cola removed one of its vending machines because of poor sales.

Under the contract, Southeast receives a 30 percent commission on the vending machine sales. Sales of both Coke and Pepsi products totaled $214,667 in the last fiscal year that ended June 30.

After taxes, Crisp's company netted revenue of $63,482. Central States netted $81,388.

Southeast netted just over $62,000 from the vending machines, with $27,207 coming from the sale of Pepsi products and $34,880 from Coke products.

Both the university and the two bottling companies make money off the sale of soft drinks at the Show Me Center. Last fiscal year the Show Me Center had $98,000 in gross sales of Pepsi and Coke products.

School officials didn't have an immediate breakdown of how much the university paid to the two vendors for the soft-drink products sold at Show Me Center concession stands.

The Show Me Center crowds favor Coke products over Pepsi products by about a 3-to-1 margin, said center Director David Ross. "We are a rarity in that we sell both products," he said.

Most arenas have exclusive contracts with either Coke or Pepsi.

Ross said the university didn't want to alienate either vendor.

Pepsi, for example, paid for the basketball scoreboard in the Show Me Center. Coca-Cola paid for the electronic sign outside the Show Me Center that advertises events.

Duffy said the university has steered clear of exclusive contracts. But he wouldn't rule out the possibility of exclusive contracts in the future.

"Up to this point there has been demand for both Coke and Pepsi, so campuswide we offer both products to students," he said.

Don Dickerson, a lawyer and president of Southeast's Board of Regents, defended Crisp's actions in Illinois.

Said Dickerson: "I don't think there is anything illegal about what Harry did over there. He has been a wonderful supporter of several institutions."

Some Missouri schools also have exclusive agreements with soft-drink vendors. St. Louis University last year gave Coca-Cola exclusive rights to sell its products on campus. Coke products also are sold at the University of Missouri-Columbia under a similar arrangement.

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