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Subway IP LLC announced it has signed an agreement with PepsiCo to supply beverages to its stores in 2025. This deal officially replaces Coca-Cola as the restaurant's beverage partner.
With the switch, PepsiCo will become Subway's exclusive beverage provider for 10 years. The products will be supplied to all the sandwich chain's locations in the United States.
Soda Wars Intensified
As per CBS News, starting Jan. 1, 2025, Subway will remove Coca-Cola products and serve drinks under the PepsiCo brand. Coca-Cola and PepsiCo are rivals, so Subway's shift intensified the war between the leading soda makers, which was won by the latter this time.
Subway's new agreement with PepsiCo ended its 15-year deal with Coca-Cola as a beverage partner. The latter first signed a contract with the fast-food company in 2003, which involved the supply of Coke products to Subway stores worldwide. The restaurant already serves Pepsi products in international markets such as the Netherlands, Canada, and Germany.
Why Subway Picked Pepsi over Coke
The chain has almost 37,000 branches in more than 100 countries, and the decision to drop Coca-Cola for PepsiCo was said to have been based on customers' preferences across demographics. As part of the switch, PepsiCo is expected to provide new beverage equipment to Subway stores and give additional value to franchisees.
Under the new agreement, the sandwich and salad stores will offer a variety of PepsiCo beverages such as Pepsi, Mountain Dew, Pepsi Zero Sugar, Lipton, Starry, Gatorade, Aquafina, and Tropicana. All of the chain's franchisees will also be given the option to offer a more comprehensive selection of Gatorade drinks.
"The partnership with PepsiCo is an exciting milestone in our journey to become America's favorite place to eat, drink, and work," Subway's North America president, Doug Fry, said in a press release. "It is a win-win for everyone, as it brings a delicious suite of beverage and snack choices to our guests, driving additional consideration of these menu items, while also providing cost-effective, streamlined solutions to our franchisees."
Photo by: Subway Press Release
