IU’s Coke contract renewal in question

IU is currently questioning if it will renew its exclusive contract with Coca-Cola, which expires June 30.

IU’s Anti-Sweatshop Advisory Committee is in discussions for recommendations to be sent to IU Vice President for Engagement Bill Stephan. The committee is meeting during the next two weeks and is expected to send recommendations regarding the contract renewal to Stephan at the end of the two weeks.

In addition to recommendations sent to Stephan, the IU purchasing department will analyze the business side of the decision to renew the contract. The purchasing department will look for compensation between the University and Coke, as well as weigh other contract issues and financial benefits.

Dean of Students Dick McKaig said the question of Coke contract renewal originated from IU’s Anti-Sweat Shop Advisory Committee’s concerns about Coke’s alleged groundwater draining activity in India and Colombia.

In response to the Colombia allegations, Coca-Cola issued a statement in 2006 saying that the employees of the corporation’s bottlers enjoy a union-friendly environment. It said that only 4 percent of workers in Colombia are unionized but 31 percent of bottler employees of Coca-Cola in the country are members of unions.

“Over the past several decades, Colombia has experienced much internal conflict, which affects trade union leaders and other people from all walks of life,” the statement said. “Despite the volatile environment, The Coca-Cola Company and its bottlers have maintained operations and have worked to provide safe, stable economic opportunities for the people of Colombia.”

The company also issued a statement saying that its practices in India are environmentally friendly and legal.

The 12-person Anti-Sweatshop Advisory Committee was originally formed to make sure companies that wanted to use IU’s logo follow ethical labor practices.


“Coke isn’t necessarily a direct function of the advisory committee, but it is a common latitudinal issue to look at,” McKaig said.

The committee first started studying the Coca-Cola issue a few years ago. The issue is unique because it deals with purchasing instead of licensing.

Several universities canceled their contracts with Coca-Cola after the allegations became public, including two Big Ten schools: the University of Illinois and the University of Michigan.

If IU renews the contract, Coca-Cola products will continue to be sold exclusively on campus. If not, the University will also look into other options as an alternative to Coke, such as another exclusive contract or using multiple vendors.