PepsiCo Inc. has reached an agreement to become the exclusive beverage provider for all Subway sandwich shops in the US, replacing rival Coca-Cola Co. as the drink supplier for one of the nation’s largest chains.
On Tuesday, Subway announced a new 10-year agreement to feature PepsiCo products, including Mountain Dew sodas, Tropicana juices, and Gatorade sports drinks.
Starting from January 2025, Coca-Cola brands such as Sprite, Fanta, and Diet Coke will gradually phase out from the sandwich chain. This replacement process will extend over several months across Subway’s network of franchisee-owned restaurants.
Continue Exploring: Subway India refreshes its menu with Coca-Cola, ends 5-year PepsiCo partnership
“We are committed to serving Subway through the end of this year,” Coca-Cola said in a statement. The beverage giant has served Subway’s US restaurants for nearly 20 years, the company said.
Subway is Coca-Cola’s largest US fountain account by number of locations, according to Beverage Digest.
Subway, which operates about 20,000 restaurants in the US and nearly 37,000 worldwide, has announced its intention to extend its existing agreement with Frito-Lay, the snack-food unit of PepsiCo, to supply chips and snacks at its establishments until 2030. Moreover, PepsiCo is already the beverage provider for Subway outlets in several regions outside the US.
In 2023, Subway announced a deal to be acquired by the Atlanta-based private equity firm Roark Capital Group for nearly $10 billion. The deal is pending a Federal Trade Commission investigation, according to Politico.
Continue Exploring: AB InBev and PepsiCo collaborate to launch alcoholic 7Up in Canada
