UC Merced recently completed negotiations on a new multi-year Master Services Agreement with PepsiCo, securing $77,000 in actualized incentives and an estimated $22,000 in annual value-based benefits over the life of the agreement.
Led by UC Merced's Category Manager for Auxiliary Services, the agreement establishes a long-term strategic partnership built on shared goals, performance accountability, and measurable value. The negotiation process brought together stakeholders from Athletics, Housing and Auxiliary Services, Hospitality and Catering, and Sustainability to ensure alignment with institutional priorities and UC policy.
The agreement includes many benefits beyond financial — marketing support, Gatorade Sideline Fund resources, and opportunities to pilot emerging food and beverage programs. The structure also provides flexibility to accommodate future campus needs.
This outcome demonstrates the value of disciplined strategic sourcing and supplier relationship management—turning a standard contract renewal into a partnership that delivers ongoing operational, programmatic, and financial benefits for UC Merced.