This was my first reaction, too.

The buyer at the university could just be doing their job, signing contracts to ensure (ideally) stable vendors and a good price by signing such a long contract term.

Coca-Cola is sort of like the Apple of cola in that they're the upmarket brand almost everywhere around the globe. Unless Coke has a sales, marketing, or branding angle (see, e.g., Disney deal mentioned elsethread), they won't discount nearly as deeply as Pepsi, which is perennially in second-place at best (Mt. Dew notwithstanding). Pepsi is the obvious choice for any outlet where your customers are captive (e.g. sit-down restaurants) and you don't otherwise care about looking cheap for not offering Coca-Cola.