Procurement Director's Memo to U-M Department Heads
(Jan. 3, 2006)
To: U-M Deans, Directors and Department Chairs
From: Judith C. Smith, Director of Procurement, Logistics and Business Services
Date: January 3, 2006
Re: Procurement of Coca-Cola Products
Beginning January 1, 2006, the University of Michigan is temporarily suspending its direct procurement and use of Coca-Cola products. The University has been working with Coca-Cola on an investigation of their overseas operations in Colombia and India to assess whether they are operating in a manner consistent with our Vendor Code of Conduct. At this time, Coca-Cola has been unable to proceed with independent investigations according to deadlines established by the University. As a result, we are suspending procurement until we reach the milestones outlined in the deadlines. Until that time, we are requiring that all Departments within the University of Michigan Ann Arbor, Dearborn and Flint Campuses and the Health System refrain from purchasing Coca-Cola products for University events, hosting requirements, University food services, and cash operation sales (i.e. vending and convenience stores).
The University will honor those orders placed prior to January 1, 2006, and units may deplete inventories purchased prior to January 1. Additionally, vending machines and coolers that have previously been stocked with Coca-Cola products either will be stocked with alternate products, or will remain empty when the existing stock is depleted. However, some third-party vendors (such as restaurant franchises) have agreements to distribute Coca-Cola products. Those vendors likely will continue to sell Coca-Cola as part of their food-service operations.
The decision to suspend offering Coca-Cola products at the University is in accordance with a recommendation from the University of Michigan Dispute Review Board (DRB). A complaint was filed with the DRB by University student organizations in November 2004 alleging that Coca-Cola and its bottlers in Colombia and India violated the U-M Vendor Code of Conduct. After following a careful review process, the DRB determined there to be credible evidence supporting the complaint and recommended a set of actions which included third-party, independent audits and remediating the problems if any were uncovered.
Progress in launching and completing these independent reviews, as well as remediation of any identified problems, will continue to be important to the University’s ongoing business relationship with Coca-Cola. I will notify the University and Health System community when it is appropriate to resume the use of Coca-Cola products.
Coca-Cola products affected by the U-M purchasing suspension (Jan. 1, 2006)